Media Bill

Lord Bassam of Brighton Excerpts

2nd reading
Wednesday 28th February 2024 Lords Chamber

[Lord Bassam of Brighton (Lab)]

My Lords, I will start with a reference to the amendment to the Motion laid by the noble Lord, Lord Forsyth. I fully understand the noble Lord’s frustrations. Concerns and questions over this issue have been raised multiple times in both Houses. I have asked previously whether the Government have any plans to review rules on media ownership and to date have received no answer. We recognise the Government’s response that they are awaiting the conclusion of investigations by the CMA and Ofcom. However, I wonder whether the Minister can offer an opportunity, perhaps outside of this debate, for noble Lords to raise issues and hear from the Minister or Secretary of State on this. That said, we have waited 20 years for the Media Bill in front of us. I will focus my remarks on the substance of the Bill which has finally reached us, but I look forward to hearing from the noble Lord, Lord Forsyth, later in the debate.

The Minister has fairly set out the rationale behind the Government’s Media Bill but, of course, he has not given us the full story behind its arrival here in the Lords. We were promised this particular piece of legislation a long time ago. Finally, two years ago in the 2022 Queen’s Speech, details were provided of a media Bill, although this turned out to be a draft Bill published in March 2023. Some commentators have said that this has been in the offing for nearly 10 years. I do not intend to try to embarrass the Minister; the delay is embarrassment enough.

We would certainly have had a Bill earlier in this Parliament if it had not been the subject of internal wrangling about the future of Channel 4. However, we are pleased that the Government saw sense and dropped their desire—or the desire of the former Secretary of State—to privatise it. I suspect that if they had pursued that course, they would have upset the whole public sector broadcaster eco-structure. I suspect that it would have also made the Minister’s job today a whole lot harder.

It was way back in 2003 under the previous Labour Government when the legislative framework for public service broadcasting was renewed. So much has changed, as the Minister said, since the Communications Act 2003. As the Government have rightly asserted, much has changed in the media landscape. We now have on-screen entertainment divided into linear broadcasting and on-demand streaming services. Broadcast radio has also changed, with the public being able to choose how they access on-air services. The Government have argued that these changes make it essential that public service broadcasting, on-demand programme services and commercial radio have a new regulatory framework. We agree wholeheartedly with that. For that reason, we support the Bill.

The Bill is important, as the Minister has said, because it brings media legislation into the digital age. Although the Bill lacks a commanding overall vision for broadcasting in the UK, the PSBs believe—and we think they are right—that it is in good shape as currently drafted and it will enable that sector to thrive and develop, not just here but will enable us to compete internationally, where our public service broadcasters are much admired.

The PSBs and other stakeholders are all rightly keen that the Bill passes into law as quickly as possible, so that they can have the long-awaited certainty they need for programming, commercial and long-term planning. However, that should not detract from our duty as legislators to ask questions of the Government and, where appropriate, to seek to amend the Bill. However, I assure the House and those listening eagerly to the debate that we support the Bill and will be looking to work on a cross-party basis to get it on to the statute book as quickly as possible.

We are also conscious that with advertising revenue shrinking in a highly competitive market, the commercial PSBs will not welcome any additional undue cost burdens being placed upon them. Several, including Channel 4 and ITV, have indicated that to remain sustainable as businesses, they will have to reshape their business model.

There are a number of key issues the House will want to scrutinise carefully, including prominence for our PSB services and ensuring that audiences are protected and have access to varied and high-quality content. We will want to ensure that Ofcom is empowered to achieve what is being asked of it as a robust regulator and, of course, that the legislation is future-proof.

We are pleased to see the case for prominence being updated has been recognised by the Government. Clause 28 is hugely important to the PSBs, extending it to cover services not currently included, such as interfaces on smart TVs, set-top boxes and streaming sticks. Given that Ofcom recommended this back in 2019, it is long overdue. This should make PSB content prominent on both linear and on-demand services and make public service content available and easy to find across the full range of television platforms.

We are aware that, in another place, some Members—notably, the chair of the DCMS Select Committee, Caroline Dinenage—made the case for a different wording for “prominence”. They argued that, instead of “appropriate” prominence, it should be “significant”. I am sure that the House will want to probe to ensure that the word “appropriate” is flexible and robust enough to do the job for the PSBs. It might be useful if the Minister could fill out in a little more detail the thinking behind the language used. I am not sure that Sir John Whittingdale’s clarification in the Commons quite did the job.

On assuring quality content for our audiences, we welcome the simpler, streamlined public service remit and believe that the Bill will enable a broader reach of audiences across a wider range of platforms. We will have questions to probe the genres included, or not included, in the remit, ensuring that the right safeguards are in place. We will also want to consider the details of Part 4 on video on demand regulation for both the industry and the audiences who access the services, including the tier model and age ratings.

On future-proofing, we welcome the listed events reforms, which will strengthen the role of public service media within the regime. However, this is one of the key areas where future-proofing the legislation comes into play, on the issue of digital rights for listed events in particular. Attention to digital rights will be necessary to enable UK audiences to come together for our biggest sporting events, whether this is online or through traditional linear broadcast outlets. Future-proofing will also be a key issue when we consider radio provisions in the Bill, including access to on-demand content and access through services other than smart speakers—particularly in cars, where car manufacturers can effectively become the default gatekeepers of radio access.

This Bill was much delayed in the 20 years since the Communications Act 2003. More generally, given the pace of change in the media world, can the Minister say today that the legislation is sufficiently flexible to match the changes and challenges that we can immediately foresee? Perhaps the Minister can assure noble Lords that the Secretary of State will keep under regular review the platforms through which PSB content can be viewed? This will surely be essential, given how technological developments are likely to work alongside shifting markets and audience expectations.

As I made plain at the outset, we are pleased that Channel 4 privatisation has been dropped. The Government have made two changes that materially affect Channel 4. The first is to place a sustainability duty on the company, and the second is the removal of the existing publisher-broadcaster restriction. The first change, relating to the duty, is, I hope, limited to ensuring the channel’s financial security and stability. Perhaps the Minister can say something about that when he comes to wind up. The lifting of the restriction on Channel 4’s ability to create content directly is clearly significant. I noted, as I am sure other noble Lords will have done, the careful response adopted by Channel 4 to this new freedom. The channel, having rightly made the argument about privatisation upsetting the broadcasting eco-structure, will not want to disrupt that same eco-structure through rapid expansion of in-house production, having carefully built up its commissioning role over the past 40 years.

With others, we are considering carefully what might need amending in the Bill. As well as the areas that I have referenced, there a few amendments that we feel are important in addressing possible gaps to the legislation. One that seems particularly important, given concerns about the viewing habits of children and young people, was that relating to a review looking at ensuring that they have access to public service content. With the dominance of smartphones and social media among young people as a means of viewing TV content, this would seem vitally important. We also support having a review within six months of the Bill passing into legislation on whether a Gaelic language service should be given a public service broadcast remit.

I finally come to the Government’s decision to bring forward the repeal of Section 40 of the Crime and Courts Act 2013, relating to the Leveson provisions. In my opinion, it sits rather oddly in a Bill about broadcast media. But we are aware that this measure has manifesto cover from 2019 and we have not sought to remove it. From conversations with key stakeholders and noble Lords, it seems fair to say that the debate in this House will not focus solely on the question of repeal but will instead look at a range of possible amendments. In the Commons, Labour supported an amendment laid by George Eustice MP that would retain an incentive for newspapers to sign up to an approved regulator. This will, I am sure, be part of our conversations going forward. Ensuring access to justice and a free and important press is very much a live and current issue, and I look forward to hearing from noble Lords across the House today on that point.

In conclusion, this Bill is much needed and long overdue. The PSBs need it, the media world needs it, and it is welcome. Our approach will be to carefully listen to the arguments over points of contention. We have no intention of disrupting the architecture of the Bill or its main provisions. If we have an argument with the Government, it is simply this: instead of spending the last four years running down the excellence of our PSBs, they could have better spent that time promoting their strengths internationally and celebrating their role in helping make the UK the arts and culture superpower that we truly should become.

--- Later in debate ---

[Lord Parkinson of Whitley Bay (Con)]

We have set up the review because there are important questions to consider, and it is worth considering them properly. As I say, there is a complexity here in striking the right balance. The review is looking into that and more, and from it may flow some suggestions for necessary changes in the law. It is right that we complete the review and look at that picture in the round. As I say, I am sure we will touch on this in Committee, and there are emerging areas which noble Lords will want to press, but we think it is right to complete the review, which is a logical consequence of setting it up.

The Government are also keen to ensure that sporting events are made available for the public as widely as possible. That is why we have the listed events regime. We acknowledge the interest that fans have in watching our sporting teams compete. It is important, again, that that regime continues to strike the right balance between accessibility and the ability of sporting organisations to generate revenues, so that they can invest in sports at all levels. We believe that the current list of events works well to deliver the right outcome and that it strikes an appropriate balance, so we have no plans to review the list at this time.

My noble friend Lord Bethell spoke about the importance of age ratings for television content, and we are in complete agreement on the need to protect children and other vulnerable audiences from harmful and inappropriate video-on-demand content to which they might be exposed. As people move to a digital world, so must our regulation change. That is why, for the first time, we are bringing mainstream TV-like on-demand services in scope of the new video-on-demand code. That will be drafted and enforced by Ofcom, which has a long track record of regulating broadcast television to ensure that it is age appropriate, and protects those who may be more deeply affected by what they see or hear. In addition to creating this new code, the Bill gives Ofcom new powers through its audience protection review duty, so that it can provide guidance and report on and deal with any providers it considers are not providing adequate protections.

Taken together, these changes mean that the on-demand streamers will no longer be marking their own homework; that, rightly, will be for Ofcom to assess and do. The British Board of Film Classification, which my noble friend mentioned, does a fine job and the Government encourage all services to consider using it when reaching decisions. However, it is not the only source of effective child protection. Many streamers, including our public service broadcasters, for example, have very effective child protection measures in place and do not use BBFC age ratings. We do not want inadvertently to discourage services from investing in, developing and using the most effective child protection technology that is available and becomes available, which includes but is not limited to age ratings. The Government’s overriding goal here is to ensure that effective protection is in place as the outcome, rather than specifying from the top down how that should be done.

The measures in the Bill will ensure that all streamers are given the incentive to place child protection at the heart of their product development, rather than just relying on the regulator to tell them what the bare minimum is they can get away with. For example, protections such as parental controls and warnings, in addition to age ratings, can be more effective than any individual age-rating system. However, we are listening to what my noble friend and others are saying and have been listening to the debate in another place as well, and we look forward to continuing to debate these issues as the Bill progresses.

