BBC Local Radio: Proposed Reduction in Provision
Julia Lopez Excerpts(2 years ago)
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Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
(Urgent Question): To ask the Secretary of State for Digital, Culture, Media and Sport whether she has considered the impact of the proposed reductions in BBC local radio provision; and if she will make a statement.
The Minister of State, Department for Digital, Culture, Media and Sport (Julia Lopez)
I thank the hon. Lady for highlighting this news announcement that we learned about yesterday, as it gives the House an opportunity to demonstrate the value we all place on BBC local radio services.
We are currently celebrating 100 years of BBC radio. With its unique position in the radio market, the BBC has continued to develop and deliver high-quality and engaging audio services to the country and internationally over the years. BBC local radio is one of the BBC’s crown jewels. Developed in the late 1960s and 1970s, the BBC’s 39 local radio services in England still reach 5.7 million listeners each and every week. As hon. Members know, BBC local radio is highly valued outside London, where stations in Derby, Stoke, Humberside, Cornwall, Devon and elsewhere have higher reach or share numbers than the average.
Changes in patterns of listening mean that the BBC needs to look at its services, and the details about new investment in local investigative reporting are very welcome. But overall we do have concerns about the proposals, which we were not given notice of. I want to take this opportunity to stress that the BBC is rightly operationally and editorially independent from the Government, and that decisions on service delivery are ultimately a matter for it. However, the Government are disappointed that the BBC is reportedly planning to make such extensive cuts to its local radio output. We await to hear more from the BBC about how it expects those changes to impact local communities, including in respect of the provision of local news and media plurality.
At its best, as was particularly shown during the pandemic, BBC local radio is able to bring communities together and it plays a vital role in reflecting local experiences and delivering local news. For older residents living in rural areas, it can be a particular lifeline. The BBC must make sure it continues to provide distinctive and genuinely local radio services, with content that reflects and represents people and communities from all corners of the UK.
We recognise that in the current political context the BBC, like other organisations, is facing difficult financial decisions, but we are also concerned that the BBC is making such far-reaching decisions, particularly about its local news provision, without setting out further detail on how it will impact its audiences and the communities it serves. In the context of a £3.8 billion licence fee income, we do not have any details about how much this proposal is likely to save. The BBC board must make sure that the BBC complies with its charter duties. The Government are clear that Ofcom, as the BBC regulator, must make sure that the BBC is robustly held to account in delivering its mission and public purposes.
We note that as part of this announcement the BBC is also proposing establishing 11 investigative reporting teams across England. That will see the creation of 71 new journalism roles, delivering original stories across TV, radio and online services. As the House will be aware, we are currently undertaking a mid-term charter review, which we have set out and which will evaluate how the BBC and Ofcom assess the market impact and the public value of the BBC in an evolving marketplace and how that relates to the wider UK media ecology, including with regard to commercial radio and local news sectors. Handily, I am scheduled to meet the BBC next week, when I shall see the chairman and director general, and I shall raise with them the concerns that are brought to the Chamber today. We also expect the BBC to brief parliamentarians on its announcements shortly.
Emma Hardy
Thank you for granting the urgent question, Mr Speaker. Let me also welcome the Minister to her place and many of the comments she has made today. BBC local radio stations are vital as sources of information and for sharing communal experiences. I recently attended the Radio Humberside “Make a Difference Awards”, which highlighted the work of local people in their communities. In March last year, Chris Burns, the head of audio and digital for BBC England, celebrated these awards saying:
“The power of radio is huge when it comes to connecting local communities in their hour of need.”
I agree. Local radio, especially Radio Humberside, brings a feeling of belonging and companionship, especially to those who are isolated from everyday interactions. Local radio stations also hold democratically elected local politicians to account, and during the covid lockdowns they provided an invaluable service, enabling and publicising local support initiatives and disseminating up-to-the-minute news.
Local radio has 5.7 million listeners—more listeners than Radio 1 and Radio 5 Live—and it is the embodiment of public service broadcasting, remaining true to the principles behind the creation of the BBC 100 years ago. The plans announced yesterday for changes to the content of local radio—without any consultation at all of local communities—effectively mean that local radio will cease to exist after 2 pm. At Radio Humberside, 139 redundancies are predicted; as well as the impact on the individuals affected, those redundancies represent a collective loss of local expertise and knowledge and of campaigning community voices.
Does the Minister agree that local listeners should have been consulted? Does she agree that the loss of provision will be damaging to local communities as they lose an important voice for their experiences and concerns about local services, democracy and accountability? Finally, does she agree that local radio cannot call itself local when it stops being local after 2 pm?
Julia Lopez
I thank the hon. Lady for her comments and for highlighting the work done by Radio Humberside, as well as the power of radio to connect us in times of need and to ensure local democratic accountability. The mission and public purposes of the BBC include provision of output and services to the UK’s nations, regions and communities. That provision is a key part of the BBC’s remit and we hold the BBC to account for it via Ofcom; it is also something we will look at very closely in the mid-term review.
The hon. Lady highlighted the loss of local expertise. BBC local radio stations have traditionally been a fantastic way to develop local talent which has gone on to be incredibly important national talent, so we have concerns about that. She talked about the need for consultation. I would have hoped to have had more chance to examine these proposals before they were released, and I shall be talking to the BBC about that next week. I am grateful to the hon. Lady for raising these issues.
Julian Knight (Solihull) (Con)
Does the Minister recognise the very real concerns about the potential loss of local distinctiveness through the proposed cuts? Should the BBC really be once again aping the commercial sector by coalescing around theme rather than genuine distinctiveness? That is where we are going with these plans. Does the Minister recognise that the cuts make reforms to radio prominence absolutely crucial? Will she quash growing rumours that the main potential vehicle for such reforms—the media Bill—is to be shelved or delayed?
Julia Lopez
I thank my hon. Friend the Chair of the Select Committee. I am particularly grateful to him and the Committee for their very important work and investigations into local journalism, and for the opportunity to present to the Committee a couple of weeks ago. One of the issues the proposals raise is whether the BBC investing more online has an impact on local news providers, which compete for that online space. On the media Bill, we in DCMS are keen to introduce it as soon as possible and we hope to be able to provide further details.
Stephanie Peacock (Barnsley East) (Lab)
I thank my hon. Friend the Member for Kingston upon Hull West and Hessle (Emma Hardy) for securing this important urgent question, and you for granting it, Mr Speaker.
The BBC is a great British institution and local radio is the cornerstone of it. It is what the BBC does best: whether it be local traffic updates, school closures, weather or other news events, BBC local radio keeps over 6 million people across the country connected to their communities. I know that my local BBC station, Radio Sheffield, keeps the people of Barnsley informed. During the pandemic, it served as a lifeline, providing tailored local updates on the latest case numbers and guidance. More recently, local radio has shown that it has the power to keep national politicians accountable to the people we represent. Of course the BBC needs to change with the times and adapt to a world where people consume their media online, but those adaptations need not be in competition with the services that make the BBC the excellent institution it is.
Under this Government, however, the BBC has been continually undermined. In an already challenging economic environment, the Government’s looming threat of scrapping the licence fee while providing no alternative model has done nothing but further destabilise the position of the BBC. The consequences of that instability are now showing. The journalists on the ground, doing their job, have had to find out through the media that their jobs are at risk of redundancy.
The Minister must take some responsibility and answer the following questions. She said that there was no discussion between the Government and the BBC prior to the decision. What steps will she now take? May I press her again to say when we will finally see the long-awaited media Bill? How will Ministers ensure that people are still able to get high-quality local news and media that keep them connected, especially as local radio stations are often the last local newsroom standing in many areas? Does the Minister acknowledge that threatening the future of the BBC as a whole is already causing it great harm?
Julia Lopez
It is important to ask ourselves what “local” means in this context. If several counties or regions are stitched together, the service ceases to be local and relevant to local people, which we have concerns about. We recognise that the BBC is under pressure, as are many other media organisations, which is why we have a series of reforms that we hope to put through in the media Bill to help it with some of those pressures. However, I say to the hon. Lady that the BBC has a £3.8 billion annual income from the licence fee, and it has that income guaranteed for the next five years. Any media organisation would be grateful to have such stability in its funding settlement. I do not see that as destabilising. It is absolutely right that the Government ask some fundamental questions about the licence fee model in the years ahead. This is a rapidly changing media landscape and it is important that we get these decisions right.
On the next steps, as I mentioned to the House, I am seeing the director-general next week. We also have the mid-term review, where we will be examining some of the very matters being raised in this urgent question.
Damian Green (Ashford) (Con)
Along with many of my constituents, I am a huge admirer of the news and analysis provided by Radio Kent. It is particularly important these days when local commercial radio has effectively completely disappeared. Can the Minister assure the House that, when she meets the BBC, she will impress on it the importance of striking the right balance between traditional means of disseminating such information through radio and the newer online means, because the BBC will need to carry on doing both effectively if it is to fulfil its public purpose?
Julia Lopez
My right hon. Friend raises an important point. One thing the BBC does is serve every community, including those audiences who are not so capable of listening to things online and are not so digitally enabled. I am certainly happy to raise the points that he has just mentioned.
Clive Efford (Eltham) (Lab)
Does not the fact that the Minister was not informed by the BBC ahead of these decisions demonstrate the poor relationship that the Government now have with the BBC? What does she think she can do to improve on that?
Julia Lopez
I think that I have a very positive relationship with the BBC, but it is operationally independent. In the context of some of the changes that are being made, it is important that we have an open and honest discussion about these proposals when we meet next week.
Simon Jupp (East Devon) (Con)
BBC local radio makes a difference to the community that it serves. It is also the service closest to communities that pay the licence fee. I am very concerned by the proposals, which will see an awful lot of programmes shared between BBC Radio Devon and BBC Radio Cornwall, and job losses too. What steps will my hon. Friend take to make sure that local news provision is protected?
Julia Lopez
My hon. Friend has particular experience as a former manager of BBC Radio Solent and a Select Committee member. As I have said previously, I am very grateful to the Select Committee for looking at some of these quite complex issues around local journalism. The question is: at what point does local journalism cease to be local if there is a merging between large geographical counties such as Devon and Cornwall. That causes me concern, and I would be happy to engage with him further on all of those issues.
Derek Twigg (Halton) (Lab)
Many of my constituents listen to Radio Merseyside, which is an excellent local radio station and probably one of the most popular in the country. It certainly has a good track record in dealing with local issues and in holding its politicians and others to account. I have to say to the Minister that we talk about local radio, but it is ceasing to be local because of what we have heard today. The next thing will be whether some of the local radio stations get closed—perhaps in a year or two’s time. That is where we are going. Should the BBC not be concentrating on investing more and on improving further the local content of radio stations? The Minister said that she was not happy with the way that this had been done. When was her Department told by the BBC that it was making these changes?
Julia Lopez
I thank the hon. Gentleman for raising the importance of Merseyside radio. On the matter of holding people to account, my understanding is that the proposals include an investment in investigative journalism, which could be a positive thing, but if we had been given further details, information and notice, I would have had a better understanding of the proposals. We were not given notice beyond the news release yesterday.
Steve Brine (Winchester) (Con)
The Minister is right to say that the Select Committee is very concerned about this announcement. We have taken a lot of evidence, including from her, on this subject. On BBC Radio Solent, which my constituents listen to, we think that, at weekends, there will be no purely local output at all—not even breakfast programmes—except, potentially, sports commentary. That is decimation. We hear that these regional investigative hubs will be put in place of truly local radio. Will the Minister ask the BBC, and will she give the House her opinion, as to whether that is what the licence fee payers—the BBC’s customers—actually want, because I very much doubt that that is the case?
Julia Lopez
The BBC is a public service broadcaster and it is there to deal with types of journalism that are not covered adequately by the market. That is why the BBC has support. If it is not delivering that kind of distinct local and regional content, we have to ask some very serious questions.
Valerie Vaz (Walsall South) (Lab)
Local radio was brilliant when it questioned the previous Prime Minister. Can the Minister reassure the House that this is not a done deal, and can she update the House on her discussions with the director-general?
Julia Lopez
I thank the right hon. Lady for raising those interviews with the previous Prime Minister. That has since led to a regular section on the Radio 4 “Today” programme where local radio stations are making a specific contribution to what is a national broadcasting programme, allowing us to get a much better flavour of what is going on across the country, and of the different opinions that regional and local news providers have on those national stories. That is where the value of the BBC really comes into play, and I really hope that that does not wither on the vine.
Sir John Whittingdale (Maldon) (Con)
I urge my hon. Friend to ask the BBC to think again. Will she remind it that stations such as BBC Essex are greatly valued by listeners and provide a service that is unavailable commercially? Online news is already well supplied by the local media, which is under considerable pressure even without greater competition from the BBC. Will she consider asking Ofcom to look into the impact of this decision on local publishers?
Julia Lopez
My right hon. Friend obviously has a great deal of expertise in these matters and I am grateful to him for raising the great content of BBC Essex. As I have said before, this is a great opportunity to show the strength of opinion across the House; the BBC is there precisely to serve audiences that are not covered by commercial radio. I would be happy to talk to Ofcom, because these are fundamental questions about the purpose of the BBC.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
Can we just think about one example of how BBC local radio has impacted on all our everyday lives? During the pandemic the “Make a Difference: Give a Laptop” local radio campaign saw more than 116,000 laptops donated to schools and raised £1 million. I argue that that enabled children to carry on learning during one of the most disabling periods in our recent history. Is that not one incredibly convincing argument as to why we should protect and finance the BBC properly?
Julia Lopez
I thank the hon. Gentleman for his contribution. He is right to highlight just how important those local radio services were during the pandemic, particularly as we were seeing lots of different restrictions in different parts of the country; they provided people with up-to-date information about the restrictions in their particular area. I appreciate what he says about the funding. We have guaranteed the BBC a large amount of funding for the next five years, but he is right to highlight some of the important work that it has done over the past few years.
Tracey Crouch (Chatham and Aylesford) (Con)
With my other half working in local radio as a presenter, I need to declare a personal interest in this issue. However, my support was strong long before we met, because I have always understood the importance of local radio and its value to its listeners, as I know you do, Mr Speaker, having spoken to you on many occasions about your affection for BBC Radio Lancashire. In a county such as Kent, local news delivered by local journalists who understand local need and culture is essential. It is not just about news, but about conversation and engagement. If my constituents want national news, they will go to the News Channel, but if they want local news, travel, weather, sport and what is going on around the county, they will tune into BBC Radio Kent. Merging Kent with Surrey and Sussex would be a travesty. Without being rude, why would Kent listeners want to hear about a local issue in Surrey or Sussex, and vice versa? Does my hon. Friend agree that any manager who thinks that local content should be shifted online neither knows their demographic—those who are most likely to be digitally disconnected—nor listens to it, and does not understand the definition of public service?
Julia Lopez
I thank my hon. Friend for raising the incredibly important work of BBC Radio Lancashire; I am grateful to be able to give it a shout-out. She raises the prospect of a merged Surrey-Sussex-Kent service, and she is right to highlight that that does not provide the kind of local, specialised content that people are looking for when they turn on the radio, and that there is a real risk that people will just turn to national services because that content is not sufficiently directed at them.
Mr Speaker
Of course BBC Radio Lancashire is so important, having Mike Stevens and Graham Liver there all the time.
Karl Turner (Kingston upon Hull East) (Lab)
We all appreciate the brilliance, the quality, the objectivity and the outstanding journalism, production and research of BBC radio journalists—not least, in Hull, in the coverage of rugby league, which you and I are both fans of, Mr Speaker. I urge the Minister to impress upon the director-general the crucial importance of that local knowledge in local BBC radio.
Julia Lopez
I thank my hon. Friend—I mean the hon. Gentleman—for raising—
Julia Lopez
I thank my hon. Friend for raising the importance of the sports content in particular. I know there is so much passion for people’s local clubs, and if that news service is not there for those local clubs, that sense of disconnection becomes more prominent. I have not had time fully to absorb the proposals, and I think there is some talk of sports content being untouched by them, but I will ask his question of the director-general when I see him.
Kevin Foster (Torbay) (Con)
BBC Radio Devon is a key part of the news picture in my constituency. We have already seen the decline in commercial media, with the local daily paper becoming weekly and newsrooms closing. How will my hon. Friend satisfy herself that when the BBC promises sports coverage, that is not just commentary—for example, of tonight’s game—but about fully covering the clubs, as we have seen BBC Radio Devon covering well a number of issues affecting Torquay United?
Julia Lopez
I am glad my hon. Friend has taken the opportunity to raise the wonderful club of Torquay United and the important coverage that BBC local journalists provide to grassroots sport, which is key to ensuring that support for those small clubs continues. I shall ask the director-general about the importance of services in Devon and other rural counties when I see him.
Hilary Benn (Leeds Central) (Lab)
Further to the point made by my right hon. Friend the Member for Walsall South (Valerie Vaz) about the effectiveness of BBC local radio in questioning the Prime Minister in September—kicked off, of course, by Rima Ahmed from the wonderful BBC Radio Leeds—the Minister will have heard from Members in all parts of the House just how important that local content is to us and our constituents. I urge her to take that sense of unhappiness to her meeting with the director-general and encourage him to change his mind.
Julia Lopez
I thank the right hon. Gentleman for his suggestion. As I hope he has gathered from my responses, this urgent question has been a useful opportunity for the House to make clear its very strong feelings on this issue and has allowed everybody to highlight particular parts of the country, the particular stories that come from those parts of the country and the talent that is nurtured in those local radio stations.
Andy Carter (Warrington South) (Con)
It is true that the local media ecology has changed beyond all measurable doubt over the past 20 years, but nobody provides local radio in the UK like the BBC, because it is set up and funded as a public service broadcaster. That should be at the heart of the BBC’s delivery. Can my hon. Friend assure me that Ofcom will look carefully at the provision of local services to ensure that older audiences are not disenfranchised by this decision? How can she ensure that other local media provision, particularly online provision that relies on local revenues to support its services, is not impacted by the BBC disproportionately acting online?
Julia Lopez
My hon. Friend has great expertise, particularly in the area of radio, so he will understand that there is a delicate ecology here and we must ensure that whatever the BBC does enhances local journalism rather than creating sustainability questions for other local journalists, particularly if it starts to move services online. He makes a good point about radio content being at the heart of the BBC’s public service broadcasting mission, and it is a point I shall make to the director-general.
Ian Paisley (North Antrim) (DUP)
Thank you for calling me so early, Mr Speaker—obviously accelerated by the complete lack of Scottish Nat Members, which I am sure is by accident and not by design, but I do appreciate it.
Before we get carried away on a wave of claptrap, may I ask the obvious question? Does the Minister agree that there are many savings to be made in how the BBC distributes its regional services, and that those savings should be made? There is much duplication within the BBC. Many of us have given the same interview time and again on the same day for a number of regional radio stations and there has been no sharing of that across the BBC regional network, as should be the case. Of course, we have split services in Northern Ireland: we effectively have Radio Ulster and Radio Foyle, and there has been a removal of exciting local issues to do with, for example, 12 July coverage. All that has been removed from BBC radio locally. The Minister needs to make sure that, when she talks to the director-general, she makes those points also.
Julia Lopez
I thank the hon. Gentleman for his contribution. I know he has very strong feelings about the BBC, which we discussed only yesterday in the Lobby. The BBC has a licence fee income of £3.8 billion a year, and there are big questions to be asked about what kind of content it should be delivering with that amount of money. I think the strength of feeling in this House is that this very local content is precisely what the BBC is there to deliver, because the commercial sector does not deliver it. People are content to pay for the licence fee when they think it is providing that kind of service.
Jason McCartney (Colne Valley) (Con)
I declare an interest as a former employee of BBC Radio Tees and freelancer at BBC Radio Leeds. We all welcome investment in digital services and it is good that local sport will continue—speaking particularly as a rugby league fan of the Huddersfield Giants—but the message is coming through loud and clear: the Minister needs to ask the director-general and the chairman to look again at continuation of local coverage after 2 pm. It is vital in my neck of west Yorkshire, not just through the pandemic, but when we have bad weather, for school and college closures and updated road information. It is really important. Will she please press that with the DG and the chairman next week? We need proper local coverage throughout the day, not stopping at 2 pm.
Julia Lopez
I thank my hon. Friend for his contribution, not least because of his own background and expertise in BBC local radio. I have a great deal of sympathy with the BBC’s trying to future-proof the organisation, to ensure it is more available online and to deal with some of the challenges around digital, but it must look at its fundamental purpose. He is right to highlight the importance of local news in relation to specific local updates, whether that is weather, travel or particularly important democratic stories, and I shall be raising those issues with the director-general.
Cat Smith (Lancaster and Fleetwood) (Lab)
I am sure you would agree with me, Mr Speaker, that while all local radio stations are good, BBC Radio Lancashire is the greatest of them all. All the more reason, then, to raise my concern that in Lancashire it is proposed that from 2 pm onwards we have shared services with Cumbria, from 6 pm onwards on weekdays it is shared with Greater Manchester and Merseyside, and on weekends just with Merseyside. Does the Minister agree that that fracturing of BBC local radio is a threat to democracy? For strong democracy we need strong, accountable local media to hold politicians right across our counties—including the greatest county, Lancashire—to account.
Julia Lopez
Let us give another shout-out to BBC Radio Lancashire, just so that Mr Speaker is content with me. The hon. Lady highlights the potential for geographically large and very diverse areas to be stitched together. As I say, after a point that ceases to be local content, and there is a serious question about democratic accountability, given that that is one of the primary purposes of public service broadcasting. Those are very real issues that need to be raised.
Sir Mike Penning (Hemel Hempstead) (Con)
I was surprised to hear that the Minister only heard about this in the last couple of days, because I heard about it last week through a whistleblower from my local area. That is very worrying. The second worrying thing is that the public trust local radio as they do not trust “Newsnight” or “Today”—frankly, because they do not listen to them. They trust local radio. If this is about money, then take half a million pounds out of Gary Lineker’s salary, or one of the others who earn extortionate salaries. That would pay for a lot of people at Three Counties Radio to keep their jobs.
Julia Lopez
I thank my right hon. Friend for raising his concerns. There is a social compact between the public and the BBC that we pay the licence fee on the basis that it provides us with this kind of content, and if it ceases to do that, that raises more fundamental questions. He raises a number of helpful points, and I shall make sure that they are addressed. I know that many Members across the Chamber feel strongly about some of the very large salaries in the BBC, and that goes to the heart of public trust in the BBC. If we had further details and a greater understanding of the cost savings in these proposals, we could have a more serious debate about it.
John McDonnell (Hayes and Harlington) (Lab)
I am the secretary of the National Union of Journalists parliamentary group, and the Minister can imagine the crushing disappointment among NUJ members, because this comes on top of 450 job losses in BBC England and 400 job losses in the World Service. Our concern is that the digital first proposals are undermining the provision of news at the local, national and global level. I am pleased that she is meeting the BBC next week. I ask her to meet the NUJ group as well, so that we can brief her on what we know is happening on the ground as a result of cut after cut after cut from the BBC.
Julia Lopez
I am grateful to the right hon. Gentleman for raising the NUJ’s concerns. It is important that many people get their training in local media organisations, which gives them a great grounding for going national. It is regrettable that these proposals come in Journalism Matters Week, at a time when there are a whole host of challenges facing local journalists.
Kit Malthouse (North West Hampshire) (Con)
I share the alarm expressed across the House and by the Minister at this move. I represent a part of Hampshire that often finds it hard to identify itself in the BBC schedules, squeezed as it is between BBC Radio Solent, which concentrates on the urban areas to the south of the county that are an hour away, and BBC Radio Berkshire, in a different county altogether, yet the BBC does just enough in my part of the world to make sure that the commercial sector cannot function or thrive in North West Hampshire. I urge the Minister not to mess about with this debate, which we have had many, many times over the years about the BBC. May I suggest that she talks to the Competition and Markets Authority about it doing a full review of the impact of the BBC on the commercial sector, both locally and nationally?
Julia Lopez
I thank my right hon. Friend for raising the issues in Hampshire. The mid-term review, which is a relatively new innovation, is looking at some of these questions on competition and market impact. If he has further details that he would like to feed into that about his local challenges in that regard, I would be happy to receive them, because the Department is looking at all these issues, and we expect to report next year.
Kim Johnson (Liverpool, Riverside) (Lab)
The National Union of Journalists has warned that these cuts will not only cost jobs but risk diluting the breadth and quality of relevant local news, particularly for listeners in my Riverside constituency, who are served by the great BBC Radio Merseyside, which has fantastic journalists. Does the Minister agree that this represents a core part of the BBC’s function, and can she inform the House of what action she will take to protect the future of local news on BBC radio and television?
Julia Lopez
I am grateful to the hon. Lady for again raising the NUJ’s point of view. As I have said in previous answers, BBC local radio is a great training ground for a number of journalists, and it would be regrettable if it started to be reduced in size. There are opportunities for journalists in some of the proposals that the BBC appears to be putting forward for investigative journalism, and those are to be welcomed. The BBC invests in a number of other initiatives, particularly the Local Democracy Reporting Service, but these are precisely the kinds of initiative that the BBC should be involved in, and we should all be concerned if it seems to be moving away from that.
Martin Vickers (Cleethorpes) (Con)
This is yet another own goal by the BBC, with no consultation and no dialogue with Ministers. The email that Members received referred to “changing audience expectations”. Actually, what thousands of my constituents expect is to be able to press a button and listen to Radio Humberside, which their radios are permanently tuned to. In the short term, may I urge her to get the BBC to drop these proposals? She referred to the charter review. As negotiations about the charter continue, may I urge her to emphasise that local radio is key to BBC provision?
Julia Lopez
I thank my hon. Friend for his question. He is right to highlight that this is precisely what people expect of and value from the BBC. I have a great deal of sympathy with the BBC needing to change and adapt to the changing media landscape, but it must not at the same time move away from its core purpose.
Mr Toby Perkins (Chesterfield) (Lab)
The BBC is uniquely funded, and it needs to provide unique services. In Chesterfield we are well served by both Radio Sheffield and Radio Derby, and the quality of journalism on those stations is outstanding. It is not a public problem if the BBC is losing market share to Amazon or Netflix. Those organisations do what they do well, and the BBC should not be looking to replicate them; it should be looking to preserve those things that are precious and unique, and BBC radio is absolutely one of those things.
Julia Lopez
The hon. Gentleman makes his point powerfully. It is a core mission of the BBC to provide this kind of distinctive local content that relates to British people in the communities in which they live. If it is not concentrating on precisely this kind of content, there are wider questions to ask about whether it is delivering its remit in the right way.
Alec Shelbrooke (Elmet and Rothwell) (Con)
We have heard Members across the Chamber comment on the accountability of local democracy, but the truth of the matter is that the BBC has been undermining that for quite a while in Radio Leeds. We used to have something called “the hotspot”, which my West Yorkshire colleagues would have been on, and the right hon. Member for Leeds Central (Hilary Benn) and I have done debates together on Radio Leeds. Outside of the breakfast show, none of that happens any more. Some very dedicated people said a long time ago that the BBC was undermining local political content. It said that that content did not get the audience attraction, but it is supposed to be a public service broadcaster. It might be a relief for us not to have the public phone in and question us for an hour, which made us squirm, but it shows that the BBC itself has been undermining these services for a long time, certainly in Leeds, and a lot of very hard-working, dedicated people have been hung out to dry. Will my hon. Friend take a hard look at what the BBC has been doing and make sure that this does not amount to constructive dismissal?
Julia Lopez
I am grateful to my right hon. Friend for raising the important work that is done by BBC Radio Leeds and for giving a longer-term picture of what has been going on within these radio services. I shall speak to the director-general about those issues next week.
Mike Amesbury (Weaver Vale) (Lab)
BBC Radio Merseyside has provided a vital lifeline during the covid pandemic and the current cost of living crisis, as Members across the Chamber have said. It also serves the Cheshire part of my constituency, which is quite isolated and rural. It is a great incubator for new talent. How will the Minister update us on the outcome of the meetings with the director-general and the chairman of the BBC?
Julia Lopez
I thank the hon. Gentleman for raising that point about how the BBC is an important developer of local talent and local journalism. I shall meet the director-general next week and will probably write to Members who have asked questions so that they can have their points addressed from the outcome of that discussion.
Tom Hunt (Ipswich) (Con)
I think that BBC Radio Suffolk is, per head of population, the most listened to in the country. I am glad that we will be spared the indignity of Ipswich Town fans hearing detailed team news from Norwich City; that, at the very least, has been eliminated. Will the Minister confirm that in the move towards digitalisation, older listeners will be taken into account, as they disproportionately rely on and listen to BBC Radio Suffolk and are among its greatest fans? In her discussions with the BBC, will she have a conversation about the huge salaries that some BBC employees who are of questionable talent are currently on?
Julia Lopez
It is not for me to question the talent of those on very high salaries in the BBC. My hon. Friend rightly highlights the very healthy listening figures for local BBC radio stations, particularly among older listeners. These are the people who public service broadcasters are there to serve. It is important that the BBC future-proofs itself and makes sure it is ready for the digital age, but it must not forget its core purpose and mission in the process of doing that.
Grahame Morris (Easington) (Lab)
In my capacity as co-chair of the NUJ parliamentary group, I and other Members of Parliament from both sides of the House had opportunities to meet journalists from BBC News, the World Service and local radio, including some of the journalists from Radio Humberside. I was quite encouraged the Minister has referred to one of the issues they raised—that the BBC has an obligation under its royal charter to ensure that it provides output and services that meet the needs of the UK’s nations, regions and communities. Much of that is provided by BBC local radio. Will the Minister urge Ofcom to undertake an urgent and thorough review of all of the BBC’s digital first proposals, including the impact on BBC local radio, to ensure that the BBC continues to fulfil its public service obligation? Will she also meet the NUJ group?
Julia Lopez
The NUJ is well represented here today, and I am sure it is grateful for that. Ofcom regulates the BBC, but we are undertaking a mid-term review and we shall seek Ofcom’s input into that. The hon. Gentleman raises the digital first strategy, which raises questions about whether the BBC is increasing its presence in online content and whether that has a knock-on effect on local journalism and other local outlets. Those are all issues that we are considering as part of the mid-term review, and I am grateful for his input.
Andrew Bridgen (North West Leicestershire) (Con)
Despite raising about 20% of its total revenue from the midlands, the BBC currently spends only about 2% of its total budget there. The BBC is often accused of being London-focused, London-centric and out of touch with the sentiment of the public outside the capital. Does the Minister agree that any further reductions in regional services will only exacerbate that perception?
Julia Lopez
That issue was a real passion of the former Secretary of State, who secured several commitments from the BBC about moving services out of London and trying to get better representative content, be that socioeconomic or regional and local. My hon. Friend raises an important question about whether the BBC adequately represents every corner of our country, and such questions are ripe for raising.
Andrew Gwynne (Denton and Reddish) (Lab)
The beauty of BBC local radio is that it does what it says on the tin—it is local—and that is true of all the radio stations, including those that cover big cities, such as BBC Radio Manchester. They do not just cover stories in the city centre: they cover stories in the suburbs, in places such as Denton and Reddish. It is important that we keep that local link to news stories and sport. The Minister knows that local radio stations are also an important pipeline for developing the creative media and the workforce for other media outlets. Can she get some guarantees from the BBC that nothing it proposes will harm that creative pipeline?
Julia Lopez
The hon. Gentleman raises an important point about the BBC, which is important not just for the BBC itself but the wider creative economy. Some of the investment that the BBC makes in local journalism has a knock-on benefit for other media organisations, and that creates a flourishing local media ecology. He is right to highlight that, and I am also grateful to him for highlighting the great work of BBC Radio Manchester.
Anna Firth (Southend West) (Con)
The city of Southend has one of the oldest demographics in the country, so will my hon. Friend assure me that she will stress to the BBC how valued BBC Essex is by our elderly population? It does a wonderful job, especially of celebrating our local heroes, such as disability hero Jill Allen-King, and raising thousands of pounds every year for charities as varied as the Music Man Project, the Endometriosis Foundation and prostate charities. Will she stress to the BBC the detriment to our local charities in Southend if that service is restricted?
Julia Lopez
I hope that the BBC listens carefully to all the points that hon. Members are raising today. As a public service broadcaster, the BBC is there to serve all demographics, but particularly those who are poorly served by other means. I am grateful to my hon. Friend for highlighting the charity work that her local radio station, BBC Radio Essex, has been so excellent in pursuing.
Mr Clive Betts (Sheffield South East) (Lab)
I echo the comments made by my hon. Friends already about the excellent services provided by Radio Sheffield—local news, local motoring and local football. The key is the word “local”. People in Sheffield and south Yorkshire want to know what is happening in their immediate communities: frankly, they are not desperately interested in what is happening in Leeds and west Yorkshire. I suspect the reverse is also true. While we seem to be promised that the local morning news will be protected, it appears that excellent programmes such as those on Radio Sheffield in the afternoon will be scrapped and merged into some amorphous regional offering. Will the Minister tell the director-general that that simply should not be allowed to happen and is not what local people want?
Julia Lopez
The hon. Member’s point goes to the fundamental question of at what point local news ceases to be local. I shall ask the director-general that very question.
Mr Robin Walker (Worcester) (Con)
My hon. Friend was spot on to describe BBC local radio as one of the crown jewels of our public sector broadcaster. BBC Hereford and Worcester was a vital lifeline during the pandemic and many times during the all-too frequent floods in Worcester. In a debate in which we have heard much about rugby league, I am keen to make the case for rugby union. Will she join me in urging the BBC to make sure that BBC Hereford and Worcester is able to cover the fightback and return to the premiership of the Worcester Warriors?
Julia Lopez
I commend my hon. Friend on his plug for the Worcester Warriors. He is right about the very specific stories that are covered by BBC local radio and their importance, particularly in times of need and difficulty during the pandemic or local floods. It is that content that is so valued by communities of the kind that he represents.
Rachael Maskell (York Central) (Lab/Co-op)
It is simple—no local BBC, no BBC. It is where the news breaks and where communities are served, and in York BBC Radio York served us incredibly well during the floods and continues to be part of our community all day and through the night. The most worrying part of the proposals is that we will lose public service broadcasting time in our communities, something that needs to be protected in the light of the commercial sector and its interests. When the Minister meets the director-general, will she ensure that she stresses the importance of public service broadcasting and the need for it to be reinforced in the role of the BBC and its responsibilities to licence payers?
Julia Lopez
The hon. Lady is right to highlight that—it is what public service broadcasting is about. My worry is that such proposals stand to undermine the social compact between licence fee payer and the BBC. We have a special arrangement for the BBC because we expect it to provide the kind of content that is not otherwise provided by the market.
Chris Loder (West Dorset) (Con)
Members have shared their concerns that their local radio station will be merged or shared after 2 pm. What should be BBC Radio Dorset stops at 9 am. We should all be clear about the direction of travel of this proposal. My constituents are clear that their priorities when they pay their licence fee are local programmes and local news. It is not acceptable to them that we have multi-million pound salaries paid by the BBC but local news is not available to them. Will the Minister please petition very strongly the director-general and the chairman of the BBC to change these initiatives and re-prioritise Dorset?
