BBC Investment (East and West Midlands)

Julian Knight Excerpts

Tuesday 23rd June 2015 Westminster Hall

[Julian Knight (Solihull) (Con)]

I pay tribute to my hon. Friend the Member for Sherwood (Mark Spencer) for securing the debate. He is a strong advocate for his constituency and for the midlands as a whole. I declare an interest: I worked for the BBC from 2002 until 2007. I was the BBC News personal finance and consumer affairs reporter, based—I hasten to add—in London.

The motion is about BBC investment in the east and west midlands, and the truth is that there is far too little of it. In 2014, for each £145.50 of licence fee raised in the west midlands, only £12.40 came back to the region; as has been pointed out, that compares with a staggering £757 in London. There is also what economists call a multiplier effect, whereby every pound spent multiplies through the economy and people employed. As a result, licence fee money has a massive and disproportionate impact in London and Manchester rather than in Birmingham, which is the heart of our country and the only part of it to have a trade surplus with the EU; it is a strong powerhouse that is under-represented by the BBC, a national broadcaster.

[Robert Flello]

A mischievous thought has crept into my mind: if every licence fee payer in the midlands, east and west, were to pay only £12.40, the BBC might start to take notice.

[Julian Knight]

Obviously, I would never countenance mass civil disobedience over the matter, but something will certainly be shared on social media later. A lot of people are interested in the debate. I am following on my iPad the live blog by Trinity Mirror Midlands’s Birmingham Post online, which is looking into this. Perhaps that is something that will spread around.

[Ian Austin]

The hon. Gentleman is the MP for Solihull, so he knows, as I do, that the central problem facing the west midlands is our inability over decades to attract new jobs in new industries to replace the ones that we lost in traditional industries. Clearly, creative industries will generate hundreds of thousands of well paid jobs in the future. Does he agree that all of us—on both sides of the House and in the wider west midlands economy—should make it a priority to establish some sort of broadcasting hub in Birmingham and the west midlands to attract such jobs? We need to get our universities and the BBC working to attract jobs to the west midlands for the future.

[Julian Knight]

That is an interesting idea and I would hope that the BBC would play such a role; it would if it were doing its job properly. It is ridiculous that the Mailbox seems to be full of the HR department, rather than of people making programming for our enjoyment. If the BBC were to do its job properly and to be genuinely representative of the strength of the east and west midlands, we would be seeing greater programming and a real hub—the broadcast hub that we are talking about.

I am wondering how we got into the situation that we are in, with a bipolar organisation between London and Manchester—a carve-up, perhaps. The last time the charter came in, after the sad demise of Dr David Kelly, the Hutton report and all those things were going on, as well as the falling out between the Government and the BBC. The then director-general, Mark Thompson, decided to have what I call a “Jim Hacker” moment—as in the “Yes, Minister” and “Yes, Prime Minister” programmes. Suddenly the idea was to move lots of people from one part of the country to another and to call it regional diversity. The initiative was sold to the Government in good faith as extending regional programming and as the creation of a new hub in Manchester.

Looking at the output of the BBC these days, I question the purpose of moving thousands of staff to Salford from west London to produce the same programming in a different studio. The BBC has no regional character. When I was growing up in Chester and the west midlands—Biddulph, to be precise—we used to enjoy a lot of regionality in our programming; there were many more programmes and outside broadcasts specific to our region than there are today. Many of the studios established throughout the east and west midlands have now gone, and we are left with a skeleton staff in our region.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

In that context, would the hon. Gentleman question the BBC’s figure that more than 50% of its output is produced outside London? All it has done is increase regional commuting, with people travelling from London to various hubs across the nation. It has not really changed anything.

[Julian Knight]

The hon. Lady is spot on. The BBC has created a bipolar organisation that transports people from London to Manchester. There is no real regional diversity to its broadcasting. I am horrified to learn of the BBC Asian Network’s being moved from Leicester to London, a prime example of that. I commend the campaign by Trinity Mirror and The Birmingham Post, and in particular the journalist Graeme Brown, who is highlighting an important matter that has brought many parties together.

We are in a bit of a dead zone for the national broadcaster in the west and east midlands. The BBC has perhaps seen regional diversity as something to be endured rather than embraced. If the BBC is to reconnect with the public at a time of mass digital communication, when we have many different ways of viewing and listening to content, it should consider drilling right down into the regions and offering something more regionally-based.

