Future of the BBC Debate

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Future of the BBC

Maria Miller Excerpts
Monday 21st October 2013

(10 years, 6 months ago)

Commons Chamber
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Maria Miller Portrait The Secretary of State for Culture, Media and Sport (Maria Miller)
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I thank my hon. Friends the Members for Vale of Glamorgan (Alun Cairns), for Winchester (Steve Brine) and for Hornchurch and Upminster (Dame Angela Watkinson) for securing this debate. It is difficult to do justice to the wide range of issues that have been raised.

What I will not do is prematurely sound the starting gun for the next charter renewal, which will deal with many of the strategic issues raised today; people would not expect me to prejudge those issues. However, I will join my hon. Friend the Member for Dartford (Gareth Johnson), who struck the right tone in paying tribute to the majority of BBC staff, who produce world-class content. I particularly thank staff at the Salford offices, whom I met recently at our party conference. We should not confuse the poor judgment of some of the management —the failure of the few—with the world-class programming produced by the many. I also pay tribute to my hon. Friend the Member for Congleton (Fiona Bruce), who referred so movingly to the World Service.

What is clear is that the BBC asks for special treatment, and it gets that—a £3 billion a year levy. It is an extremely important institution nationally and across the globe, as we have heard in today’s extremely good debate. The BBC is synonymous with Britain, which is perhaps why it is so damaging for it to have been plagued by one scandal after another.

Many issues have contributed to making the past 12 months an annus horribilis for the BBC—from Savile to McAlpine and the failed digital media initiative to exorbitant severance payments. To say that as a nation we have been disappointed is an understatement. What we all want and expect from the BBC, now and in future, is relatively uncontroversial: a BBC focused on producing programming of the highest quality, setting the highest standards of behaviour and respect throughout its organisation and having an independence beyond question. However, we also expect it to be accountable to the public, who pay for it, for how it spends licence fee money. It is absolutely to be expected that both the public and this House should react when those standards are not met and that the BBC Trust and management should not only act effectively to address the issues of real public concern that have arisen, but be seen to do so.

My hon. Friend the Member for Manchester, Withington (Mr Leech) said that it was difficult to please everyone—that is something, coming from a Liberal Democrat. He also said, absolutely rightly, that the BBC should concentrate on what it does best, which is high-quality programming. I totally agree.

I had a little less sympathy for the hon. Member for Rhondda (Chris Bryant).

Chris Bryant Portrait Chris Bryant
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You always do.

Maria Miller Portrait Maria Miller
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The hon. Gentleman is probably right. Perhaps I will get right what the hon. Member for Bishop Auckland (Helen Goodman) got wrong, or perhaps neither of us can understand what the hon. Gentleman said, but I think he said that only the BBC could do cutting-edge comedy. I would like to see him argue that while watching episodes of “Peep Show” or “8 Out of 10 Cats” on Channel 4. I do not think he has got that right.

Chris Bryant Portrait Chris Bryant
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Will the Secretary of State give way?

Maria Miller Portrait Maria Miller
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If the hon. Gentleman will forgive me, I really want to move on.

The Pollard review and the MacQuarrie report both concluded that a lack of clarity and accountability in editorial decision making created an environment of uncertainty in which such errors could be made. Dame Janet Smith’s inquiry has yet to report, but I expect the BBC to act swiftly in response to its findings. As the Chair of the Culture, Media and Sport Committee said absolutely rightly, with a sagacity that I always expect from him in debates such as this, the culture that pervades is critical. Importantly, the BBC has already instituted some changes to reform its management culture—for example, through its Respect at Work review and changes to its own whistleblowing policies.

However, it is crystal clear that more has to be done. The events surrounding the Savile report on “Newsnight”, the failed digital media initiative and the remuneration of senior executives all seem to share a common theme: confusion around where the roles and responsibilities of the executive stop and those of the BBC Trust start. That is where I part company from the right hon. Member for Dulwich and West Norwood (Dame Tessa Jowell), who is not in her place. She seemed to focus on the people rather than the processes. There are issues around the ambiguity over the chain of command within the BBC, whether editorially or financially. That has had serious consequences for the corporation itself, and more importantly for licence fee payers, whom all of us in the Chamber represent.