My noble friend Lord Black of Brentwood raised concerns about the risk of complaints tourism arising as a result of Ofcom’s regulation of video-on-demand services. As with existing broadcasting regulation, how these rules are implemented would be for Ofcom to set out. However, to be clear, Ofcom will be regulating only on-demand providers’ UK libraries. In addition, following feedback from providers during pre-legislative scrutiny, we have already considered the issue of complaints tourism. The Bill now ensures that Ofcom will be able to consider the length of time that content has been available when considering complaints, which will reduce mischievous accusations. However, this is not new territory. Ofcom has a long history as an international regulator, and we have full confidence that it has the expertise and powers to deal appropriately with complaints of this nature.

More broadly, noble Lords rightly asked about the additional responsibilities Ofcom has taken on in recent years. As they know from our exchanges on the Online Safety Act, the Government are invested in Ofcom, which has taken on many more staff to cover its additional responsibilities. We are confident that it has the capability and resources it needs. Like others, I am very grateful that the noble Lord, Lord Grade of Yarmouth, attended our debate on the Bill today. Ofcom will continue to be accountable to Parliament. The Bill extends its powers in areas it has much experience in regulating. My department has worked closely with Ofcom throughout the drafting process. As I said in my opening speech, we are very grateful for the contribution it has made.

I am grateful to some—not all—noble Lords for expressing support for the repeal of Section 40 of the Crime and Courts Act. Views differ on this across your Lordships’ House but, as I said, this is a government manifesto commitment. We worry that commencing Section 40 would risk creating a chilling effect on freedom of speech, undermining high quality journalism and causing serious damage to local newspapers. The Government consulted on repeal in 2016. A huge majority of respondents, some 79%, including press freedom organisations such as Reporters Without Borders, backed repealing Section 40, many arguing that it could have stopped publishers undertaking valuable investigative journalism or publishing stories critical of individuals, for fear of being taken to court and having to pay for both sides. However, I look forward to the further debates that I am sure we will have.

The noble Lord, Lord Stevenson, asked about the Press Regulation Panel. As he knows, that was established through a royal charter on the self-regulation of the press in 2013, which is separate from the Crime and Courts Act 2013. The repeal of Section 40 will not affect the Press Regulation Panel. Any press regulator can apply to be recognised by the panel. The panel will continue to recognise, review and report on Impress. It can also recognise other press regulators, should they choose to apply.

My noble friend Lord Astor asked how we can prevent strategic lawsuits against public participation if we repeal Section 40. If enacted, Section 40 would protect only news publishers which are members of an approved regulator. SLAPPs typically target individuals instead of their employers and can target people other than journalists, including consumers, tenants or victims of sexual assault. Many SLAPPs never reach court as their intention is to silence people before the case is pursued. As I hope my noble friend knows, the Government are taking broad action against SLAPPs to create a changed culture and raise awareness of them, alongside legislative change. The task force on SLAPPs that we established published its workplan in December, outlining action from government as well as from media and legal organisations to tackle SLAPPs. The Economic Crime and Corporate Transparency Act, which received Royal Assent in October, includes measures to tackle economic crime-related SLAPPs, which we believe represent up to 70% of all these lawsuits. The Government are also supporting a Private Member’s Bill introduced in another place by Wayne David MP, Second Reading of which was last Friday. It has cross-party support, and we will update the measures in the 2023 Act to cover a broader scope, blocking SLAPPs across all types of litigation.

I am conscious that I am reaching the end of my time, so I will turn finally to the amendment moved by the noble Lord, Lord Forsyth. The noble Lord, Lord Bassam, asked whether a meeting with the Secretary of State might be possible. As he will appreciate, at the moment she is acting in a quasi-judicial capacity in relation to this matter, so she is very restricted in what she can say. A meeting would not therefore be helpful. However, I and other Ministers have kept your Lordships’ House and the other place updated as much as we are able to while that legal process unfurls. I pointed in—

[Lord Bassam of Brighton (Lab)]

Does the Minister have a sense of the timetable for this review to be completed?

[Lord Parkinson of Whitley Bay (Con)]

If I may, I will point the noble Lord to the answers we have given which set out some of the timelines; there are different timelines under the different Acts and the work that Ofcom and the Competition and Markets Authority do. I will set them out, rather than try to give them off the top of my head, but I have answered questions from this Dispatch Box before and will continue to do that and through Written Questions where possible.

I pointed my noble friend Lord Forsyth to the Enterprise Act and the National Security and Investment Act, which cover the actions available to the Secretary of State, including where she has concerns about media freedom and freedom of expression. As my noble friend indicated, his lively discussions with the Public Bill Office and his resorting to this regret amendment reflect that this is not a matter for this Bill, but, as the contribution from our noble friend Lady Stowell of Beeston showed, she has had more success with tabling an amendment to the Digital Markets, Competition and Consumers Bill. I would certainly encourage them both to continue their conversations with my noble friends Lord Camrose and Lord Offord of Garvel.

Media Bill

Lord Bassam of Brighton Excerpts

Committee stage
Wednesday 8th May 2024 Lords Chamber

[Lord Vaizey of Didcot (Con)]

My Lords, I shall just slip in on the back of the excellent speech on diversity from the noble Baroness, Lady Benjamin, because this is a subject very close to my heart. I think Amendment 33, put down by the noble Baroness, Lady Bonham-Carter, is very telling in calling for public service broadcasters to put forward a diversity strategy.

But I would go behind the amendment and say that, in my experience, it is often the case that public service broadcasters can hide behind a strategy, and a strategy can often be an excuse for inaction. I remember that when I first got involved in the diversity in broadcasting debate, which is now more than a decade ago, I was very struck by the fact that, when we had a meeting with the broadcasters—there were three main broadcasters in play: ITV, BBC and Sky—the BBC came in and said, “We totally get what you’re saying and we’re going to produce a strategy”. ITV came in and said something in between. Sky came in and said “We’re just going to go for 20%”—and it did go for it, in terms of people both in front of and behind the camera. So it is very important that the Minister himself gets very engaged with the broadcasters, because if they simply put strategic documents on his desk, nothing will change.

The other important part of any strategy that is legislated for in this Bill is that it brings forward proper, in-depth statistics about what is happening in broadcasting in terms of diversity and equality. On that point, I would like the Minister to update me on the Diamond network, which was the measurement standard put in place in the mid-2010s in which broadcasters had to report for every production. It gradually included the independent producers, because that was another thing that we discovered made life more difficult, because you then had to go to all the independent production companies and bring them within the system. What has happened to the Diamond system? What kind of statistics is it throwing up that reveal what is actually happening in broadcasting?

I am fully aware that, when one talks about diversity, there may be a small element of the public—perhaps a Venn diagram overlapping with Garrick Club members—who regard talking about diversity as some sort of woke totemic point. But the point is that we live in an extremely diverse country. It is so important—and it really emphasises why this Bill and broadcasting are still so important, no matter how diverse and fragmented broadcasting has become in terms of platforms—that people in this country are able to tell their stories and see themselves represented. Equally, to echo the noble Baroness, Lady Benjamin, it is not just the people in front of the camera; it is the people making the programmes and making the decisions about what is commissioned. You can have as many diverse people as you like appearing in a television programme but, to be blunt with the Committee, if the people commissioning the programmes are all white, those are the stories that will get told.

As far as the other amendments are concerned, since I am on my feet, I am obviously very much in favour of the principle that the noble Baroness, Lady Bull, put forward about putting back the Reithian principles into broadcasting. But I simply say at the beginning of what will be a mammoth session of days and days of scrutiny of this Bill that I am also very deregulatory minded. It is important for the Committee to be aware as much as possible that broadcasters sit under a plethora of regulations and there must also be a mindset as we debate this Bill that we do not simply put every single issue and principle that we care passionately about—albeit I am now massively contradicting everything I have just said—into the Bill, because technology is changing rapidly, costs are rising, as the noble Baroness, Lady Benjamin, hinted, and putting a lot of people under pressure, and people need flexibility. To a certain extent we need to trust our broadcasters, for whom quality programme making is to a certain extent embedded.

[Lord Bassam of Brighton (Lab)]

My Lords, this has been a fascinating debate, capped by a single show of dichotomy from the noble Lord, Lord Vaizey. I am sure that most of us found it both entertaining and enlightening, in line with true Reithian values.

As we draw this debate to a close, we should congratulate the noble Baroness, Lady Bull, on tabling her amendments in this group. As we have heard, they broadly relate to the Reithian principles that have under- pinned public service broadcasting for much of the last century. We on the Labour Benches have co-signed Amendments 1 to 3 and 7. Additionally, we support Amendment 8 in the name of the noble Baroness, Lady Boycott, so ably spoken to by the noble Baroness, Lady Hayman. We also support Amendment 33 on diversity. On reflection, having spoken to my colleague, the noble Baroness, Lady Thornton, I feel that we should have had a separate debate on the whole issue of diversity. It is merited in the context of the Bill. The noble Baroness, Lady Benjamin, underlined the importance of workplace diversity, as referred to by the noble Baroness, Lady Bonham-Carter. There is much to think through about what we see and how it is measured to ensure that our public service broadcasters reflect the diversity of our great nation.

I turn to the Reithian principles. My honourable friend Stephanie Peacock in another place said that she welcomed the attempts to simplify the remit of PSBs. I made a similar observation at Second Reading. As we have heard, a number of commentators have argued that this may have the unintended consequence of leading to rather more restricted content. The Communications Act 2003, which this part of the Bill seeks to update, gave a fair expression of the PSBs’ Reithian principles. Over time, these have become partly enshrined in particular genres. These amendments attempt to take the debate beyond genres and to talk to the issue of the fundamental purpose of public service broadcasting, in particular the purpose of broadcasting in a multimedia world now tackling the challenges of the digital age and digital content.

At Second Reading I said that, while the Bill was very welcome—it continues to be very welcome—and for the most part highly supportable, it seemed to lack an overarching purpose and principle: an abiding vision, if you like. As we have heard, Lord Reith believed that PSBs should “inform, educate and entertain”. The 2003 Act sought to flesh out what that meant. Labour enshrined those principles in legislation. In that regard, it did a more than serviceable job. This new legislation seeks to do it slightly more flexibly. Flexibility is one thing, but I think we need firm statements of principle and purpose. These amendments move to set Reithian standards and values in a more modern context.

We want public service broadcasters to retain high standards of content. We want them to maintain high- quality production and editorial integrity, as referenced in Amendment 1. We want to see content that meets the Reithian dictum of informing, educating and entertaining, while recognising the role of the sector in stimulating, reflecting and supporting the cultural and creative industries.

Finally, these amendments take us to the educative purpose of public service broadcasters and help promote a culture that values learning as a lifelong activity to serve all. Together, one could paraphrase a sort of John Prescott-ism and place old-style Reithian values in a modern setting. For that, and for the other reasons I have set out, we are very happy indeed to support this group of amendments. We hope to receive some words of encouragement from the Minister. I do not think public service broadcasters will object at all to this renewed obligation. It does much that will help Ofcom in its periodic reporting on this aspect of the public broadcasters’ remit.

