S4C

Mark Williams Excerpts

Wednesday 18th January 2017 Westminster Hall

[Mr Mark Williams (Ceredigion) (LD)]

I beg to move,

That this House has considered future arrangements for S4C.

I am grateful to serve under your chairmanship, Mr Hanson, and pleased to see the Minister taking his place for this important debate. Perhaps predictably, I want to set out the importance of S4C to Wales, talk about some of its aspirations and plans for the future, show how it hopes to continue playing an important role in the life and culture of Wales, and then talk specifically about funding needs and the announced review of its remit.

S4C is the only Welsh-language TV channel in the world and has made a huge contribution to the culture of Wales and the Welsh language. Indeed, it has been pivotal in helping to maintain spoken Welsh throughout Wales and develop its use in a positive and forward-looking way. Usually, in debates such as this—perhaps lengthier ones—there will be some on the Government side who remind us that the creation of S4C in 1982 was a Conservative achievement. I do not dispute the date but I will say at the outset that of course many people from all political parties were involved in the creation of S4C. A more critical point is that since 1982 the channel has enjoyed strong cross-party support, as we can partly see from attendance in the Chamber today. S4C is critical to Wales’s 562,000 Welsh speakers—and the UK’s estimated 700,000; to learners such as me; and to those interested more generally in the nation of Wales.

Although S4C has had a fundamental and primary role in helping to preserve the language, it has focused on new and innovative ways to spread Welsh-language broadcasting, which has helped its programming to extend beyond Welsh speakers and learners. Since 2015 there has been a 107% increase in S4C’s viewers from outside the UK, through its S4C/Gwylio online platform. A fantastic example of the type of content that has spread beyond Welsh-speaking communities is S4C’s innovation in drama, such as the now internationally renowned “Y Gwyll”, or “Hinterland”, which was filmed in my constituency. I should perhaps declare an interest: my 10-year-old twins came home from school one day at the end of last year and announced that they were “on ‘Hinterland’”. They are extras in one of the recently filmed editions; we shall see what happens. They have not been paid a penny, but I declare it. “Y Gwyll” has won numerous awards including the main award at last year’s New York international film and television awards.

There have been other high-quality Welsh language productions, such as the political drama “Byw Celwydd”, focusing on a dramatised version of the Welsh Assembly. The mind boggles. The production of “Y Gwyll”, which has now been sold internationally, has had a huge impact on my constituency, but also more generally in Wales. The hon. Member for Montgomeryshire (Glyn Davies) often reminds me, when I talk about that great advertisement for Ceredigion, that usually the plots are dark, with clouds building up, and a murder. Quite how that promotes Ceredigion I do not know, but it has done, and I celebrate that.

The programme’s impact, and that of much of S4C’s innovative content, should not be underestimated. Investment in S4C has been shown to have a huge multiplier effect on the Welsh economy. Independent research has shown that during 2014-15, every £1 that was invested by S4C in the creative industries in Wales was worth more than £2 to the economy—double the value. Using the example of the first series of “Hinterland”, its impact on the economy alone was more than £1 million in my locality; S4C’s total impact across the UK in the period was estimated at a staggering £170 million.

That has to be seen in the context of a television channel that is increasingly lean. Some members of the Select Committee on Welsh Affairs went last year to the headquarters of S4C in Cardiff and saw how lean the operation is, and what is achieved on limited resources: overheads of just 4.2% compared with 11.3% across the public sector, fewer than 150 staff, and a 35% reduction in the cost of commissioned content since 2009. It is indeed value for money. With the change in how many people consume content, S4C has also been successful in moving away from traditional scheduled television programming to catch-up services and social media.

[Albert Owen (Ynys Môn) (Lab)]

I congratulate the hon. Gentleman on securing this important debate. He and many in the Chamber have campaigned for S4C for many years. The Minister is in charge of the digital economy; the new media that the hon. Member for Ceredigion (Mr Williams) has mentioned are difficult to obtain in many areas of Wales, for infrastructure reasons. I welcome the Digital Economy Bill but there is a need for greater emphasis not just on rural but peripheral and Welsh-speaking areas, so that they can enjoy S4C content.

[Mr Williams]

I very much agree; the hon. Gentleman is right. I represent a peripheral and Welsh-speaking area, and he has hit the nail on the head. I am sure that the Minister will respond to the point.

I was talking about catch-up services and social media and want to make the point that S4C has been hugely responsive in catering for demand. In just a few months, the viewing figure for S4C video content on social media alone, notwithstanding what the hon. Member for Ynys Môn (Albert Owen) has said, has more than doubled—almost trebled—from 737,000 views in September 2016 to more than 2.235 million by December 2016. It is vital, more generally, that public service broadcasters respond to the change in demand, and S4C has been doing just that. It is with that in mind that I welcome the Government’s commitment to an independent review of S4C’s remit, funding and accountability arrangements. It is something that many hon. Members of all parties have called for. The industry has called for it, and it is important that we achieve it.

In recent years substantial cuts have been made to the funding that S4C receives through the BBC licence fee and the direct funding that it receives through the Department for Culture, Media and Sport. Through the licence fee, it receives £74.5 million annually, and will do until 2021-22, although that is likely to represent a 10% cut by the end of the period. The Government’s 2015 Budget made an attempt to cut the direct funding to S4C from DCMS from £6.7 million to £5 million. In view of what I have said about the lean operation, that is a substantial sum and would have had a heavy impact on S4C.

[Susan Elan Jones (Clwyd South) (Lab)]

I congratulate the hon. Gentleman on securing the debate. DCMS funding is now only 8% of S4C’s funding; does he agree that people in Wales, Welsh-speaking or not, pay taxes too and that any further cut would be totally unacceptable to us?