The issue must be addressed, and it is no good waiting until a new charter in 2017 to act. The right hon. Lady floated the idea of mutualisation. It is right that she should have such ideas; as she reminded us, she was one of the architects of the current situation. Perhaps it is attractive to think in the abstract about changing structures, but I believe that here and now we have to make what we have got work. It is important that we get in place the right management who have the right judgment but also have the right governance structures to ensure that we can be proud of what the BBC is doing and are not concerned about how it is being run.

It was right that following the catalogue of failures that we have all talked about the BBC Trust and the BBC’s executive announced a comprehensive review of the BBC’s internal governance system and structures and the culture surrounding them. They are re-examining the relationship between the Trust and the executive with the aim of simplifying it and providing better, clearer oversight of the way our licence fee is spent. The review will build on the work that has already been done by the BBC’s new executive team to simplify the organisation, reducing not only the head count of senior management but the number of boards and committees to help get to a position of more transparency over the lines of accountability. As every Member of this House would expect, I will continue to keep the BBC’s structures and effectiveness under close review to make sure that it has effectively addressed these very serious and unacceptable problems.

Importantly, the BBC has already agreed in principle to changes to its relationship with the National Audit Office. I want this relationship to be strong and open while clearly protecting the BBC’s editorial independence. I note that the hon. Member for Bishop Auckland has concerns about this. She will know from what I have said and what has been agreed in principle that there are no proposed changes to the role of Government and Ministers in what has been put forward. However, this requires the Public Accounts Committee to act responsibly in what it does. I am sure that she will be able to discuss any concerns about this with the Chairman of the Committee, the right hon. Member for Barking (Margaret Hodge). The hon. Lady is right that the PAC has to act responsibly in how it looks at the BBC, as it does, I believe, in all its business. Concerns have been raised about whether such changes could threaten the independence of the BBC, editorially and managerially, but the existing management agreement is absolutely clear, that while the NAO is entitled to review any BBC decision, it is not entitled to

“question the merits of any editorial or creative judgment which is made by or on behalf of the BBC”.

That is a direct quote from the agreement that is in place. Nothing that I have suggested would change that, and I am clear that this important safeguard will be maintained.

Chris Heaton-Harris Portrait Chris Heaton-Harris
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I serve on the Public Accounts Committee. In terms of how the NAO and the PAC dealt with executive pay, I like to think that that issue would not have come to light had the NAO not had the access that it now has under the agreement that we struck, which has proved to be of great public benefit.

Maria Miller Portrait Maria Miller
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My hon. Friend is right. I am referring to some of the issues to do with the ability to intervene on things in a timely manner. I think particularly of the Entwistle payment, where we had to wait, I think, three months before it was able to be investigated. Those sorts of things do not help when we are trying to rebuild trust in the BBC.

So yes, lessons have to be learned from the last 12 months—some of the most turbulent times in the organisation’s existence—but we must also look to the future. We need to consider a whole host of issues that have been raised, such as convergence, which my hon. Friend the Member for Folkestone and Hythe (Damian Collins) raised, and the importance of the BBC’s independence in the future. I could go into a whole range of things, but I would like particularly to focus on the BBC’s vital role in our creative industries, which are a growing part of our economy. At a time when we are all focused on growing the economy and prosperity for the future, the BBC’s figures demonstrating that for every £1 spent on it through the licence fee there is £2 of value added in the economy is a good story to be telling for jobs, expenditure in the economy and economic opportunities. This represents the BBC generating some £8 billion of economic value for the UK.

