Broadcasting (Radio Multiplex Services) Bill

Debate between Seema Kennedy and Pauline Latham

2nd reading: House of Commons
Friday 13th January 2017 Commons Chamber

[Pauline Latham]

I know that my hon. Friend is usually here on a Friday, and I have to say that I am guilty, as are many other Members, of normally spending Fridays in my constituency. However, I am delighted to be here today to support my hon. Friend the Member for Torbay.

I said at the beginning of my speech that my hon. Friend has brought forward a Bill on an important subject. Those words of praise are often said out of polite custom in this place, but on this occasion they could not be more deserved, as he actually slept in Parliament overnight in order to secure the opportunity to introduce the Bill, such was his passion. As he pointed out afterwards, the reality of sleeping in a royal palace is far less glamorous than it sounds. I hope for his sake that he has had a better night’s sleep before Second Reading than he did on that occasion. I do not know how he passed the hours while waiting to submit his Bill, but it would have been extremely apt if he had listened to a digital radio to keep him company.

As in so many sectors across the UK, digital has become hugely important for radio. In the third quarter of 2016, just under half of all radio listening—45.5%—was on a digital platform, and that figure will increase. The radio industry predicts that if current trends continue, the number will be 50% by the end of 2017—I think that is a fairly conservative view. Small-scale DAB—the kind of digital radio that the Bill deals with—is especially important. Industry data show that 60% of UK homes today have at least one DAB radio, and the DAB terrestrial platform accounts for about three quarters of all digital radio listening. These figures underline the growing importance of the area and make it more important than ever that small-scale digital radio becomes a viable option for as many stations as possible.

I recently listened to Radio Derby on the digital platform, and it does have a better signal than I used to get, so I am pleased that it has been able to move to that platform and continue on FM. Unfortunately, small radio stations currently face a major disadvantage when it comes to digital radio. At present, the costs and the licensing scheme are not conducive to allowing small-scale radio services access to the DAB radio network. As with anything, costs vary, but digital specialists estimate that the cost of carriage for a mono service on a non-London multiplex is between £3,500 and £5,000 per month. That could mean £60,000 a year. Needless to say, that is a pretty hefty sum for a small station, with the consequence that it is priced out of the market. Contrast that with Ofcom’s estimate that using small-scale DAB could allow stations to access the digital market from just £9,000. That is a huge difference, and it would make the market much more accessible for smaller stations.

Alongside cost, the current climate creates a number of other key problems for smaller stations. County-sized local DAB multiplexes exist and are used effectively by several stations, such as Radio Derby, which covers not only the county of Derbyshire but part of east Staffordshire. However, their large coverage area means that they are not suitable for smaller stations that want to transition to DAB but cannot do so. Even if local DAB multiplexes could be used in theory, stations encounter problems in practice as there is not always sufficient capacity for them to operate.

Providers are very aware of the fact that they face dwindling audience numbers and the fall in advertising revenue that comes with that as digital listening by default becomes the norm. Quite understandably, they want to change that. Ofcom trials have proved that there is major demand for change and that appropriate legislation would be followed up with action. In a research report from September 2016, Ofcom states that

“there is a significant level of demand from smaller radio stations for small scale DAB, and that a wider roll-out of additional small scale services into more geographic areas would be both technically possible and commercially sustainable”.

That statement was made after a trial in which 100 small commercial and community radio stations successfully broadcast on terrestrial DAB for the first time. Those stations came from a wide range of different backgrounds, from new entrants to established companies, which provides an even more compelling case that all small stations could make a success of using digital radio.

[Seema Kennedy (South Ribble) (Con)]

Community radio stations sometimes have dwindling audience numbers. Does my hon. Friend think that this might also be an opportunity for print media to broadcast from their news rooms? We know what pressure they are under as well.

[Pauline Latham]

I entirely agree. For instance, the Derby Telegraph is sadly losing its readership, despite being a good local paper. I do not think that the web is conducive to local newspapers, because they have to include so much local advertising, which intrudes on the reports. If they could also broadcast, that would produce more competition and help other local media to get in on the act.

[Pauline Latham]

Yes, I am sure that that would be the case. I thank my hon. Friend for intervening at that point.

The compelling case is that all small stations could make a success of using digital radio. In fact, the initial trial was so successful that it was extended for two years. Alongside tests of viability and effectiveness done within the UK, the international use of small-scale DAB offers another indication of the benefits of the expansion of this new technology. It has been used successfully abroad, with stations using it on air in Switzerland and France.

Given the established track record, we can see that the Bill would be helpful. It would make a tangible difference for an estimated 450 stations that could take advantage of small-scale DAB. We heard from my hon. Friend the Member for Torbay, and from interventions, that even hospital radio stations could get in on this and widen their listenership, which I think is incredibly important.

[Seema Kennedy]

I thank my hon. