BBC

Lord Foster of Bath Excerpts

Thursday 15th September 2016 Lords Chamber

[Lord Stevenson of Balmacara (Lab)]

My Lords, I thank the Minister for repeating the Statement on the BBC royal charter and framework agreement. This House has a distinguished record of debates, Oral Questions and excellent committee reports in holding the Government to account over their stewardship of the BBC and broadcasting more generally.

The proposed royal charter and agreement—which, unfortunately, I have not had time to read, though I have read the advance notice of the Minister’s statement, for which I thank him—reflect a lot of what we have been saying in this House over the past year. But in truth, as the Statement concedes, the turning point was the enormous and passionate response to the public consultation carried out by the Government, which forced them to withdraw the worst of their original plans to,

“cut the BBC down to size”,

as the former Prime Minister put it. In the Statement, we hear the claim from the Government that:

“Far from diminishing the BBC, our changes strengthen it”.

The statement goes on to say:

“Our aim is to … improve the BBC where we can”.

How does that sit with the wish for a strong, independent BBC? I am sure I am not alone in feeling that there is a rather chilling assertion behind that statement.

The truth is that the BBC belongs to the people of this country, not the Government: the BBC is the linchpin of the UK’s public service broadcasting ethos and it is the envy of the world. The overwhelming majority of the public clearly want the BBC to continue to inform, educate and entertain and to survive and thrive in the long term. So the key question is: do these proposals strengthen or weaken the BBC?

We set Minsters five major tests for the new charter and agreement. First, we believe that the “Reithian principles”—to inform, educate and entertain—are widely understood and recognised as forming the BBC’s mission. They have stood the test of time, and we do not think that the additional wording to be inserted into the royal charter strengthens the BBC. Indeed, it seems set to weaken it.

We are not entirely clear what this wording is intended to do. The former Secretary of State—praised in the Statement—on several occasions suggested that the BBC should be restricted to “distinctive” programmes, although he never spelled out what that meant other than to hint that the BBC should not produce programmes offered by the other broadcasters and should cease to compete. The “Great British Bake Off” saga may have answered that point. In the time since then, it has become clear that the word is, to all practical purposes, otiose. Therefore, it is not clear what benefits the Government will gain from including the additional wording in the charter. Can the noble Earl give us the rationale for including those changes to the Reithian principles?

Secondly, we agree with the Government that it is right to sort out the regulatory and accountability problems which have hampered, rather than helped, the BBC since 2007. The structures put in place at that time were considered appropriate, but we are content with the leaner and more effective structure that is being proposed and should be introduced under the next royal charter. Also, we agree that Ofcom should become the independent regulator of the BBC. I notice in the Statement that there is to be a short period of transition before the BBC board and Ofcom take on their new governance and regulatory roles. Can the noble Earl confirm that Ofcom will be able to take on this crucial new role, and that it will not be constrained by lack of resources?

Thirdly, the new unitary board must not only be fully independent of government, but must be seen to be so. The agreement makes it clear that all appointments are to be made in line with best practice. Can the noble Earl say concisely what that actually means? The reports that have reached the press about the decision of the current chair of the BBC to fall on her sword, after the Government withdrew what seemed a sensible proposal for her to continue into the new structure, suggest that the Government are paying no more than lip service to the board’s independence. Can the noble Earl confirm that there will be an appointment of a new chair under best practice by the time the new charter comes into effect?

Fourthly, it will be for the new unitary board, independent from government, to set the objectives for the BBC, and there is surely no role for government to specify which channels, particular genres or indeed individual programmes should be included in or excluded from the BBC’s output. In that context, it does not seem appropriate for the Government to require the BBC to publish salary details of its “talent”, particularly when the Government make no similar requirement for other public bodies, or indeed for business or commerce. This smacks of meddling and micro-management; it should be left to the judgment of the new unitary board.

Finally, we called for the charter review process to be decoupled from the general election cycle resulting from the Fixed-term Parliaments Act 2011. I understand from what the noble Earl said that that has been accepted —and we are glad that that is so. I look forward to reading the fine print on this and the arrangements that have been made for the interim review and the licence fee settlement. It is important that they should not be confused.

We welcome the debates that have been promised in October and look forward to them. We also welcome the fact that the Scottish Parliament and the Welsh and Northern Ireland Assemblies will contribute to the debate; that will lead to a much more rounded consideration of the issues before us. When we have these debates in October, I hope there will be an opportunity to look again at the process we have been through in the past two years and whether, for instance, the BBC should, like Channel 4, be given statutory protection rather than a royal charter.

[Lord Foster of Bath (LD)]

My Lords, I, too, thank the Minister for repeating the Statement. I certainly believe that the BBC is the best broadcaster in the world and one of the greatest gifts that we have given to the world, and on these Benches we will base our judgment of the draft charter and agreement on whether they protect the independence, impartiality and popularity of the BBC.

The Government did not get off to a very good start by requiring the BBC to fund free licences for the over-75s. That move has meant a huge cut to the BBC’s income but is also wrong in principle. Government policy should be paid for by the Government through general taxation, not by top-slicing the licence fee.

However, there is much to be welcomed in the draft charter, from the increased emphasis on diversity—which I hope we will see as much behind the camera as in front of the camera—to the scrapping of the BBC Trust, which had the incompatible tasks of being both a flag-waver for the BBC and a regulator of it. Like the noble Lord, Lord Stevenson, I believe that the proposed new unitary board, with Ofcom as regulator, is a far better approach. But while acknowledging that improvements have been made since the White Paper, we believe that all non-executives on this board should be independently appointed, as is the case, for example, with judicial appointments.

The current trust is far less powerful than the proposed unitary board, which will set the BBC’s editorial direction, make key decisions on programmes and even have a say on how the BBC manages news. What defence can the Minister offer to the argument that giving these important powers to, among others, government appointees will understandably lead to the accusation that we are creating a state broadcaster and not a public service broadcaster?

We welcome the 11-year charter period, giving time for the BBC to plan and make investment decisions, but this confidence is potentially eroded by the proposal—not mentioned in today’s Statement—for a mid-term review. Immediately after the next election, this review will take place and the licence fee will be renegotiated. Uncertainty about the outcome of this review and the new licence fee settlement will undermine the benefits of an 11-year charter period. Notwithstanding the assurance that we have had in recent days that the mid-term review will be light touch, what assurances can the Minister give that it will not be used to unpick parts of the charter itself? The mid-term review will also coincide with the end of the three-year trial period for the contestable fund. If the trial is successful and the contestable fund is extended, can the Minister give an absolute assurance that the licence fee will not be top-sliced to pay for it?

However, I believe that the biggest threat to the independence of the BBC comes from uncertainty surrounding government plans to require the BBC to be distinctive. The White Paper said that,

“the BBC should be substantially different to other providers across each and every service, both in prime time and overall, and on television, radio and online”.

While Ofcom is to judge this, the White Paper said that:

“The government will provide guidance to the regulator on content requirements and performance metrics”.

This looks like very direct government interference into the editorial decisions of the BBC—interference that could curtail the BBC’s creative freedom to be popular. Surely that is in conflict with the Government’s stated aim to ensure an independent BBC.

The issue of competition is also a real concern, with the BBC believing that the requirement to name all those earning more than £150,000 will undermine its ability to attract and keep the best talent. Why does the Minister believe that the BBC is wrong?

Finally, I hope that we will have the opportunity not only to consider, as was said in the Statement, the details of the White Paper but to vote on its contents.

[The Earl of Courtown]

My Lords, I thank both noble Lords for their comments on the draft BBC charter and I will deal with the points as they were made.

The noble Lord, Lord Stevenson, started with a question on distinctiveness. As the noble Lord is aware, this has been a key focus of the charter review process, and the noble Lord, Lord Foster, mentioned this as well. It is something that the BBC has fully recognised and embraced during this process. The BBC’s director-general has been a particular driving force on this issue, and he has highlighted that he wants to see a system that,

“firmly holds our feet to the fire on distinctiveness”.

That is exactly what the White Paper proposals seek to deliver. The noble Lord, Lord Hall, has issued a statement this morning saying that the draft charter,

“will deliver the strong and creative BBC the public believes in”.

He went on to say:

“Overall, we have the right outcome for the BBC”.

The noble Lord, Lord Foster, mentioned the licence fee—as did the noble Lord, Lord Stevenson, I think—and much of this was aligned towards the over-75s. The issue with the over-75s is a deal that was done with the BBC. It gives the BBC a flat cash settlement until 2021 and gives the BBC certainty on this issue.

Both noble Lords mentioned the BBC’s mission and purposes and the Reithian principles, all of which have been debated at great length in this House. The noble Lord, Lord Stevenson, also mentioned Parliamentary Questions, debates and committee reports, all of which the Government have taken note of. The BBC is clear that the core of its mission to inform, educate and entertain should endure. This has been repeated by my noble friends Lady Neville-Rolfe and Lord Ashton of Hyde. However, the next charter provides the opportunity to explain more fully what we expect from the BBC. This is why its new mission is to act in the public interest, serving all audiences with impartial, high-quality and distinctive media content and services that inform, educate and entertain. The new public purposes emphasise the key factors that are central to the mission of the BBC. The importance of the BBC’s international role is strengthened through the introduction of a stand-alone purpose about reflecting the UK, its culture and values to the world.

Both noble Lords asked questions about independence. Again, I think the Government have gone many miles on this journey from the White Paper to where we are today. I reiterate where we are. The board will have 14 members. The Government will appoint five non-executive members—the chair and four members for each of the nations. There will be no deputy chair; instead, a senior independent director will be appointed from the non-executive members. All government appointments will follow a robust and transparent public appointments process. The BBC will appoint five non-executive members and four executive members. The BBC has the majority on the board. This is all to do with transparency and independence.

I think that covers the questions asked by the two noble Lords, but I will have a look at them and, if there is anything more I can add, I will do so in writing.