[The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, I am grateful to the noble Baroness, Lady Bull, for starting our deliberations in Committee in such a careful and considered way. We have already had allusions to Chesterton, Orwell and Sonia from “EastEnders”, so we are off to a good start.

Media Bill

Lord Bassam of Brighton Excerpts

Committee stage
Wednesday 8th May 2024 Lords Chamber

[Lord Bassam of Brighton (Lab)]

My Lords, Amendments 14 and 15 in the name of the noble Viscount, Lord Culross, seek to finesse the Channel 4 commissioning regime that has worked so well for this highly innovative channel. I was one of the sceptics when Channel 4 was first thought of, and I remember writing an article which challenged the model. However, I have been proven wrong over those 40-plus years.

As the noble Viscount explained, he seeks to add an “SME guarantee” by virtue of Amendment 14 to the commissioning process to further stimulate the growth of indie production houses, in particular those with revenues of less than £25 million. Amendment 15 qualifies this to average out the £25 million cap over a five-year period.

The first amendment would require at least 35% of the channel’s spend to be on companies with a revenue of less than £25 million. We on these Benches can see some merit in this approach, and certainly in the direction of travel, given that the strength of Channel 4 has been the diversity it has brought to production, and that it has led to far more production outside the M25 and the south-east.

I am highly conscious that Channel 4 is thinking long term about the removal of the publisher/broadcaster restriction and its potential impact on independent producers. The channel is keen to protect the ecology of small production companies. It argued in a briefing earlier in the year that a move to in-house should be gradual, over a five-year period, and should not alter the value it places on the importance of independent production houses. As it says, its partnerships with indie producers have led to these companies growing, expanding and owning their intellectual property. Moreover, it has helped to spawn a whole new industry.

I can see that increasing the qualifying independent production quota from 25% to 35% would probably strengthen the indie sector, so today we would do well to listen to the Minister’s responses as to the workability of the amendments. I think we all share a common view—I hope we do—that the uniqueness of the Channel 4 commissioning model is of immense value to TV production generally and the development of the market, innovation, and the high production standards that UK TV is internationally renowned for. The Channel 4 approach has helped to give an edge to that. The question is, ultimately, whether this is the most appropriate way of protecting that reputation and ensuring that we have a sustainable independent production output.

The noble Viscount has done us a service this evening in tabling these amendments. We know that we must be very careful in tweaking the commissioning approach; as the noble Viscount said, there are industry concerns that we must listen to, and we have to find the best way forward to protect something that has become uniquely valuable in TV production. It is something that we support right across the House.

[Lord Parkinson of Whitley Bay (Con)]

The diversity of our world-leading television production sector is one of the main reasons that it is so successful. We have companies of different sizes operating all over the UK, focusing on genres ranging from specialist factual to high-end drama and everything in between. Last year, these companies delivered the highest sector revenues on record: just under £4 billion. Smaller producers are, of course, hugely important for ensuring a healthy production ecosystem, and the current regulatory regime for independent production has been very successful indeed in promoting and supporting them. Boosting this independent sector was one of the purposes behind the design of Channel 4. I do not want to make the noble Lord, Lord Bassam, feel old, but I was not around to be a sceptic at the time of those debates—they happened before I was born. But Channel 4 has, as I have said from this Dispatch Box, done a great service over the last four decades, and the regulatory regime has supported that too.

PACT, the industry body, estimates that there are more than 250 independent producers with an annual turnover of less than £1 million operating in the market today. Its statistics also show that 75% of independent producers have an annual turnover of less than £25 million. These are the producers that the noble Viscount, Lord Colville of Culross, had in mind, particularly with his Amendments 14 and 15. The issue of providing further support for smaller independent producers is one that we have looked at closely, most recently through our work on the mitigations to accompany the removal of Channel 4’s publisher-broadcaster restriction, which noble Lords have noted.

The clear message from the sector when we did that was that the measures which singled out smaller producers specifically—for example, via a turnover threshold, as the noble Viscount’s Amendment 14 proposes—would not be welcome on the grounds that they would be anti-competitive and penalise success. Producers want an incentive to win more commissions and grow their businesses, not to stay small. Those we spoke to also raised concerns that such measures would be difficult for Ofcom to enforce and could lead to increased monitoring and compliance costs for the regulator. Although these issues are addressed in part by the additional flexibility which the noble Viscount offers through his Amendment 15, the overarching concerns that we have with this approach still stand.

The Government recognise that this is a challenging time for producers and the production sector because of the slowdown in commissioning activity as a result of the downturn in the television advertising market, and we are taking steps to support producers and the production sector at this time, including the generous tax reliefs across studio space and visual effects, investing in studio infrastructure, supporting innovation and promoting independent content through the UK Global Screen Fund, but, for the reasons I have set out, we do not feel that we are able to support the amendments which the noble Viscount has put before us, but we are grateful for the opportunity to have this debate.

Media Bill

Lord Bassam of Brighton Excerpts

Committee stage
Monday 20th May 2024 Lords Chamber

[Lord McNally (LD)]

My Lords, one of the great values of Committee stage for Ministers and regulators is that it gives them a warning of trouble ahead if they do not listen to what is said during it. This debate has been a very good example of that. I do not think Parliament is satisfied yet that we have the balance right in the ecology that we are trying to create.

It is interesting to remember that our broadcasting system is a child of Parliament and not of government or regulators. Over the last 100 years, Parliament has tweaked the market to do various good things. It created a national broadcaster under royal charter; most social historians would say that the BBC as created did much to unify the nation—it certainly brought certain accents to the fore, such as those of Wilfred Pickles and JB Priestley, which had not been heard before in London.

We are at a kind of turning point again. Of course, we are going through a revolution, the management of which is perilous for many in the major companies. As has been said in some of the briefings to us from ITV and others, the more we put demands and conditions on public service broadcasters, the more difficult it is for them to compete. It is about getting a balance right between the benefits we get and the benefits we give to PSBs and their ability to compete in this rapidly changing world.

I went to the meeting that the noble Baroness, Lady Fraser, organised, and it was very interesting to hear the passionate interventions from Northern Ireland, Wales and Scotland. However, as has also been said today, the development of talent outside London has also been significant. I still think of myself as coming from “Granadaland”; it is very difficult now to realise just what an impact Granada had on the north-west and on its confidence. In a way, there was no great plan, but it was a magnificent piece of genius to create ITV as a federation of regional companies, and from those regional companies came many benefits.

I am not sure how deeply Willie Whitelaw and others thought when they created Channel 4 and gave it that commissioning role, but it has certainly had a massive impact on the creative sector. I want us to make sure—this is the only intervention I make on this—that the Minister accepts the invitation from the noble Baroness, Lady Fraser, and that Ofcom, if it is listening, also realises that there is deep concern in Parliament that what comes out of the Bill retains what has been one of the great benefits of our development of the media, which is that we have found, nurtured and developed talents in the regions. The real danger in saying that we are going to concentrate on big productions and so on is that we get the bland and the international, and not what has been the great benefit of the development of our television and our broadcasting—the talent and the voice of the regions.

[Lord Bassam of Brighton (Lab)]

My Lords, this debate has been a fascinating example of how the nations and regions are well represented in the Committee. We have heard contributions from Wales, Scotland, Newcastle and across the country.

The noble Baroness, Lady Fraser, argued very persuasively that quotas work. These amendments are aimed in a targeted and precise way at the hours and expenditure on programmes broadcast that are made and produced outside London. Amendment 17 additionally reflects this by reference to

“the nations of the United Kingdom”.

Amendment 54, tabled by the noble Lord, Lord Wigley, seeks to ensure that there is a proper evaluation of companies that claim to operate in the nations of the UK by reference to criteria based on staff numbers, a published commitment to remain and a background of time spent in that nation.

We on these Benches have a great deal of sympathy and offer our encouragement and support to the principle behind these amendments. The last 20 or so years have seen, as we touched on in earlier debates, the growth of production outside London. As the noble Lord, Lord McNally, reminded us, regional production was a great strength of the federated ITV companies. Their big opportunity in the late 1950s and 1960s led to such great companies as Granada Television and Harlech Television. Surely the latter is the only time that a Lord has given his name to a TV company, but the grandfather of the noble Lord, Lord Harlech—who is in his place—was clearly a pioneer. Independent production companies now work from all over the country; although some of them are suffering the difficulties that have developed from the direction of travel for advertising revenue, that is one of the great strengths of our media landscape.

The Government have chosen to change the way in which the provider of a licensed public service channel delivers its regional production quotas. The key question for the Committee and the Government to consider is whether the percentages set out in the amendment are the right ones for Ofcom to work to and how best to ensure that the necessary flexibility is retained within the quota system. We see regional production in the context of reflecting the diversity of the nations that make up the UK—diversity in a wider sense—and the need to reflect better our rich regional cultural diaspora, which a number of noble Lords have made wonderful reference to this afternoon.

It is also important to ensure that we recognise the value that TV production can bring in levelling-up. Why should TV production be concentrated in the wealthier parts of the UK and overconcentrated in the south-east and London? There are big disparities in regional wealth in this country—some of the biggest, largest and most extensive across Europe—and TV can do much to address that. To their credit, the PSBs have all made attempts in the last decade or so to decentralise production and bring about a transformed media landscape—Channel 4 in Leeds and Glasgow, the BBC with its MediaCityUK, and ITV devolving some of its production and major locations. As legislators, surely our role is to strengthen and enhance this. For that reason and others, these amendments are very welcome. I hope that the Minister responds positively to the spirit of these amendments.

On the issue of regional TV and its importance to production, has the Minister given any thought to the future of the 34 hyperlocal TV services licensed by Ofcom? These small operators were enabled by Labour’s Communications Act 2003, but they are not included in the definition of public service channels. These small channels do an important job in local news production at a time when, as we all know, local news is diminishing. Collectively, their reach is considerable, with over half a million viewers. Is this omission an oversight by the Government? If it is, would the Minister agree to meet and discuss this with representatives of the local TV companies to see what can be done to reinstate their public service broadcasting designation? I appreciate that this is not an amendment before us this afternoon, as no such amendment has been tabled, but debates on the Bill might be the opportunity to give a little sunshine to local TV companies and for the Government to put that on record.

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[The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, I hear often talk about how we need an assembly of the nations and regions, but, as the noble Lord, Lord Bassam, has said, we have had a great display of that today from your Lordships’ Committee, with contributions from across the United Kingdom.

As I set out on our first day in Committee, His Majesty’s Government are committed to stimulating growth in our world-leading production sector throughout the length and breadth of the UK. As the noble Lord, Lord Wigley, pointed out, there is a long and proud tradition of that happening across the UK; he gave many examples from Wales, understandably, and pointed to the north of England as well. We have this month lost Gudrun Ure, who played the eponymous Super Gran—a production I enjoyed in my childhood, made by Tyne Tees Television and filmed along the north-east coast in Whitley Bay, Cullercoats, Tynemouth and many other places. It was a powerful example of the emotional pull of TV production in inspiring tourism and encouraging people to visit but also in bringing production closer and, I hope, awakening sparks in people wherever it is made.

As noble Lords have alluded to, it is important to point out that the picture at the moment is a strong one. In 2022, all of our public service broadcasters exceeded their regional production quotas, and some significantly so. We have seen good and significant growth in production outside England and outside our capital. Production spending in Scotland is now worth over £266 million, supported by developments including Channel 4 opening one of its creative hubs in Glasgow in 2019. Television production in Wales continues to make impressive strides forward, with the proportion of hours of BBC content produced in Wales increasing year on year, in part thanks to major productions such as “Wolf” and the rest of the menagerie of animals that my noble friend Lady Bloomfield of Hinton Waldrist mentioned. Northern Ireland’s production industry is making a significant contribution, as shown by the rise in hours of content produced there and broadcast on public service broadcasters, which has increased consistently over the past five years. The BBC, Channel 4 and Channel 5 all increased their production expenditure in Northern Ireland in 2022. The growth in production outside London in recent years is a great success story, and our public service broadcasters have been one of the significant contributors to that growth.

We are also encouraged by commitments to go further, such as the BBC’s pledge in its BBC Across the UK strategy to increase its production expenditure outside the capital to 60% by 2027, and Channel 4’s pledge to continue to spend 50% of its main channel commissioning budget outside London. However, it is right that we keep this progress under review, and I welcome the opportunity we have had to debate these issues this afternoon, thanks to the amendments that have been tabled in this group.

Let me start by addressing Amendments 16 and 17 in the name of my noble friend Lady Fraser of Craigmaddie and acknowledge the support that she expressed on behalf of the noble Baroness, Lady Foster of Aghadrumsee, with whom I have had the opportunity to discuss some aspects of the Bill outside the Chamber. The regulatory system proposed in the Bill will continue to support the success of the industry in several ways. The Bill is explicit in Clause 1 of its intention to recognise the need for programmes produced outside London through our new public service remit. Underpinning this is the detailed system of quotas on which this amendment focuses. This system already creates the mechanisms to hold public service broadcasters to account, and the success of the UK production sector demonstrates this.

The level of these quotas is set by Ofcom, which has broad powers to amend them as it sees appropriate. Should the success of the UK production sector not continue, Ofcom has the power to take action. It could, for example, increase regional production quotas over time, in much the same way as envisaged by the amendments that my noble friend has proposed, or it could tie the quotas to population shares. I can see why it might be tempting to pre-empt or constrain Ofcom’s consideration of these matters and to legislate directly as these amendments suggest and as the noble Viscount, Lord Colville of Culross, set out in his contribution.

I agree with the noble Viscount that there is an important role for Parliament. We are all grateful that the chairman of Ofcom, the noble Lord, Lord Grade of Yarmouth, is in your Lordships’ House and is in his place to hear these debates. Even if he were not a Member of your Lordships House, Parliament has the opportunity to express its views directly and indirectly through the Select Committees and through my department. I hope the noble Viscount would agree that it is also important that Ofcom can act with agility in this dynamic and often fast-changing sector.

It is essential that Ofcom has the flexibility to calculate regional quotas on broadcasters independently, weighing the evidence and balancing the different equities in the sector. That approach allows Ofcom to alter quotas smoothly over time to react to developments that it sees. As the financial position of both the public service broadcasters and the sector more broadly changes over time, we want Ofcom to be able to take this into account and adjust quotas accordingly, without the need for primary legislation on each occasion.

However, I reassure noble Lords that I, and my colleagues in DCMS, have heard the strength of feeling on this issue from the sector, particularly in relation to Channel 4’s “out of England” quota, which is set at 9% of eligible programmes and expenditure. I note that Ofcom is currently consulting on the terms of Channel 4’s next licence, which will come into force from 1 January next year, and also that Channel 4 has said that it would support a managed and carefully considered increase to its programme-making commitments in the other home nations. His Majesty’s Government look forward to the outcome of the licence renewal process and seeing how the sector’s concerns have been addressed.

For our part, the Government will continue our broad support for the screen industries across the United Kingdom through generous tax reliefs, as we saw in the last Budget and previous ones, through investment in studios such as the Crown Works Studios, which the right Reverend Prelate the Bishop of Newcastle rightly reminded us of, supporting innovation and promoting independent content through the UK Global Screen Fund.

We want to see the production sector continue to thrive. When it comes to our public service broadcasters’ contribution to that goal, we believe that the existing system of regional production quotas, which, as I say, our public service broadcasters can and do exceed—some of them significantly—remains the best way to continue to drive the growth that we have seen in recent years in every part of the UK.

For these reasons, I am not able to accept the amendments that my noble friend Lady Fraser of Craigmaddie has set out, but I accept the invitation that the noble Lord, Lord McNally, reiterated on her behalf and, if I may, I extend it to the noble Lord, Lord Grade, or one of his colleagues at Ofcom, so that we can talk in more detail and, I hope, seek to reassure her further about how the existing system provides for the concerns that she has set out.

[Lord Bassam of Brighton (Lab)]

The noble Viscount, Lord Colville, made a good point about Parliament being consulted. I wonder if the noble Lord could say something about how both Houses—and Select Committees—could be consulted and considered in the question of quotas and the distribution of regional production. I do think that is an important element of this debate, and I am sure noble Lords around the Committee will want to hear something positive on that.

[Lord Parkinson of Whitley Bay (Con)]

I hope the meeting I have just indicated I am very happy to hold will be an opportunity to do that, with representatives of both the Government and Ofcom present, and an opportunity for noble Lords to ask questions on the issues of quotas, and not just in relation to the Bill that is before us. As the noble Lord says, Select Committees on an ongoing basis allow for the scrutiny of Ofcom’s work.

Turning to Amendment 54, in the name of the noble Lord, Lord Wigley, I recognise the intention behind his amendment, which seeks to address concerns about the programmes that our public service broadcasters are counting towards their regional programme-making quotas. As he and my noble friend Lady Bloomfield said, this has been referred to as “brass plating”, and I am grateful in particular to the Welsh Affairs Committee in the other place for exploring this issue in its recent report, Broadcasting in Wales. As he noted, the trade association TAC has also raised this issue and has done so with my department directly.

My officials have raised the matter with Ofcom again following the publication of the Select Committee’s report. Ofcom has confirmed that, in order to qualify as a regional production, relevant productions must meet two of three criteria. These include the “substantive base” criterion, which is one of the focuses of the noble Lord’s amendment. However, productions are not able to rely on this criterion alone; they must also meet one of the two other criteria relating to production spending. Ofcom has also confirmed that it strengthened and clarified the requirements associated with the “substantive base” criterion when it updated its guidance on regional productions for public service broadcasters in 2019. This guidance came into effect for productions broadcast from 1 January 2021.

Having reflected on this advice, we remain of the view that Ofcom has the necessary powers to identify, examine and, if necessary, close any loopholes related to the regulatory regime for regional programme making. We do not, therefore, see the need to legislate in the area of the noble Lord’s amendment.

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[Lord Bassam of Brighton (Lab)]

Might the noble Lord be prepared to meet them at some point? That might have some value.

[Lord Parkinson of Whitley Bay (Con)]

Yes, either I or, I am sure, my colleague in another place who has direct responsibility for this, not just in relation to the Bill but more broadly, will be happy to speak to them further.

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[Baroness Grey-Thompson (CB)]

My Lords, I shall speak to Amendments 25, 26 and 30, which are in my name. I draw attention to my interests in the register: I am also a member of the All-Party Parliamentary Media Group.

Whether it is Wimbledon, the Olympic 100 metre final, the Euros joy and World Cup despair of the Lionesses, or the optimism of the FA Cup, listed events have a special place in people’s hearts and memories—but how and when we watch these big sporting moments that can unite nations and encourage participation, social cohesion and pride is changing. Thanks to the listed events regime, devised in the mid-1990s, major sporting events are freely available to all audiences, especially those who cannot afford to watch sport behind a paywall—great if you can watch in real time on your TV, but currently there is no protection for digital on-demand coverage of these much-loved events. If no action is taken, anyone who wants to watch, say, Team GB on their tablet or smartphone or see the highlights could miss out, especially with events taking place in different time zones.

At Tokyo 2020, the gold medal-winning performance by BMX specialist Charlotte Worthington was watched by just 400,000 people at the time, as it happened overnight, but in the days that followed different forms of short-form coverage of the race generated nearly a tenfold increase in views; and, while the TV reach to the 2022 Commonwealth Games in Birmingham was about 20% lower than for the 2014 Glasgow Commonwealth Games, there were around six times more on-demand views of digital clips. Soon, digital and on-demand viewing will be the norm for watching legends being made. Looking beyond Los Angeles 2028 and Brisbane 2032, could Great Britain’s medal successes be behind a paywall?

Now is the time to not miss the opportunity. The Media Bill offers a once-in-a-generation chance to protect these moments for all of us, however, whenever and wherever we watch, and I am seeking to bring the regime up to date to safeguard the future of listed events for the next generation. The new clause will give enhanced regulatory protection so that these shared national moments are available to us all, making sure the benefits of watching on your TV in real time are afforded to clips and highlights, and will allow for time-shifted viewing, enabling people to watch on tablets and smartphones; and it would secure, where possible, adequate digital on-demand coverage of listed events made available free of charge to us here in the United Kingdom.

Audiences are changing. For Wimbledon in 2023, BBC coverage was streamed 54.3 million times on iPlayer and BBC Sport online—a new record. The men’s singles final peaked at 11.3 million on BBC1, with streams up by 58% on iPlayer, and the women’s singles final peaked at 4.5 million on BBC1, with streams up by 85% on iPlayer. For the 2023 FIFA Women’s World Cup, 12 million watched England’s Lionesses versus Spain on BBC1, with an additional 3.9 million streams on BBC iPlayer and BBC Sport online. There were 25.7 million streams on BBC iPlayer and BBC Sport online across the tournament—a 75% increase on the 2019 World Cup.

It is not just the BBC that wants to see this. The Culture, Media and Sport Committee recently concluded that

“digital rights should be included as part of the listed events”

and an independent report commissioned by Ofcom last year concluded that

“as expectations about the availability of live and secondary coverage of sporting events of national interest changes, we think that the current linear TV-centred regime risks failing to take into account the increasing popularity of secondary coverage”.

We know the Government recognise the issue and consulted industry a year ago, yet nothing has been done. Please do not let this opportunity pass. The time to act is now.