[Mr Williams]

I very much agree and will develop a more extensive answer to that comment in the rest of my speech. I think that that view is widely shared, including, I am pleased to say, on the Conservative side. The hon. Lady will remember, as I do, the 2 am debate in the Chamber last January, initiated by the hon. Member for Carmarthen West and South Pembrokeshire (Simon Hart). I was grateful for the opportunity of that debate, despite its being at 2 in the morning. Notwithstanding bleary eyes, we saw strong opposition from Members across the House to an attempt to make a severe cut to S4C’s funding from DCMS. We were relieved that staying up was worth while, because spending was frozen at the original level for 2016-17, pending a review into S4C’s remit. According to the then Digital Minister, the right hon. Member for Wantage (Mr Vaizey), that would:

“ensure financial stability—”

critically, now—

“through the review process.”

Although it represents a real-terms cut, I greatly welcome, with the caveats I mentioned, the decision to give S4C stability over its funding through the licence fee for the next few years. I also welcome the freezing of the cut to the DCMS portion of its funding last year.

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

Does the hon. Gentleman agree that the Government could immediately grant S4C borrowing powers, which it has asked for and which would not have a detrimental effect on budgets? None of us can see any reason why that should be rejected. Perhaps the Minister will respond to that during the debate.

[Mr Williams]

I am not averse to that suggestion at all; it would be a positive step forward. However, I will develop how I intend to achieve for the coming year what the hon. Member for Clwyd South (Susan Elan Jones) achieved last year.

There is little doubt in my mind or, I think, in the minds of Members from other parties, that cuts to S4C have been almost to the bone, not only making it extremely difficult for the broadcaster to meet the obligations of its remit, but making it particularly challenging to be innovative and to cater to the changing demands of the Welsh public. However, S4C has to date, with increasing difficulty, continued to meet its obligations and the changing demands.

With the difficulties facing the broadcaster as a result of those cuts, it is absolutely right that a review takes place to ensure that it has the necessary funding to fulfil its remit and strategy over the longer term. A comprehensive review into S4C announced in February of last year by the former Secretary of State, the right hon. Member for Maldon (Mr Whittingdale), along with a reversal of the cuts prior to the outcome of the review, was welcome. However, we are now in 2017, and we still waiting for that promised review. There is cross-party concern about the delay, as well as concern in the creative industries that rely so heavily on a strong Welsh broadcasting sector.

I hope the Minister will enlighten us as to the reason for the delay. Why is a statement from February 2016, made in the early hours of the morning during the debate called by the hon. Member for Carmarthen West and South Pembrokeshire, only now being actioned? Critically, can he also give us details about when the review is likely to take place, its timetable and when it is anticipated to conclude? With that in mind, and with the former Secretary of State’s commitment, I would also appreciate the Minister’s assurance that cuts to Government funding of S4C that were frozen under the previous Secretary of State will continue to be frozen at least until the review gives its recommendations.

One big issue that requires Government assurance is on the specifics of the review. Many hon. Members, and many people outside the Chamber, hope for confirmation from the Minister that the review will be chaired by an independent individual with a thorough understanding of Wales, the Welsh language and broadcasting. It is also important that the remit of the review considers the need to update S4C’s remit, to reflect changes in the broadcasting industry and to ensure that the channel meets the needs of its audience, both in the short and long term.

[Hywel Williams (Arfon) (PC)]

Does the hon. Gentleman also hope that the review will look at devolving the funding that S4C gets from this place? It might more properly be the responsibility of the Welsh Assembly in Cardiff, as recommended by the Silk commission.

[Mr Williams]

As the hon. Gentleman knows, I have always regarded Sir Paul Silk’s work as a political bible—not only for members of his party but mine. As he suggested, devolution of that funding would be a good thing. It is something that should be considered as part of the review, which is why we asked the question about its remit. My concern about broadcasting being devolved to the National Assembly in its entirety—it is a different issue, but I will raise it—is whether our friends working in the Assembly would guarantee the required level of funding for S4C. However, there is merit in what the hon. Gentleman says in his question.

I am sure the Minister understands that S4C’s future funding is certainly one of its big concerns. As such, I would appreciate if he would set out whether the review will make recommendations on the process by which the Secretary of State for Culture, Media and Sport decides on the sufficiency of funding for S4C, as required by the Public Bodies Act 2011, to ensure that S4C remains competitive in the public service broadcasting market and is able to continue to meet audience expectations over the long term. The hon. Member for Arfon (Hywel Williams), because he was on the Public Bodies Bill Committee with me, will remember the concern expressed at the time when the funding formula for S4C was abandoned and replaced by a clause stating that the Secretary of State would decide on the sufficiency of funding. That is why this fits in neatly with the DCMS element of the budget.

Will the review consider the most appropriate mechanisms by which S4C should be funded? It is important that that includes the UK Government’s direct contribution to S4C. Security and visibility of funding for S4C over a reasonable period to prevent unnecessary uncertainty and to allow it to plan for the future is vital. Will the Minister ensure that that is reviewed, both in the context of the funding it receives directly and any potential governance and accountability changes to the BBC that could have an impact on S4C’s funding through the licence fee?

I have had many concerns, as has, I think, almost every Member here, about cuts to S4C’s funding over the years. However, that is not the subject of the debate. On a positive note, I still—as I did in the early hours during that debate in February 2016—welcome the review and the budget being frozen. However, we need answers to those questions. Many questions have yet to be answered, and I know that it will help to clarify the situation if the Minister is able to provide those answers to Members today. S4C is too important a working, practical, achieving institution to have any more delays in these matters.