(8 years, 2 months ago)
Commons ChamberShe was originally appointed following a very open and widespread competition when she became chairman of the BBC Trust. Obviously that post was advertised, there were a number of candidates, and the process was subject to the full public appointments procedure. The fact that the then Prime Minister and I told the House that it was felt that she could serve during the transition following a transfer to the new position is a matter of public record. However, as I said earlier, I think that the later decision that it would be better to put the post out to open competition was the correct one.
The BBC may or may not have made a mistake in the way in which it appointed a particular individual—James Purnell, about whom the right hon. Gentleman has been talking—but it made that decision as an independent organisation. Is not the difficulty that we face, and the issue of political interference, caused by the fact that we in this place seek to control? When the right hon. Gentleman was Secretary of State, it was argued that the appointment of a majority of board members by the Government of the day was a matter of concern, because it was felt that there would be a route for political interference from this place and from the Government, rather than the BBC’s making its own mistakes—or not; as it may or may not do.
That was obviously a separate debate. I understand the concern expressed by the hon. Lady, but I do not agree with her. Even under the original suggestion, the BBC would have had a majority when the non-executive and executive board members were taken together. Moreover, as I sought to point out, the non-executive members will have been through the public appointments process. They will have had to demonstrate their competence and qualifications for the role, which most people regard as a pretty good safeguard. Of course, the BBC Trust, which the board replaces, was wholly appointed by the Government, so this is quite a big shift.
(8 years, 6 months ago)
Commons ChamberI certainly do join my hon. Friend in that. I think he was 10 at the time, but he might recall that I represented part of Colchester in the House of Commons, so I am very familiar with the Mercury theatre. I am delighted to hear about the investment in its expansion. I think that any investment in the arts brings real benefits, not least in economic terms, for the local community. I wish the Mercury continuing success into the future.
On Tuesday, the Secretary of State told the Culture, Media and Sport Committee in his evidence that there had been no discussions within government about Channel 4 privatisation, and that the examination of such an option had not been started by 9 September 2015, when he had previously answered questions before the Committee. However, in answer to an FOI request on 27 April, received in my office, the Department confirmed that he himself met the Minister for the Cabinet Office to discuss Channel 4 reform options on 3 September—six days before his appearance in front of that Committee. Can he explain the discrepancy?
Yes. The first discussion that I had with the Cabinet Office Minister was about Channel 4 and what possible options there would be for its future. At that stage, no decisions had been taken. Following that, the Department did begin to look at whether or not there was a case for having a fundamental examination, and the decision to go ahead with that was actually taken after my appearance before the Select Committee; it was taken later in the month of September.
Well, on Tuesday, in answer to questions from the Select Committee, the Secretary of State was asked whether or not any discussions at all had taken place before 9 September, and he replied—I have the transcript—“No not within government.” That seems to me a clear discrepancy, and it seems to me he may have misled the Committee, and I invite him to correct his evidence to it now on this very important matter, which matters to a lot of us in this House—the future of Channel 4.
I entirely agree with the hon. Lady that the future of Channel 4 is an important matter. Whether or not the discussion with the Cabinet Office Minister, which took place on 3 September, constituted the beginning of an examination, when actually a decision was not taken to begin that examination until about four weeks later, does not seem to be a centrally important matter in the future of Channel 4. We did decide that it was sensible to carry out an examination. That examination is still under way. We have still not yet reached decisions about the best way forward for Channel 4, but I look forward to having that discussion with Channel 4 in the very near future.
May I thank the Secretary of State for his statement and for early sight of it? Despite being very coy in the House yesterday when we asked about his plans, he seems to have managed to brief various newspapers overnight on a large part of the contents of the White Paper—a deplorable state of affairs. Indeed, for the last few weeks, we have had to read an increasing avalanche of briefing to Conservative-supporting newspapers—especially those hostile to the BBC—which appears to have emanated from his Department.
The fact that most of the Secretary of State’s wilder proposals appear to have been watered down, dumped or delayed by the Government, of which he is a member, is a reflection of his diminishing influence and lack of clout. He has not got his way in most things, and I welcome that.
