(3 years ago)
Commons ChamberLet me start by congratulating the hon. Member for Cardiff West (Kevin Brennan) on introducing the Bill, which raises serious issues. Every time we speak in the Chamber, he points out that we do not just share a birthday but we were actually born on the same day.
It is a challenge I happily accept. As a result, we probably have similar tastes in music, although not identical. We grew up during the same era. Where we do agree is that we both share a love of music —it is tremendously important to me. It is also tremendously important to this country; we are exceptionally good at it and have been for many years. The music industry’s importance to the UK economy is frequently cited—as the Select Committee points out, it contributes more than £5 billion in gross value added—and we are the second biggest exporter of music in the world, which does an enormous amount in terms of global Britain and the projection of our soft power. The music industry is a huge success story.
The UK’s exports have great potential, but it is worth my flagging the fact that the UK’s music share is beginning to decline: in 2015, we took 17%, but that has now fallen to 10%. That is because of the growth of new markets—in particular, Latin America and the developing economies—and the advent of things such as K-pop. I do not know whether the hon. Gentleman is a fan of K-pop; I have to say that it slightly passes me by, but I recognise that it is extremely popular.
The hon. Gentleman and I have followed the music industry for many years. He declared his interest as a performer and songwriter—indeed, I have heard him play many times—and I should declare that my son works in the music industry for Columbia Records, which is part of Sony Music. I have learned a great deal about the economics of the music industry from him, but my love of music and involvement in the industry pre-date his birth by quite a number of years.
The hon. Gentleman talked about when he first got involved in music industry issues; I go back rather further: my first involvement was 35 years ago when I supported the music industry campaign for the introduction of a blank-tape levy. I fear that some in the Chamber may not even know what a blank tape is, let alone a levy on one. It dated back to the years when—this is guilty admission time—one could sit with a cassette tape recorder waiting for a song to come up on the top 20 and then record it. That was piracy and a breach of copyright and was to be condemned. When I learned more, I recognised that it was not to be encouraged and that there should be a levy. Some in the industry still advocate a levy, albeit not on blank tapes but on devices such as iPods or smartphones.
Blank tapes were an early example of the threat to the music industry from piracy, which of course increased dramatically with the advent of the internet. The hon. Gentleman talked a little about the threat that emerged from illegal downloading and, in particular, peer-to-peer file sharing and the growth of companies such as Pirate Bay and technology such as LimeWire.
I recall, when I was its Chair—a little while ago now—taking the Select Committee to see Lucian Grainge, about whom I want to say a word because, although the hon. Gentleman did not name him, he referred to him. Lucian Grainge is the chief executive of Universal Music and is going to bank a huge amount of money this year because Universal Music has just conducted a very successful initial public offering and sold a 10% share. As chief executive, he is going to profit from that and we should celebrate that: Lucian Grainge is a British music industry executive who has built Universal Music into the most successful company in the world. As a Conservative—somebody who can celebrate that success—and a British citizen, I am delighted that he is going to do so well, but the whole company will do well, too. It is a remarkable success story, because when we went to see him back in 2008-09, he told us that he was seriously concerned that the industry itself was going to die, such was the extent of the threat to the industry at that time as a result of piracy. Beginning in the early 2000s, there was a 15-year decline in music industry revenue that was directly attributable to piracy.
I completely agree with my hon. Friend. Composers, some of whom may not have their works performed live, are the foundation stone of the industry. I had dinner about three weeks ago with somebody who has probably never been heard of in this Chamber, Terry Devine-King, who is a composer, but writes for television and film productions and advertisements. He receives a good income from doing so. I absolutely recognise the importance of composers.
I take the right hon. Gentleman’s point about Take That. I do not seek to personalise these issues too strongly, but is he aware that Gary Barlow was one of the more than 200 artists who signed the letter presented to the Prime Minister in support of my proposals?
I suspect quite a lot of artists whom I enjoy and admire may have signed the letter to the Prime Minister, but that does not mean I necessarily think they are right. Some artists are extremely knowledgeable about the economics of the industry, but it is horribly complicated, as I think everybody who has looked at it or sought to participate in this debate will recognise.