[Lord Bassam of Brighton (Lab)]

My Lords, this is a large group, as the Minister said in his opening comments, dominated mainly by government amendments. We are grateful to him for his explanation of the effects of the amendments, which we broadly welcome, although we have some questions about them. In particular, I would like a more precise understanding of the meaning of the Minister’s Amendment 19; I had hoped it might make our Amendment 29 irrelevant, but I do not think it does. All of us in the Committee are grateful to the noble Baroness, Lady Grey-Thompson, for tabling Amendments 25, 26 and 30, and I look forward to hearing something positive about them from the Minister.

We on these Benches have two amendments in this group: Amendments 29 and 31A. Amendment 29 would have one simple effect: it is designed to make provision for the coverage of listed events, which is not the same as live coverage. As the noble Baroness has explained, the position regarding the Olympics is, frankly, ludicrous: unless you are able to catch the live coverage of an event, you cannot view the same event on catch-up TV or in an edited highlights programme. Where the Olympics, a World Cup or similar events are in time zones that are 12 or 13 hours different from the UK’s, the position is even more ridiculous: sports fans are forced to become insomniacs—and worse—to watch blue-ribbon events within the Olympics programme. I am sure that was never the intention when the listed events regime was created, and I hope that we will hear from the Minister today that this peculiar state of affairs will be put right.

Amendment 31A seeks to insert a new clause. This reflects the concerns brought up by internet providers about the quality of listed events in the face of competing demands on our internet system. As we consider these changes to listed events, it is important that we also consider the audiovisual quality of digital delivery. Our frameworks must ensure good reliability to support a viewing experience worthy of the importance of these live events. Can the Minister answer the question that the new clause asks about how we ensure that listed events get their fair share of internet infrastructure as we see the digital share of television viewing rise further? That is especially true for listed events but it is worth asking more generally as well.

In the same vein, Amendment 30, in the names of the noble Baroness, Lady Grey-Thompson, and the noble Lord, Lord Addington, is of course one that we support, although it seems to be a more belt-and-braces version of our own. I am not wedded to a particular form of words, and if the noble Baroness has spotted a deficiency that requires plugging and her amendment achieves the same end as ours, we will happily support it at a later stage.

We are sympathetic to Amendment 31 from the noble Lord, Lord Addington. Cricket misses out in terms of coverage, and that is surely the minimum that we should expect for this much underrated summer game. Test and one-day format cricket have the ability to capture the national mood and imagination, and the nature and rhythm of cricket, with its rolling narrative, is surely worthy of a more advanced listed billing. I have never understood why test matches are not listed; the Ashes series, with its long national rivalry involving Australia, certainly should be. As a devoted cricket fan and participant in 60-plus seasons, I make a strong plea to your Lordships’ Committee to listen to this argument. I appreciate that my case is highly subjective but the recent Ashes series in the last 15 to 20 years have been compelling, and there is a compelling case for this event to be listed as well.

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[Lord Lansley (Con)]

My Lords, I intervene briefly to express my support for Amendment 30 in the name of the noble Baroness, Lady Grey-Thompson. I think she has captured, very importantly, how the character of watching major sporting events has changed over recent years, certainly a great deal since the Communications Act 2003, when I had the pleasure of working with Lord Puttnam and others in another place on that Act—the Standing Committee and the Puttnam commission—back then. Of course, when we are looking at listed events, people were understandably focused on the live coverage in those days because that was predominantly how people watched sporting events. That has changed and we must adapt the structure of the legislation to match that.

I will come on, if I may, to the difference between Amendments 29 and 30. The noble Lord, Lord Bassam, referred kindly to Amendment 30 and I think there are advantages. I note that Amendment 29 somewhat suggests that the noble Lord and the Opposition Front Bench have started to write amendments a bit as a Government in waiting in a way in which we tend to see the Government thinking it a very good idea for Ministers to have the powers to do things however they wish. I think now the Opposition Front Bench wants to have similar sorts of powers—

[Lord Bassam of Brighton (Lab)]

We are not in the habit of getting ahead of ourselves.

[Lord Lansley (Con)]

I know that the noble Lord is sticking to the line to take, and nothing is being taken for granted. I completely understand. However, he will understand why I favour the amendment from the noble Baroness, Lady Grey-Thompson: because it incorporates the structure of this proper legislative reform in relation to on-demand services. It does not apply where somebody has access to on-demand rights and makes them available in a number of places to unconnected persons. That would not necessarily fall to be regulated because it is not exclusive, and the use of exclusivity is really important. It reflects what is done in relation to existing live events. Equally, if it is made available free to air or free of charge, it would likewise not need Ofcom’s permission; again, that is like live events.

The amendment very carefully addresses itself to the listed events—major events of national importance—where they are intended to be available on demand, exclusively by those rights holders only and by nobody else, and behind a paywall. This means, in effect, they are not available as most people would expect to see national events in the catch-up and on-demand world of broadcasting that we now live in. It is an excellent amendment and demands close attention by the Government. I urge my noble friend to consider whether this is now the time to make this additional change to the structure of the regulation of listed events.

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[Lord Bassam of Brighton (Lab)]

The right reverend Prelate must be an expert with a broom.

[Lord Parkinson of Whitley Bay (Con)]

The House was stunned into silence by the revelation from the right reverend Prelate.

I thank noble Lords for the contributions they have made and the points raised on the other amendments in this group. We, of course, had a bit of a pre-match friendly during our debate on sport led by the noble Lord, Lord Wood of Anfield, on Thursday. Let me start with Amendments 25 and 26 from the noble Baroness, Lady Grey-Thompson.

The Government recognise the intent behind the noble Baroness’s amendments, and I know that she has had concerns about in particular the necessity of the new multisport provisions, whether “adequate live coverage” will meet the mark, and whether public service broadcasters will have the freedom to choose what they cover in the interests of their audiences. Perhaps I may take the opportunity to seek to offer her and other noble Lords reassurance on these questions.

First, on whether these provisions are necessary, the Bill introduces the concept of adequate live coverage for multisport events to ensure that partnerships between broadcasters which deliver for UK audiences can still go ahead in an age where dozens of sporting events can be taking place concurrently. We do not want inadvertently to create a regime which would prevent deals like the one currently in place between Warner Bros. Discovery and the BBC. Expansion of the scope of services covered by the regime to resolve the streaming loophole poses risks to these mutually beneficial partnerships between public service broadcasters and commercial broadcasters for multisport events. That is because the existing requirement for both parties to have the same coverage does not reflect the way that coverage is actually shared between them across different types of services.

There is no intention to weaken the public service broadcasters’ hand in negotiations, simply to ensure that partnerships between them and commercial broadcasters can function effectively to deliver the best outcomes for audiences and rights holders.

On whether “adequate live coverage” will hit the mark for audiences, it will be for Ofcom to make new regulations setting out what will be considered adequate. Following scrutiny and debate in another place, the Government amended to the Bill to set out the matters that Ofcom must take into account when defining adequate live coverage in its regulations. This is an example of Parliament giving direction to the regulator through legislation. This includes the forms of live coverage that would satisfy the interests of the public, and the desirability of facilitating arrangements which result in live coverage of listed events being shown on both public service and non-public service broadcasters.

To protect audiences’ interests, and in keeping with deals we have seen before, any partnership of this nature will require at least two live broadcasts on public service broadcasters. Ofcom is given the power to require more than two streams if it deems it necessary or appropriate, and it could also set requirements regarding the percentage of coverage or other considerations.

Finally, I think the noble Baroness, like me and others who have spoken, believes that it is vital that public service broadcasters continue to have the flexibility and editorial freedom to show the most incredible moments of these multisport events to public audiences. I reassure her and other noble Lords that the Bill enables Ofcom to require that “adequate live coverage” must allow the broadcaster involved to select what parts of the proceedings it wishes to show. It is vital that public service broadcasters maintain complete editorial control of live broadcasts when they enter partnerships so that they have the freedom to make decisions about what events to screen for the British public, and the Bill makes provisions for this.

For those reasons, I do not think that we need the amendments the noble Baroness has brought before us. However, I hope my words have provided reassurance about the checks and balances in place to deliver for audiences in the way she seeks.

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Linked to that amendment, the approach taken in Amendment 30 seeks to bring digital rights within scope of the regime. Again, it is important that we maintain the right balance between access and allowing rights-holders to reinvest in their sports at all levels. I think it would be more appropriate to allow the Government to evaluate the issue fully, including how it could best be delivered, before we consider legislation that enacts any particular conclusion.

[Lord Bassam of Brighton (Lab)]

I get the sense that the Minister is sympathetic to the point we have made here and that it is more a question of timescale. If the Government are looking at this, what sort of timescale do they think would be right for them to ponder the question more widely?

[Lord Parkinson of Whitley Bay (Con)]

I am loath to set out a precise timescale, but the noble Lord is right: it is a matter of looking at this more fully, as well as considering the complexities of how it could be borne out if it were concluded that that were necessary.

I hope noble Lords will see, through the government amendments in this group, that we have worked with parliamentary counsel to respond to the points that were raised by the Select Committee and Members in another place about the scope of services to be captured by the regime. We have now closed the streaming loophole, which could otherwise have seen live coverage intended for UK audiences disappearing behind a paywall without the protections that the regime offers. However, as I have set out, it is a complex matter that needs a bit more thought. I am happy to set out some of that thinking and to allow officials to do so with the noble Lord if he would find that useful. For those reasons, I hope the noble Baroness, Lady Grey-Thompson, will understand that we cannot support her Amendment 30.

The noble Lord, Lord Bassam, has tabled Amendment 31A. I agree with him that it is crucial that audiences are able to view their favourite sports live in whatever way works for them, whether that is on a traditional TV platform or over the internet. However, as new technologies such as internet protocol television—IPTV—become more prevalent, we need to ensure that they continue to serve audiences. This amendment would ask Ofcom to review the delivery of listed events and other audiovisual content online, with a focus on how internet service providers can work with broadcasters to deliver IPTV. As I have said in previous debates, my department has an ongoing programme of work on the future of TV distribution. As part of this, we are working closely with the Department for Science, Innovation and Technology to consider many of the issues that the noble Lord, Lord Bassam, has raised today, including the reliability and quality of content provision on IPTV. That work is also ongoing.

Ultimately, while I agree that the issues that noble Lords have raised are important ones, this is not a Bill which is focused on the UK’s digital infrastructure. By considering the issue with regard to only one internet service—namely, television—we risk taking a piecemeal approach to what is an important and broader policy issue. For that reason, I am afraid I cannot accept the noble Lord’s Amendment 31A either. I commend Amendment 19 to the Committee.

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[Baroness Featherstone (LD)]

My Lords, I too oppose Clause 31. Channel 4—what a brilliant initiative, how extraordinary, and what a success. It is a cauldron of innovative and original talent, fundamental to our brilliant, creative country, providing a stream of talent for use by all the others, streaming, literally, into our country. It was created to foster competition and innovation in the broadcast sector, and it did. The approach allowed independent production companies to compete for contracts to create programmes rather than relying on in-house production by the channel itself—an approach the Government now seem to want it to adopt. In that independence, it still had to maintain high editorial standards, ensuring accuracy and impartiality and fairness. It had to reflect the diversity of the United Kingdom and to fulfil certain public service obligations to educate, inform and entertain with social responsibility. That model, rather than an in-house production facility and staff, enabled Channel 4 to operate efficiently.