There is no point the Secretary of State denying that he has been overruled by the Prime Minister and the Chancellor. We know he is extremely hostile to the BBC. He wants it diminished in scope and size. He recently told an audience in Cambridge that the BBC is merely
“a market intervention of around £4 billion by government”.
That was before he described the disappearance of the BBC if the charter was not renewed as “a tempting prospect”.
The Secretary of State has spent time in speeches trying to tell the BBC that it should not be making popular programmes or that, if it does, they should be scheduled at times when fewer people will watch them. The truth is that, in large part, he has not got his way. [Interruption.]
The Secretary of State’s views are also totally out of step with licence fee payers, who value and support the BBC. I said yesterday that the Opposition believe the BBC charter should have governance arrangements that guarantee the BBC’s editorial and financial independence and refrain from interfering with the BBC’s mission to inform, educate and entertain us all. We will examine the White Paper in detail to see how well it measures up against those criteria.
I welcome the fact that the length of the new charter is to be 11 years, but I am concerned with the imposition of a break clause that will, in effect, reduce that to five and a half years. That does not really give the BBC the certainty and stability it requires to get on with the job. I also welcome the fact that the licence fee is to continue until 2022, increased by CPI inflation, but we wait to see how his proposals over the second half of the charter period develop and will look very closely at what the Government do at that stage.
I still have some major concerns. On governance, I said yesterday that it is unacceptable for a majority of the unitary board, which will have major influence over output and therefore over editorial decisions, to be appointed by the Government. Today we learned that the Secretary of State plans that only up to at least half the board will be Government appointees. This board will run the BBC. Despite what he says, it will have influence over output and therefore over editorial decisions. Appointing a unitary board is different from appointing either governors or trustees, who have had no power to run the BBC day to day.
The Secretary of State’s suggestion that these proposals enhance the independence of the BBC are hard to reconcile with reality. We have seen overnight a political campaign—the leave campaign—headed up by Cabinet Ministers threatening a broadcaster with unspecified consequences for doing something that Cabinet Ministers did not like. How much more serious a threat would that be if those Cabinet Ministers got to appoint at least half the board of the broadcaster concerned? Yet that is the prospect facing the BBC under his plans.
I am still worried, therefore, that the Government are seeking unduly to influence the output and editorial decision making of the BBC—or can be seen to be doing so. Will he now promise that all Government appointments will be made by a demonstrably independent process, overseen by the Commissioner for Public Appointments, that prevents there being any suspicion that the Government seek to turn the BBC into something over which they have more control than is currently the case? Reports in today’s newspapers that the Prime Minister has personally intervened to insist that Rona Fairhead be installed as chair of the new board do not augur well in this respect. I make no comment on the merits of Rona Fairhead, but there has been no process at all to reach such a decision—simply a prime ministerial diktat. That does not augur well for these arrangements in future.
On financial independence, a funding agreement was struck by the Chancellor with the BBC last year. We will look to ensure that it is met in full by the Government, with no more top-slicing—I welcome what the Secretary of State said about that—and no siphoning off of licence fee payers’ money into funds to be given to other broadcasters. We are glad, in that respect, that his contestable pot proposals, widely briefed in advance of the publication of the White Paper, are now somewhat shrunken and are to be consulted on. Will he give the House an assurance that he will listen to the results of that consultation and be prepared, if necessary and if that is its outcome, to abandon these proposals?
I am very concerned that the Secretary of State wants to change the mission of the BBC when it has worked well for more than 90 years and is supported by the public. There is a great virtue to the simplicity and clarity of the current phraseology of its mission statement. Given what he has said, we will look closely at what he proposes to see how it might work. I do not believe that his obsession with distinctiveness should be imported into the BBC’s mission statement. However, we will look at the wording he proposes to see whether we have any concerns about what the implications will be.
I welcome the Secretary of State’s focus on improving the diversity of the BBC in respect of its staffing and the way in which it produces its output. Again, I am not convinced that the mission statement is the best place to put that. None the less, we will look closely at what he proposes, and I welcome the general tenor of his remarks and his intentions in this respect.
The Opposition do not accept the Secretary of State’s assertion that the size and scale of the BBC crowd out investment and have a negative impact on the media market—quite the opposite. The BBC already works well with other UK creative industries and other broadcasters, to the benefit of all. He might be better advised to keep his nose out of this rather than trying to tell the BBC how to do the job that it does on a day-to-day basis. He ought to stop his ideologically driven meddling and let it get on with the job.
We note what the Secretary of State had to say about the new and enhanced role that Ofcom will have in regulating the BBC. It will be a big job, and Ofcom already has a lot on its plate. Can he guarantee to the House that Ofcom will be given the proper resource—extra staffing, expertise and money—to do the job he now expects it to do? He said nothing about that in his statement today, but an important part of whether this will work is how Ofcom will be able to do this job.
In respect of what the Secretary of State said about the National Audit Office, I respect the National Audit Office and its work very much—I think everybody in this House does—so I have no objection. I note that he said in his statement that there will be appropriate safeguards for editorial independence once value-for-money reports have been done. That is tremendously important. It needs to be totally clear that any work done by the National Audit Office does not interfere with the editorial independence of the BBC. We will look at the detail of those safeguards, and I hope that he will be very open in setting out that detail.
The BBC is one of the UK’s most successful and loved institutions. There has developed a feeling, both inside this Parliament and outside it, that the Government are seeking inappropriate influence over the BBC. Will he now agree that when his proposals are debated in both Houses of Parliament, it should be on a substantive motion that enables Members of both Houses to express their views by way of a vote?
I have some sympathy for the hon. Lady. She had a dry run at this yesterday and rehearsed all her lines of attack, only to wake up this morning to discover that all the concerns that she had expressed were based on ill-founded, hysterical speculation by left-wing luvvies and others; and that, in actual fact, what the Government have proposed has been widely welcomed by, among others, the BBC. She said yesterday that she would judge the Government’s proposals on three key tests. She said that the charter
“must guarantee the BBC’s financial and editorial independence, and it must help it to fulfil its mission to inform, educate and entertain us all.”—[Official Report, 11 May 2016; Vol. 609, c. 629.]
I can tell her that the White Paper not only meets those three tests, but exceeds them. That is exactly what we intend to do.
The hon. Lady raised some questions of detail. I accept that they are important, and I am very happy to give her the answers. I am grateful for her welcome for the fact that, for the first time, the length of the charter will be 11 years, which will take it out of the political electoral cycle. The mid-term review is not a mini charter review. It is simply a health check to allow the Government to ensure that the reforms that we are putting in place, which are substantial, are working properly. It would be ridiculous to find that they were not working and to be unable to do anything about it for another 11 years.
On governance, this is the first time the BBC board—the body that has overall responsibility for running the BBC—will have at least half, and possibly more than half, of its members appointed independently by the BBC. Throughout the period for which the Labour party was in government, the appointments were made wholly by the Government, without even the public appointments process. The appointments that the Government will make are to six positions. They will be subject to the public appointments process, so they will involve the Office of the Commissioner for Public Appointments. Three of them will be made in consultation with the devolved Administrations of Wales, Scotland and Northern Ireland. It will be for the BBC to decide how many other board members there should be, ranging from six to perhaps eight, and who should be chosen to do that.
The other point I would make to the hon. Lady—I set it out very clearly in my statement—is that the board will have no involvement in editorial decision making. The director-general remains the editor in chief, and he is responsible for editorial matters. The board’s involvement will be only after transmission; it will not influence editorial content.
These are substantial changes and we think it right that the existing chairman should continue in post to oversee the transition to the new arrangement. She will be in post until October 2018. She was of course appointed through the public appointments process.
I can confirm that the funding agreement will be met in full. There will be no top-slicing and we will not raid it for any other purposes, as her Government did when she was in office. The contestable pot is outside the July licence fee funding settlement. It is intended to provide additional opportunities for production companies that aim specifically to serve children’s audiences or black, Asian and minority ethnic audiences. We will do more on that to see how it will work.
