Channel 4 Privatisation
Debate between John Whittingdale and Julian Knight(2 years, 6 months ago)
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Julian Knight (Solihull) (Con)
I heartily welcome a DCMS debate in this place—three hours, no less! My friend the hon. Member for Ochil and South Perthshire (John Nicolson) said that one current and two former Select Committee Chairs were drawn by this debate; he called us the three Doctors. I hope I was not Sylvester McCoy in that scenario.
Mr Whittingdale
I will make the intervention that I was denied by the hon. Member for Ochil and South Perthshire (John Nicolson), who made a good joke about Doctors. I merely wish to point out we have not only the current Chair but three former Chairs of the DCMS Committee in the Chamber.
Julian Knight
I thank my right hon. Friend for pointing that out and for the extra time his intervention allows me.
Despite my pleasure that we are debating a DCMS matter, which thanks to the business managers we were not able to do prior to Prorogation—for example, on online safety—I will not be supporting the Opposition’s rather over-long motion. However, I have mixed emotions regarding the decision to privatise Channel 4.
Intrinsically, as a free market Conservative, I recognise that it is a historic anomaly that Channel 4 should still, after 40 years, be in public ownership. I start from a simple position, which is that all things should be in the private sector unless there is an overwhelming case that they should be in public ownership. Public ownership is so often the dead hand on innovation. It implies stasis and has a wider sclerotic implication for the economy. However, being sclerotic and lacking innovation are two things I could never accuse Channel 4 of during its 40 years. For much of its first 40 years, the broadcaster has navigated its hybrid status between commercial and public ably. Other Members will no doubt list its strengths, which are myriad and cannot melt away like an ice sculpture.
I agree that privatisation will allow Channel 4 to capitalise on its achievements and attempt to keep up with the rampant inflation in the production sphere, which is an aspect of the wider inflation in the economy, but is also due to the success of UK film and TV production. In fact, I think the UK economy would have been in technical recession in 2018 and 2019 had it not been for those industries, such is their importance. However, the idea that privatisation will meant that Channel 4 will compete head-on with Prime or Netflix is an odd one.
Channel 4 is much better using its status—privatised or not—to better collaborate with other public service broadcasters. PSBs need to find a way to offer a combined front to the public: a super-BritBox, if you like. Imagine the entire rich back catalogue of British television streamed in one place and given due prominence through legislation. Does privatisation make such a thing more likely? With the right buyer, probably. It is unlikely that any buyer would look to—how can I put it?—Richard Desmond-ise Channel 4, as we saw with Channel 5.
I am not certain that I take the view of the hon. Member for Manchester Central (Lucy Powell) that a buyer will wait out 10 years and drive down the public service broadcasting. The whole point of Channel 4 is that it has unique selling points. It appeals to a young audience, which is extremely attractive for advertisers and marketeers, particularly in the age of streaming online, as well as for data sharing, which has wider implications.
Does the sale make sense from an Exchequer viewpoint? That is really marginal. It will raise enough to service, not pay off, the national debt for a total of 72 hours. Such is the lack of value to be derived that the Treasury has said that it is happy for the Department for Digital, Culture, Media and Sport to pledge the money towards the levelling-up agenda. We will see what comes out in the wash in that respect, but I always await the pleasant surprise of the Treasury following through on such a commitment. However, let us be frank: this is not about raising money. It is probably not about the idea that the channel will be a drain on public resources either; it has never been one in the past. However, it is better off being placed in the private sector to ensure that it can grow and develop.
Then we have the elephant in the room—the Jon Snow at Glasto, if you like. Is this in some way a revenge play? I hope not, because such things are deeply unbecoming. As individuals and collectively, we must always rise above such emotions. Personally, I believe that some of Channel 4’s Brexit coverage was shrill in the extreme and that it did not do itself any favours, but as a political class we have to be bigger than that in all respects. Actually, whenever I have gone on Channel 4 programmes, they have been perfectly fine: I have always been treated with respect and asked very thoughtful questions. We do Channel 4 down, but in many instances it offers unrivalled international coverage, and we would be really lacking without it.
