BBC Charter Renewal Debate
Full Debate: Read Full DebateJohn Whittingdale
Main Page: John Whittingdale (Conservative - Maldon)Department Debates - View all John Whittingdale's debates with the Department for Digital, Culture, Media & Sport
(3 days, 3 hours ago)
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I beg to move,
That this House has considered Government proposals for renewal of the BBC Charter.
It is a pleasure to serve under your chairmanship, Mrs Harris. It is also a pleasure—although not wholly surprising—that the debate is so well attended. We may struggle to get everybody in; I will do my best to help. I am delighted to see the Under-Secretary of State for Culture, Media and Sport, the hon. Member for Barnsley South (Stephanie Peacock). She and I have spoken together about media matters many times. It is good to see her back on her former brief. I understand that the Media Minister is otherwise occupied in the House.
It is just over a year since I held a debate in this place on BBC funding. Since then, quite a lot has happened concerning the BBC. We have had major editorial failings around things like the “Panorama” reporting of a speech made by the President of the United States, the coverage of Bob Vylan at Glastonbury, and the documentary about Hamas. We have also seen some shocking revelations about harassment and bullying within the BBC, with the ongoing repercussions of the Huw Edwards incident and then the Gregg Wallace revelations. On funding, which I suspect will be the major topic in this debate, last year we saw a further 300,000 people declare that they no longer needed or were willing to pay the licence fee. All those things, I suspect, contributed to the decision of Deborah Turness and Tim Davie to resign. I was sorry that Tim Davie left his post. I think he did a good job in a very difficult circumstance. It is a sadness that most directors general, rather like politicians, have careers that end unhappily.
We have also now seen the publication of the Department’s Green Paper on the future, which points out at the beginning that unless the charter is renewed by 31 December 2027, the BBC will cease to exist. I had responsibility, in the main, for the renewal of the last charter. I did not want to see the BBC disappear then, and I do not want to see the BBC disappear today. Therefore, it is important that we agree. The charter renewal document is wide-ranging and covers a huge amount of ground. I am sure hon. Members will wish to touch on a number of elements. I will concentrate on two.
The first is the issue of governance and maintenance of standards. The last charter review resulted in the replacement of the BBC Trust, which at that time had overall oversight of the BBC, with a board, bringing together executive and non-executive members. It is worth remembering that the BBC Trust, which preceded the board, was wholly appointed by the Government. In theory, the board has only five Government appointees; of those five, three are in agreement with the Scottish Parliament, the Welsh Assembly and the Northern Ireland Assembly. The UK Government actually appoints only two members, so concerns about political interference and independence are misplaced.
The National Union of Journalists wants an inquiry into allegations of inappropriate interference by current politically appointed board members in BBC editorial matters. The right hon. Gentleman said that there are only two such members. Does he think that an inquiry is necessary to restore public trust in the BBC board?
No, I do not. I suspect the hon. Lady is referring to the board member for England, who I believe has outstanding experience in the field of BBC editorial independence; he spent a brief time in politics. It is worth remembering that the political appointees over many years have come from both sides of the House. There was a chair who was previously a Conservative Cabinet Minister, and a deputy chair who was previously a Labour Cabinet Minister. If there was ever a concern, it was about the appointment of a former Labour Cabinet Minister to a management position. That seemed to me much more concerning since they had direct day-to-day editorial decisions. At the time, although I got on very well with James Purnell and I worked with him when he was Secretary of State, I did not think that he should have been appointed to a management position. But I have no concerns about political interference at the moment.
On the failings revealed by the Prescott report on editorial standards, clearly there need to be changes to the editorial oversight. As was debated a few months ago, there is a strong case for making the editorial standards committee much more independent. It is also at least worth considering—this is part of the Green Paper—whether the job of running an organisation with around £5 billion to £6 billion can be combined with having overall control over the entire editorial output of the BBC. Those are both huge jobs and I think it is becoming increasingly difficult for one person to hold both of them. That is something that needs to be considered.
The biggest challenge facing the BBC, which I sought to highlight in the debate a year ago, is about future funding. We have seen a steady decline in the number of people who are willing to pay the licence fee. The licence fee evasion rate has doubled so that it is now 12.5%. One in eight who should be paying the licence fee are not paying it because they are avoiding their responsibility. On top of that, another 3.6 million, we are told, have declared they do not need to pay it because they do not use the BBC or watch live TV. The Public Accounts Committee recently concluded that that results in a loss to the BBC of over £1.1 billion, and it will go on increasing.
We are seeing more and more choice available through streaming services, which people choose to subscribe to. People no longer turn to the BBC in such numbers for news and current affairs. And of course the licence fee is rising. At a time when the cost of living is high, people will consider whether they wish to continue paying it. So the Government are right to look at alternatives, which is something I have been involved in for over 10 years. When I chaired the Culture, Media and Sport Committee, we produced a report on the future of the BBC. I am delighted to see the current Chair of the Committee with us this afternoon. A lot of the arguments that we considered 10 years ago stand today.
There was one thing I was disappointed to see in the Green Paper. First, before considering how to pay for the BBC, we should ask what we want the BBC to do. Let us first of all decide what the BBC ought to be doing and then how to pay for it. Yet the Green Paper rules out this debate. It states that
“we do not believe a smaller BBC”
is in the public’s interest. By making that statement, we are not questioning whether the BBC still needs to maintain eight national television channels and 10 national radio stations, despite the fact that the alternative choice available has enormously increased over the past 10 to 15 years.
Richard Baker (Glenrothes and Mid Fife) (Lab)
Does the right hon. Member appreciate the importance of the BBC’s investment in the devolved nations and regions, which is all the more important given the fact that private and independent media are withdrawing from some of that coverage and production? This year, the BBC will double spending to £100 million on programmes produced in Scotland and other devolved nations. That kind of investment is vital for my constituents and others.
I completely understand that. The Green Paper contains quite a lot about the BBC’s involvement in providing coverage in the nations of the United Kingdom, and indeed in the languages of the United Kingdom. If the hon. Gentleman believes, as I do, that one of the principal purposes of the BBC is to provide content that otherwise would not be available, then that is a good example of where it is absolutely right that the BBC should continue to invest.
There are some things, however, that the BBC does not necessarily need to continue doing, because there is such choice available. As I say, I regret the fact that that does not seem to be part of the debate within the Green Paper. It seems to suggest that the BBC should go on doing everything it does now, but that then begs an even harder question: if the BBC is to go on spending as much as it does today, how will we pay for it at a time when the willingness to pay the licence fee is declining year on year?
I respect the right hon. Gentleman’s views, as he is a former Chair of the Culture, Media and Sport Committee. Does he agree that 47p a day represents value for money for nine television stations, 17 radio stations, iPlayer, BBC Sounds and the BBC World Service?
Whether or not it is value for money is a debate that the BBC has advanced for as long as I have been debating the BBC. The question is: what do we compare it with? Is 25p value for money, or is £1.50 value for money? Unless it is decided what the BBC should be doing, we cannot determine that.
The other big factor is that paying the licence fee is not a choice. People do not have the opportunity not to pay; if they want the BBC, and indeed live television at all, they are required by law to pay the licence fee. Saying, “Oh, it’s fantastic value for money,” is very difficult when nobody has ever been given the opportunity to demonstrate whether they think it is value for money by choosing whether to pay for it.
Cameron Thomas (Tewkesbury) (LD)
One thing I learned recently on the Culture, Media and Sport Committee is that one way the BBC provides value for money is by being one of the only sources—if not the only source—of income for children’s content creators. Without that income, we would not get quality content for our children. There is a way of looking at this not purely from an individual perspective, but as an investment in the future. Does the right hon. Gentleman agree with that?
I agree that children’s television is incredibly important, and it is a matter of real concern that fewer and fewer commercial channels are investing in children’s TV. It was for that reason that, at the time of the last charter review, we set up something called the young audiences content fund, funded by the licence fee, which allowed other broadcasters to bid for licence fee funding to supply children’s programming. It was very successful. Unfortunately, it did not survive the mid-term review, but it was created in recognition of how important that provision is. I would like to see a revival of the young audiences content fund, because I think it was very valuable.
Every time a Government has looked the licence fee, they have come to the conclusion that it has many flaws but there is no real alternative. The Culture, Media and Sport Committee that I chaired did recommend an alternative; we looked at the possibility of a household levy. While that is not perfect, it has already been ruled out. That too is excluded by the Green Paper, which states of the licence fee that
“we are not considering replacing it with alternative forms of public funding”.
So all those particular options have been closed off. However, the licence fee is highly regressive and hard to enforce. Evidence shows that women on low incomes face prosecution more than other groups. There are a lot of things wrong with the licence fee.
In terms of alternatives, the Green Paper suggests one or two options. It talks about the possibility of extending commercial activity, which I certainly welcome, as it already contributes quite a large amount to the BBC’s income.