Julia Lopez
I had the pleasure of staying in my hon. Friend’s constituency for a few days recently, when I enjoyed the BBC local services on offer which provided a distinct flavour of the region and the local community he represents. It is a point made by many hon. Members that that is the kind of content that people pay the licence fee for, and the BBC should be in no doubt about that.
Jim Shannon (Strangford) (DUP)
Thank you, Mr Speaker. I thank the Minister for her response to questions today. Impartiality is critical. BBC services in Northern Ireland are somewhat limited, but some programming—outside the oft-biased news pieces—is used to promote cultural events such as a Burns night supper or an Irish evening. Can the Minister confirm that the proposed reduction will include a focus on cutting the cost of some of the overpaid staff and rekindling local cultural programmes that are enjoyable and very informative?
Julia Lopez
I know that the hon. Gentleman feels strongly about issues of impartiality in the BBC, and the former Secretary of State extracted several commitments from it, with a 10-point plan to take that forward. As other Members have, he highlights the issue of salary disparity and whether the BBC is putting money in the right places. Those are all questions that need to be answered.
Mr Speaker
We have saved the best until last. I call Dr Neil Hudson from Cumbria.
Dr Neil Hudson (Penrith and The Border) (Con)
I share the concerns raised by hon. Members on both sides of the House and by the Minister about these retrograde proposals. In rural areas such as Cumbria, people rely on local radio stations such as BBC Radio Cumbria and on terrestrial TV. They provide a lifeline for news and education, mitigate against rural isolation and support people’s rural mental health. Does she agree that we should resist such reductions and that, in fact, we should bolster and support such vital services?
Julia Lopez
I have said several times, and I will say again, that this is the kind of public service broadcasting content that people pay their licence fee for. Hon. Members have got their views on the issue across loud and clear. I am grateful to everyone who has participated in the urgent question and I will take all the comments and issues that have been raised to the director-general when I meet him next week.
Mr Speaker
I think the Chamber is united, which is good. Thank you, Minister.
Product Security and Telecommunications Infrastructure Bill
Julia Lopez ExcerptsMonday 31st October 2022
(2 years ago)
Commons ChamberRead Full debate Product Security and Telecommunications Infrastructure Act 2022 View all Product Security and Telecommunications Infrastructure Act 2022 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: Commons Consideration of Lords Amendments as at 31 October 2022 - (31 Oct 2022)
The Minister of State, Department for Digital, Culture, Media and Sport (Julia Lopez)
I beg to move, That this House disagrees with Lords amendment 17.
Mr Deputy Speaker
With this it will be convenient to discuss Lords amendments 1 to 16.
Julia Lopez
I am pleased to see the progress that the Bill has made since it left this House before the summer, and I am grateful to Members in the other place for their scrutiny of it. Fast, reliable and secure digital connections are the cornerstone of a competitive economy and thriving society, and the sooner the legislation comes into force, the better. As hon. Members will recall from earlier stages of the Bill, its objective is twofold: first, to speed up the roll-out of 5G and gigabit-capable broadband; and secondly, to protect and enhance the security of consumer connectable products, such as monitors, doorbells, connected kitchen appliances and so on, so that users can get their benefits without being exposed to risk. I am confident that the Bill will do just that.
I will start by explaining the need for the relatively straightforward Government amendments tabled by my now former colleague, Lord Kamall, whom I thank and pay tribute to. I will then move on to Lords amendment 17, with which I hope the House will disagree.
Lords amendments 1 to 11 seek to implement recommendations made by the Delegated Powers and Regulatory Reform Committee. Those recommendations relate only to part 1, on product security. The amendments change the parliamentary procedure for two delegated powers from the negative resolution procedure to the affirmative resolution procedure. Those are the powers in clause 3, the power to deem compliance with security requirements, and clause 9, the power to exempt manufacturers from needing to draw up a statement of compliance. The amendments will also ensure that the Secretary of State is able to authorise another person to exercise enforcement functions only by making regulations rather than by agreement. Those regulations will also be subject to the affirmative resolution procedure. We have carefully considered the Committee’s regulations and we are happy to accept those three.
On part 2 of the Bill, on telecoms infrastructure, Lords amendments 12 to 14 would remove the clause formerly known as clause 57 and make relevant consequential amendments to the version of the Bill that this House sent to the other place. That clause was intended to address difficulties that had arisen following upper tribunal and Court of Appeal decisions on the meaning of “occupier”. However, a judgment of the Supreme Court on this very issue was made during the Bill’s journey through the other place, and the judgment resolves the policy concerns that clause 57 was designed to address. As a result, we think it is no longer necessary to retain that clause, and its removal will ensure clarity and certainty for all users of the code.
Lords amendment 15 was made by the Government following a lot of debate and work by my team of officials, and I expect hon. Members on all sides will be pleased to see it realised in the Bill. It gives operators the rights to facilitate two things. First, the amendment makes it easier for a telegraph pole to be shared that is used by an operator other than the operator that owns the pole. Secondly, it makes it easier for the equipment on a pole to be upgraded—for example, by replacing an old copper line with a fibre-optic one.
This amendment is something that many of my hon. Friends and hon. Members, and indeed the telecoms industry, were asking for. Overhead lines are used to provide a substantial proportion of network delivery across the country, and we think the amendment will therefore play a very important role in delivering better services to our constituents. We have listened carefully to stakeholders, and as well as meeting the needs of operators, I can assure hon. Members that we have included safeguards to protect the interests of private landowners and occupiers. For example, the legislation will not provide operators with an automatic right of entry on to private land. I hope that this amendment will therefore be welcomed.
The final Government amendment, Lords amendment 16, concerns an issue that has not yet been discussed in this House, so I should spend a little more time explaining its rationale. The amendment is intended to protect the autonomy and integrity of our national security, defence and law enforcement sites across the country. As it stands, the electronic communications code allows telecoms operators to seek consensual agreements with landowners to install and maintain telecoms equipment on private and public land, including sensitive national security, defence and law enforcement sites. If an agreement cannot be reached, a telecoms operator may seek a court order imposing such an agreement, potentially giving the operator access to those sensitive sites without consent. The code works in this way to make sure that operators can deliver the 5G and gigabit-capable broadband roll-out at pace.
However, this process does raise some national security concerns, including physical security, technical security and legal risks, which I shall go into a little further. On physical security, the presence of engineers and site surveyors on particularly sensitive sites, potentially without proper security clearance, could pose a national security risk. On technical security, the installation of 5G equipment on particularly sensitive Government sites could pose communications and information security risks.
Finally, on legal risks, the courts that consider proceedings under the code are not able to undertake closed material proceedings. That means that classified national security concerns cannot be evidenced properly, which might lead to courts granting access to sensitive sites without a full awareness of the risks. Lords amendment 16 seeks to address those particular national security risks without undermining our ambitious gigabit-capable broadband and 5G roll-out plans. It will confer powers on the relevant Secretary of State to intervene and prevent a court from imposing an agreement sought by an operator.
Jim Shannon (Strangford) (DUP)
I thank the Minister very much for her presentation. In relation to personal data—my constituents contact me about it all the time, and probably hers do as well—can we be assured that, through this Bill, personal data will not be available to people who do not have the right to access it?
Julia Lopez
I think that is probably for other legislation, but if the hon. Member would like to discuss further with me, perhaps in relation to the Data Protection and Digital Information Bill, I would be very happy to do so.
Turning back to Lords amendment 16, I have to emphasise that it is not a blanket national security exemption. It is a very specific power that will be deployed only rarely, on a case-by-case basis and only when all other routes to a mutually consensual solution have been exhausted.
Finally, turning to the last amendment in the group, I hope the House will disagree with Lords amendment 17. The amendment adds a new clause to the Bill requiring the Secretary of State to commission an independent review of the effect of the electronic communications code and of the Telecommunications Infrastructure (Leasehold Property) Act 2021.
Sir Desmond Swayne (New Forest West) (Con)
It is the Minister’s belief that the Bill will be a remedy for the problems in the market. She will acknowledge that, while there are only a few of us in the House who do so, there is a rather larger number out there who believe that it will make a bad situation significantly worse. The Lords amendment at least gives the opportunity of finding out who is right about this—whether it is her belief that the situation will be better or mine that it will be worse. It will put some proof into the pudding. Why must she resist it?
Julia Lopez
I shall set out my reasons for resisting now, but I am afraid I am not of the same opinion as my right hon. Friend on this issue. I have looked at it at length: I have looked at casework and the numbers of renewals, and I believe a review would simply cause a great deal of delay, which would further stymie roll-out.
Selaine Saxby (North Devon) (Con)
I thank the Minister for her intervention on this. Does she agree with me, as chair of the all-party group on broadband and digital communication, that the industry is desperately concerned that this review amendment will wreck the intentions of the Bill, and in constituencies like mine in North Devon will simply slow down the roll-out of this vital infrastructure further?
Julia Lopez
I agree and I thank my hon. Friend for making the point. It seems sensible and benign, but it would significantly delay roll-out and create a great deal of uncertainty.
I understand why Members in the other place tabled this amendment. Its aims are noble, but it is impractical and unnecessary and would have a disastrous effect on investment in telecoms infrastructure, leading to a slow-down in getting great connectivity to the places that most need it, particularly rural constituencies. The Government and Ofcom already produce regular reports on coverage targets and competition, and to that extent the amendment is unnecessary and would duplicate effort.
On the subject of coverage and targets, we are making great progress. We have listened at length to the concerns in both Houses and among stakeholders, and we of course understand that there are tensions between landowners and operators that must be resolved, albeit a lot of progress has been made since 2017. This Bill tries to resolve some of the challenges, particularly by introducing more collaborative negotiations and a greater use of alternative dispute resolutions.
The prospect of another full-scale review of the code framework would have the opposite effect, exacerbating existing tensions by prolonging that debate about valuation. The result would be a cooling effect on the market, with landowners and operators reluctant to conclude agreements until the review was completed. That would seriously delay the delivery of digital services, including gigabit-capable connections and 5G coverage, which so many of our constituents tell us they need and which hon. Members hold me to account for every day because those things are important to economic growth and social wellbeing in their constituencies, particularly rural ones. I urge hon. Members not to stitch further delays into the process through the uncertainty created by a review. For these reasons, although amendment 17 is well-intentioned, it is disproportionate and unhelpful, and I hope the House will disagree to it.
I am nearly at the end of my speech, but I want to thank all Members who have contributed to debates on this Bill, especially the hon. Member for Barnsley East (Stephanie Peacock) and her predecessor the hon. Member for Ogmore (Chris Elmore). Parliamentary scrutiny here and in the other place has provided the Government with much food for thought, allowing us to refine and improve the legislation, and I am pleased that Members on both sides of the House support the objectives of this much-needed Bill in recognition of the importance of digital connectivity to the people and communities we serve and the security of the products that will be increasingly present in their lives.
Stephanie Peacock (Barnsley East) (Lab)
Labour has always broadly welcomed the principles of this Bill and has supported amendments, whether Government or Opposition-led, that strike a sensible balance. That remains the case today, and as such I welcome the Government amendments before us. I will instead focus my remarks on amendment 17 on a review of the electronic communications code.
Labour stands firmly behind the aim of improving roll-out. Digital connectivity is a necessity, not a luxury in this day and age. In order to participate in society—from banking to shopping, to education and using public services—access to the digital world is crucial for people of all ages and in every corner of the country. As such, it is vital that we facilitate the building, maintaining and upgrading of digital infrastructure that allows for this connectivity.
The last Labour Government delivered on this belief, ensuring the creation of infrastructure that brought first-generation broadband to around 13 million households by 2009, but unfortunately over the last 12 years roll-out simply has not gone as far or as fast as we would like. Both broadband and 5G roll-out have been woefully slow, and the Government have repeatedly reduced their targets. We therefore support the aim of part 2 of this Bill, to speed up roll-out to the levels needed. The amendment that calls for a review of the electronic communication code is proposed with the firm intention of boosting rather than jeopardising roll-out. It would ensure that a balanced evidence base is built surrounding the changes made to regulation in the last five years so that concerns held by both landowners and operators can be addressed objectively and in the public interest.
Julia Lopez
I thank hon. Members for their contributions and for the wide-reaching support for the Bill, as that shows recognition of its importance.
The 2017 reforms were introduced to drive roll-out and were designed to make rents more akin to those for a key utility. There were, no doubt, issues after 2017 that led to protracted negotiations and examples of poor practice by operators, some of which we heard in Committee, but I am confident that we are now reaching market equilibrium, and renewal numbers are increasing year on year.
We believe that the Bill will lead to further progress, and we are making great progress on the roll-out. Our national gigabit coverage was 6% in 2019 and it is now more than 70%; 4G coverage is at 92%; and we met our 5G target five years early. We review the situation. We have monthly stakeholder meetings that have led to a new national connectivity alliance between operators and landlords. I assure the House that I am not on the side of either operators or landlords in the negotiations; I am on the side of people with poor connectivity. That is the lens through which I view the amendments and such people are our motivation, plain and simple.
I thank the Bill team and all the officials across many Departments who have worked hard over the past couple of years to reach this stage. The Bill will help people up and down the country to access the digital services that they need, and to do so securely. If the hon. Member for Strangford (Jim Shannon) would like me to, I shall take up the issues in his constituency. Beyond that, I commend the Bill to the House.
Question put, That this House disagrees with Lords amendment 17.
Oral Answers to Questions
Julia Lopez Excerpts(2 years ago)
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Iain Stewart (Milton Keynes South) (Con)
The Minister of State, Department for Digital, Culture, Media and Sport (Julia Lopez)
The UK Government have a strong record of demonstrating our commitment to minority language broadcasting, to make sure that our broadcasters serve all audiences of the UK nations and regions. My hon. Friend will recall that during his previous role at the Scotland Office we both met MG Alba’s CEO earlier this year. I am grateful to the chief executive for raising the issues of the sustainability of Gaelic language broadcasting and for providing detailed proposals for change. My officials have since been in regular contact with the organisation and I am continuing to talk to counterparts at the Scotland Office. I will have further discussions with MG Alba in due course.
Iain Stewart
I am grateful for that answer. Gaelic broadcasting is not just vital culturally and socially, but delivers a positive economic impact. Its future strength, however, requires public sector broadcast status in legislation, akin to that enjoyed by Welsh language broadcasters. I suggest to my right hon. Friend that the forthcoming Media Bill will be an ideal opportunity to provide that.
Julia Lopez
I entirely appreciate that certainty of future funding and particularly a strong partnership with the BBC are important for MG Alba to deliver for Gaelic speakers. It has legitimate concerns, and I have been examining its proposals in detail. Together with my officials, I am trying to decide whether the forthcoming Media Bill is the best mechanism to address those concerns, or whether the issues are better addressed through the future funding review of the BBC and the subsequent BBC charter review. I assure my hon. Friend that I am very engaged in these issues and want to get to a good solution.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
There was a time when Gaelic was spoken in much of my far-flung constituency; that is not the case today. I regard Gaelic as not just a Scottish but a United Kingdom treasure. I respectfully suggest to the Minister that she might benefit from coming to the Gàidhealtachd, where Gaelic is spoken in the Western Isles, perhaps in parts of my constituency, to see what needs to be done to help it.
Julia Lopez
I thank the hon. Gentleman for his kind invitation, and for highlighting the importance of Gaelic not just as a language but as a cultural asset for our country that we should be proud of. I hope that he feels assured that I have been listening to the concerns of my hon. Friend the Member for Milton Keynes South (Iain Stewart) about MG Alba and wish to ensure that it has a sustainable future.
Mr Virendra Sharma (Ealing, Southall) (Lab)
Helen Whately (Faversham and Mid Kent) (Con)
The Minister of State, Department for Digital, Culture, Media and Sport (Julia Lopez)
We are investing £5 billion in Project Gigabit so that hard-to-reach areas can get ultra-reliable gigabit speeds. We have already upgraded over 740,000 premises. National gigabit coverage has therefore rocketed to 71%, up from just 6% in January 2019. We have already launched procurements with a value of over £700 million to deliver gigabit connections to hard-to-reach homes and businesses across the UK. We recently signed our first contracts in north Dorset and Teesdale, with more coming soon.
Helen Whately
My constituents in Throwley and Wichling were incredibly disappointed to find that their bids for gigabit vouchers were unsuccessful, especially after they worked so hard to gather community support. While most people are able to use their broadband to do video calls, work from home, and stream movies and matches, those constituents cannot. Can my hon. Friend assure me that they will be getting fast broadband soon?
Julia Lopez
I thank my hon. Friend for raising this case and for all the work that she and her team did to help those villages. I asked officials to look into this case, and they told me that the broadband supplier responsible for the projects in those villages did not put them forward for consideration as a voucher priority area, on the basis that they were not expected to deliver a gigabit-capable connection faster than our own Project Gigabit procurement in Kent. In good news, I can assure my hon. Friend that we are making very good progress on that procurement and we hope to be able to launch it in the coming weeks.
Sir John Whittingdale (Maldon) (Con)
Harriett Baldwin (West Worcestershire) (Con)
The Minister of State, Department for Digital, Culture, Media and Sport (Julia Lopez)
I thank my hon. Friend for highlighting her particular concerns in West Worcestershire. We obviously share her desire to get great connections to everybody as quickly as possible. We are reviewing the voucher scheme and checking that it is working correctly at the moment and seeing whether it can be enhanced. I see from the figures that her West Worcestershire constituency is lower than average on gigabit connections, but we have an active procurement review under way and hope to be able to give her more details on that soon because we will be mopping up all the hard-to-reach areas of her patch.
Rachel Hopkins (Luton South) (Lab)
Mr Philip Hollobone (Kettering) (Con)
We need more full-fibre and gigabit-capable broadband in the Kettering constituency. Can we have it sooner rather than later?
Julia Lopez
I welcome my hon. Friend constantly holding my feet to the fire on Kettering’s gigabit capability. He is actually above the national average, with 88% of premises in his seat having gigabit-capable broadband, but I am glad to say that we are doing more. We will be awarding a procurement next year to try to tackle all those bits we have not yet reached.
Dave Doogan (Angus) (SNP)
Julia Lopez
My understanding is that some of the main challenges come from the Scottish Government’s R100 programme, which is making the roll-out rather challenging. His colleagues in Scotland have asked for Scotland to have more than the per premises cap, basically asking us to give more money to Scotland than we are giving to other parts of the country. I do not think that is fair, and I do not think we should be paying for the mistakes of the regime.
Andrew Bridgen (North West Leicestershire) (Con)
A year ago, I and a number of colleagues from across the House had to intervene when, due to poor governance, Derby County football club went into administration and came within a few days of going out of business before being rescued by local supporter David Clowes. Can the Minister assure the House and all football fans that the recommendations of the fan-led review will be implemented in full, so that we can get better governance in this important industry?
Deidre Brock (Edinburgh North and Leith) (SNP)
Julia Lopez
I confess that, as the Minister for the creative industries, I share some of the hon. Lady’s concerns. I will be meeting my ministerial counterpart who has the Intellectual Property Office in his portfolio to look at this matter, because I appreciate some of the issues the hon. Lady raises.
Andy Carter (Warrington South) (Con)
What steps is the Minister taking to ensure that UK radio listeners are able to find British broadcasters, including the BBC and commercial radio, in a world where access through smart speakers is controlled by global tech companies?
Correction to a Written Parliamentary Question
Julia Lopez Excerpts(2 years ago)
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The Minister of State, Department for Digital, Culture, Media and Sport (Julia Lopez)
I would like to inform the House that I wish to correct the formal record in relation to PQ 156485, which was tabled in the 2021-22 Session of Parliament. On 25 April 2022, I issued a response to this written parliamentary question from the right hon. Member for Ashton-under-Lyne (Angela Rayner):
“To ask the Secretary of State for Digital, Culture, Media and Sport, how much her Department spent on (a) focus groups and (b) polling services in 2021”.
It was stated that the Department spent £51,455 (excluding VAT) on distinct focus groups and, more broadly, £403,688.37 (excluding VAT) on research and evaluation services which encompassed the use of focus groups and polling services to some degree in 2021.
However, this information was not comprehensive. The Department spent £110,875 (excluding VAT) on distinct focus groups commissioned to an external supplier in 2021. More broadly, the Department spent £1,259,396.63 (excluding VAT) on specific research and evaluation services, which encompassed the use of focus groups and polling services to some degree, in 2021. There could be other spending on opinion research in the Department, but this is attached to other types of services, such as wider programme spend, and it is not possible to proportion this out.
The Department uses opinion-based research as a key tool to improve our evidence base and inform policy development. It can provide insights into how businesses and households engage with our sectors and the potential barriers that they may face. It is also a useful method for understanding the impact of our policies by collecting views on what works. Notably, focus groups have been utilised as one tool to inform a trustworthy approach to AI and data governance, including for the UK’s algorithmic transparency standard, developed by the Department’s Centre for Data Ethics and Innovation alongside the Central Digital and Data Office. Focus groups and polling services have also been utilised, as part of wider research and evaluation, to support the evaluation of the Birmingham 2022 Commonwealth games and the VCSE—voluntary, community and social enterprise—support package.
This was an unfortunate error when assessing the Department’s financial data and I am confident it will not be repeated.
[HCWS322]
Network and Information Systems Regulations 2018: Second Post-Implementation Review
Julia Lopez Excerpts(2 years, 4 months ago)
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The Minister for Media, Data and Digital Infrastructure (Julia Lopez)
Today I am publishing the statutory post- implementation review of the Network and Information Systems Regulations 2018 on the Government’s website. This is the second review of the regulations since their implementation.
The regulations came into force in May 2018. The objective of the regulations is to improve the security of network and information systems which are critical to the provision of essential services and digital services which, if disrupted, could cause significant economic and social harm to people, businesses, and critical national infrastructure.
The Department for Digital, Culture, Media and Sport has assessed the impact, costs and benefits of the regulations, how effective the regulations have been in achieving the original objectives, and whether those objectives remain appropriate for the UK four years on.
The review is clear that the regulations have acted as an accelerator for improvements to the security of regulated organisations. Regulated organisations have shown an increase in the prioritisation of cyber security at senior level, increased investment in cyber security from boards, the introduction or improvement of cyber security policies, improved incident response management, and a greater awareness of aggregate risks.
The review concludes that the regulations are an effective tool to drive good cyber security behaviours. As such, it recommends that the Government retain the regulations to continue to incentivise organisations in scope to make security improvements.
The report also makes recommendations for changes to strengthen and future-proof the regulatory framework, so that it can adapt effectively to the rapidly evolving landscape. These changes were included in my Department’s public consultation on proposals for cyber security-related legislation in January this year. The outcomes of this consultation will be published later this year.
The next statutory post-implementation review of the regulations will be carried out in the next five years.
[HCWS173]
Shared Rural Network
Julia Lopez Excerpts(2 years, 4 months ago)
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The Minister for Media, Data and Digital Infrastructure (Julia Lopez)
I wish to inform the House that I have today laid a departmental minute recording the Government’s proposal to enter into an agreement to indemnify Digital Mobile Spectrum Ltd—a subsidiary of four mobile network operators—in respect of costs that may arise if there is a change in the operator of the Emergency Services Network.
The proposed indemnity will be reported as a contingent liability in line with the HM Treasury Contingent Liability Framework and managed in accordance with “Managing Public Money” (MPM).
The shared rural network is the Government’s £1 billion deal with four mobile network operators to deliver 4G coverage to 95% of UK landmass by the end of the programme. The Government are investing over £500 million to target hard-to-reach areas where there is currently no 4G mobile coverage from any mobile network operator. The Government funded element of the programme includes upgrades to extended area service mobile telephone masts being built as part of the Home Office’s emergency services network.
As set out in the minute, the proposed indemnity would cover costs of up to £15.2 million which may be required for additional equipment and operating expenses should the terms of a future emergency services network contract cause additional costs to be incurred by mobile network operators in order for them to operate their mobile network in accordance with shared rural network requirements. Any costs incurred as a result of the indemnity will be funded from within shared rural network programme approved funding.
A copy of the departmental minute will be placed in the Libraries of both Houses.
[HCWS122]
“Data: a new direction” Consultation: Government Response
Julia Lopez Excerpts(2 years, 4 months ago)
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The Minister for Media, Data and Digital Infrastructure (Julia Lopez)
On 17 June 2022, we published the Government response to the “Data: A new direction” consultation document, and in the Queen’s Speech on 10 May 2022 it was announced that a data reform Bill will be introduced in the third Session of this Parliament.
Data is the driving force of modern economies and, by removing barriers to responsible data sharing and use, we aim to become the world’s No. 1 data destination: an open, welcoming and secure environment where companies from all over the world can innovate and grow, and where responsible data usage improves people’s lives.
It is because we have left the EU that we have the opportunity to build an independent data protection regime that works in the UK’s interests. We have the regulatory freedom to simplify some of the cumbersome parts of the UK General Data Protection Regulation and reduce the barriers of responsible data use.
The new regime will also maintain the fundamental data protection principles established by the UK GDPR. The Government remain committed to ensuring continued, high data protection standards and public trust in data, both of which will continue to be at the heart of our new regime.
The consultation response sets out how we will create a new, flexible, independent regime under which the value of data can truly be maximised. By clarifying data protection rules regarding research, we can give scientists the confidence to use data responsibly and effectively, meaning greater data-driven innovations.
We will remove some of the most prescriptive but unnecessary rules in UK GDPR, which organisations currently must follow to demonstrate compliance. This will reduce the burdens on businesses by giving them the flexibility to protect personal data in ways that work most effectively for their organisations and their clients. By reducing burdens, we can make businesses more efficient and more productive.
We will also use our repatriated “adequacy” powers from the EU to remove inappropriate barriers to the flow of UK personal data overseas, so that we can support trade and scientific collaboration as well as national security and law enforcement cooperation.
We will also make sure that there is better enforcement of data protection and privacy breaches, and we will take firmer action against nuisance callers and make it easier to stop this predatory behaviour to begin with. We will also make sure that data can be used to empower people and improve their lives.
Our reforms will directly benefit the public—we will make it easier for public bodies to share data, making public healthcare, law enforcement and Government services more effective.
The consultation response also sets out reforms to the Information Commissioner’s Office—we will modernise its governance framework with an independent board and require it to take into account the impact of its activities on areas such as economic growth, innovation and competition. We will also make the ICO more accountable to the public and Parliament by setting out a range of key performance indicators and other reporting requirements.
The consultation response recognises that political parties and elected representatives frequently need to process personal data for the purposes of democratic engagement. We intend to create a clearer legal basis for such processing to occur. The intent is to allow MPs, councillors and political parties to undertake democratic engagement that they have done for decades—such as opinion surveys of local residents or targeted letters to constituents—but where GDPR has added unnecessary complexity and confusion. This builds on measures in the Data Protection Act 2018 which received broad cross-party support at the time.
The UK is firmly committed to maintaining high data protection standards, and we will continue to operate a high-quality regime that promotes growth and innovation and underpins the trustworthy use of data. EU adequacy decisions do not require an “adequate” country to have the same rules, and our view is that reform of UK legislation on personal data will be compatible with maintaining free flow of personal data from Europe.
The reforms we have set out will create a new and independent data protection regime that will confer many benefits on people, businesses and researchers, while maintaining high standards of personal data protection. The Government response to the consultation is available on www.gov.uk and I will also place a copy in the Libraries of both Houses.
[HCWS120]
Channel 4 Privatisation
Julia Lopez Excerpts(2 years, 4 months ago)
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The Minister for Media, Data and Digital Infrastructure (Julia Lopez)
I welcome the chance to close this debate on the importance of our much-loved cultural institutions, the future of UK broadcasting and the plan to sell Channel 4. I thank hon. Members for their contributions and thoughts.
The motion rightly recognises the role that our broadcasters play in bringing our nation together. There is no better example than the absolutely extraordinary coverage of Her Majesty’s platinum jubilee celebrations. I echo the Secretary of State’s tribute not only to our fantastic DCMS officials, the royal household and our broadcasters for the jubilee coverage, but to every person who participated in the exceptional showcase of British talent, from the glorious eccentricity of the pageant and the precision of the military parades to the musical power of Saturday’s concert and its innovative production, which included breathtaking light displays around Buckingham Palace, complete with drone corgi. It was a magical, delightful, magnificent kaboom of creativity.
I confess that I read the motion with a wry smile, because the hon. Member for Manchester Central (Lucy Powell) has been teasing and tantalising us with Labour’s patriotic pitch in the media for a couple of weeks now. Today, we saw it on the Floor of the House. During the glorious jubilee, the penny finally dropped for the Opposition that British people actually feel rather proud of our country. The hon. Lady has flogged to her leader the idea that the privatisation of Channel 4 is just the wedge issue that Labour needs to convince voters, after five years of campaigning for Comrade Corbyn to be Prime Minister, that it is the party of our most cherished institutions. “We are the patriots!”, she cheers from the Front Bench.
The trouble is that our plan for Channel 4 is not some ideologically driven attempt to dismantle all that is great about British broadcasting, no matter how hard the hon. Lady has tried to mischaracterise it today. It is part of an ambitious and considered strategy to ensure that British public service broadcasters not only survive in a very rapidly changing market, but grow and continue to be relevant to British and global audiences for many years to come, producing the kind of content that delights and informs viewers, underpins our cultural and democratic life and, critically, generates economic growth across our country. The structure of Channel 4, the sustainability of the licence fee and the diminishing value of linear prominence are all issues that have been knocking around for many years, but, as has been discussed at length today, market changes have injected real urgency into this debate, and we will not allow the can to be kicked down the road any further when the future of our public service broadcasters is at stake.
Kevin Brennan
I agree with the Minister on prominence, and in fact the Government should have acted sooner, as I called for them to do several years ago. She talks about kicking the can down the road, but what will happen after 10 years under her plans? Is she not kicking the can down the road for the future of this public service broadcaster by saying that in 10 years’ time anything can happen?
Julia Lopez
I can account for what the Secretary of State and I have done within our roles, and I think we have pushed forward an extremely ambitious set of reforms in the short time we have been in DCMS. This is an exciting time to be in public service broadcasting. I always thank the hon. Gentleman for his contributions because I know he has expertise in this field.
It is this Government and this Secretary of State who have decided to act, bringing forward a comprehensive package of reforms to support our PSBs through the first broadcasting White Paper in 20 years. It is the next step in a long history of support for our creative industries. It was a Conservative Government—under Margaret Thatcher, no less—that established Channel 4 in the 1980s to stimulate independent production and distinctive content. It has worked, and then some. It was a Conservative Government that encouraged Channel 4’s move to Leeds to spread the benefits of the creative sector beyond London. It worked. And it is a Conservative Government that are tackling the limitations of Channel 4’s ownership structure in this new broadcasting landscape, redirecting sale proceeds into a creative dividend to address the skills challenges of now.
Let me just touch on those limitations, because it is important to remind the House of them. Channel 4 is a fantastic broadcaster that has great management, innovative programming, high quality journalism and a diverse audience, but it is uniquely challenged in two ways. First, the publisher-broadcaster restriction means that it cannot own its intellectual property, so it finds itself reliant for 74% of its income on linear TV advertising revenues. Such revenues have fallen 31% sector-wide between 2015 and 2020, and that trend is set to accelerate as audiences move online and change their viewing habits.
Sir Peter Bottomley
Are those the most recent figures that the Department has? Many of us have been asking Channel 4 what its revenues were in the year that finished last year, and the growth in its digital advertising might also be something that the Minister would like to share with the House.
Julia Lopez
We would be very keen to get more information on Channel 4’s business at the moment, as it has been rather difficult to extract.
Secondly, should Channel 4 need to borrow money to keep up with the content investment of rivals, that borrowing would sit on the public balance sheet. In the light of those fundamentals, we are not going to apologise for asking the serious and responsible question as to whether this ownership model and structure is the right one for today’s broadcast challenges. That is something that the Secretary of State outlined today, and it has been expertly set out by my right hon. Friend the Member for Maldon (Mr Whittingdale).
I understand why hon. and right hon. Members want reassurance on this plan, and I want to provide it, but before I turn to some of the points raised this afternoon, I want to tackle some of the outlandish assertions in the article by the hon. Member for Manchester Central in The Yorkshire Post today. She claims that our selling Channel 4 could
“kill off independent film production”.
Let us set aside the fact that we believe any new owner would want to maintain Film4, for all the reasons she cites on its value. She completely underplays the strength and depth of the UK’s booming film industry, ignoring all the other players who support it, including the British Film Institute, with its own film fund, the UK Global Screen Fund, into which the Government channel £21 million to promote and distribute UK film around the world, and the fact that our film sector is doing so well that it cannot keep up with the demand for skills and studios.
The hon. Lady says that the sale of Channel 4 will lead to the move of more jobs back to London. I remind her that the BBC has committed to increasing its spend across the UK, that non-London production spend will remain in Channel 4’s remit and that ITV, Sky and Channel 5 all have large operations beyond the capital. There are so many centres of excellence outside London in our production sector that there are huge incentives to keep investing in our regions. She goes on to denigrate channels that are motivated by what she appears to see as a dirty word, profit, over public service. I wonder if she understands that those two things are not mutually exclusive. ITV and Channel 5 are all privately owned public service broadcasters. Indeed, since Channel 5’s sale to Viacom, it has gone from strength to strength, producing some fantastic, distinctly British content. As detailed in the White Paper, she will also understand that Channel 4 will remain a public service broadcaster, with quotas for independent production and the remit protected. We believe that getting private capital into the organisation will allow it to commission more, not less.
I now turn to the contributions of others. My hon. Friend the Member for Folkestone and Hythe (Damian Collins) made the excellent point that Channel 4 itself has suggested a joint venture as a way forward, which would change the relationship with the independent production sector. Implicit in that is that the status quo cannot hold because of the changing dynamic of the market—the strong headwinds he cited—with the shift to online, inflation in production costs and so on.
The hon. Member for Ochil and South Perthshire (John Nicolson), in his waspish speech, suggested that we are trying to make Channel 4 like Netflix or Amazon. That is not the case. We are saying that those businesses are changing the market, and we need to equip Channel 4 to deal with that.
The Father of the House, my hon. Friend the Member for Worthing West (Sir Peter Bottomley), suggested that we the taxpayers, as owners, should listen only to Channel 4 on whether it wants to change. I refer him to the absolutely fascinating contributions from panellists to the Lords Communications and Digital Committee inquiry on the licence fee, and the challenge they cited about small-c conservatism in media organisations.
My hon. Friend the Member for Aberconwy (Robin Millar) touched on this in his superb speech, including on the reticence we often find in organisations about changing and trying to come to terms with some of the challenges they face. I think there is an urgency to this debate on sustainability that we are taking on. He also mentioned Channel 4’s vulnerability to shocks because of its structure.
I enjoyed the speech of the hon. Member for Cardiff West (Kevin Brennan). It was fun, but it was a wholly inaccurate artistic interpretation of the advice of officials who have provided extensive analysis of some of the market dynamics that they think provide a real challenge here. Incidentally, I sometimes find myself imagining alternative scenes in the Opposition offices, with the shadow Secretary of State saying, “Do you know that Channel 4 is the only broadcaster capable of keeping the film, TV and creative industries and the regions going, and also producing content that audiences actually like?”
