Deregulation Bill

Lord Holmes of Richmond Excerpts

Tuesday 11th November 2014 Grand Committee

[Lord Macdonald of Tradeston (Lab)]

My Lords, I, too, support Amendment 80, which would repeal the outdated Section 73 of the Copyright, Designs and Patents Act 1988. As my noble friends have already argued, Section 73’s impact on UK television is negative; they have outlined some of the areas in which the provision is damaging. I am concerned about the effect it is having on the commercial public service broadcasters’ spending in the regions. I speak from experience of working for Granada in the north-west of England for 18 years.

The commercial public service broadcasters play a significant role in the English regions, as we have just heard. We have only to consider the very substantial presence they now have at the creative hub of MediaCityUK in Salford. The largest commercial public service broadcaster, ITV, also has other regional bases, such as its studios in Leeds. In fact, ITV employs nearly 1,300 people in the north and its recent capital investments in the north total nearly £50 million.

As well as the English regions, there are the nations of the United Kingdom—Scottish Television in Scotland, Ulster Television in Northern Ireland and the considerable activity in Wales of not just ITV but S4C—which are equally important to what is going on in the English regions and indeed, in terms of cultural identity, probably held in even higher regard in the nations. But it is not about just the broadcasting bases in the nations and the regions. The commercial public service broadcasters are responsible for huge investment and production outside London across the UK. Both ITV and Channel 4 have public service obligations which require that at least 35% of their original programme spend and volume of programming should come from outside the M25. Both exceeded their targets, with ITV reaching 47% and Channel 4 making more than half.

The money that the commercial public service broadcasters invest in the regions has a multiplier effect on the regional creative industries. There are many examples of people working in television in the regions and also working in theatre or film in the same areas. When I was at Scottish Television for 13 years, I saw that as a very decisive factor in the activities that were going on north of the border. The production investment also boosts the wider regional economies, contributing to their economic growth. At a time when we in Parliament are talking about greater devolution to the nations—and now also to the regions of England—which are not well represented on screen, this becomes an important factor.

Some of the regions of England have been marginalised by the metropolitan and international programming that dominates our multiplying satellite and cable channels. I want to enhance the prospects of seeing programmes that reflect the different regional cultures on television. I also want to see strong regional economies where the commercial PSBs can continue to make a full return on their successful content investments. I therefore support this amendment to repeal Section 73. It cannot be right that the commercial public service broadcasters that invest so much in the regions effectively are subsidising Virgin Media. It is owned by the multinational US company, Liberty Global, which makes very little investment as far as I can see in the UK’s creative industries. I therefore urge the Government to accept this amendment.

[Lord Holmes of Richmond (Con)]

I support the amendment. It is a privilege to speak among such broadcasting colossi. Having grown up in the Midlands when Lew Grade was running ATV, the name Grade lasts long in my memory. Similarly, the noble Lord, Lord Macdonald, presenting “What the Papers Say” gave me my first glimpse into current affairs and an interest in politics. I hope that it will help your Lordships if I start with some clarification of what my noble friend Lord Grade said at the beginning of his speech when he spoke of stimulating cable—I believe that this had nothing to do with the right honourable Member for Twickenham.

[Noble Lords]

Oh!

[Lord Holmes of Richmond]

Work with me. This amendment is incredibly straightforward. It goes to the heart of one question: why should terrestrial television in the United Kingdom subsidise Sky, Virgin and other providers? More significantly, why should we as taxpayers put money into the pockets of the owners of those companies? As a nation, our terrestrial television is some of the best in the world, of which we should be rightly proud. We have brilliant drama, fabulous sport and exceptional television across the piece. Just look at what Channel 4 did with the Paralympics in the summer of 2012. For me, it is no more complicated than that. It is an out-of-date clause. One can see why it existed way back when. Now the Deregulation Bill gives us the right opportunity to wipe it out. We should all accept this amendment.

[Lord Black of Brentwood (Con)]

My Lords, I very much support this important amendment. Although I have no direct involvement with the broadcasting sector, I should draw attention to my media interests in the register. This debate and this amendment impact on the creative economy and the wider media, particularly in relation to news provision. As we have heard, the pace of technological change across the whole of the media is breathtaking. It is relentless and punishing. It is difficult enough to plan for even one month ahead sometimes, let alone one year. As my noble friend Lord Grade said, we need to look very carefully and very warily at legislation binding the media that is 26 years old and is, to all intents and purposes, from a bygone age, especially where it has implications for jobs and investment.

Where legislation is out of date—Section 73 of the 1988 Act clearly is—it should go. If ever I saw a piece of law that should be put out of its misery, it is this one. That is why the debate on this amendment is so important. Central to it is the health of our public sector broadcasters, who are, in turn, crucial to the sustainability and vibrancy of the whole creative economy. These commercial PSBs have a number of important public service obligations, including obligations to broadcast high levels of original content; significant quotas for spending outside London, as the noble Lord, Lord Macdonald, made clear, and on independent production; and the provision of national and regional news services and current affairs.

We had glimpses earlier of the fact that the UK is fortunate in having such a PSB system that guarantees the provision of well resourced, independent and impartial news from the BBC and the commercial PSBs—ITV, Channel 4 and Channel 5. All the evidence shows that viewers expect and benefit from effective competition between providers of TV news at national and regional levels. In the regions, ITV is the only competitor to the BBC and provides services to 16 different regions, including the Scottish Borders, as we have heard, ensuring that viewers across the country receive a relevant and local news service. Regional news is important, not only because it helps to keep people informed about local events but because it is a hugely important part of the UK democratic process.

That is why the amendment is important, and why we need to do everything we can to defend the system. To do so, though, we need to be clear that PSB needs to be commercially successful. There are two keys to that. First, the PSB framework has offered the direct benefit of access to the digital terrestrial television spectrum and an appropriately prominent position on the EPG, as the noble Lord, Lord Grade, said. These benefits are crucial to the continued viability of regional news in particular, which is very expensive to make. Without that direct benefit, it is very doubtful that high-quality regional TV news would be viable commercially.

Secondly, the ability of the commercial PSBs to earn a return on investments in original UK TV content is massively important. It is the commercial PSBs that offer by far the most watched news services in the UK after the BBC, at no cost to the taxpayer, and those services depend on continued commercial success in a wide variety of genres of programming.

I support the amendment because I care about our PSB system and the role of news within it. It is more important than ever that the commercial PSBs can make a successful return on their investments and retain their ability to sustain this hugely important public service. Section 73 of the Copyright, Designs and Patents Act 1988, which was designed in a bygone analogue era, is undermining the PSB system and, in turn, damaging the wider creative economy. I hope that my noble friend will have listened to the arguments and that the Government will consider accepting the amendment.