Ann Davies (Caerfyrddin) (PC)
S4C’s headquarters are within my constituency. It employs 2,500 people across Wales, and contributes £7.6 million to our economy in Caerfyrddin itself—that is without the Welsh perspective. Although I am glad to see that consultation is discussed in the Green Paper, it needs to be more than a tick-box exercise. Does the right hon. Gentleman agree that any consultation must be meaningful for the people of Wales and for S4C?
I visited the S4C headquarters, and I am a strong supporter of S4C, which is often overlooked in debates about the licence fee. Of course, it is funded by the licence fee, and that is something we sought to preserve when I had responsibility for it. It needs to be taken into account. I was glad to see that the Green Paper talks quite a lot about S4C and, indeed, MG Alba, which supplies Gaelic broadcasting in Scotland.
The issue raised in the Green Paper that is causing most concern to other organisations is the possibility of advertising. Advertising on the BBC would obviously change the nature of the BBC but, as is acknowledged, it would also have a huge impact on all the commercial broadcasters that rely on advertising. If the BBC took advertising, I suspect one of the consequences would be that Channel 4 would immediately go bankrupt, because Channel 4 is still completely dependent on advertising for its income. Although some people doubt it, I do want to see Channel 4 survive. It is not just Channel 4: ITV depends in large part on advertising, as does, of course, the whole commercial radio sector. If advertising were introduced on BBC TV or radio, the impact on the commercial sector would be enormous, and not something that I think the Government would want to see. The Green Paper acknowledges that there would be an impact, but it still suggests it is one option under consideration.
That leaves only one alternative for the future: subscription. The last charter stated that the BBC should trial a subscription service for additional content on iPlayer. That never happened—the BBC was not very keen on it—but it was there. In the longer term, it becomes a more and more realistic option, not only because the alternatives look less and less attractive or acceptable, but because in due course it will become technologically possible. As I have suggested many times, it is not currently realistic to talk about the BBC moving to a subscription model, because a large number of people in this country still rely on digital terrestrial transmission to receive television services. If someone has DTT—Freeview, as it is known—they cannot switch it off. If they cannot switch it off, it cannot be charged for, because people cannot choose not to pay. Until everybody receives their television online—through the internet, rather than through DTT—a subscription model is not a realistic option.
My right hon. Friend is making an excellent speech and demonstrating why he is such an expert in this policy area. I reiterate the point about turning off free-to-view terrestrial television, which is obviously a live part of the licence fee discussion. Some, such as ITV, are arguing strongly that terrestrial television should be turned off. For my constituents, many of whom do not have access to good broadband connectivity, being entirely dependent on a fee-paying service is not an option, because the connectivity is just not there. Does my right hon. Friend understand that such communities would be deprived of a TV service if that option was adopted?
My hon. Friend perfectly illustrates why I do not think it is realistic at the moment. Until we reach the point at which everybody in the UK can access TV online—I recognise that that is a bigger challenge for my hon. Friend’s constituents than for those in many other parts of the country—it is not realistic, but we should begin to prepare for that time now, which is why we need to consider the option suggested in the Green Paper. The moment will come when it becomes possible.
I realise that many other Members want to speak, so I will draw my remarks to a conclusion. I welcome this opportunity to debate the BBC charter renewal, and I regret that there has not been one before now. A number of options have been set out, and I simply say that the one that is not an option any longer is the status quo. I look forward to the contributions from others about what the future should hold.
I remind Members to bob so that I can ascertain who wishes to speak. I will be imposing a time limit. Sir John was very generous in taking interventions, but we need to keep interventions and responses much shorter to allow everyone to speak.
I thank you, Mrs Harris, the Minister and all Members who participated this afternoon. The fact that there are so many present—to my regret, I suspect a lot have had to curtail their remarks due to the time limit—demonstrates the importance of this subject. I welcome the Minister’s assurance that there will be further opportunities. My hon. Friend the Member for Droitwich and Evesham (Nigel Huddleston) is right: it is important that as many people as possible respond to the consultation, although I suspect that the Minister and her officials may hope that we do not have a repeat of what happened last time, which was a 38 Degrees campaign generating 190,000 responses. The Department for Digital, Culture, Media & Sport had to hire a new building in order to count and read them all. However, it is important, and I hope that this debate is just the start of what will continue to be a discussion leading to the next charter.
Question put and agreed to.
Resolved,
That this House has considered Government proposals for renewal of the BBC Charter.