Of course there are challenges. Channel 4 itself had become a bit reliant on production companies that have now grown big, but it is a cauldron of creative opportunity. Right now it is not having the easiest of times, but if it was producing in-house, cuts would be swingeing and challenging. As a commissioning body, it can better cut its cloth to meet the vagaries and ups and downs of its and our economy.

If the Government’s desired change were to take place, it would reduce the opportunities for independent producers, impacting the diversity and range of voices represented. It would risk creative stagnation. It would have financial implications and require investment in additional production facilities, staff and resources at a time when it is cash poor. And any shift in its programming strategy would impact its ability to attract and retain audiences. There would also be an impact on the independent production sector if this significant source of commissioning independent production companies were to be reduced, particularly the smaller ones and the ones producing risky and innovative content.

[Lord Bassam of Brighton (Lab)]

My Lords, the clause stand part debate tabled by the noble Baroness, Lady Bonham-Carter, for whom I have immense respect, is, I am sure, well intentioned. As she said, it relates to the primary purpose of Channel 4, which is to be a commissioning public service broadcaster.

The Government’s desire to enable Channel 4 to produce programmes in-house as well as through its tried and tested commissioning route is undoubtedly novel and a new departure for the channel, but it is not without risk. As I recall, and as the noble Baroness, Lady Bonham-Carter, reminded us, it was announced as part of the Government’s decision not to privatise the channel. We all cheered that, but we were left uncertain as to the real intent behind the announcement.

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[Lord Parkinson of Whitley Bay (Con)]

My Lords, Clause 31 forms an essential component of our plans to support Channel 4’s long-term sustainability so that the channel remains an important and distinctive part of our broadcasting system for many years to come. It is always a pleasure to hear praise from the Benches opposite for the legacies of the Thatcher Governments.

The publisher-broadcaster restriction, as set out in Section 295 of the Communications Act, is unique to Channel 4 and prevents it from being involved in the making of programmes for the Channel 4 service, except to such an extent as Ofcom may allow. As a result, Channel 4 is significantly more dependent on advertising revenue than other commercial broadcasters—a point that we have touched on, as the noble Lord, Lord Bassam, rightly reminds us, in the debates that we have had on alternative means for securing money for the channel’s long-term sustainability. In particular, two-thirds of Channel 4’s revenue comes from linear television advertising, the market for which is both highly cyclical and in long-term structural decline because of the declining number of people watching linear television.

In response to these challenges, last year the Government announced a package of reforms that would help to support Channel 4’s long-term sustainability while retaining it in public ownership. The removal of the publisher-broadcaster restriction is a key element of that package that will open up opportunities for Channel 4 to further diversify its revenues away from advertising by making its own programmes, should it choose to do so. The Government undertook an assessment of the impact of that and published it on GOV.UK. We will happily direct the noble Lord and others to that so that they can see the assessment that we set out when bringing the package of mitigations forward.

I understand the concerns set out by the two noble Baronesses about how the change might affect Channel 4’s support for the independent production sector across the UK, which were also raised when this issue was discussed in the other place, and we touched on it in our first group of amendments today. That is why, when we announced our intention to remove the restriction, we were clear that we would work closely with the production sector to ensure that Channel 4’s important role of driving investment into the sector would be safeguarded. The outcome of that work was a substantial package of mitigations that we announced in November, some of which, such as the introduction of new Channel 4 commissioning duties and an Ofcom-led review, are included in the Bill. Those mitigations, which also include increasing the level of Channel 4’s independent production quota, will be implemented in the event that Channel 4 incorporates a production company.

Channel 4 itself has welcomed the removal of the restriction and has said that in-house production could offer good long-term support for financial sustainability, while reaffirming its commitment to continue to invest in and champion independent producers, as it has done for the last 40 years. Ultimately, a stronger and more resilient Channel 4 will be best placed to continue playing its integral role in our broadcasting ecosystem for many years to come. By contrast, failing to remove Channel 4’s publisher-broadcaster restriction would mean passing up an opportunity to help it to deliver on that important ambition. That is why Clause 31 is an important clause and should stand part of the Bill.

[Lord Bassam of Brighton (Lab)]

What sort of costs does the Minister anticipate the channel will face in setting up its own production company? Has any estimate been made of that? What discussions have the Government had with the company to ensure that it can secure that in the most cost-efficient way?

[Lord Parkinson of Whitley Bay (Con)]

I have no estimate of my own, but I will happily find out and provide the noble Lord with any estimates that have been made.

Media Bill

Lord Bassam of Brighton Excerpts

Committee stage
Wednesday 22nd May 2024 Lords Chamber

[Lord Vaizey of Didcot (Con)]

Well, if no one is going to fill the gap, I will. I can confirm that a general election has not yet been announced—in deference to the excellent speech on radio from the noble Lord, Lord Foster. I thought I would make a few brief remarks —while we wait for this imminent event—with some reflections on radio.

I was lucky enough to be the Radio Minister for six years in the DCMS and now I am lucky enough to be a broadcaster on Times Radio—which is duly declared in my register of interests—so I have seen both sides of the fence. Ofcom has had a fantastic team looking after radio for many years and they are great experts on it. They were very much on the front foot when we discussed some of the mechanics and the engineering needed to extend digital radio.

The watchwords for radio are that we in Britain have an extremely successful radio ecosystem. We love our radio. We are also very far in advance of many other countries. To all intents and purposes, we have a universal digital network, which not many countries have. We still have our FM network. We have a plethora of radio stations, from legitimate national stations to quasi-national stations—which are really a group of regional stations knitted together—through to local radio stations and community radio stations. One of the things that I wanted to do most as a Minister was to support community radio. There is not enough money for it; there should be more money for it and for the engineering to support it. It is truly local radio. I used to visit places such as Swindon community radio which provided a vital service. It was run by volunteers and, rather like hospital radio, it is a great gateway into the radio industry and lots of young people still want to work in radio. That is very important.

It is a good thing, as it were, that the Government never made a firm decision on whether to switch over FM to digital and have allowed the radio industry in effect to lead that process and wait for it to come and say when it might be ready—when the dual costs may be too much or it might be sensible to go to a purely digital system. The other important point about radio is that the BBC sits at the heart of that radio ecosystem. That is one the important reasons to support the BBC but, at the same time, the BBC should be very mindful of its place and, in my view, be leaning in to providing the kind of radio services that commercial radio cannot afford to provide. In particular, that is local radio.

I completely agree with the noble Lord, Lord Foster, that there is far too much broadcast regulation being made up on the hoof by Ofcom, without any guidance from Parliament. That is partly up to the Government to drive consultation and to frame the debate so that Parliament can have that debate and make some decisions. However, I accept that, as a Conservative Peer, broad- casting a show on Times Radio, it feels very odd to interview Wes Streeting about Labour’s health policy. The people who run Times Radio and who run other radio stations take their obligations to Ofcom very seriously. They have compliance departments and ask whether something will comply with Ofcom or cross a line. They are very mindful of the existing guidance that Ofcom prepares.

As I said in the Second Reading debate, we should not be misled in terms of thinking about this kind of regulation for opinionated news—if you like—a sort of hybrid. We should not be misled because we might not like GB News, because it is deemed to be a right-wing station. We should have a proper debate about whether there is room for opinionated news in the broadcast ecosystem, particularly as we are now so deep into such a rich information environment with social media.

[Lord Bassam of Brighton (Lab)]

My Lords, I can usually spot a cunning plan when there is one afoot, and I fancy that our debate this afternoon is going to be overshadowed by events outside this House as the lectern has already been rolled out. This is an eclectic group of amendments which raise some important issues on radio regulation. The noble Lord, Lord Storey, in Amendments 71, 73 and 74 seeks to establish a baseline of locally provided programmes. I suspect we all have some sympathy with this.

There was a time when local radio was genuinely that: local. I well remember, as a local government leader, a time when both commercial and public service broadcast—BBC—radio stations used to call me up to face a quizzical reporter or phone-in audiences on local issues. But it has been a while since those days, as less and less content is generated from a locality. Basically, “local” means anything but that, as the programmes can be made and broadcast anywhere, as the noble Lord, Lord Storey, accurately described, and have no particular geographical audience.

Most commercial radio stations now work to the same format and are owned by fewer and fewer companies, with little or no community input. Sadly, they have contributed to the overall decline of local news as well. As we know, the BBC has much reduced its local services—several noble Lords have mentioned this—as part of its slimming down of local radio. It remains an open question as to how practical and workable the amendments of the noble Lord, Lord Storey, are in the current context, and that is a question for us to consider.

I turn to the amendments from the noble Baroness, Lady Berridge, particularly Amendment 72, which I think we would all accept hits on a very significant issue. If we want to look at radio coverage in the context of levelling up—and I think we should—we clearly have a long way to go, because there are definitely issues of access. Last year, we passed legislation that in theory should enable better coverage digitally, but it remains the case that rural areas are still significantly disadvantaged. In replying to the noble Baroness, can the Minister update the Committee today on progress and how the Government see, and are seeking, other means to redress this widely perceived imbalance? Are there, for instance, any government targets in place that are designed to move the UK towards a more universal quality of coverage that will take account of rural and local needs?

Turning to the amendments from the noble Lord, Lord Foster, on radio news impartiality, I say that, yes, of course there should be careful consideration by Ofcom, both for television and radio, when current affairs shows are on either news stations or channels, or stations that focus heavily on news and current affairs. The noble Lord, Lord Vaizey, seems to have introduced a new expression into our debate today: “opinionated news”. I thought that was a very good expression and not one I had heard before. I do not think that we can easily move away from challenging that. How we resolve the fact that politicians of a particular party host such shows in the face of regulations that are pretty clear on impartiality and balance is something we need now to seriously consider, and the noble Lord raises a telling question.

We must also ensure that Ofcom has the tools it needs to decide on impartiality when it comes to politically hosted shows. Perhaps the Minister could outline what discussions he and his department have had with Ofcom on this matter, because it is a matter of serious concern. We need considerable reassurance on this because, hand on heart, we cannot say that it is working as well as it should—despite what the noble Lord, Lord Vaizey, says about Ofcom having a very good team covering radio. I am sure that is true and that great diligence is exhibited there, but we need to move on and ensure that Ofcom can get on with the job in a way that satisfies widespread public concern about impartiality rules.

[The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, I am pleased that we are now at the section of the Bill dealing with radio and able to say that the state of radio in the UK is in good health. The medium continues to be attractive to new generations of listeners, while the proportion of adults who listen each week is virtually unchanged from a decade ago. I imagine quite a few people are tuning in right now to their radios across the UK.

