S4C

Matt Hancock Excerpts

Wednesday 18th January 2017 Westminster Hall

[The Minister for Digital and Culture (Matt Hancock)]

It is a great pleasure to respond to this debate on the importance of S4C and its future. Although I grew up on the Welsh borders, I am still in the early stages of learning Welsh. My vocabulary runs to only a few words, most of which were learned from road signs—“Araf” is something I will never forget. This is something that is close to my heart and to the Government’s heart as well. Mae’r iaith Gymraeg ac S4C yn bwysig iawn i’r Deyrnas Unedig. I hope the record will show that I said that the Welsh language and S4C are very important to the United Kingdom.

I will respond to the questions from the hon. Member for Ceredigion (Mr Williams) and from elsewhere. On his comments about S4C’s origins, it was of course a Conservative Government who brought in S4C. I acknowledge that success has many fathers, and there was a lot of support at the time for S4C’s introduction, but that its introduction was a Conservative achievement shows the heritage of the Government’s support for the Welsh language and for S4C.

The hon. Gentleman also mentioned borrowing powers and asked when the review would take place. It will take place shortly. We are aware of the issues around borrowing powers and we are looking at options. The TV licence fee funding for S4C is being protected in cash terms. That means it will be flat over the spending review period. The advantage of that is, first, that it is not being cut and, secondly, that there is certainty over a long period to allow for planning. I hope that that helps.

I have read the transcripts of the debates on this issue before I came into this post. I pay tribute to the work of my hon. Friend the Member for Carmarthen West and South Pembrokeshire (Simon Hart), who has really led the charge. While awaiting the review, the funding was frozen rather than cut last year, essentially after the lobbying of a large group of people, led by my hon. Friend, who stands up for his constituency so powerfully.

We will be announcing the review shortly. We will certainly take into account the comments that my hon. Friend and others have made as to what the review should consider. I can commit to the reviewer having a thorough understanding of Wales and an interest in the Welsh language. Of course, the review needs to look into how S4C can succeed in the short term and long term. The licence fee now contributes the vast majority of funding—more than £74 million. The direct funding from DCMS is currently just over £6 million, which, as the hon. Member for Clwyd South (Susan Elan Jones) said, is a relatively small element of the overall funding. We are aware of the commitments given by a predecessor on timing, and the Secretary of State is currently considering that issue.

[Simon Hart]

I thank the Minister for his kind comments, but in his letter to me on 14 December he said:

“this year the Government gave over £6 million and we will be giving over £6 million next year.”

Can he be a bit more precise? That could mean £6.9 million in 2016 and £6.1 million in 2017. If he could tighten that up, we would be much relieved.

[Matt Hancock]

That is an incredibly tempting invitation. In this financial year, the DCMS funding is £6.762 million, and the funding next year is set to be £6.058 million. I know that my hon. Friend is suggesting that those two figures ought to be closer—

[Simon Hart]

Or the same.

[Matt Hancock]

Or, as my hon. Friend says, the same.

In terms of timing, we always said that the review of S4C would follow the BBC charter renewal, which is now complete. In fact, the Select Committee on Culture, Media and Sport today announced its support for the new chair of the BBC unitary board. That decision now needs to go to the Privy Council. It would be unusual and constitutionally interesting should the Privy Council not approve that decision. We are now in a position to push on with the S4C review shortly.

[Albert Owen]

I did not quite hear the figures that the Minister read out. My understanding was that it is a cut, not a freezing, of the budget from this year to next year. Will he confirm those figures again?

[Matt Hancock]

Yes, of course. The figures set out in the spending review 2015 are £6.762 million for this financial year and £6.058 million for the next financial year. It is thanks to the efforts of my hon. Friend the Member for Carmarthen West and South Pembrokeshire and others—not least those who called this debate today—that the Secretary of State is looking at that issue.

We are considering the question of borrowing powers. The Silk commission said that we should consider the devolution of S4C. Of course, all broadcasting is a reserved matter, rather than a devolved one. That is the basis on which we have been operating, but we accepted that Silk review recommendation, so that consideration will happen.

On the overall question of the link to the licence fee, moving the funding from direct taxpayer support to licence fee funding was controversial at the time. However, since the S4C-BBC link started after 2010, it has been a huge success, not least because S4C can use some of the BBC’s digital technology. For instance, its content is now on iPlayer, and I understand that viewing figures have increased by over 3,000%.

As was mentioned, the impact of digital technology is incredibly important in this area, not least so that we can get broadcast material to people who live outside Wales where S4C is broadcast, in the rest of the UK and the rest of the world. For lovers of the Welsh language, that link-up and the fact that S4C can partner with the BBC in getting its content out are very positive. It is reasonable to say that the decision to move the majority of S4C funding over to the licence fee has generated further partnerships and been a success.

The S4C’s economic impact was a big part of the case made by hon. Members. The contribution made by S4C to the Welsh economy is not only through the direct impact of the broadcasting but through its work with the TV production industry. The success of Welsh TV production has been impressive in the past few years, in both the English and Welsh languages. We heard a few examples. Welsh-made TV shows and formats are now sold worldwide. As well as being the home of dynamic independent producers, Wales has become a hub of creativity and a desirable place to make programmes. For instance, Wales is the production centre for “Dr Who” —an iconic British success, aired in 200 countries around the world. Children’s programmes such as “Ludus” are shown on CBBC, with the spin-off app winning a BAFTA Cymru award. S4C’s “Fferm Ffactor” is now licensed and produced in Denmark, Sweden and China. “Y Gwyll”, or “Hinterland”, is screened in both Welsh and English, showing the innovations and economies of scale by using both languages.

When I was in Los Angeles the week before last, some of the film producers there were at pains to point out to me what an innovative, powerful and increasingly impressive TV and film production system there is in Wales and how they are looking to Wales to expand into some of the new areas of production—so Hollywood goes to the Welsh valleys. We have seen some of that theme in the past few years, and I hope that we will see much more of it. S4C plays its role in developing that TV production centre. Wales is home to more than 50 TV and animation companies that collectively generate around £1 billion for the Welsh economy, of which S4C alone directly contributed £114 million in 2015-16.

As well as the impact on the Welsh language and economy, the other reason to support S4C is its importance in Wales’s media plurality, which ensures that the public have access to a wide range of views, news and information about the world in which we live, while specifically focusing on what is happening in Wales. While the media landscape and technology change, our support for S4C remains resolute and will continue as we hold it in its place in Wales’s broad landscape of media and TV production and in the hearts of the Welsh people. I hope that we can continue this dialogue and can continue across the House to support S4C.

Question put and agreed to.