Channel 4: Privatisation

Lord Grade of Yarmouth Excerpts

Wednesday 3rd February 2016 Lords Chamber

[Baroness Neville-Rolfe]

We are looking at all the options. Of course, government is a sole shareholder, and the channel gets 90% of its revenue from advertising, as has been suggested. Its revenues are £930 million and last year it made a profit of less than £5 million.

[Lord Grade of Yarmouth (Con)]

My Lords, I declare an interest as a member of the Channel 4 pension fund and a former chief executive of Channel 4. Does my noble friend agree that the current settlement for Channel 4 is no longer fit for purpose and puts a risk on the public purse, because in the end the taxpayers are the shareholders of last resort? The world has changed dramatically, and the commercial threats to Channel 4 are a hundredfold greater than they were when I was there and was part of the present settlement. It is absolutely time that the channel had a new settlement that will enable it to change its modus operandi and become a fully fledged business.

[Baroness Neville-Rolfe]

I very much agree with my noble friend that this is a challenging and fast-changing environment. It is partly because of that that we are looking at options to secure Channel 4’s future. We will look at all the points made about benefits and the changing environment in which the media operate today.