Channel 4 Privatisation

Nigel Evans Excerpts

Tuesday 14th June 2022 Commons Chamber

[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. I remind everybody that the wind-ups will start no later than 6.40 pm, which is in roughly an hour’s time, and that those participating in this debate are expected to be here for the wind-ups.

--- Later in debate ---

[Jesse Norman]

I cannot, as I do not have much time, but I may take my hon. Friend’s intervention later.

It is not a Conservative proposal to sell Channel 4, and even if it was sold now does anyone really think the value generated would not itself be a reflection of the proposed doom scenario in advertising revenues because of the way in which future cash flow works? The key issue here is that we should support an enterprise that itself supports independent production companies, many of them in our nations and regions, that proactively supports disabled people, that supports the Union, and that supports levelling up. That is what Channel 4 does.

I have no doubt that Channel 4 can be further improved and enhanced, and I see its next episode as a down payment on the next generation of its own thinking about how its module could be further leveraged and enhanced, but at the moment it is doing a superb job. We should not sell it; we should proceed and support it in any way we can in the future.

[Mr Deputy Speaker (Mr Nigel Evans)]

I call Ben Bradley, who will be followed by the Front-Bench winding-up speeches, so those who have participated in this debate by making a speech should now make their way to the Chamber.

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[Ben Bradley]

I thank the hon. Member for that intervention. She will have to ask the Government—I am not in the Government—but Channel 5 is a privately owned public sector broadcaster that invests a higher proportion of its revenue in small broadcasting companies than Channel 4, so that is a model that works. The shadow Secretary of State said that she felt that privatisation would stifle growth and innovation in British jobs. As I have said, examples exist in this country of privately owned public sector broadcasters who invest in those businesses and support our wider media sector. There are systems here that can work.

To me, this is fundamentally a much bigger debate: it is a question about the role of the state. If we want best value for taxpayers in not only financial value but freedom and choice, the state should not be in charge. If the state does not desperately need to run something and there is no practical reason why it should be the Government’s job, it should not do so. We should approach this issue and others by asking ourselves: do the Government specifically need to do this, or could the market do it? Could the private sector do it? Could the third sector do it? Could the community do it? In the case of the media, all of the above already do it.

As a council leader, I have started by questioning whether we do things as we do because that is the best way or because we have always done it that way. It is often the latter, and I have found that much more can be achieved through change. The state should be prioritising its responsibilities to deliver public services, to create the environment needed for jobs and growth and to tackle the major geopolitical challenges in the world. It should not be running and working in the TV industry.

Once upon a time, the state needed to do so to promote choice and sustain something very new—there was just a handful of channels and the industry needed that support—but now, that could not be further from the truth. Mrs Thatcher set up Channel 4 to promote competition and create content that would not otherwise exist. We now have content coming out of our ears—content galore. In fact, I have got content in my pocket right now. We have got content everywhere. We do not need to be putting the state’s energy into that—[Interruption.] Do not ask what kind of content. [Interruption.] Juicy. But there is no space any more where the Government needs to do that. It is brilliant to see a Conservative Government doing what I believe to be fundamentally Conservative things. I know that my right hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman) disagrees, but my version of this is that the sale underpins the conservativism that I believe in of a small-state, pro-enterprise, innovation-focused Government who are handing the reins over to the creatives and innovators in the industry instead of sticking with state control because that is what we have always done. That is a good thing, and, as my hon. Friend the Member for Solihull said, more of it, please, Minister. I will take much more of it.

At a time when we want to be proud of our British institutions, let us have faith in Channel 4’s ability to compete. Let us release it from state ownership and allow it to do so.

[Mr Deputy Speaker (Mr Nigel Evans)]

We come to the wind-ups.

[Ian Murray (Edinburgh South) (Lab)]

In terms of my Register of Members’ Financial Interests, may I say that my special adviser attended the television BAFTAs as a guest of Channel 4? I am told that I must declare that, so it is on the record.

[Mr Deputy Speaker]

Was I the only one who didn’t go?

[Ian Murray]

I did not go either. I was not invited. Maybe after this speech I might get an invite next year, if Channel 4 is not privatised.

Let me say at the outset that this country is the best in the world at making television and films, that our broadcasters are the envy of the world and that Channel 4 is a much-loved part of that essential ecosystem. But why would that prevent the constant ideological attacks from the Government on those who contribute so much to our cultural Britain? We are proud of our public sector broadcasters and we should be backing them, not privatising them.

We have heard it said a lot today that Channel 4 is in great health, and it is. The public broadcasting model for Channel 4 works. As we have heard, in the last couple of years Channel 4 has produced record surpluses. And just for the information of the Secretary of State, who mentioned it again in her contribution, Channel 4 gets no public money. Those surpluses are invested back into the British creative economy, rather than into the hands of private shareholders. That investment, of course, is not limited to London, but goes to the entire country. Why? Because the regulations mean that it has to be. In fact, two thirds of the hours of original content commissioned by Channel 4 are produced in the nations and regions, boosting the creative economy in cities such as Glasgow. Over 400 roles at Channel 4, including senior commissioning decision makers, are based outside London, commissioning content from all over the UK for all over the UK. Perhaps another reason the Government want to privatise Channel 4 is because it is showing the Conservatives up by actually delivering levelling up far better than the Prime Minister could ever imagine. Some might say there is no reason that will not continue, but I am afraid that, with almost no conditions in the White Paper, there is little hope that it will.