The Chairman of the Select Committee, my hon. Friend the Member for Solihull (Julian Knight), recognised the importance of getting private sector capital into the business to allow it to grow. I assure him that we want Channel 4 to continue to produce news. It is part of a genuine suite of support for the creative economy. The hon. Member for Luton South (Rachel Hopkins) reduced these critical media reforms to a “petty vendetta”, and I can assure her that that is not the case. Channel 4’s sale is part of a package of media reforms that the sector has asked for.
As my right hon. Friend the Member for Maldon pointed out, it is in our interests to see Channel 4 thrive. It is because of those interests that we want to drive these reforms, and we believe that Channel 4, in thriving, can invest more in content. He talked about the cut in content spend that we have seen over the last year or so, and he also highlighted the superb Lords report. My hon. Friend the Member for Folkestone and Hythe gave an important account of the trends in play and the need for a radical reset of Channel 4’s role.
The hon. Member for Canterbury (Rosie Duffield) talked about the independent producers, and I want to reassure her that we also value the distinctive content and see that as part of the sale process. I also want to assure my right hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman) that we have digested the consultation responses fully. We put a lot of departmental resource into doing that.
In so far as there is any ideological drive, I was interested in the challenge from my hon. Friend the Member for Mansfield (Ben Bradley)—a deeply unfashionable view in this House, it seems, too often—that private sector capital going into a business is a good thing because it can grow businesses, create jobs and drive innovation. Fundamentally, it can also provide content of the kind that audiences—too little discussed, I think, in this debate—love.
The right buyer for Channel 4 will be one that shares our ambition for the business and our belief in what makes it special. As I say, I note the concerns of the hon. Member for Canterbury about its distinctive content. I want to assure her that we are not trying to change the distinctive role Channel 4 plays; we are seeking to give it the best set of tools and the freedom to flourish and thrive long into the future. That is why the Government will move ahead with plans to move Channel 4 out of public ownership to become a free-to-air, privately-owned public service broadcaster.
The Government today have been accused of cultural vandalism, including by the hon. Member for Warrington North (Charlotte Nichols). Let me say that the greatest act of cultural vandalism would be to let our public service broadcasters wither on the vine due to the small-c conservatism of the Opposition or an attitude that there is nothing to see here for our PSBs, particularly given the jobs and the values at stake. We want our public service broadcasters to have a long-term future and, through our media Bill and our broadcasting White Paper, we have the plan to deliver just that.
Question put and agreed to.
Resolved,
That this House supports the UK’s much loved cultural institutions, which are celebrated around the world while creating jobs and growth across the country; in the Jubilee year supports world-renowned British broadcasting which brings the country together in celebration; believes that the Government should reverse its decision to sell Channel 4 as it will undermine the UK’s world leading creative industries and the delicate ecosystem of companies that support them; and calls on the Government to ensure that, if the sale does go ahead, Channel 4’s headquarters continue to be based in Leeds and its remit ensures that it continues as a public service publisher-broadcaster, commissions over 50 per cent of its content outside London, continues its significant investment in new independent British films and funds quality news content which is aired at prime time.
Oral Answers to Questions
Julia Lopez Excerpts(2 years, 5 months ago)
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Helen Morgan (North Shropshire) (LD)
The Minister for Media, Data and Digital Infrastructure (Julia Lopez)
We are making excellent progress on delivering the biggest broadband upgrade in UK history, so that we have fast, reliable digital infrastructure for decades to come. In the past three years, national gigabit coverage has rocketed from 6% to 68%, we are investing £5 billion so that people in hard-to-reach areas can get ultra-reliable speeds, and we have already upgraded more than 600,000 premises. We also have £500 million-worth of contracts out for tender covering areas from Cumbria to Cornwall.
Helen Morgan
Under this Government, broadband speeds are anything but levelled up. For example, the average download speed in North Shropshire is just 49 megabits per second. In Tiverton and Honiton it is just 43 megabits per second, which is half the national average of 86 megabits per second and 60% slower than the average speed in London. The Prime Minister reportedly cracks jokes about this behind closed doors, but if the Government truly care about rural Britain, why are they leaving it in the digital slow lane?
Julia Lopez
I thank the hon. Lady for her question, but I do not share her characterisation of what is happening. I am pleased to say that there is almost 99% superfast coverage in her North Shropshire constituency, which is above the national average. Shropshire is also included in lot 25 of Project Gigabit, so those areas that are not covered by the very fast commercial roll-out of our gigabit scheme will be out for procurement—we expect it to happen in the next year—in order to build to those harder-to-reach premises.
In the meantime, if there are any premises in North Shropshire that can receive vouchers, I recommend that the hon. Lady’s constituents apply for them. I am also pleased to say that Shropshire Council is supporting a local top-up fund to supplement our voucher subsidy and has invested £2 million to date. As I say, I do not agree with her characterisation of the progress we are making.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
I know that my hon. Friend shares my and my constituents’ frustration at the failure of the Scottish Government and their ironically named Reaching 100% scheme to deliver for people in Scotland. [Interruption.] It is six years late and millions of pounds over budget, notwithstanding the protestations of the hon. Member for Paisley and Renfrewshire North (Gavin Newlands). What is the Department doing to help level up broadband connectivity for my constituents in rural Scotland?
Julia Lopez
The situation in Scotland is, admittedly, tricky. I have talked to my counterpart in the Scottish Government, and the Scottish Government’s strategy prioritises some of the islands and seeks to have greater spend in some of those hard-to-reach areas than we have in parts of England. I cannot ask people in other parts of the country to suffer for decisions made by the Scottish Government on the areas they are prioritising. I am keen to continue working with the Scottish Government on trying to get connectivity to Scotland, because I share my hon. Friend’s passion for that, but we are also looking at what we can do for the very hardest-to-reach premises, a number of which are in Scotland.
Chris Elmore (Ogmore) (Lab)
It is a pleasure to see you in the Chair this morning, Madam Deputy Speaker.
A staggering 1.1 million people struggle to afford the most basic broadband and mobile services, and the pandemic has only reinforced the fact that broadband is now truly the fourth utility. Our day-to-day lives cannot function without it. Inflation is now running at 9%, and broadband packages have risen by 12%. With the roll-out stagnating, prices rising and household incomes being squeezed, why did the Government and Ofcom allow Openreach and other providers to raise network prices above inflation, hitting consumers and raking in profits, without real investment in full fibre?
Julia Lopez
I completely agree with the hon. Gentleman that such services are now key utilities. As he will know, we debated the Product Security and Telecommunications Infrastructure Bill yesterday, in which we are seeking to bring down rents to reduce prices for operators and, therefore, for consumers.
The hon. Gentleman will also be aware of the great work we did on social tariffs with providers throughout the pandemic. The Secretary of State recently wrote to providers to understand what more the Government can do to promote those social tariffs. We have also been working with the Department for Work and Pensions to roll out social tariffs to even more people, particularly those on universal credit.
Greg Smith (Buckingham) (Con)
It is pleasing, week on week, to see more and more villages in my constituency getting fibre-to-the-premises broadband, but many small operators tell me that the “Equinox” Openreach discount on the wholesale price is having a distorting effect on the speed of roll-out from those smaller operators, particularly to rural communities. Has my hon. Friend modelled the impact that that discount is having on the market? What can her Department do to fix it?
Julia Lopez
I thank my hon. Friend for raising that important regulatory issue, which is actually led by Ofcom. It has been raised with me by altnets, and it is of concern. The Government want as much competition in the market as possible, as we think that is speeding up roll-out. The commercial sector is going great guns on this. I appreciate his concerns, and this week I met Councillor Martin Tett in the Buckingham constituency to talk about what more we can do to speed up the roll-out to my hon. Friend’s constituents.
Mr Steve Baker (Wycombe) (Con)
The Minister for Media, Data and Digital Infrastructure (Julia Lopez)
My Department is playing an active role in delivering the national cyber strategy 2022, backed by £2.6 billion of public money. That includes a focus on enhancing the nation’s cyber-skills. The UK Cyber Security Council was launched by the Department last year and received its royal charter in early 2022. It will play a key role in building world-leading skills architecture for the cyber profession. We are also ensuring that tech is designed in a secure way, and our new Telecommunications (Security) Act 2021 is helping to protect the most vulnerable parts of UK networks and services.
Mr Baker
Given that fraud is one of the main purposes of cyber-attack, will the Government take the advice of the Royal United Services Institute to make cyber-security and tackling fraud a national security priority, so that the full apparatus of our security establishment can be brought to bear against overseas fraudsters?
Julia Lopez
My hon. Friend raises an important issue. Tackling fraud needs a co-ordinated response from Government, so although policy on fraud is led by the Home Office, I assure him that the Government as a whole are taking significant action. I mentioned our national cyber strategy. We have also secured funding so that the UK intelligence community can set up a dedicated anti-fraud mission, and later this year we will publish a new strategy to address the threat. The Department recently introduced the Online Safety Bill, which will tackle some forms of online fraud and fraudulent advertising, and that will be built on by a wider online advertising programme.
Andrew Gwynne (Denton and Reddish) (Lab)
Cyber-threats come in lots of guises, ranging from spreading misinformation to undermining democracy, stealing data and intelligence, and fraud, as we have just heard from the hon. Member for Wycombe (Mr Baker). Perhaps the most serious threat is the downing of critical infrastructure. What assessment has the Minister made of both the threats on downing critical infrastructure in the UK and how we overcome and challenge the people who seek to do it?
Julia Lopez
I thank the hon. Gentleman for taking this issue so seriously. We, as a House, need to give great consideration to it. We have a number of new powers in place, including the National Security and Investment Act 2021, which gives us greater powers to look into some of the investments being made in this area. On critical national infrastructure, he will understand that I cannot go into great detail, but I simply wish to assure him that I spend a great deal of time on that issue. The more that consumers and businesses depend on our critical national infrastructure, the greater attention the House needs to pay to it, and I assure him that I am doing a lot of working in that space.
Catherine West (Hornsey and Wood Green) (Lab)
Peter Grant (Glenrothes) (SNP)
The Minister for Media, Data and Digital Infrastructure (Julia Lopez)
The Government consulted extensively on the future of Channel 4, and the views from a broad range of industry stakeholders informed our policymaking and final decision. As a Scottish MP, the hon. Member may be particularly interested to know that I met STV and MG Alba about the broadcasting White Paper, which included the proposal to privatise Channel 4. My officials also recently met representatives from the Scotland Office and the Scottish Government. We are at a unique turning point in public service broadcasting. We think we have the chance to make Channel 4 bigger and better, while preserving what makes it so special.
Peter Grant
When the Secretary of State was asked by the Digital, Culture, Media and Sport Committee why she wanted to privatise Channel 4, she said that it was because it was costing the taxpayer too much in subsidies. I think she was the only person in the room who was labouring under that particular delusion. Given that that excuse has gone, is it not time to come clean and say that the Secretary of State’s mission against Channel 4 is to do not with making it a better broadcaster, but with trying to shut down a broadcaster that has a nasty habit of broadcasting the truth, in particular truths that the Secretary of State might prefer not to be made known?
Julia Lopez
I thank the hon. Gentleman for his question, but I know the Secretary of State’s reasoning for this decision better than he does. He also mis-characterises what was said at the Select Committee. He will be aware that Channel 4 is uniquely dependent on linear advertising, that it cannot own its own content, and that its borrowing sits on the public balance sheet. We think we have an opportunity to free it from some of those constraints to allow it to invest more in content to get private sector capital into the business, and we think that that will help to grow Channel 4, so that it can invest more in the businesses that he purports to care about.
Sir Peter Bottomley (Worthing West) (Con)
The Secretary of State said that she wanted to remove the straitjacket from Channel 4. Except for the opportunity to borrow, which I did not know Channel 4 had asked for, the only straitjacket is the public service remits. Will those be reduced in any way?
Can the Minister kindly tell the House why the aim to compete with Amazon and Netflix should be one of the purposes of Channel 4, especially if either Netflix or Amazon, or a similar-sized foreign-owned organisation, might buy Channel 4?