The hon. Lady said that we have somehow complicated the original trinity, but I would point out to her that the mission statement does not include the simple Reithian trinity that is so often quoted. The current BBC charter mentions
“the promotion of its Public Purposes through the provision of output which consists of information, education and entertainment”.
That is not quite as snappy as the original “inform, educate and entertain”. All we have done is to make it more succinct by saying that those three objectives should be delivered by producing “high quality distinctive content” and “impartial news”. I would just ask her whether she disagrees with either of those two provisions: does she think that the BBC should not make distinctive programming or should not be impartial?
The hon. Lady’s concerns about Ofcom are perfectly justified. She is right that Ofcom will need resourcing to enable it to undertake its considerable new responsibilities. However, the BBC Trust is paid for out of the licence fee at the moment, and it is certainly our hope that the regulatory cost of overseeing the BBC, once Ofcom takes it over, will be lower than the existing cost of the BBC Trust. Ofcom will be financed from the licence fee, just as the BBC Trust is at present.
I confirm that it will be made explicit—there is no disagreement between the National Audit Office and the BBC about this—that the NAO will not involve itself in editorial matters.
I finish by saying that the hon. Lady has made the best fist she can of saying that the White Paper somehow threatens the BBC, but it does not. I end simply by telling her what the chairman of the BBC Trust said this morning:
“Constructive engagement between the Government, the BBC and the public has delivered a White Paper that sets good principles, strengthens the BBC’s governance and regulation and cements a financial settlement that will sustain the strong BBC that is loved…by the public.”
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.
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(Urgent Question): To ask the Secretary of State for Culture, Media and Sport to make a statement on the publication of the White Paper on the BBC charter.
I can inform the House that I will be making a statement tomorrow and laying before the House our White Paper on the BBC. The BBC’s royal charter expires at the end of the December. I launched our public consultation in this House in July last year, and in March we published the summary of responses, along with an independent review of the BBC’s governance led by Sir David Clementi. Over the past 10 months we have listened to the views of hundreds of organisations and institutions, and 190,000 members of the public responded to our consultation. As well as working closely with the BBC and the BBC Trust, we have also had the benefit of expert input from parliamentary Committees of both Houses, as well as from Holyrood, Cardiff and Stormont.
The proposals in our White Paper are the result of one of the largest and most open consultations ever conducted. I have always been clear that I will publish our proposals as soon as we are ready to do so, and at a time when the House has the opportunity to debate them, and I look forward to doing so tomorrow.
The BBC is one of the most valued and successful institutions ever created in the UK, and it belongs to the people of this country who pay for it. It has levels of public approval that any politician would die for, and it is the linchpin of a unique ecology of broadcasting in this country, which enables the creative industries in Britain to grow at twice the level of the rest of the economy, exporting more content and employing more people than its size would suggest possible. It enables the UK to project soft power, and it creates good will for Britain throughout the world.
The Secretary of State has been displaying seemingly implacable hostility to the BBC during the charter renewal process, and he has also been avoiding Parliament. He had to be dragged to the House after weeks of almost daily leaked briefings to the media. He has not come willingly to Parliament, and he seems intent on using his brief sojourn in office not to strengthen the BBC but to diminish it; not to see value in it, but to denigrate it; not to enable it, but to control it.
Does the Secretary of State accept that a good charter must do three things? It must guarantee the BBC’s financial and editorial independence, and it must help it to fulfil its mission to inform, educate and entertain us all. Given that the BBC has agreed to take on the £1.3 billion cost of funding free TV licences for the over-75s, does he accept that any further top-slicing or direction from Government about precisely how money from licence fee payers should be spent is an unwarranted interference in BBC independence that threatens its financial independence?
On governance, does the Secretary of State accept that his proposals to appoint a majority of the BBC’s new unitary board, which we have read about in the newspapers, go further than suggested by the Clementi review of BBC governance? Does he accept that that raises a widespread concern that he is seeking to control editorial decision making, by appointing a majority of the BBC board responsible for editorial decisions—something that has never happened before? Does he agree that any such move would be catastrophic for the reputation of our national broadcaster overseas, and diminish its credibility and the respect in which it is held around the world for its objective reporting? Labour Members believe that appointments to any new unitary board must be made through a process that is demonstrably independent of the Government. The recent consultation on the BBC charter—which had the second largest response to a Government consultation ever—shows that three quarters of the public want the BBC to remain independent. Will he listen to that result?