In summary, is the privatisation of Channel 4 the right course of action? Probably, but only marginally. Is it being done for the right reasons? I sincerely hope so, but I would be more convinced if it were part of a genuine suite of measures to deregulate our economy and embrace the private sector, rather than being a one-off. Frankly, what we need in the Conservative party is not pieces of red meat to be tossed, but a genuine and coherent plan to offer the public so that they understand exactly what we are and what we are trying to achieve. That would happen if the word “privatisation” were used much more often, not just in our manifestos but in our public utterances.
Oral Answers to Questions
Debate between John Whittingdale and Julian Knight(3 years, 5 months ago)
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Mr Whittingdale
I agree that selling off Channel 4 with no remit would be a mistake and that is certainly not our intention. John McVay, who is somebody I know well and have a great deal of respect for, is right that Channel 4 has done an excellent job in investing in independent production, but it is up against competition from big streaming services that can make 10 times the kind of investment that Channel 4 is capable of. That is why we think it is the right time to look at its ownership in order that, potentially, it can have access to much greater capital, which it will need in order to have a thriving future.
Julian Knight (Solihull) (Con) [V]
My own personal view, and I stress that it is my personal view, is that the recovery of Channel 4 and the evolving media landscape warrant close consideration of privatisation and sale. Four years is a lifetime in the modern media marketplace. Does the Minister agree that this would be a good juncture at which also to consider whether Channel 4 could be bolstered by a merger with ITV or even by hiving off BBC Worldwide, the commercial arm of the BBC, which has often underperformed but has tremendous international potential to build scale for Channel 4?
Mr Whittingdale
I am grateful to my hon. Friend, and I commend him and his Select Committee for the excellent report on public service broadcasting that they produced recently, which drew attention to the fact that the way in which we consume television is changing fast and that the switch from linear to digital is taking place even more quickly than some people anticipated. We have reached no conclusion as to the appropriate future ownership model for Channel 4—we maintain a completely open mind—but he raises a number of interesting possibilities and we look forward to seeing what submissions we receive as part of the consultation.
BBC: Dyson Report
Debate between John Whittingdale and Julian Knight(3 years, 6 months ago)
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Julian Knight (Solihull) (Con) (Urgent Question)
To ask the Secretary of State for Digital, Culture, Media and Sport if he will make a statement on the findings of Lord Dyson’s report into the BBC.
The Minister for Media and Data (Mr John Whittingdale)
Lord Dyson’s report makes shocking reading. It details not just an appalling failure to uphold basic journalistic standards but an unwillingness to investigate complaints and to discover the truth. That these failures occurred at our national broadcaster is an even greater source of shame. The new leadership at the BBC deserve credit for setting up an independent inquiry and for accepting its findings in full. However, the reputation of the BBC—its most precious asset—has been badly tarnished, and it is right that the BBC board and wider leadership now consider urgently how confidence and trust in the corporation can be restored.
It is not for the Government to interfere in editorial decisions, but it is the job of Government to ensure that there is a strong and robust system of governance at the BBC with effective external oversight. It was to deliver that that we made fundamental changes when the BBC’s charter was renewed in 2015-16. Since then, the BBC Trust has been replaced by a more powerful board with an external regulator, Ofcom, responsible for overseeing the BBC’s content and being the ultimate adjudicator of complaints. We also made provision at that time for a mid-term review by the Government to ensure that the new governance arrangements were working effectively. That review is due next year but work on it will start now. In particular, we will wish to be satisfied that the failures that have been identified could not have occurred if the new governance arrangements had been in place. The BBC board has also announced today its own review, led by the senior independent director and two non-executive members, of the BBC’s editorial guidelines and standards committee. That review will examine editorial oversight, the robustness and independence of whistleblowing processes, and the wider culture within the BBC. It will take independent expert advice and will report by September.
In an era of fake news and disinformation, the need for public service broadcasting and trusted journalism has never been stronger. The BBC has been, and should be, a beacon setting standards to which others can aspire, but it has fallen short so badly and has damaged its reputation both here and across the world. The BBC now needs urgently to demonstrate that these failings have been addressed and that this can never happen again.
