(7 years, 10 months ago)
Commons ChamberIndeed, and I thank my hon. Friend for making that point. As we have seen in the past, as things have become easier and industries have grown and developed, the costs have fallen. I am convinced that we would see the costs fall significantly in this area if there was more ability to do it. The fact that small-scale multiplexes would exist would reduce the straight broadcasting costs—that would be a key benefit of this Bill; people would no longer have to pay for coverage over a very large area that they did not really need. All the evidence about technology and broadcasting has shown that as time goes on, things get cheaper. As people are able to innovate and use their creative speciality, things get cheaper. We can look back to 50 years ago to see that when we were overly tough in our regulatory system of broadcasting onshore, we ended up with people in radio stations operating from ships just outside our territorial waters to flagrantly get around a licensing system that had become out of date and irrelevant, with its basis in another era. If we are not creating opportunities for this sort of industry to flourish, all we do is push people on to the internet, thereby restricting choice and people’s ability to listen to new and interesting services that may well be able to be provided at much lower cost than has been possible in the past.
I declare an interest as the chairman of the all-party group on commercial radio. My hon. Friend is talking about setting up small-scale multiplexes on a non-commercial basis, but would such multiplexes be open to small commercial stations? For example, would High Peak Radio in my constituency be able to access one of the multiplexes, even though it is a commercial station?
My understanding is that yes, it would, although I have to be clear that the Bill will only set a framework; the exact details of a small-scale licence would be a matter for consultation with the industry and for Ofcom in considering individual licence applications. My understanding is that, yes it would be possible for very small-scale commercial operations to take advantage, but there would be processes in place to ensure that the rights of existing multiplexes were not affected unduly.
One consideration would be whether someone had an interest in another multiplex. For example, the Bill includes provisions to enable Ofcom to create rules to disbar someone from applying to set up a small-scale multiplex if they already have an interest in a local or national multiplex. Yes, the Bill could create opportunities, but it is very much about setting a legislative framework, with the detail to follow. Individual licence applications would be considered by Ofcom in the normal way.
There should be an element of flexibility in the framework because, as has been touched on, there will be unique individual circumstances. Some areas are covered by the national digital radio multiplexes but not by a local one. In such circumstances we may wish to look at having some flexibility to allow the provision of digital radio. The Bill is about creating a framework and giving an opportunity. It puts some limits on the framework so that it does not undermine the existing regulatory system, but it is very much a deregulatory Bill that will provide an opportunity to small-scale radio stations that serve particular communities and cannot realistically take on the cost of a local-area multiplex that covers a very wide area.
We know that the technology works, but there is a legislative gap that needs to be fixed to allow that technology to flourish throughout the UK. However, as I just touched on in response to that intervention, is there actually a demand for this type of system? There is little point passing a law for theoretical benefit, or to make the argument that this structure should exist; it must have a practical effect to justify the parliamentary time.
Around 400 community radio stations are already in existence. There is a huge range of diversity in their output, and they are positioned throughout these isles. There are university radio stations, including UCA Radio in Ayr. Interestingly, quite a large number of British forces broadcasting stations operate as community-licensed radio stations, such as the ones at Brize Norton and Shorncliffe. There is also Aldershot Army Radio, and I think there is another one on Salisbury plain. They operate using community FM licences, so would potentially benefit from the framework in the Bill. There are community stations that reflect the community they are in, such as Hillz FM in Coventry—on which I was once interviewed—and Riviera FM in Torbay. A lot of these stations end up broadcasting via the internet as their sole digital output, but if they can broadcast over the internet, they could quickly convert to using a small-scale digital multiplex, which is why I am keen for the structure in the Bill to be created.
As I touched on earlier, hospital radio stations give people more than just something to listen to while they are staying on a ward; they can be a real part of the local community. Several already operate as community FM stations, and I would like to see them have the opportunity, if they wish, to become community DAB stations via a small-scale multiplex. They would cover approximately county-sized areas; they are clearly not going to look to compete with a national digital radio multiplex—that is flagrantly not what they are going to want to do. They should at least have the practical opportunity to go on to digital radio if that is what they see as the natural progression for their services.
I have considered advertising in elections on many things. I have had my name on buses, for instance, although people just said, “You look like the back of a bus—now your picture’s on the back of a bus.” As my hon. Friend the Member for Corby said, local radio stations such as High Peak Radio are politically neutral. There is no politics with local radio. High Peak Radio will broadcast what I have to say, whether from my perspective as the Member of Parliament or when I was a Conservative candidate. Whether it is the Labour candidate, the Lib Dem candidate, or whoever, it is completely politically neutral. That is one of the advantages of local radio. As has been said, it is broadcast by local people for local people. It does not have a political edge. That is why I have not considered advertising politically on the station. I do not want to compromise it or to spoil the essence of local radio.
I am very much enjoying my hon. Friend’s remarks. He will be aware that the rules for political parties on broadcast advertising still apply to small-scale licensing, just as they do to large-scale licensing. That is certainly the intention.