[Andrew Bridgen]

Whenever the BBC’s income stream is considered to be under threat, the first thing it says it will have to cut is regional radio in the east and west midlands, further reducing its already small presence there. Is my hon. Friend as horrified as I am at that? Should the Minister not tell the BBC at charter review that that would be completely unacceptable?

[Julian Knight]

My hon. Friend makes a good point. Regional broadcasting seems to be seen as an expense to be endured, rather than something that would deliver value for viewers and listeners, be valued and reconnect the BBC with the wider public once again.

Many Members here are of a certain age and can remember the time of mass broadcasting, with the shows of Morecambe and Wise getting 20 million viewers. These days, younger people, under the age of 25, will not understand the connection that many of us have with the BBC. If the BBC is going to survive in the long term, it needs to reconnect with the public. One key way of doing that is greater regional broadcasting and developing regional talent.

I appeal to BBC management to consider the case for the midlands, to redress the balance and genuinely to embrace regional diversity at the next charter renewal—not see it as some sort of sop that will buy it another seven years, which is what happened last time. We need not a bipolar organisation but one that takes its broadcasting out to individuals.

I am not that encouraged at what I have heard so far from the BBC. Its agenda for charter renewal seems to involve a crackdown on those not paying the licence fee for content on digital devices, retention of criminal sanctions against non-payers and a potential inflation of the licence fee. The BBC needs to understand that we are in the antechamber to the end of the licence fee and that we need to see a path out of it in the long term. The BBC can reconnect and offer better value for what it delivers by focusing on its core services. I argue strongly that its core service is regional broadcasting and delivering for the people of the east and west midlands.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

I must declare a narrow interest: my moment of glory was on 7 May 1997, when Pat Archer was heard to say from Pebble Mill, which was in my constituency, that when Edgbaston was won, we would know we had a Labour Government. I was disappointed when the BBC moved out of Pebble Mill and I was no longer the MP for “The Archers”.

I am going to do something that may seem slightly counter-intuitive: I will partly defend the BBC, because we have to be careful what we wish for. If we want a public service broadcaster—most of the rest of the world would give their eye-teeth for the BBC and the World Service—we should realise that our desire for it has consequences. That does not mean that I agree with everything the BBC has done, but the Government do not get off scot-free. If we wish the BBC to be a public service broadcaster that can survive in the modern age, the funding structure and stream must be protected as well. What that means for the midlands is quite significant.

First, we must acknowledge that when he saw those empty offices in the Mailbox, Tony Hall was horrified. The BBC has tried to fill them, so far only with human resources staff, and it has moved its academy there. At least the BBC is moving that way. It has appointed a regional director.

For me, the bottom line is that if we do not start commissioning programmes from the midlands, nothing will flow from the midlands. We may become a production area, but for the west midlands to reflect its own culture and output, we have to commission programmes in the midlands and have commissioners there. We come across the issue on a daily basis. Turn on “Woman’s Hour”, and it will have vox pops from Manchester’s Oxford Road. The BBC is not asking people in the Bullring. The whole culture is just the wrong way.

What that means for us as MPs in the region is that we have to stress a number of things. If the BBC wants to survive in the future, we in Birmingham are the future: 40% of Birmingham’s population is under the age of 25, and 30% is under the age of 15. The ethnic diversity of the stable population in that region is enormous. It is not just the Asian Network, which started 40 years ago in the midlands, but the whole cultural production that is happening there. Frankly, if the BBC does not reflect the culture of that significant area—the chunk in the middle of England that is so easy to overlook, and it seems to be overlooked—then the BBC, as a public service broadcaster, will not fulfil its function for the whole of the country.

I say to colleagues that we have to keep up the pressure and say to the BBC, “Step by step, you are trying to move in the right direction, but you aren’t there yet.” I also say that we must be clear that if we do away with the licence fee, that will also have consequences. Let us just think for a moment. Those of us who think that the Union—the United Kingdom—is important should remember that the British Broadcasting Corporation is one of the very few British institutions that still embraces the entire British Isles and the nation.

[Julian Knight]

The hon. Lady said that the BBC “embraces” the nation. However, we noted during the referendum campaign that the Scottish National party was very angry with the BBC, and claimed bias in that respect. Given that the modern BBC does not embrace regional broadcasting, as we are discussing today, is it fulfilling that true national broadcaster remit?