Before I move on to the measures in the hon. Gentleman’s Bill, as a former Minister at the Department for Digital, Culture, Media and Sport, I must put on record that I am proud of the Government’s efforts to sustain the industry, particularly when live performance became completely impossible as a result of lockdown. The fact that the Government were able to find £2 billion for the cultural recovery fund and bring in schemes such as the live events reinsurance scheme has kept the industry going.
One thing we can celebrate is that live is now back, and for those of us who enjoy music it is now possible to go and listen again. Last Saturday I was at the Witham Public Hall listening to Bootleg Blondie, which I thoroughly recommend to anybody who is of my generation and remembers with great affection Debbie Harry—who is still performing today, I think, and is about to go on tour. I also went to the Chelmsford Hot Box, in the constituency of my hon. Friend the Member for Chelmsford (Vicky Ford), and listened to two live bands: one a Scottish rock band called Helicon, with a sitar player, and the second a Mexican rock band. The owners of that venue said to me that they could not possibly still be in operation had it not been for the cultural recovery fund, so I take this opportunity to point out that the Government did keep that industry going.
Of course, the thing that has been the saviour of the industry and has reversed Lucian Grainge’s dire prediction is streaming. Where I disagree with the hon. Member for Cardiff West is that he said streaming was taking over from radio. It is not; radio is doing pretty well at the moment and there is very little evidence that it is in decline. I have been talking to Global about that in the past 24 hours. Where streaming is taking over, it is taking over from physical product or downloading. The revenue from sales of CDs or downloading is in steady decline and people now rely more and more on streaming.
The hon. Gentleman also talked about the way in which radio distributes money to performers, artists and composers. That is done through PPL. It is worth noting that in America, artists who get played on the radio do not get any money at all, so there is a specific way that money is distributed as a result of radio plays in this country that is different from streaming, but if we look in some other countries there is no money at all.
As I said, the revenue to musicians comes from a large number of different sources, and streaming is only one. However, it is noteworthy that in the past few years, the share of money from streaming that goes to artists has gone up. Streaming has increased steadily, but between 2016 and 2019—figures that come from the International Property Office’s survey of creative industries’ earnings—artists’ remuneration has gone up by 46%, whereas revenue to the labels has only gone up by 31%. Artists are taking a bigger share of the revenue from streaming services than they were previously, and that is borne out by the IPO survey.
I question what the hon. Gentleman said about the failure of the industry to engage with the IPO; it is not the case. If he looks at the final report he will see that it recognises that, after an initial disagreement about the scope of the survey and one or two other points, the industry provided a lot of data. There is an improvement, but it could go further and I sympathise with one or two points that the hon. Member for Cardiff West made. However, it is not as if artists are suddenly being deprived of revenue as a result of the move to streaming. I shall comment specifically on some of the hon. Gentleman’s proposals and particularly on equitable remuneration.
Equitable remuneration is in the eye of the beholder. Who decides what is equitable remuneration? One answer proposed by the hon. Gentleman is the copyright tribunal. Spain has a system of equitable remuneration, which takes away money not from the rights holders but from the platforms, to give to the artists. There is an argument, which I shall come on to, that the platforms get and keep an unjustifiably high proportion of revenue. However, in the Spanish system, about 23% of the revenue goes on administrative costs.
The principal problem is the idea that labels make huge profits at the expense of artists. That ignores what labels do. I remember from the early days of the industry—before the time that the hon. Gentleman talked about—another campaign mounted by the Culture, Media and Sport Committee, whose then Chair, Gerald Kaufman, was the right hon. Member for Manchester, Gorton. The Committee pointed out that CDs cost tuppence-ha’penny to produce, and therefore it cost virtually nothing to make millions of them, and yet they were sold for a vast amount—£10 or more. What that ignored—and the same applies to streaming today—was the vast number of artists that labels supported on the basis that they could be tomorrow’s Ed Sheeran or Adele. In the vast majority of cases, sadly, they are not, but the only way we can find the stars of tomorrow is to invest in a huge number of artists, in the knowledge that we will find a jewel among them.
When labels invest in artists they expect to lose money in most cases. That is just the way in which the economics of the industry work. About 40% of that revenue goes into marketing and A&R, which identifies artists and finds them. On marketing, people say, “Who needs labels any more because you can put music up on Spotify or YouTube, and you can promote it yourself on social media?” I do not think you would find a single successful artist who would agree with that.
At the moment, there are 60 million tracks on Spotify, and 60,000 tracks are uploaded every day. Among those there may well be real talent and stars, but finding them in that noise is almost impossible. Where a label comes in is with its A&R people, who go out and listen to bands and performers, and find unrecognised talent, which they sign and put together with session musicians, orchestras and song writers, and then market it. That requires not just negotiation with radio stations but expertise in promoting records. One of the biggest places to promote music is TikTok, and a huge amount of effort goes into trying to elevate artists on social media. All of that is where the expertise of labels comes in. They have an important function.
During our debate, attention has been given to the three major global labels—Universal, Sony and Warner. However, 26% of the market for releases is now held by the small independent sector. I have to say to the hon. Member for Cardiff West that I have spoken to a number of independent labels and they are all really concerned about the provisions in his Bill. Just to give three examples from many, Dirty Harp, Good Soldier and Cherry Red have all come forward and said that it will prevent them from finding new British artists and investing in them.
The irony is that the way in which the music industry has developed recently means that some of the most popular artists who are now being found and signed and whose music is beginning to be promoted are the young grime artists from the council estates—from very disadvantaged backgrounds. My fear is that if we take the money away from the labels to give to established, successful artists, we are depriving the future stars of the investment on which they depend. That is one of the real concerns about the effect of what the hon. Gentleman proposes.
The next thing I want to look at is contract adjustment. Yes, sometimes contracts do need to be revisited, and that is something that labels do a great deal of the time. However, the interjection of the copyright tribunal will create huge uncertainty, which will be exacerbated by the proposal for contract revocation after 20 years. Twenty years may sound like a long time, but it is not very long. If a label that is signing an artist and making an initial investment of tens of millions of pounds has the knowledge that they and the artist have reached a contractual agreement that will extend and that will allow that money to be recouped over a lengthy period, that does give certainty. If, after 20 years, the artist can just say, “Well, actually, we’ve decided that we are doing really well, so we want to tear up our contract because we don’t think it’s fair any longer,” that introduces a degree of uncertainty.
I would also say to my hon. Friends that it is profoundly un-Conservative for the Government to step in and say of a contract reached between two willing parties, “Sorry, we are going to completely legally give you the right to tear it up, even though you have committed yourselves to it.”
(3 years, 6 months ago)
Commons ChamberI do agree with my hon. Friend. She is absolutely right to say that it is those qualities of accuracy, impartiality and fairness that are admired around the world as being as being represented by the BBC. That is why the revelations in the Dyson report are so damaging, because they cast doubt on those things. I can assure her that not just the Government but, I believe, the BBC are absolutely conscious of that and determined to put it right.
I welcome, in general, the tone that the Minister has adopted today in response to this. He said in his statement that
“the need for public service broadcasting and trusted journalism has never been stronger.”
He is absolutely right about that. That was also the conclusion of our Select Committee, the Digital, Culture, Media and Sport Committee, when we recently reported on the future of public service broadcasting. This is an example of an era of journalism that was infected with a poisonous culture which unfortunately, in this case, spread to the BBC, which should have been displaying different kinds of values in its journalism. I just want to read a short quote from the National Union of Journalists parliamentary group, which said in its statement:
“It’s important for us also to reiterate that the BBC is not its management, past”—
With your indulgence, Madam Deputy Speaker, and I apologise.
“It’s important for us to also reiterate that the BBC is not its management, past or present. The BBC and the values and principles of public service broadcasting it personifies is in fact our members, and all its staff, who do the work that makes the corporation an entity that is valued at home and throughout the world.”