Julian Knight [V]
Lord Dyson’s report was utterly damning. Put simply, Mr Bashir has obtained fame and fortune by instituting document forgery and callously scaring a mentally vulnerable woman—not a mistake, as he claims in The Sunday Times, but something with more than a whiff of criminality about it. The BBC then covered this up, blackballing whistleblowers and ensuring that its own reporters did not report on Bashir. But it did not stop there. The BBC rehired Bashir, who it knew was a liar, promoted him, and, extraordinarily for the BBC, allowed him to moonlight for its main commercial rival. Mr Munro, head of news gathering, greeted Bashir’s return by citing his excellent
“track record in enterprising journalism”.
My sources suggest that Mr Bashir was not interviewed, but simply appointed—hardly a highly competitive process.
Does the Minister agree that Dyson leaves still more unanswered questions? Who precisely was involved in the 25-year cover-up and instituted the action against whistleblowers? Was Bashir rehired, in essence, so that he would keep his mouth shut? Did Lord Hall make the decision to rehire Bashir, or was that in fact Mr Munro?
Finally, the BBC has announced a review into some of those matters, and into how robust its current practices are. Does the Minister agree that a good starting point would be to ensure that the investigating panel is diverse? As yet, no women are included, which is ironic considering that the victim of Mr Bashir was a woman. Should whistleblowers be compensated, and the matter of BBC culture be considered, including the “us and them” between management and reporters, and the kowtowing to so-called “talent”, at the expense of the BBC’s own editorial guidelines? Does the Minister share my alarm that Mr Davie has recently removed the sole voice for editorial policy on the BBC’s executive committee? What does he see as the long-term implications for the BBC charter.
Mr Whittingdale
I congratulate my hon. Friend on his urgent question. He maintains the fine tradition of the Digital, Culture, Media and Sport Committee asking probing and incisive questions. The questions he raises are valid. The process by which Martin Bashir was recruited to return to the BBC, and his subsequent resignation a couple of weeks ago, are matters that the director-general is investigating urgently, and I expect him to provide a fuller account of exactly what happened shortly. I know my hon. Friend will want to examine the BBC on that question, and indeed on the other valid questions that he raised about the composition of the panel, its diversity, and the protection in place for whistleblowing. Those important questions need to be addressed, and I am sure that my hon. Friend and the Committee will do that.
BBC
Debate between John Whittingdale and Julian Knight(4 years, 5 months ago)
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Mr Whittingdale
I do remember my comments, and I never suggested that the BBC would not be faced with a very difficult decision, because the cost of maintaining the exemption is huge and would go on rising. My hon. Friend makes an interesting suggestion. We are coming up to a licence fee settlement in which we will be looking at all these questions, and I am certainly happy to consider the point he has made.
Julian Knight (Solihull) (Con)
Locking up the over-75s is a remote but still shocking possibility of the BBC move, as Lord Hall told the Select Committee on Digital, Culture, Media and Sport recently. Ahead of any potential decriminalisation, will the Minister assure the House that he will speak to the BBC in the strongest possible terms to ensure that there is no possibility of its aggressively prosecuting non-payment in a way that could lead to pensioners finding themselves in prison, where, ironically, they would receive a free TV licence? Will he take the opportunity of the mid-point of the charter to undertake a root and branch review of the future of funding and what we require from public service broadcasting?
Mr Whittingdale
As my hon. Friend knows well, the number of people going to prison has fallen to a tiny number, but it is still debatable whether that should happen at all. I hope the BBC will be very flexible in its implementation of its new policy and will take account of the needs of pensioners when it comes to enforcement. On the future of public service broadcasting and the licence fee, I absolutely can give him the assurance he seeks.
BBC White Paper
Debate between John Whittingdale and Julian Knight
Mr Whittingdale
This is the point at which I fear I will disappoint the hon. Gentleman. Although it is important that the BBC achieves high levels of satisfaction right across the United Kingdom, it is the British Broadcasting Corporation and it represents the whole of the United Kingdom, and I do not support making it a federal structure. The question of how it provides news coverage is for the BBC, but as it is the UK broadcaster, it is important that it should provide a UK-wide national news bulletin that draws the nation together.