[Ms Stuart]

That is a really important point at which we should pause. The SNP would like a national broadcaster; I would like a public sector broadcaster—and there is a very important distinction between the two, which we must not lose. The BBC must fulfil its duty to the regions—for example, in the political output in radio broadcasting, which it is neglecting.

What happens in the midlands is extremely important for northern Wales, because it looks to output from the midlands more than to that of the south of Wales. To be a proper public sector broadcaster, the BBC has to represent the regions and be more than just the national broadcaster: it also needs to commission programmes in the region.

The challenge for us is to be clear about the ask to the BBC; the challenge for the BBC is that unless it starts commissioning programmes in the whole of the midlands, they will not reflect us. That takes us back to the challenge for the Government in the charter review. A public sector broadcaster requires certain funding streams that will allow the BBC to fulfil that function.

--- Later in debate ---

[Steve McCabe]

We can all criticise failures in spending, but the central point that I am making is about inequitable spending. However, I take the hon. Gentleman’s point.

A brief that the BBC sent me for this debate reminded me that the Mailbox is the home of the academy, the workplace and outreach. That is great, but what the brief did not contain was the number of new jobs and apprenticeships associated with those initiatives. I would like to know how that compares with the £180 million new studio and the 1,000 new jobs for MediaCity in Salford. I would also like to know why, as my hon. Friend the Member for Birmingham, Edgbaston (Ms Stuart) pointed out, the bulk of production is technically still located in London.

I am told that the BBC is anxious to use Birmingham as an innovative test bed because we are the youngest city in Europe and we are truly multi-ethnic and multi-cultural, but I want to know where the substance is. Where are the new formats, technologies and jobs for the midlands? It is time we saw some of the hard data. I want to know that all those promises will come true and that there is plan to work with the Ormiston academy, the Rep theatre and Birmingham City University. I have heard plenty of talk; it is time we saw some action. We need to know that there is a real programme for mentoring and apprenticeships in the midlands, and we need to know that digital innovation is more than just a form of words.

[Julian Knight]

On apprenticeships, does the hon. Gentleman have any thoughts about pay differentials within the BBC? According to the latest reports, 91 BBC staff members currently earn more than the Prime Minister, while many people who do the programming, such as broadcast assistants, broadcast journalists and senior broadcast journalists, might take home a quarter of that. They are the ones putting in the work, while those who move people from place to place earn bumper salaries. What does he think about that?

[Steve McCabe]

It is a challenge for the director-general, and it is one of the things that he must tackle. It contributes to the sense of unfairness that many of us have about the organisation. Of course, like my hon. Friend, I welcome the news that human resources and training jobs will come to Birmingham, but it was only a couple of years ago that the BBC announced a nationwide search for new talent among disabled presenters and managed to exclude Birmingham from the process entirely. Where are the new jobs in the midlands for performers, directors and creative people?

I conclude by congratulating the hon. Member for Sherwood again on securing this debate. We need to hear that a more equitable share of the money will be included in any future discussions on charter renewal and the licence fee. We cannot contribute nearly £1 billion to the BBC pot and get back a paltry 9%.

--- Later in debate ---

[Richard Burden]

As somebody is meant to have said in this place, my hon. Friend may say that; I couldn’t possibly comment. [Laughter.] I will comment: she is right.

Mark Thompson was followed by a couple of other directors-general, and they both said that things were going to change. My hon. Friend is right about Tony Hall. In October 2013, a cross-party group of midlands MPs presented a petition that had been put together by the Campaign for Regional Broadcasting—I pay tribute to that group for keeping this issue in the public eye and putting up in lights the inequity in funding. In November 2013—this was significant—the BBC committed itself to a new vision for Birmingham and the midlands as a whole, with a pledge to invest £23.5 million; Birmingham is to become a new centre for digital excellence for skills, recruitment and talent, creating hundreds of jobs. That was a change—some action was taken and I like to believe that Tony Hall is serious about that.

However, I am worried that, since the announcement, everything has ground to a halt again. My hon. Friend the Member for Birmingham, Selly Oak mentioned the briefing we received from the BBC. It basically says, “It’s okay, we’re doing it,” and runs through the kinds of things we have been told before—the kinds of programmes that were announced some time ago. At the end, the briefing simply says, “The BBC is committed to providing audiences with programmes and services to reflect the many communities across—”

[Julian Knight]

I have seen similar documentation. Does the hon. Gentleman agree that, with the BBC, it always seems to be a case of jam tomorrow for the midlands? We want our jam today, or at least in time for the next charter renewal.