As my hon. Friend the Member for Dartford explained extremely eloquently, the impact of the BBC goes far beyond the economic. My hon. Friend the Member for Vale of Glamorgan mentioned the BBC’s role in public health and the part that it played, extremely effectively, in raising awareness of AIDS. He asked whether the BBC could do further work on child safety online. That is an extremely interesting area. The BBC has already announced—I think in February—Share Take Care, which is an initial piece of work in that area; perhaps more will be done.

I pay tribute to my hon. Friend the Member for Congleton for her contribution, in which she spoke incredibly powerfully about the BBC’s role in taking concepts of democracy and human rights around the world. I would like to touch on the impact that the BBC can have on the international stage in representing us and playing a key role in how we are perceived as a nation. As well as stimulating the interests of businesses and tourists alike, through the work of the BBC we are spreading Britain’s reach and enhancing our reputation as a nation. In a recent survey of about 900 business leaders in the United States, India and Australia, nearly two thirds of respondents said that the BBC was the main way in which they found out about the UK, and over half said that they were more likely to do business with the UK because of what they knew about the BBC. That is extremely powerful, and important to understand. Therefore, when the BBC fails to adhere to the standards we expect, and does so repeatedly, the potential for damage is great and goes well beyond our shores. That is perhaps another reason why this debate has been so heated at times. As a brand and as a business, the BBC has an important and powerful role in helping us to preserve what is great about our nation and taking to a wider audience what Britain stands for today.

The BBC also has an important role to play in helping to preserve the culture and languages of our nations. In Cardiff, the BBC has built a drama production village in Roath that is now the BBC’s biggest drama centre in the UK, home to “Doctor Who” and “Casualty”. BBC Scotland’s presence on the banks of the Clyde has an equally positive impact. In terms of Welsh language broadcasting, in which my hon. Friend the Member for Vale of Glamorgan has a keen interest and about which we have many conversations, the BBC became S4C’s major funder in April this year. The BBC has an existing statutory obligation to provide at least 10 hours of programming a week, at a cost of roughly £20 million per year, and BBC Cymru content is regularly at the top of S4C’s viewing figures. This can be in the form of “Pobol y Cwm” or rugby coverage, the latter of which draws over 100,000 viewers, possibly confirming a stereotype about rugby being such a part of Welsh DNA—something that I can certainly agree with. I was extremely pleased with the recent spending review settlement in which the Government were able to confirm our support for minority-language broadcasting, maintaining S4C’s Exchequer funding at its current level and investing a further £1 million in MG Alba, north of the border. It is important that we are doing this given its significance to our minority languages in this country.

A number of right hon. and hon. Members raised the issue of local radio. My hon. Friend the Member for Elmet and Rothwell (Alec Shelbrooke) and I agree on many things, but on this we may have to disagree slightly. I will read Hansard to make sure that I clearly understood what he said. As regards digital radio, we have to be consumer-led, and that is the approach we have taken. It is important that we respond to consumer demand in that field. I am sure that he and I will continue to discuss the issue.

Alec Shelbrooke Portrait Alec Shelbrooke
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To clarify, digital radio is an important platform, but a public service broadcaster must make sure that it can reach everybody, so if people cannot get digital radio we must make sure they can receive it on analogue.

Maria Miller Portrait Maria Miller
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My hon. Friend makes an important point that this is about responding to the consumer. We are on common ground. Decisions have to be made at some point and we need to make sure that we take the consumer with us.

My hon. Friend the Member for Congleton addressed the role of local radio, particularly in Cheshire. She has campaigned hard and I do not have much to add at this stage. I hope she gets the answers she needs and that BBC Radio Manchester and BBC Radio Stoke pay heed to and focus on her powerful arguments.

The BBC has been and continues to be a creative and cultural powerhouse. It is totally unacceptable that recent scandals have overshadowed that. We need the BBC to learn from its mistakes, pick itself up, dust itself off and restore public confidence. The BBC Trust and executive must look to learn from the past and to build a BBC for the future that sets the highest possible standards in absolutely everything it does. We would expect nothing less.