However, UK radio also faces many more challenges than it did in the past, with competition from technology platforms and online streaming providers, and it is vital that stations large and small are able to adapt their services in response to listeners’ preferences, which is why the measures in the Bill regarding radio are so important.

I am grateful to the noble Lord, Lord Storey, for his Amendments 71 and 73, which would require Ofcom to determine the licensing process for new local and restricted services licences within six months of the Bill’s completed passage. We would, however, consider such a requirement on Ofcom to be unduly prescriptive. As the UK’s independent regulator, not only for radio but also for spectrum management and specific frequency allocations, we believe that Ofcom should continue to have wide discretion in how it carries out its functions in respect of its regulation of radio services. We are not persuaded that overlaying new and prescriptive requirements on its duties is necessary.

My noble friend Lady Berridge, speaking to Amendment 72, referred to the meeting we had yesterday with my honourable friend Julia Lopez, the Minister for Media, Tourism and the Creative Industries. I was very grateful to my noble friend and to the noble Viscount, Lord Colville of Culross, for giving up their time to join us to discuss it. Her amendment seeks to ensure that, in areas defined as rural or in those that present a topographical issue—hilly or mountainous terrain or other things that get in the way of radio broadcast and limit the availability of digital services—Ofcom would be required to grant an FM licence to the organisation applying. That would mark a departure from the present licensing system, as we discussed yesterday, and create legal uncertainties about when this requirement applies and who would judge whether a particular area is unsuitable for a digital radio service.

Since 2003, Ofcom has had responsibility to secure the optimal use of the spectrum in determining where and how to license FM and other radio services. This amendment would conflict with that responsibility, especially in the case of areas where Ofcom judges that there may not be spectrum available to license further FM services.

Since 2010, Ofcom has successfully focused on developing community radio. A number of noble Lords rightly pointed out that this is greatly valued by people across the UK, with 320 services, the majority of which are on FM, across the country bringing an important degree of local choice and diversity. Ofcom has also focused on developing digital radio. Ofcom is currently focusing on small-scale DAB, which is now in its sixth round of licence awards, with 59 areas currently licensed, giving cost-effective opportunities for small commercial and community stations to broadcast on DAB as well as online. A number of these new multiplexes are located in more rural areas of the country, bringing new stations on air in these locations.

My noble friend raised very eloquently some pertinent points about the lack of services in more rural areas, such as the Vale of Catmose in her territorial designation. Ofcom has offered FM community radio licences in the most recent licensing round between 2017 and 2020 to people interested in developing community services. Although the most recent licensing round was a successful exercise, with more than 70 new community radio stations launching, rural areas with smaller populations may have specific challenges in being able to bring together viable proposals for community radio services, as my noble friend outlined in her speech.

With Ofcom’s licensing of small-scale DAB coming to a natural break point, I can tell my noble friend that we plan to work with Ofcom to look at the case for supporting new radio services in rural and remote areas and to assess possible options for helping to support these services get on air. To that end, my honourable friend Julia Lopez is very happy to write to Ofcom, asking it to provide advice on this, and to publish a copy of her letter. That can be done swiftly and I hope that, with that commitment to ask Ofcom to look at the case for supporting new stations in rural and remote areas, my noble friend will be content not to press her amendment and perhaps to continue to discuss this with us.

I turn to Amendment 74 tabled by the noble Lord, Lord Storey. Like many who spoke, I recognise the important contribution that commercial radio stations play in delivering local news and other local information. The noble Lord’s amendment, which seeks to put in legislation the current requirements on local production and news drawn from the current Ofcom guidance, would be a significant change to the radio deregulation measures. It would reinstate the requirements for maintaining local production, resulting in higher costs for commercial radio broadcasters. By putting the current Ofcom localness guidance on a statutory basis, it would also limit Ofcom’s flexibility to develop new guidance that will set the expectations to enable Ofcom to hold stations to account for their compliance with the new locally gathered news and to adapt the guidance in future. Fixing these requirements in this way would result in additional long-term costs, which may have an impact on the financial viability of the sector and its ability to invest in content. It is worth noting that there are no similar provisions for the BBC under its royal charter or agreement.

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[Lord Grade of Yarmouth (Non-Afl)]

I do not wish to comment in any way, shape or form on the value or otherwise of any amendment to the Bill; I will just correct a statement. There is one code on due impartiality; the only difference between news and current affairs is that politicians are prohibited from being newscasters, if I can put it that way. The requirements for due impartiality are the same for news as for current affairs. The key word is “due”.

[Lord Bassam of Brighton (Lab)]

Perhaps the Minister can help here. I am wondering what a newscaster is, having heard what the noble Lord, Lord Grade, said.

[Lord Parkinson of Whitley Bay (Con)]

I will write on that point, having consulted the noble Lord, Lord Grade, to make sure that I give the correct definition.

I am afraid that, as the noble Lord, Lord Foster of Bath, will have understood, I am not able to accept his amendments and hope that he will be content not to press them.

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[Lord Bassam of Brighton (Lab)]

I am sorry to interrupt the Minister, but how do the Government really envisage future-proofing to take account of those changes? That is quite important in this debate.

[Lord Parkinson of Whitley Bay (Con)]

The Bill sets out the ability for Ofcom to assess the state of the market with the Digital Radio and Audio Review. We will do our own assessment of it and, through the Bill’s secondary powers, that work can be updated.

[Lord Bassam of Brighton (Lab)]

Is the Minister content that that point is covered by that? Is there sufficient flexibility in the legislation to enable that?

[Lord Parkinson of Whitley Bay (Con)]

Yes. We recognise, and the provisions of the Bill acknowledge, that an increasing amount of listening is taking place online. It is not yet clear, however, what form the evolution is taking and, in particular, how the ongoing provision of radio’s public value, which has been fundamental to the strength of radio over the past century, will be retained. We have committed to that further review of the radio and audio market in 2026, and the growth and direction of online listening will be an important part of it. If it proves appropriate in due course, the provisions in new Section 362BA allow the definition of regulated radio selection service to be amended. The Bill provides for it in that way.

[Lord Bassam of Brighton (Lab)]

I will study the Minister’s words carefully.

[Lord Parkinson of Whitley Bay (Con)]

As the noble Lord always does.

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[Lord Foster of Bath (LD)]

I apologise profusely to the noble Lord if I misquoted him. Let me say therefore that it is very firmly my view that this Bill is not the right place for a discussion of Section 40 and all the ramifications.

With those relatively few remarks, I very much hope that the Government will consider that the removal of Section 40 should not form part of this Bill, should not form part of the wash-up discussions and should just be kept as it is and we can debate it at a future date, whether we are on the same side of the Chamber or the opposite side.

[Lord Bassam of Brighton (Lab)]

My Lords, I thank all those who have already spoken, outlining their rich and often diverging views on this important clause. I understand completely that there are very different views around the Chamber and we have heard them for the last hour or so. I will outline the Opposition’s view on Clause 50 and Section 40.

The Leveson report is now over a decade old. Responding to, rightly, the concerns of the time, Brian Leveson’s aims were to balance the competing concerns of protecting the free press—which the noble Lord, Lord Black, spoke eloquently about—while ensuring high press standards. We have heard noble Lords championing those during the debate this afternoon.

Therefore, while the inquiry helped bring about a press regulator, it did not enforce mandatory membership for news publishers. Rather, it made membership voluntary but introduced incentives for publishers to join, including consequences if they did not. Section 40, which has never been commenced, would make publishers who had not signed up to the regulator vulnerable to paying the costs of those they face in legal cases even if the wider case was ruled in their favour. Press groups have long pointed out the impact this imbalance would have on their ability to undertake free and fair reporting.

The media landscape is now much changed, although some of the issues that were present then clearly are today. It is to be expected that that would be the case some 10 years on. Challenges from the rise of social media, online consumption of media and the consequences of falling advertising revenue mean that we have seen a significant impact on the ability of the press to compete in the market and undertake its vital work.

Additionally, a self-regulatory system for the press now exists—something not anticipated ahead of the creation of Section 40 in the 2013 Act. This alone makes the situation different from 2013 and, taken together, these changes mean that it is right that Section 40 should not remain in the Act as it is. Thus, and for those reasons, we cannot support the clause stand part proposition tabled by the noble Lord, Lord McNally, and so ably and so colourfully supported by my noble friend Lord Lipsey.

On Amendment 87A from the noble Lord, Lord Watson, I am very grateful to my noble friend for his contribution, but we are unable to support his amendment. I know he will be disappointed at that and he made very powerful arguments and a powerful case in putting his amendment to the House.

In our view, Amendment 87A risks wrapping up publications in sometimes spurious legal disputes and opening the door to sometimes repeated and vexatious claims. It would also put the onus of determining factual inaccuracies on the High Court. We do not believe that to be the right place for this to happen.

I thank the noble Baroness, Lady Hollins, as ever, for her carefully thought-through contribution. I pay tribute to her for the work that she has done, very ably and passionately, over many years. Outside your Lordships’ House, I look forward to digesting what Brian Leveson has had to say on this issue and, by extension, his contribution to this important debate. I shall speak to one of the noble Baroness’s amendments in particular: Amendment 84 presents an advantage in keeping parts of Section 40 that provide positive incentives to join a regulator and protections for those that do, while removing the part of Section 40 that has caused so much concern. I look forward to hearing what the Minister has to say on this.

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[Lord Foster of Bath (LD)]

My Lords, on these Benches, we wholeheartedly support Amendment 89 and the case made for it by the noble Baroness, Lady Stowell.

[Lord Bassam of Brighton (Lab)]

My Lords, I sense that this debate is coming rapidly to a close. The noble Baroness, Lady Stowell, has doggedly pursued this issue with others and I wholeheartedly congratulate her on her determination to ensure that we maintain a free and fair press without foreign intervention.

This amendment takes the noble Baroness’s critique of foreign state ownership a stage further by seeking to review the impact of the measure on UK broadcasters. Obviously, government should always keep under careful consideration and review the impact of particular policies. This will, I suspect, be a feature of debate from time to time. We need to consider the impact of foreign ownership on all news media outlets, not just the press, and we need to understand, and protect our press from, undue interference. We have made it clear on our Benches, throughout the debates on the future of the Telegraph Group, that we are fully committed to upholding press freedom and the independence of all news outlets.

We cannot tolerate external interference in the politics of our country; that does not really need underlining much more on a day like today. At a time when the media are often being attacked by the exercise of deepfakes, this vital principle takes on a new importance. We need to ensure in the future, as much as we can, that our democracy is protected. A free and independent press and broadcasting sector is key to that, so I hope the Minister will give a considered response to that point.

I particularly pick up on the point of the noble Baroness, Lady Stowell, about regulations relating to the amendments we recently passed to another Bill. I do not think they are otiose, despite the calling of an election. They will be important in the future, and she is right to insist that work should be carried on to ensure that they are properly and correctly drafted so that they can be reviewed when a new Government are in place. Her point on the Ofcom review of ownership rules, which is to commence in November, is an important insight and one that we clearly all need to concentrate on and give some thought to while we go through the electoral process.

I am going to go slightly off-piste here before we conclude this debate and thank the Minister, the noble Lord, Lord Parkinson, for the time that he and I have spent together across the Dispatch Box and for the courtesies he has extended to me, my noble friend Lady Thornton and other colleagues during the passage of this legislation. I particularly enjoyed the contributions from the noble Baroness, Lady Stowell, and, although she is not in her place, I thank the noble Baroness, Lady Bonham-Carter, for her continued and assiduous interest in this. I also thank the noble Lord, Lord Foster, who is a powerful and important voice in your Lordships’ Chamber.

I suspect we will not have much more debate on the Media Bill, wash-up being the vicious process that it is, but we on these Benches have been happy to support it in the main. I am sorry we will not have the opportunity to give it a bit more detailed scrutiny on Report, but that is the nature of how we do our business. I thank the Minister for his attention to this, and I look forward to listening to his response.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, an afternoon is certainly a long time in politics and the noble Lord, Lord Bassam, is probably right that this is a good moment to thank all noble Lords who have given detailed consideration to the Bill in Committee, and indeed during its pre-legislative scrutiny. It has been fortunate in the sense that it was scrutinised before it came to your Lordships’ House, it was improved by that process and we have had very good debates throughout this Committee. I too am grateful for the courtesies, the time and attention that the noble Lord and the noble Baroness opposite have given to the Bill, as well as the noble Lord and the noble Baroness on the Lib Dem Front Bench and noble Lords across the Chamber. I am glad we have been able to dedicate a lot of time to this, both in the Chamber and outside. It has been a pleasure working with them.

On the amendment, it is a delight to be able to join in the praise that was directed to my noble friend Lady Stowell of Beeston for her very careful consideration of matters not just in this Bill but on related issues in the Digital Markets, Competition and Consumers Bill.

The Government are committed to a pluralistic media landscape in which the public can access a wide range of accurate, high-quality news, views and information. Maintaining a free and thriving press is both a government-wide commitment and a personal priority for my right honourable friend the Secretary of State, who recognises, as I know my noble friend does, that our free press is a key pillar of our healthy and vital democracy. We acknowledge that the acquisition of UK news organisations by foreign states would run the risk of eroding trust in those vital organisations. This concern was the driving factor behind the introduction of the new foreign state intervention regime for newspapers and periodical news magazines, for which my noble friend was a compelling advocate.

It is clear from my noble friend’s remarks that the same concerns that led to the creation of that regime are also the motivation for the amendment she has tabled on ownership of UK broadcasters, including their ownership by a foreign power. Let me start by making clear that the restrictions on foreign state ownership of newspapers are designed to meet concern about a very specific risk, and the same approach is not necessarily appropriate for broadcasters. Newspapers and news magazines have a primary function to provide news and information, and therefore play a targeted role in helping to shape opinions and contributing to wider political debate. While our television and radio broadcasters also play a crucial role in the news landscape, their role is considerably more diverse, and the holding of a broadcasting licence is already well regulated through existing legislation.

Television and radio broadcasters in the UK operate within a well-established licensing regime overseen by Ofcom. As the independent regulator, it ensures that persons who own or control a licence are “fit and proper” to hold that licence and follow Broadcasting Code rules. There are also limitations on the persons who may hold or control broadcasting licences. For example, any

“body whose objects are wholly or mainly of a political nature”

cannot hold a licence.

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[Baroness Stowell of Beeston (Con)]

Before my noble friend moves on, would it not be appropriate, none the less, for Ofcom, when it does its media ownership rules review, to just consider again whether there are any weaknesses in the existing regime? He may be right that what is now in place for newspapers, or will soon be in place, may not be directly appropriate for broadcasters: a cut and paste may not be the right thing. Because it emerged only in the process of using the existing regime that there was a weakness in that regime, and we have had to take the steps that we have, it seems prudent for Ofcom to satisfy itself that there are no potential weaknesses in its ownership rules that ought to be addressed before they are put to the test.

[Lord Bassam of Brighton (Lab)]

Perhaps the Minister will comment on whether this matter has been under active consideration, because I think that is important. There is a shared concern across the Chamber on this, and the noble Baroness has touched on a very good point.

[Lord Parkinson of Whitley Bay (Con)]

I certainly think it would be prudent for Ofcom to consider that. It is a matter for Ofcom, and it is important that I do not put words in its mouth as an independent regulator, but it is important that it can do that and make its representations to the Government, to Parliament and publicly, in an independent way. On the extent to which it has done so to date, it is probably better if I set that out in writing so that I am able fully to account for what has been done so far. In brief, it is a matter for Ofcom as the independent regulator, and it has the means to set that out.

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[Lord Bassam of Brighton (Lab)]

I can advise the noble Lord that, during the period between now and the general election, he will be the Minister most watched and listened to.

[Lord Parkinson of Whitley Bay (Con)]

Thank you. Let me turn to the questions posed by my noble friend Baroness Stowell. She asked when we should expect to see the regulations relating to online news. We will shortly consult on expanding the existing media measures regime and the foreign state ownership provisions to include online news websites. That will enable us to make changes which ensure that online news, whether from an established newspaper group or an online publisher, is covered by the media regime and the new measures we are introducing for foreign state media ownership.

My noble friend is right about civil servants’ ability to carry on working even during the election period. Judging from the activity in my private office, I can certainly say that they are already springing into action on a number of fronts in the best traditions of the Civil Service. Work will of course continue as it always does, notwithstanding an election. This is an opportunity for me to thank the officials who have been working on the Bill and who will continue to work on these areas—rather hastily—over the next few days, but also more broadly on an ongoing basis in the way we have set out.

My noble friend mentioned the review of media ownership rules. I confirm that Ofcom can look at whatever it would like to in its review of the rules. The Secretary of State does not have to issue instructions to Ofcom to do so. I am happy to clarify that and, I hope, assist with some of the confusion which my noble friend has pointed out.

On the timing of regulations for what we termed the “carve-out”, as my noble friend knows, we are currently undertaking a consultation on proposed regulations to follow the Digital Markets, Competition and Consumers Bill to ensure that the drafting achieves our stated policy objectives in terms of the partial carve- out of small minority stakes held by sovereign wealth funds. The regulations will be finalised when the consultation concludes. We hope then to align the timeline for the introduction of these regulations with the Digital Markets, Competition and Consumers Bill.

Media Bill

Lord Bassam of Brighton Excerpts

Report stage & 3rd reading
Thursday 23rd May 2024 Lords Chamber

[Lord Watts (Lab)]

My Lords—

[Lord Bassam of Brighton (Lab)]

My Lords, I think the convention of the House is that, on Report, a noble Lord has only one bite of the cherry.

This has been a long debate and we had a long debate yesterday. I listened to all sides of the argument and have set out the Labour Party’s viewpoint on the current situation. There is one argument with which I strongly agree, and that is that it is unfortunate that we are having this debate, on this Bill, at the end of a Parliament. It is a great shame, because this part of the Bill does not really sit easily with the rest of it, which is primarily about broadcast and audio media. We should have stuck to that subject matter.

With that said, we do not support the amendments that have been tabled by my noble friends behind me, and we are unable to give them the backing they wish. We now have a settled position and things have moved on since Leveson. I do not disagree with some of Leveson’s conclusions, but I think that the issue has moved forward. I do not think that sufficient weight and seriousness were paid to the arguments that are being made that we need to look closely at the press and examine how it works. I heard the passion of the noble Baroness, Lady Hollins, and of my noble friend Lord Watts, and I understand their concerns, but I do not think that this is the best way for us to continue to approach matters. That is the Labour Party’s position, and we will not support our colleagues if they push this to a vote. We are content for the Government to conclude business on this group, which we hope will enable us to make progress on the Bill.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, as the noble Lord, Lord Bassam, said, this has been a long debate, as our debate yesterday was, but I am not sure that it has shed much light for us to be blinded by. The noble Lord, Lord Watson of Wyre Forest, inadvertently put it rather well when he said that this was not a debate that was likely to change anyone’s mind. This reflects an old debate, one which began well over a decade ago and on which few minds have shifted in the intervening years. We are focused on a narrow aspect of it: to repeal a provision that has never been enacted, languishes obsolescent on the statute book and, even in that dormant state, causes great concern to our free press, one of the things on which we pride ourselves in this nation. That is why it is essential that this provision is removed and why this is not a controversial debate, although some noble Lords opposite continue to disagree with it.

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[Baroness Bonham-Carter of Yarnbury (LD)]

You were not—oh, my goodness. Anyway, as I was saying, I thank everyone, including the Government for making the Bill happen. It is hugely important for our public service broadcasters. That is enough of my thanks and I have not cried.

[Lord Bassam of Brighton (Lab)]

My Lords, I sort of gave my thanks yesterday, as I was not really sure what we would be doing today—and I was not alone. I want to thank the noble Lord, Lord Parkinson, again for his courtesy. We are extraordinarily grateful for the two amendments that he accepted, which my noble friend Lady Thornton and I were very keen to see inserted in the Bill, along with others in your Lordships’ House.

It is always a joy to work with the noble Baroness, Lady Bonham-Carter, and—from the far reaches of the back of the Lib Dem Benches—it is now an even greater pleasure to work with the noble Lord, Lord McNally. Actually, I have an anecdote about death and buses, which I am quite determined to tell, now I think about it. There is a custom in Brighton for its buses to have put on their side or their front the names of well-known local personalities who have, sadly, deceased. So well-known was the lead local government correspondent of the Argus that the bus company decided that he had died, so they put his name on the front of the bus—only to discover that he wrote a column the following week saying, “No, actually, I’m still here. You’ll have to wait”.

I thank our back office team, including Clare Scally and Grace Wright, for the work they did in making sure my noble friend Lady Thornton and I spoke words that were reasonably sensible, sane and well-researched from the Dispatch Box. I have already thanked the noble Baroness, Lady Stowell, for her contribution, and I do again. Today’s debate—passionate as ever—was focused well on an important and contentious subject. It is one that no doubt the House will return to in different guises in the future. I thank my noble friends Lord Watson and Lord Watts for their contributions. Their views are important.

With that, we wish the Bill well, as it is important. Broadcasters have been buzzing me on my email and message system, as they have been to other noble Lords, to encourage us to get this Bill over the line because it is terribly important for the future of public service broadcasting. We all want to get this right, because it is an important element of our democratic process. We know that it is a business and industry of excellence that we wish to support. With that said, I wish the Bill well on its way.

Bill passed and returned to the Commons with amendments.