[Richard Burden]

The hon. Gentleman is right. At the risk of mixing jam metaphors with glue, the ambition that Tony Hall says he has for the BBC in Birmingham—the kind of thing we are all talking about—needs some glue to stick it all together. It needs something behind it to make it happen. My hon. Friend the Member for Birmingham, Edgbaston hit the nail on the head, and my hon. Friend the Member for Birmingham, Selly Oak also made this point: that glue is commissioning—it is crucial. We all talk about the BBC network. Everyone I have spoken to—both in the BBC and beyond, in related creative industries—has said that networking is vital. People have to know one another. When people commission a programme, they think of who they will approach, the production companies they will use and where they will get the new talent. If the focus remains on London, we will not get change in Birmingham and the east and west midlands. The kind of change there has been in the north—the hon. Member for Solihull (Julian Knight) had this right—is not real change, as there is still that commuting south.

We therefore need a commitment by the BBC to match its ambitions for the network with real networking. It should be looking out for the new and existing talent in our regions and particularly in the east and west midlands. If that can be done, it can pull behind it the apprenticeships and the training that can make such things fly.

Under the current director-general I, too, have noticed a change from what has gone before. I hope that when he reads the transcript of the debate he will understand that we are trying to be friends. To remain friends, however, action has to follow words. If we are to be the centre for broadcasting and for digital broadcasting in the future—in many ways digital broadcasting is the future—he has to do more than he is currently doing. That means a vision beyond the HR-related and training jobs that are being brought to the midlands at the moment. Crucially, we need a focus on commissioning, production and getting in place the networks that can make the east and west midlands vital parts of the BBC’s ambition for the future.

--- Later in debate ---

[Susan Elan Jones]

There are major issues to be looked at, and we believe that that needs to happen in this debate on the BBC charter. It is not a little opt-out alone; the debate is much too important for that.

The BBC has recognised that there is a disparity. When Tony Hall become director-general in 2013, he visited the Mailbox and announced additional investment. In particular, the focus on training and digital was a sign of investment in the future of the BBC, as my hon. Friend the Member for Birmingham, Northfield said earlier. However, the issue has not gone away; the question is what we do now.

On 19 March, the Prime Minister was asked about BBC investment in Birmingham and the midlands. He said that

“the charter renewal is a good time to have that conversation”

and that

“these are the questions we will be able to ask in the charter renewal process which starts after the election.”

We agree with the Prime Minister on that. We are past the election and should be getting on with charter renewal, which is the right time to have that conversation. Charter renewal is our opportunity, every decade, to ask ourselves, “What do we want the BBC to do?” We re-examine the BBC’s purposes, governance, funding and investment in the round.

The Culture Secretary’s Select Committee report, “Future of the BBC”, laid out a road map for how the process would work. It basically means copying the successful model that Tessa Jowell, Labour’s Culture Secretary, took us through 10 years ago. That was a vibrant, open, consultative, national conversation about the BBC’s future. It is time to do that again. Labour wants an open and transparent national debate to start as soon as possible. We want all the excellent campaigners to be able to make their case in an open, transparent process, so the Government need to get on with it. The last charter renewal process was three years long. In a week’s time, it will be half that—a year and a half—until the charter runs out. Today, there are only 557 days to go. It is worrying that the Government seem inactive, saying, “We’ll make an announcement in due course.”

[Julian Knight]

Will the hon. Lady give way?

[Susan Elan Jones]

I do not think that there is time, unfortunately. I would love to, though.

A year and a half is not long for an important debate. In recognition of that, the Culture Secretary’s report even floated the option of extending the existing charter for a year. We think that this time the Government should hand their homework in on time. They should not leave it all to the last minute and then bash something out late at night behind closed doors—exactly what they did in 2010. They certainly should not ask for an extension because the dog ate their draft charter. They need to start the charter renewal process as soon as possible to ensure an open debate. Then we can get on with debating the real issues, such as how to ensure a diversity of viewpoints and voices. Labour will be arguing for a BBC that does something for everyone. Everyone pays into it and everyone should get something out of it. The Conservatives have flirted with a different view, some of which we have heard today—if not wholesale privatisation, then drastically reducing the range and breadth of the BBC’s output. If that is the debate, very well. Let us get on with it.