Broadcasting
Debate between John Whittingdale and Sammy Wilson
Mr Whittingdale
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.
Sammy Wilson
Apart from the political connotations of the appointment, does the right hon. Gentleman not find it even more bizarre that, because of either the perceived inexperience of the appointee or other internal factors, the BBC has had to create another management post to support Mr Purnell, with a salary of more than the Prime Minister’s, at a time when it says it has no money?
Mr Whittingdale
Again, the hon. Gentleman raises some valid points. There are a number of curiosities about this appointment. As I indicated earlier, I am sure the Select Committee will want to think about some of them when the director-general next appears before it.
I want to touch on a couple of other aspects of the agreement and charter, which, as I have said, I very much welcome. The introduction of distinctiveness as a key requirement for the BBC is important. It is right that an organisation that enjoys £4 billion of public money should not be competing with the independent sector, and that it should look different from the commercial sector in television and, just as importantly, in radio. I hope that putting that in and then having Ofcom adjudicate it will make a difference.
BBC White Paper
Debate between John Whittingdale and Sammy Wilson
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.
Sammy Wilson (East Antrim) (DUP)
Given the criticisms of the inefficiency and value for money at the BBC, the huge payouts for people who are made redundant, for example, and then come back nearly a year later—even the National Union of Journalists has criticised that—and the high levels of pay at management level, if after five years there has been no reform or change in the squandering of money by the BBC, what will happen at the review at that stage? Would the Secretary of State reconsider the licence fee or would he put in greater financial controls?
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.
Mr Whittingdale
My hon. Friend raises a perfectly valid point. Obviously, Ofcom is a public body. We would want to set an example in achieving diversity, and if its performance falls short, that is something which I know my hon. Friend the Minister for Culture and the Digital Economy and I will be happy to point out to the chairman and the chief executive.
Sammy Wilson
Can the Secretary of State clarify whether one of the benefits for the BBC will be that it will now have access to the database of Sky and other broadcasters, so that it can identify the names and addresses of people who may not be licence fee payers?
Mr Whittingdale
We are looking at ways of enforcing the licence fee requirement. Anybody who watches live television is required to have a licence, so those databases represent people who are required to have a television licence.
I wish to add in reply to my hon. Friend the Member for Maidstone and The Weald (Mrs Grant) that although I would not suggest that she is not right to be concerned, Ofcom took a major step towards greater diversity with the appointment of a female BME chief executive, who is doing a fantastic job. I am sure she would agree that there is still more that needs to be done.
BBC Charter Review
Debate between John Whittingdale and Sammy Wilson
Mr Whittingdale
My hon. Friend makes an important point. One of the BBC’s great assets is its extraordinary history of great programming, which still has value. I know that the BBC is looking into how it might make that available through the BBC archive online, and that is certainly something that has the potential to provide it with an additional source of revenue.
Sammy Wilson (East Antrim) (DUP)
So long as the BBC is guaranteed a source of income, whether through the licence fee or the proposed household levy, there will be no incentive for it to address its well-documented, massively wasteful expenditure or the issue of bias—whether it is left-wing bias, pro-EU bias or man-made climate change bias—which so annoys millions of people across the United Kingdom. Does the Secretary of State not agree that the only way of giving the BBC an incentive to address those issues is to give people the choice of whether they wish to pay for it or not?
Mr Whittingdale
The hon. Gentleman makes the case for moving towards a subscription model, which, as I have said, in the longer term is an option that should be considered. He will have the opportunity to make that case again in the course of charter renewal. He raised a separate issue about BBC bias. At the moment, complaints about bias are examined by the BBC Trust. Whether that is the right place and whether it should be done externally by an independent are questions that we will want to consider as part of charter renewal.