BBC: Funding
Debate between John Whittingdale and Richard Baker(5 days, 17 hours ago)
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Sir John Whittingdale
My hon. Friend is completely right. She and I both had the pleasure of serving as Minister; I was delighted to stand in for her while she was on maternity leave, so we have both looked at the issue for some time. We have to look at the overall television landscape. If we allow advertising, or encourage the BBC to compete, it is likely to have an impact on the commercial sector, which completely depends on advertising revenue. Our traditional advertising-funded PSBs—ITV, Channel 4, Channel 5—are already finding it difficult competing in a world with well-resourced streamers, and this would make it worse.
Richard Baker (Glenrothes and Mid Fife) (Lab)
One of the weaknesses of the streaming companies is regional and national news coverage and programming. For BBC Scotland, at the moment 99% of the licence fee paid by Scots is invested in Scotland. That is a really important and positive aspect of the current licence fee arrangements that must be protected as we move forward.
Sir John Whittingdale
I have sympathy with the hon. Gentleman. It is the case that the BBC provides more of the core public service content than the other PSBs—the others do, but not to the same extent. National and regional coverage of the type he has described is absolutely a core part of that. I think that needs to continue, and if the licence fee is not able to fund it, there is a case for it moving across to general taxation. There is a world in which the core PSB content is funded out of taxation, and then people could choose to subscribe to the content that is more entertainment based—a subscription model—but it is too early to say.
These are the kinds of discussions that are fundamental to the next charter. I am delighted that the Government are now beginning to consider that. My purpose today is to flag up the extent to which the existing model cannot be sustained, and to begin having the debate.