The BBC does a brilliant job in informing, educating and entertaining us all, and four fifths of the public believe that it serves its audiences well. Today we read in the newspapers that the Secretary of State intends to rewrite the BBC’s mission. He is wrong to do so, and we will oppose any such revision. He is seeking to turn the BBC away from a mission that has succeeded brilliantly for 90 years and of which the public approve. Just who does he think he is?
The Secretary of State claims time and again that he is a supporter of the BBC, but he recently told Cambridge students that the disappearance of the BBC was a “tempting prospect”. He did not like the results of the public consultation, so he is simply ignoring them, but the public love the BBC and want it to carry on doing what it has been doing so well for more than 90 years.
May I finish by giving the Secretary of State a bit of advice? It is not too late for the Secretary of State to start listening to the public. Indeed, he had better do so. He will not be forgiven, and nor will his party, if he continues on the path, which he has been briefing to the newspapers, that will lead to the destruction of the BBC as our much loved national broadcaster and turn it instead into a mouthpiece of the Government of the day.
I agree with the shadow Secretary of State’s opening comments. The BBC has a very trusted place in British life and does a huge amount to support creative industries, and its global influence is enormous. We agree on those things and I am determined to preserve them, but to say that I have been dragged to Parliament is a little bit rich when it has always been the intention for us to make a full statement when the House is sitting—that will take place tomorrow.
The shadow Secretary of State set out three concerns on which she said she would judge our White Paper. I am not going to reveal the contents of the White Paper before it is published, but I can tell her that she will find that we agree with her about all three of the concerns she outlined and that they will be met.
We have had an extensive consultation and have taken account of it. The hon. Lady has asked legitimate questions. I would simply say to her that they are legitimate questions for tomorrow when she has had the chance to read the White Paper rather than for now, when she has read comments in the newspapers that range from complete fantasy to others that are quite well informed but certainly not informed by me or my Department.
We occasionally criticise the BBC for repeats and insist on original content wherever possible, but I suspect we will have an awful lot of repeats tomorrow from the hon. Lady, because that is when she should ask the questions and when I shall be happy to provide her with answers.
(8 years, 8 months ago)
Commons ChamberI am starting to realise why this Department is known as the Ministry for fun.
We all know that the Secretary of State has been distracted from doing his job as Culture Secretary lately by his extracurricular activities. I am talking about his moonlighting for the leave campaign. Last November, he promised the UK music industry that he would support clarifying EU law to level the playing field between online platforms and content providers, which would hugely boost the benefits to the UK of the digital single market. He reiterated that undertaking in writing earlier this year. Why has he allowed his Department to renege on that promise this month?
That is something to which I attach great importance. I discussed that matter with Vice-President Ansip of the European Commission not that long ago. I was reassured that he shared our concern that action should be taken to ensure the music industry receives the returns it is entitled to from intermediaries that are currently underpaying. I have to say that that is not something from which my Department has backed away. Indeed, I am determined that we will continue to press the European Commission on it.
UK Music has written to the Secretary of State about this. I have the letter here—it has fallen into my lap. After expressing surprise and concern about this turn of events, it seeks
“your explicit confirmation that the UK Government remains committed to a clarification of EU law on the liability of online intermediaries and the use of safe harbour provisions.”
Is it not true that he has spent more time running around arguing that Britain should walk away from the biggest single market in the world than he has looking after the interests of UK creative industries in these crucial negotiations?
The answer is no. Whether we will be subject to the regulations and directives under the digital single market, and indeed any other measures of the European Commission, is something that the British people will decide in two months’ time. In the meantime, I assure the hon. Lady that I discussed the matter on Tuesday evening with the chairman of UK Music. I reassured him that in no way had we reduced or diminished our support for the UK music industry, and that we share its determination to make sure that, if proper clarification of the rules on this point was necessary, we would be pressing for that.