Julian Knight (Solihull) (Con)
I thank the Secretary of State for so generously giving way. On this issue of Scotland and other regions in the United Kingdom, does he agree that, under this new arrangement, Scotland has far greater representation than many regions within England? The west midlands, for example, has an equivalent population to Scotland, but Scotland has a much greater seat at the table.
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.
Mr Whittingdale
We are actually putting in stronger financial controls now, because we are opening up the whole of the BBC for the National Audit Office to examine to consider the questions of whether maximum value for money is being obtained for the licence fee payer. Not only will the NAO be able to carry out value-for-money studies, as it has in some areas already, but it will become the auditor of the BBC. The NAO has a very good record of ensuring that public money is spent properly and is not wasted.
Julian Knight
To return to the health check, does the Secretary of State envisage that it would cover whether or not adequate progress had been made to allow access to independent producers, as set out in the White Paper?
Mr Whittingdale
We have set out a path that will, we hope, lead to the whole of the BBC’s schedule being opened up for commissioning. We would expect the BBC to meet the targets in doing that. We will continue to talk to the BBC about that and if it looked as though they were failing to meet those targets we might raise that with them before, but that is already set out in the charter. No changes would be required, because we have already made it clear that we expect the BBC gradually to open up the whole of the schedule until it reaches 100%.
BBC Charter Review
Debate between John Whittingdale and Julian Knight
Mr Whittingdale
As the hon. Gentleman will be aware, the time available before the expiry of the charter is now quite limited. We want to achieve a debate, and in time to reach firm views for renewal, but it would be difficult to set up an independent advisory panel within the current time period. That is why we decided not to go down that road, although I stand by what is in the Select Committee report—that there is an argument for doing so. The advisory panel is not an independent panel; it is simply an advisory group to provide advice. What is much more important, as the right hon. Member for Exeter (Mr Bradshaw) suggested, is for the public to have a full opportunity to get involved so that we get as wide a cross-section of views as possible, and we have put arrangements in place to ensure that.
Julian Knight (Solihull) (Con)
My right hon. Friend is to be congratulated on the launch of this extensive consultation process and the information laid before us today. It seems that there is little off limits. However, I and many of my Solihull constituents will be slightly disappointed that there are many mentions within the document of the Scots, Irish and Welsh, but little mention of the unequal position for the English regions, particularly the west midlands. For every licence fee bought in my region, we receive back only £14.50 in investment. Will my right hon. Friend assure us that he will press top-heavy BBC management to correct this unfair situation?
Mr Whittingdale
I am aware of the widely held view that the BBC needs to do more to serve individual regions. In the case of my hon. Friend’s region, I know there was a recent debate on the topic in Westminster Hall, in which he participated. It is indeed wholly appropriate to consider this issue in the course of charter review, and I hope my hon. Friend will continue to make his points while that happens.
Concessionary Television Licences
Debate between John Whittingdale and Julian Knight
Mr Whittingdale
On the right hon. Gentleman’s first point, I have already announced that we will be phasing out the broadband ring-fence over a period. I seem to recall that it was his Government who financed the digital switchover from the licence fee. As I have said, the licence fee settlement is a matter that will be considered as part of the charter renewal process, as it will obviously be affected by any decision taken on the purposes and scope of the BBC as a result of the charter review. We have sought to give the BBC the assurances that it has requested, but that has not in any way pre-empted the decisions that may be reached as a result of the charter review.
Julian Knight (Solihull) (Con)
My right hon. Friend will no doubt hear many protestations of poverty on behalf of the BBC today, but is he aware of the vast sums spent by the BBC on delivering Salford media city and the new Broadcasting House in London, and how this bipolar approach has effectively drained the rest of the country of investment, particularly the midlands?
Mr Whittingdale
I believe that the BBC’s investment in Salford was beneficial. It is important that the BBC demonstrates that it is serving all the regions and nations of the UK. Nevertheless, we will certainly consider the points my hon. Friend raises as part of the charter review.