Channel 4 Privatisation
Debate between Paul Bristow and John Nicolson(2 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
John Nicolson
Later—let me make some progress.
Until then, we have little choice but to combat the collection of semi-arguments, half-heard bar-room prejudices, factual errors and outright disinformation that forms the basis of the Government’s case for privatising the channel. There is of course the never-ending irony that a Government pretending commitment to levelling up are making decisions that will jeopardise national and regional businesses in the production sector. Channel 4 spends more on nations and regions production than any other commercially funded broadcaster, and in 2021 dedicated 55% of its total content spend to content produced in the nations and regions. As we have heard, with a headquarters in Leeds and hubs in Glasgow, Bristol and Manchester, Channel 4 is a model levelling-up employer.
So why sell this model levelling-up employer? Is it in financial peril? We know that it is not. Channel 4 currently generates £1 billion of gross value added for the UK economy, working with around 300 production companies a year. To be clear, the UK Government want to sell a healthy, successful company that, because of the way it was established, cannot keep its profits. It must and does reinvest all revenue made back into the business—a dream for the consumer. If only the privatised utilities had been set up on that model, how much better off we would all be.
The Government’s excuse to attack Channel 4, this jewel in the broadcasting crown, is that they want to raise money to reinvest in the independent production sector. That is precisely what Channel 4 does with its profits at the moment. It is entirely nonsensical. All that the Government wheeze will do is put investment and jobs in jeopardy. Do they care? Does the absent Secretary of State have some great insight into the sector that lesser mortals, including those who run the company and oppose her, do not?
We all know the Secretary of State’s history of gaffes and confusions, but on Channel 4 she has surely surpassed herself. Millions of views of her faux pas on YouTube do not make her a broadcasting expert. The House will know that she did not know how Channel 4 was funded when she appeared before the Digital, Culture, Media and Sport Committee, on which I sit. She thought it was publicly funded, rather than funded by advertising. Her confusion was excruciatingly laid bare on camera when a Conservative member of the Committee, the right hon. Member for Ashford (Damian Green), had to explain Channel 4’s funding model to her.
John Nicolson
The hon. Gentleman is shaking his head. Feel free to intervene, rather than groan in agony. Apparently he cannot marshal the words to match his facial expressions.
Millions of Channel 4 viewers will have noticed the adverts on Channel 4, but the Secretary of State apparently has not, yet she presumes to pontificate on Channel 4 while junior Ministers breathlessly wait. It is like watching an unbenevolent Mr Dick from Charles Dickens fly his kite. [Interruption.] It is a literary reference. People may laugh at the clips, but such wilful ignorance debases the policy-making process. When she is misunderstanding the most fundamental part of her brief, but still thinks it appropriate to patronise the Channel 4 management and staff, it is painful to witness. Nor was that a one-off; the Secretary of State thought that Channel 5, as has already been quoted, had been privatised. She told Iain Dale of LBC that it was, citing the privatisation of Channel 5 as a model for Channel 4 privatisation. She said that it was privatised
“three years ago, five years ago maybe”
when she did that particular interview. There was only one problem: Channel 5 was never privatised. It was another excruciating on-air exhibition of ignorance.
The Secretary of State may not know much about the sector, but does she at least have the public on her side as the Government lunge at Channel 4? Apparently not, although she does not seem to know it. Let us look at the consultation she set up to assess public opinion on the proposed privatisation. At a November DCMS Committee session, the Secretary of State said:
“what is the point of having a consultation that 60,000 people respond to if I had already made my mind up what I was going to do with Channel 4? That would be an abuse, I think, and a waste of money and effort on behalf of a large number of civil servants. I would really like to see what those 60,000 responses say first.”
The message was clear: she would listen to the public, those who watch and love the channel.
People did respond to the Government when asked for their view. As the Secretary of State said, 60,000 responded in an impressive display of public engagement. What did the figures show after they were analysed? Those figures, which the Secretary of State told us it would be an abuse to ignore, were interesting. Some 96% of the public were against Channel 4 privatisation, although in yet another moment of tragicomedy, the Secretary of State announced to the Select Committee at her latest appearance that 96% of the public were in favour of privatisation.