BBC White Paper
Debate between John Whittingdale and Deidre Brock
Mr Whittingdale
There will be a non-executive member of the BBC board to represent England, but not specifically each region. The requirement on the BBC, as part of its purpose, is to serve the nations and regions. The BBC is fully aware of the dissatisfaction that is felt in some parts of England. My hon. Friend identified the west midlands. The level of investment by the BBC in the west midlands has already been debated in the House in the past. It is important for the BBC to invest in production in every part of the United Kingdom and to reflect the requirements of every part of the country.
Deidre Brock (Edinburgh North and Leith) (SNP)
Mention is made in the White Paper of sub-committees for the four nations. Can the Secretary of State elaborate a little more on what might be the make-up of those sub-committees and how they will be chosen?
Mr Whittingdale
I am afraid that I cannot do that at this stage. That will primarily be a matter for the BBC. While the charter will set out the over-arching governance structure—in other words the creation of a unitary board and an external regulator—organisation within the corporation itself is largely a matter for the BBC. Obviously, I encourage the hon. Lady to discuss that matter with the BBC and perhaps the new chairman of the board, who is currently the chairman of the BBC Trust.
I was tempted by the hon. Member for Perth and North Perthshire to talk about some of the evidence that I gave yesterday to the Select Committee. Obviously, the House of Lords Committee has also taken a close interest in these matters, and I have no doubt that the Committees in both Houses will continue to do so as we move towards producing a draft charter, which I hope to do before the summer. Members will then have plenty of time to study it in detail before debates in both Houses as well as in the devolved Administrations, as we committed to in the memorandum of understanding with the devolved Administrations. Once approved by the Privy Council, the new charter will formally come into effect on 1 January 2017 and the BBC will then transition to its new model of governance and regulation over the ensuing months.
I will not repeat all the details of the White Paper, because we had a lengthy discussion when it was published, but let me address the two specific concerns, which were raised by the shadow Secretary of State, of editorial and financial independence. On the former, the new governance structure is exactly as recommended by Sir David Clementi in his widely welcomed report. Whereas previously all of the appointments of the governors of the BBC and, following changes, the BBC Trust were made by the Government, at least half of the new BBC board will be appointed by the BBC. The six positions that are Government appointees will be made through the public appointments process, which was not previously in place. Peter Riddell, the new commissioner for public appointments, said:
“I welcome the broad principles outlined in today’s BBC White Paper about how appointments will be made to the new Unitary Board. To put these into practice, there will need to be a robust, independent process which attracts a broad range of candidates for these posts.”
That is exactly what the Government want to see. The BBC accepts that the Government should appoint both the chairman and the deputy chairman through the public appointments process. It has questioned whether the Government should make the appointment of four non-executive directors, but those four NEDs are there specifically to represent each of the nations of the UK, and their appointment is made not just by the Government in Westminster, but in consultation with the devolved Administrations. If that was taken away, we would lose the ability of the devolved Administrations to have a say in the appointment of the governor to represent each of the nations of the UK.
However, as well as putting in place a more independent board, we will also strengthen the independence of the director-general as editor-in-chief. Editorial decisions will be a matter for him and the BBC executives— not for non-executive board members. Those non-executive members will be able to hold the director-general to account for his decisions, but only after programmes are transmitted. It is clear that the board’s involvement is to oversee and to deal with possible complaints about editorial decisions, but only after transmission of programmes.
The shadow Secretary of State mentioned that we have decided to extend the term of the charter to 11 years specifically to meet the concern that it should not coincide with the electoral cycle. It is correct that we are intending to have a mid-term health check, and, as I have repeatedly said, it is precisely that—a health check. It is not an opening up of the charter. However, it does seem sensible that, if we are setting a charter for 11 years, we should not have no opportunity whatever to look at how it is working for the whole of that 11-year period, particularly at a time when changes are taking place so rapidly. We have said explicitly in the White Paper that it is a review to provide a health check focusing on the governance and regulatory reforms in the mid-term. We have gone on to say that the review will not consider changes to the fundamental mission, purposes and licence fee model as these have been determined by the current charter review process. I make it clear again that this is a health check to examine how the changes we are putting in place are working, but we do not anticipate any need to reopen questions about the charter.
BBC
Debate between John Whittingdale and Deidre Brock
Mr Whittingdale
I would be very happy to do so. On the issue of digital audio broadcasting, I fully recognise that there is still some way to go to achieve the coverage that will be necessary before we can consider switching off analogue. The ability to listen to DAB on the move in cars is one of the crucial factors that will influence our decision, and there is still more work to be done. However, we expect the BBC to continue to take a leading role in this regard. My hon. Friend asked some specific questions. It has long been recognised that the licence fee is essentially a tax, because it is a compulsory fee imposed by the Government and enforced by criminal sanction. It is recognised as a tax by the Office for Budget Responsibility and others on that basis.
I turn now to my hon. Friend’s specific question about what is known colloquially as the WOCC. The window of creative competition was put in place by the BBC. Under the existing arrangements, the independent production quota is 25% and then the WOCC accounts for another 25% chunk of content, which can be competed for by the independent production sector. The remaining 50% is reserved for the BBC’s in-house production. It is that 50% that we are removing, so, in essence, our proposal is to increase the WOCC to 75%.
Deidre Brock (Edinburgh North and Leith) (SNP)
I was pleased to note that particular mention was made of MG Alba and S4C, the two channels that support two unique minority languages and cultures of the British Isles. However, I also note that the statement referred only to maintaining production quotas outside London, which is a little disappointing for us in Scotland, because we were hoping that the quotas would be increased. Will he assure us that he supports further decentralisation and the improvement of commissioning opportunities for the regions and countries of the UK?
Mr Whittingdale
The quotas are of course a minimum requirement, and it is for the BBC to do its best to exceed them. In answer to the hon. Member for East Dunbartonshire (John Nicolson), I referred to the letter that the director-general sent today to the Cabinet Secretary for Culture, Europe & External Affairs in the Scottish Government, in which he commits the BBC to continuing to do its best to increase the proportion of BBC network production expenditure in each of the nations of the UK. He said
“we recognise that this spend needs to work harder”
and that he will be doing his best to ensure that Scotland receives funding that at least is proportional to its population. I am sure that the hon. Lady and her colleagues can pursue that further with the director-general.
Oral Answers to Questions
Debate between John Whittingdale and Deidre Brock(8 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Whittingdale
The BBC charter expires at the end of this year, and that provides an opportunity to look at all aspects of the BBC in what is a very fast-changing media landscape. That is the purpose of the charter review. We have not reached any decisions yet and we are listening to all expressions of opinion about the future of the BBC, of which there are very many.
Deidre Brock (Edinburgh North and Leith) (SNP)
13. How does the Secretary of State explain the worrying discrepancy between the amount raised via licence fees and the amount spent in Scotland? There is a mismatch between the £335 million in income for the BBC from Scotland and the £190 million spent there. Does he not agree that a fairer share of that income would boost our broadcasting sector and provide funding for the restructuring of BBC Scotland?
Mr Whittingdale
Of course, viewers in Scotland, just as elsewhere in the United Kingdom, benefit from the national programming of the BBC. She will be aware that the director general recently gave evidence to the Scottish Education and Culture Committee, in which he pointed out that in 2014 £108 million was spent on local content and that that rose to more than £200 million when central support and distribution costs were included.