Does the Minister agree with that statement?
I do agree with that statement. There is no question but that the challenge posed by fake news and disinformation, which are circulating at a level we have never previously seen, makes it all the more important that there are trustworthy, reliable places where one can go without questioning the validity of what is being reported, and the BBC represents that above all else. I read with great interest the Select Committee report that the hon. Gentleman referred to, and in large part the Government completely agree with it, certainly, the importance of public service broadcasting —that has never been less, as was powerfully set out by His Royal Highness Prince William in his comments about this episode.
(5 years, 7 months ago)
Commons ChamberWe have had a very good debate with some excellent contributions from the Back Benches. Like other hon. Members, I wish to declare an interest at the outset, which is that although I do not qualify for the concession myself—a fact that is well known by the former Secretary of State, the right hon. Member for Maldon (Mr Whittingdale), as we share a birthday, having been born on the same date in the same year—my mother does. Like the parents of other hon. Members, she is, with her free television licence in hand, a keen follower of the BBC Parliament channel. Like others, she could perhaps afford to pay for her television licence, but she is a miner’s daughter who left school at 14 and worked hard in a factory all her life. It is the sort of concession that is extremely important to someone living on their own at that age. As other hon. Members have pointed out, it can be very lonely for those people. We should bear it in mind that there will probably be many people taking an interest in our proceedings today—I am told that there are often dozens watching the BBC Parliament channel—including many from the over-75 bracket.
We have had some excellent speeches today, including that of the right hon. Member for Maldon, the former Secretary of State. I thought he tried to give the impression that the BBC was delighted with the deal that was struck back in 2015, even though it has been described by others as a hospital pass. I am afraid that nobody really believes that, and deep down, I do not think that the right hon. Gentleman does either. He is entitled, I suppose, to believe that ultimately there should not be a licence fee, which is what he said—he felt that it was unsustainable. However, knowing him as I do, if he wanted that to happen he would probably believe that it should have been in his party’s manifesto, and that it should have been consulted on, because it would be a major change in Government policy. Similarly on this—the potential ending of the free concession on the TV licence for the over-75s—it should have been in the manifesto if the intention was to end the free television licence concession, rather than pretending in the manifesto that it will be maintained rather than outsourced to the BBC.
To some extent I agree with the hon. Gentleman. I remind him that the charter review, which was carried out in 2015-16, was the subject of the biggest public consultation in the history of public consultations in terms of the number of responses that were received. Obviously, the same degree of interest will be generated before the next charter.
We also know what actually happened in relation to the free television licence concession. Basically, as I will say later in my remarks, the BBC hierarchy were taken into a darkened room, rubber hoses were taken out by the Chancellor of the Exchequer, a punishment beating was administered, and they came out making the hostage statement that had been prepared for them, which was that they were delighted with the outcome of these negotiations. I note that the right hon. Gentleman laughs at that, so perhaps my description is not as far-fetched as it might sound.
My hon. Friend the Member for St Helens South and Whiston (Ms Rimmer) pointed out that she could make the shortest speech on parliamentary record if the Government would simply honour their manifesto. We could have done without having this debate today. We would not have needed to be here at all if the Government had actually made real the words of their 2017 manifesto. Instead, as she said, they have used this smoke and mirrors approach to avoid their real responsibilities.
The hon. Member for North Devon (Peter Heaton-Jones), who is unfortunately not in his place at the moment, worked for the BBC for many years and often participates in our discussions about the BBC. He said that the 2015 deal with the BBC represented, from the BBC’s point of view,
“all their Christmases come at once”.
Well, I do not think that it was actually the intention of the former Secretary of State that the BBC should walk away from that negotiation thinking that all its Christmases had come at once; in conjunction with the former Chancellor, it was quite the opposite. Whatever the rights and wrongs of the deal on the funding for the future of the BBC, it was wrong in principle to pass on responsibility for this social policy to the unelected, unaccountable and undemocratic BBC.