(8 years, 9 months ago)
Commons ChamberI had a very good meeting with Fiona Hyslop a couple of weeks ago to talk about the way in which the BBC meets the requirement to serve all the nations and regions of the United Kingdom. I obviously welcome any investment at the BBC that will create additional jobs, particularly in Scotland, which I know the hon. Gentleman will value. How the BBC goes about meeting the obligation to serve the nations and regions is a matter for the BBC. Certainly, neither I nor my colleagues in No. 10 would want to instruct it on how to go about it.
Eighty per cent. of the 192,000 responses to the Green Paper consultation say that the BBC serves its audiences well or very well, and the majority believe its content to be both high quality and distinctive from that of other broadcasters. The Secretary of State purports to be a supporter of the BBC, so why is he using charter renewal to cut back and restrict what the BBC does, rather than help it to compete in the rapidly changing and increasingly global broadcasting environment?
I was not surprised to find that the responses showed that the vast majority of people value the BBC. As I have said, I value the BBC. The hon. Lady will have to await the publication of the White Paper, but it is not a question of trying to cut back the BBC’s output. Nevertheless, there is a case, which is borne out by some of the responses and by other surveys we have conducted, for saying that the BBC needs to be more distinctive. That is something that the director-general himself said when he set out his plans for the charter renewal.
The Secretary of State’s speech yesterday was rather more about bashing the BBC than anything else. That is what the chair of the BBC Trust said. Bashing the BBC is the one thing the Secretary of State agrees about with the Prime Minister and the Chancellor these days. They all want to use charter renewal to eviscerate the BBC and do its competitors a favour, rather than to deliver what the licence fee-paying public want. They just do not seem to accept that the British people like the BBC and want it to continue what it is doing. When will the Secretary of State accept that charter renewal should be about making the BBC fit for the future, rather than trying to diminish it for the commercial convenience of its competitors?
The hon. Lady must have looked at a different speech from the one I delivered. It certainly was not about bashing the BBC. Indeed, as soon as I finished making the speech, I had an extremely good meeting with the chairman of the BBC Trust, who did not mention anything about my bashing the BBC and welcomed what I had said.
The charter renewal is precisely about making the BBC fit for the future. I intend to bring forward the publication as soon as is possible, but, as the hon. Lady knows, there are a number of very important contributions, including the 192,000 consultations, that we want to take fully into account.
(8 years, 11 months ago)
Commons ChamberOf 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.
Ninety-seven per cent. of the adult population of the UK use the BBC services for an average of 18 hours every week, and their perceptions of the BBC have improved over the past 10 years. According to the BBC Trust, 85% of the public support the BBC’s main mission to inform, educate and entertain. Those figures are a remarkable endorsement of the public service ethos of the BBC. The consultation on charter renewal of the Secretary of State’s Department closed on 8 October last year, and he has now spent more time considering the responses to that consultation than he allowed for the public to respond. When will he get his act together and publish the results? Can he just give us a date today, please?
May I begin by welcoming the hon. Lady to her new position? I have been doing this job for a relatively short time—just eight months—and she is now the third Opposition spokesman I have faced. I do hope that she survives a little longer than her immediate predecessors. In relation to her question, I am keen that we should publish our proposals, but we did not anticipate 192,000 responses. She will understand that, if I were to get up and publish our conclusions, she would quickly be at the Dispatch Box claiming that we had not properly analysed them and that this was a cosmetic exercise. It is not a cosmetic exercise and we are reading the responses carefully.
I am afraid that the right hon. Gentleman sounds as if he is procrastinating. The BBC charter expires at the end of this year, but he has not even got around to publishing his White Paper because the consultation is taking so long. Will he guarantee that his Department’s time wasting will not result in some kind of debilitating short-term charter extension beyond the end of the year? Will he be clear today that the next charter will be for a minimum of 10 years?
Charter review comes round once every 10 years and I am determined that we should get it right. We will take however long it takes to ensure that we fully consult and consider the options, and we will publish as soon as we are ready. We are currently considering the length of the next charter, which was one of the questions in the Green Paper, and it will form part of our conclusions when we come to publish them.