Julia Lopez
This is not necessarily about allowing Channel 4 to compete in exactly the same way as Netflix and Amazon; it is about understanding the changing market dynamics that those companies are creating. As I said in my previous answer, Channel 4 is uniquely constrained. Its borrowing would sit on the public balance sheet, but it also cannot own its content. We believe that in today’s market, it needs to be able to own its content in order to have much greater flexibility in how it runs its business, and getting private capital into the business would help it to do that. While people can bury their heads in the sand about the fundamental dynamics in the market, we are taking some difficult decisions, which we think are the right decisions to secure not only the future of the business, but the future of the kind of content that audiences in this country love.
Madam Deputy Speaker (Dame Eleanor Laing)
I call the shadow Secretary of State, Lucy Powell.
Lucy Powell (Manchester Central) (Lab/Co-op)
Yet again, the Secretary of State fails to come to the Dispatch Box herself to defend one of her own flagship policies, despite publishing a media White Paper and the Government consultation and tweeting over recess that she was selling Channel 4 off without coming to this place. Perhaps the Minister can clear up some of the confusions about the level of support for the Government’s plans. Despite the impression the Secretary of State gave at her recent Select Committee hearing, is it not the case that according to the Government’s own report, even when the 38 Degrees responses are removed, only 5% of respondents agreed that Channel 4 should be privatised? What is more, the majority of stakeholders are also against the sell-off. So can the Minister tell us who, apart from a small coterie around the Prime Minister, actually supports their plans?
Julia Lopez
I think the hon. Lady has been living in a different world. Only last week or the week before, the Secretary of State was grilled for three hours in Select Committee and took endless questions on Channel 4’s future, and—[Interruption.] I have to answer the questions that are put to me. We do not have advance sight of which ones the hon. Lady will come on to. I will simply say that the fundamental facts of the market dynamics that I have set out remain. In the consultation that she cites, a huge number of responses were to the 38 Degrees redrawing of the questions we set. We have the responsibility as a Government to look at the long-term trends in this business and to make a decision about what is best for the business, for the taxpayer and for UK audiences and creative industries. That is the sole thing driving the decisions we make in this space.
Lucy Powell
Sorry, but I thought it was Ministers who decided which questions they responded to, not the other way around. It was their decision to do it this way. [Interruption.] The question about Channel 4 is on the Order Paper.
Is it not the truth that the Secretary of State made up her mind long, long ago, based not on the evidence or the responses, but on her own ideology and a petty vendetta against Channel 4’s news coverage? The evidence is compelling: privatisation is bad for levelling up, bad for the skills pipeline, bad for the independent production sector and bad for our world-beating creative industries. Just like the forthcoming BBC licence review, is not this process just a sham? She does not listen to evidence, the industry, the public or many of her own Back-Benchers. Why does she not drop the ideology, support British jobs and British broadcasting, and stop the sell-off?
Julia Lopez
I would simply say that that is not the truth. This is not a decision driven by ideology; it is about what is best for our creative sector, what is best for audiences and what is best for the taxpayer. I am sure the hon. Lady will have plenty of opportunities to have ding-dongs with the Secretary of State on those issues in the forthcoming media Bill debate.
Mr Gagan Mohindra (South West Hertfordshire) (Con)
Greg Smith (Buckingham) (Con)
The Minister for Media, Data and Digital Infrastructure (Julia Lopez)
We are in regular contact with Ofcom and the radio industry on these issues, and I would be happy to meet my hon. Friend to discuss the matter further, so that I understand the interest driving his question.
Christine Jardine (Edinburgh West) (LD)
Stoke-on-Trent: Video Games Enterprise Zone
Julia Lopez Excerpts(2 years, 5 months ago)
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The Minister for Media, Data and Digital Infrastructure (Julia Lopez)
Thank you for your chairing this debate, Dame Angela. I am grateful to my hon. Friend the Member for Stoke-on-Trent North (Jonathan Gullis) for highlighting the important role that the video games industry plays in supporting very high-skilled jobs and levelling up across the UK. I appreciate the characteristic forcefulness with which he makes the case for his exciting vision of Silicon Stoke.
As my hon. Friend says, something is stirring in Stoke. It is a fantastic city with a very bright future and, through our investments in gigabit broadband—another area that I lead on—it is one of the best connected places in the UK. It is represented by three MPs who have great belief in and passion for the place they represent, and it has great local leadership from Councillor Abi Brown and one of our nation’s youngest Lord Mayors, Councillor Hussain.
I am glad to see Stoke’s three MPs in the Chamber—they are giving Teesside a run for its money as a powerful parliamentary lobby. They are united in their efforts to keep building on the city’s success story and proud history in the creative industries. I pay tribute to my hon. Friend the Member for Stoke-on-Trent Central (Jo Gideon) for her close working with Stoke-on-Trent College, Staffordshire University and creative businesses such as Carse & Waterman. I also pay tribute to my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton), who was banging and clattering his pottery drum for the city in the dark days of the previous Parliament, long before these two 2019 upstarts came along.
I want to set out how we are supporting the video games sector to build on very strong growth, and how we think video games can contribute to our mission of levelling up the country. I will also talk about the importance of skills in achieving those goals. It is great to hear about the really strong partnership working between local MPs, councillors and educators in Stoke.
Jack Brereton
Can my hon. Friend the Minister think of a possible reason why the video games industry would not locate to Stoke-on-Trent? I cannot think of a single one.
Julia Lopez
I agree. With great digital connectivity and the partnership working between central and local government, there is a great story to tell about Stoke. It is certainly something that I will take back to my Department after the debate, as we look at the initiatives we are focusing on in the creative industries.
The video games sector, as my hon. Friend the Member for Stoke-on-Trent North rightly pointed out, is flourishing. It contributed about £2.8 billion to the UK economy in 2019, and that is reflected in the number of people employed in the sector, which has grown from 13,000 in 2011 to 27,000 in 2019.
The Department for Digital, Culture, Media and Sport is incredibly proud to support the growth of our creative businesses, and we are doing a lot of work to ensure that the games sector, in particular, can thrive. We are putting together a £50 million creative industries programme—a sector vision—as part of our spending review settlement, and I will take away some of the really exciting ideas that have been put forward. That includes up to £18 million invested in the Create Growth programme, which will help high-growth, creative businesses access finance across six regions in England outside London so that they can reach their growth potential. We will be announcing the regions for the Create Growth programme this summer. That builds on the success of our £400 million Creative Scale Up pilot programme, which to date has supported more than 200 businesses across three regions, increasing a total aggregate turnover of £13.5 million.
We have also announced specific support for the video games sector through a £800 million expansion of the UK Games Fund, which will accelerate the growth of the UK games industry. Since 2015, the fund has supported more than 190 early-stage video game development projects, and supported businesses that have the potential to grow and flourish. That builds a strong vibrant SME developer community. I am interested to hear some of the ideas that have been put forward, and I very much encourage small businesses in Stoke to apply for that programme.
My hon. Friend asked what more we can do to support local businesses through tax incentives. Obviously, a lot of this is outside my remit, but we recognise that the future growth of the games sector requires us to maintain our competitive edge in tax reliefs. We must ensure we that continue to be an attractive place to do business, given the global competition. Our games tax relief has strengthened the UK’s reputation as one of the leading destinations across the world to make video games, and it has really worked. Since it was introduced in 2014, it has supported 1,640 games, with UK expenditure of £4.4 billion. In 2020-21, the relief supported the development of 640 games. We have to ensure that we continue to be internationally competitive. We keep all these tax incentives under close review, and I will continue those discussions with the Treasury in advance of any economic statement.
In the 1970s, “Dungeons & Dragons” coined the term “levelling up” for when the player reached certain milestones. Since then, the notion has become a central feature of many popular video games. We take that forward as a mission in our levelling-up agenda. We think the creative industries play a critical role in supporting regions across the UK, and game development has been key, from Sheffield to Leamington Spa, from Newcastle to Bristol, and from Knutsford to Dundee. Some 55% of game development roles are outside London and the south-east, so it truly is a UK-wide industry. Video game clusters are engines for local economic growth and jobs throughout the country. The £39 million Creative Industries Clusters programme, run by the Arts and Humanities Research Council, has supported Dundee’s video games cluster through InGAME. I am keen to look at the lessons we can learn from that to see whether any of them can be applied to Stoke. The funding has created 337 new companies since 2020, and created or safeguarded 477 jobs.
We are committed to continuing that kind of cluster work and I want to see that success replicated in Stoke. It is great to see the investment in the Ceramic Valley enterprise zone and the announcement last week about the £56 million levelling-up funding that will be going to development opportunities in Etruscan Square and the transformation of Stoke’s Spode site.
We are also working extremely hard on digital connectivity. We invested more than £8.5 million through the local full-fibre network project, which has helped to incentivise commercial investment in the region, including the VX Fiber plan, which will be targeting more than 30,000 properties for a gigabit-capable connection. For those not in line for the commercially or publicly funded roll-out, we will be investing more in Project Gigabit. The procurement for Staffordshire, which includes Stoke, is anticipated to cover another 70,800 premises and will be taking place later this year.
Alongside robust growth and relentless innovation, we need to make sure that the skills are in place to help the video games industry reach its full potential. That is why we are working very closely with some of the bodies that my hon. Friend the Member for Stoke-on-Trent North mentioned. Our creative careers programme has given 27,000 young people hands-on experience with industry, through immersive events and work experience opportunities. The next phase of that programme, with a three-year grant competition launched this month, will launch fully later this year and do even more to support people, particularly those from lower socioeconomic backgrounds.
Specialist skills are needed to support video games, from development and production to art and sound design. In Stoke, there are a range of further and higher education study opportunities in place for routes into the video games industry, from diplomas in games design and programming at Stoke-on-Trent College, to games courses at Staffordshire University and Keele University. I know that Staffordshire University, in particular, provides an excellent pathway to a career in gaming. The university won the 2021 excellence in university and industry collaboration award from the UK video games industry trade association, TIGA—you say tigger, I say tiger; I am not entirely sure which one is correct, but we should probably call the whole thing off. The award is supported by a partnership with UK Games Fund’s Tranzfuser programme, which supports graduates to take an idea for a game to a playable reality.
Staffordshire University was the first university in the UK to offer a degree in e-sports in 2018, and now offers postgraduate courses too. That shows that Stoke-on-Trent remains committed to becoming a hub for gaming. I am really interested to hear more about the e-gaming stadium and hope to learn more as the proposal is developed.
I am pleased to see that funding from the Build Back Better scheme has been secured to create a virtual reality hub for Stoke-on-Trent College. We continue to invest in important opportunities for young people across the United Kingdom to get the resources and knowledge they need to progress exciting careers in the creative industries. I look forward to working with my hon. Friends to support regional hubs, not only to keep local talent, but to attract new talent from across the country.
As we have already said this morning, Stoke is a great place to do business, with low office rents, great digital connectivity and inspired leadership. With a vision like Silicon Stoke, there is a really exciting future that we can build here. I will take away some of the comments on tax reliefs. We will continue to work in partnership with local colleges and I want to look at the potential for a creative cluster. With the levelling-up funding in place as well, all kinds of things are going on here. I say to businesses across the UK, “Go to Stoke; it has got inspired parliamentarians who are working very closely with us in Government and with a diligent and energetic local leadership.”
Jonathan Gullis
We would love to welcome the Minister to meet the Silicon Stoke board members, and to have a joint MPs’ roundtable with leading actors in the sector—some are in Stoke and some are not—so we can help get the message out about why Stoke is a great place to be.
Julia Lopez
I thank my hon. Friend for his generous invitation, which I am sure I will be able to take up shortly. I commend him and my hon. Friends the Members for Stoke-on-Trent South and for Stoke-on-Trent Central for their passionate vision for the great city that they represent. I thank them for the debate today.
Question put and agreed to.