(8 years ago)
Commons ChamberSorry, I forgot that my hon. Friend’s amendment is in this group.
Having spoken on the amendments that we have tabled, rather than anyone else’s, I will sit down.
I will resist the temptation to be drawn by the hon. Member for Cardiff West (Kevin Brennan) into discussing his new clause 8 covering the funding of free television licences. We have already debated the issue at some length. Instead, in the spirit of consensus, I would like to concentrate on some of his other amendments, with which I have greater sympathy.
The first is new clause 15. On Second Reading, we discussed complaints by the creative industries that, when content is sought, the majority of sites produced by search engines such as Google and others are illegal. That has been the subject of discussion among the search companies, the rights owners and the Government for a long time, and progress has been glacial.
Since that discussion on Second Reading, I have had the advantage of talking to Google. I suspect the hon. Gentleman will have had that advantage, too. Google makes the point that if we put into its search engine the name of the artist and the name of the track, the overwhelming majority are legal results. That is progress. There is no doubt that it is better than it used to be. That deals with the problem of people who do not necessarily want to break the law but just find themselves directed to illegal sites, even when they are not looking for them. That is a step forward, but it does not deal with the problem of people who do not want to pay for music. If we put an additional few terms into the search box, such as “MP3 free download”, the position is completely different and the overwhelming majority of results from that search are illegal. That remains a big problem.
(8 years, 1 month ago)
Commons ChamberMy hon. Friend makes an extremely good point. Most of the attention has been on wilful destruction, but he is absolutely right that the trade provides finance to Daesh. We must do everything we can to stamp that out, which is why I support the principle that it should be unlawful to deal in illegally exported cultural property.
I pay tribute to the efforts already made by the Ministry of Defence and commanders in the field to abide by the terms of the convention, even when it was not ratified. When the Committee took evidence from the MOD, it said it would review and strengthen the commitment it had already given that training should take account of the absolute priority of abiding by the requirements of the convention.
The Committee heard concern about one aspect of the Bill: the offence of dealing in unlawfully exported cultural property. The first concern was about the definition of occupied territories. At the time, we were told that it was a very narrow definition, or that only a narrow group of countries or territories could be considered to be occupied. In 2008, the regulatory impact assessment identified the Golan heights, East Jerusalem and the west bank. Unfortunately since that time, the list of occupied countries has grown—I draw attention to Crimea. For the purposes of certainty for those dealing in cultural objects, it would help if we clarified exactly which territories we consider to be occupied.
The more serious concern related to clause 17, which makes it an offence
“to deal in unlawfully exported cultural property, knowing or having reason to suspect that it has been unlawfully exported.”
As has been pointed out by the legal advisers, there is a huge difference between “having reason to suspect” and “to suspect”, which is causing concern. If the definition of the offence covers “reason to suspect”, it gets into mens rea, as I understand lawyers call it. I will leave it to my right hon. and learned Friend the Member for Harborough (Sir Edward Garnier) to say more on that subject with considerably greater expertise.
The issue was flagged up for the Committee when we looked at the Bill eight years ago, which is why we suggested a clearer requirement of dishonesty. That is what currently applies in the Theft Act 1968, which carries a penalty of seven years, and in the Dealing in Cultural Objects (Offences) Act 2003, which also carries a penalty of seven years. The Bill introduces a penalty of seven years, and therefore it seems reasonable to ask that the same threshold should be required. I am delighted to hear from the Secretary of State that she is aware of that concern and will have further discussions.
The right hon. Gentleman makes an important point. Is he aware how many people have been convicted under the 2003 Act? My understanding is that the number is very low, and perhaps even zero.
That point was made by my hon. Friend the Member for East Worthing and Shoreham (Tim Loughton) earlier. The fact that there have been no convictions does not necessarily imply that the Act is not working—it is important to have it on the statute book. I do not believe that this country is full of dodgy art dealers who wilfully ignore the law and deal in plainly illegally exported objects.
Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I strongly agree with the hon. Gentleman that the Garcia report should be published in full. We were assured that that would happen but it has not, and Mr Garcia has made his profound dissatisfaction about that clear. But even the Garcia report did not go far enough, in that the enormous quantity of evidence suggesting corruption, which was published by The Sunday Times, was not examined by Mr Garcia. So even the report on the rather limited investigation that did take place has not been properly published, which is why the current investigations by the US authorities and, in particular, the Swiss authorities into the bidding process stand a better chance of exposing what actually happened.
I, too, declare an interest as Cardiff City’s ground is in my constituency, and Wales will be playing Belgium there later this month. The Secretary of State is coming across as if he is not taking a very activist approach to this matter. A few moments ago, he effectively said that bribery was responsible for the awarding of the World cup, when the Prime Minister and the second in line to the throne invested a lot of time and effort in that bid and the English FA put in a lot of money. If he really believes that, should he not be calling into his office the sponsors and the authorities and everyone else to ensure that we in this country are taking the maximum action?
A criminal investigation into the bidding process for the 2018 and 2022 World Cups is under way, and we will co-operate fully with it. We will give it every support that it requires, and we will wait to see the outcome of that investigation. Clearly, if it were proven that corruption was involved, there would be serious questions about whether the outcome should remain, but we are not at that stage yet.
(12 years, 6 months ago)
Commons ChamberI am not in a position to know that but it is a question that the right hon. Gentleman can perfectly fairly put to the Prime Minister and the Cabinet Secretary. I want at the end of my speech to say what might happen next, if there are still some questions.
On a point of order, Mr Deputy Speaker. On that matter, would it be in order for the Secretary of State to intervene and clarify the issue that has just been raised by my right hon. Friend the Member for Southampton, Itchen (Mr Denham)?
That is not a point of order. It is up to the Secretary of State to do that if he wishes and John Whittingdale has the floor.
(13 years, 5 months ago)
Commons ChamberI recall vividly the evidence given by Rebekah Brooks to the Committee when the right hon. Gentleman was its Chairman. It included matters that he rightly says might turn out to be criminal, and I am certain that the judicial inquiry will want to examine them. I have no doubt that some of my colleagues on the Select Committee, who are extremely robust on these matters, might well wish to ask questions about those matters as well, should they have the chance to do so.
In regard to the takeover of BSkyB—which is, after all, the matter that we are supposed to be debating this afternoon—it has always been the case that there are more stringent tests for the acquisition of a media company in this country. That is right; it is a reflection of the power of the media that they should be subject to greater tests. I would like to take this opportunity to commend the Secretary of State for Culture, Olympics, Media and Sport, my right hon. Friend the Member for South West Surrey (Mr Hunt), who has been utterly scrupulous in his handling of this matter. I believe that he has acted on the basis of independent advice at every stage, and it is difficult to find fault with the way in which he has conducted himself.
Speaking as a former competition Minister, may I ask the hon. Gentleman to accept that it was open to the Secretary of State to make a choice to stick with his original conclusion that he was minded to refer the matter to the Competition Commission? Had he done that, we could have been saved a lot of trouble.
My right hon. Friend the Secretary of State acted on the basis of the advice that he received from Ofcom. The original advice was that he should refer the bid, but Ofcom then came back and said that the undertakings being given by News Corporation were sufficient and that there was no longer a need to do so. At every stage, he has acted on the advice of the independent regulator.
I want to say a few words about BSkyB, which has been an extraordinarily successful company. It has pioneered choice in television and introduced the personal video recorder, high-definition television and 3D television. It has recently passed the 10 million home mark. It has been incredibly successful. It is right that its ownership should be subject to very close scrutiny. I would also like to commend it on its most recent announcement of £600 million of annual investment in UK content, which will do a tremendous amount of good.
The test that my right hon. Friend the Culture Secretary put up to be examined was that of plurality. That is about Sky News. It is worth saying that throughout this saga, Sky News has displayed the same objectivity and independence in its coverage of matters concerning its parent company—or the company that sought to become its parent company—as it has in other matters.