BBC: Finance and Independence

Lord Inglewood Excerpts

Thursday 10th September 2015 Lords Chamber

[Lord Inglewood (Con)]

My Lords, I declare an interest as chairman of the CN Group, the Cumbrian local media group. I thank the noble Baroness, Lady Bakewell, for initiating this timely debate.

If one was starting from scratch, I dare say one would not, in a digital age, create a BBC of the kind we have today, which is not now and never has been merely a UK broadcaster. Its other attributes must not be forgotten, not least its important role in training and its hugely important diplomatic impact. But just because it is not what we would do now if you had a tabula rasa, we must not overlook today’s reality. While everything must be allowed to evolve and reform constructively, we must not permit the proverbial baby to be thrown out with the bathwater at the behest of obsessives and cranks.

I will focus my remarks on independence. If we have a publicly funded broadcaster, it must at all times be kept at arm’s length from politicians, the Government and the Administration. Of course, the framework, structure and terms of reference of the broadcaster have to be set politically but its day-to-day activities must be regulated—rigorously—at arm’s length. A combination of the regulators, the courts and independent systems of audit must, in a judicial and independent manner, without reference to politicians, carry out that function. Again, I put on record my view that the experiment of the BBC Trust model of governance has not worked properly and needs reform.

It is also important that everyone understands that the BBC does not belong to the Government or even to the licence fee payer—although obviously they have a very real interest—it belongs to everyone. Furthermore, it is right and proper that it should be scrutinised by this House and the other place and have to explain itself. Ultimately, though, it is for the regulators at the time—whoever they might be—including the NAO, to hold it to account according to the terms of reference they have been given by Parliament. The BBC should have to explain itself to Parliament, even if Parliament and the Government are in no position to give it instructions in reply.

Self-evidently, the question of funding is important because he who pays the piper calls the tune. It is a matter of great regret, as has already been mentioned, that over the past 15 years we have seen political manoeuvring around the licence fee. In my view, the amount the BBC gets should be set at the outset of the period for which the arrangement runs and it should be hypothecated exclusively for the corporation. Successive Governments have raided that money and since—whether as a threat or as a reality—that exercise has influence, changes in this respect should not occur except at regular, clearly defined, well-advertised points of time.

There has been a lot of debate about whether a royal charter is the best legal basis for setting up the BBC. I am not convinced but I recognise its important psychological impact, although everyone has to recognise that the shenanigans surrounding events after Lord Justice Leveson’s inquiry have materially eroded its mystique. It is my assessment that it is likely that the Government intend to proceed with another charter and agreement. That being the case, in parallel with the charter and the agreement, legislation should be put in place making it unlawful for the Government to withdraw or amend the charter for the duration of that charter without express parliamentary approval through a statutory instrument subject to the affirmative resolution procedure. I would be interested to hear the Minister’s views about this as it would give Parliament a lock on the whole process.

Thinking back to the time when I was responsible for taking a previous charter and agreement through this House in the mid-1990s, I say quite simply that there is insufficient debate in Parliament. It is a very important matter that is not given sufficient parliamentary scrutiny in either House. I am very sorry that my noble friend the Minister did not respond to my suggestion echoing the remarks of the noble Lord, Lord Birt, in the debate of 14 July that we should be told the kind of process that it is anticipated this will go through. The topic should be debated several times before it is finally resolved, as is the case with ordinary legislation, and the Government should undertake at the Dispatch Box that they will not bring forward a new charter and agreement via the Privy Council until each House has approved final drafts of both documents, and that in the event of time running out because that has not been achieved, they will extend temporarily the existing arrangements to ensure a seamless transition.