Channel 4 Privatisation

Lord McNally Excerpts

Tuesday 5th April 2022 Lords Chamber

Asked by

[Lord McNally]

To ask Her Majesty’s Government what plans they have regarding the privatisation of Channel 4.

[Lord McNally (LD)]

My Lords, on behalf of my noble friend Lady Bonham-Carter, I beg leave to ask the Question of which she gave private notice.

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

My Lords, following a consultation, the Culture Secretary has come to a decision that, although Channel 4 as a business is currently performing well, government ownership is holding it back in the face of a rapidly changing and competitive media landscape. The Secretary of State is now consulting her Cabinet colleagues on that decision. The Government will set out their future plans for Channel 4 in a White Paper shortly.

[Lord McNally (LD)]

My Lords, will the Government publish immediately the consultation, which was completed over six months ago and has not yet seen the light of day, on which the Secretary of State is allegedly making this decision? Is the Minister not ashamed that this extraordinarily well-run company is being dealt with in this way—a shabby decision, made in a hole-in-the-corner way—while the House of Commons is in recess? The chairman of the DCMS Committee, Julian Knight, has commented that this is “payback time” for the record of Channel 4 in holding the Government to account and helping our collective creative industries. Does the Minister not feel a little ashamed answering this Question today?

[Lord Parkinson of Whitley Bay (Con)]

On the noble Lord’s first point, the responses to the consultation will be published alongside the White Paper to which I alluded in my initial Answer. I disagree deeply with the rest of his question: the Government value highly Channel 4 and the part it plays, and has played for 40 years, in our broadcasting ecosystem. We want to ensure that its next 40 years and beyond are just as successful and that it can flourish. It is doing that in a very rapidly changing and increasingly competitive media landscape. Channel 4 is uniquely constrained by its current ownership model and limited access to capital. It is such a successful broadcaster that we think it will make an attractive proposition for people to buy, and private ownership will allow it to create new revenue streams and compete as effectively as possible to be fit for the future.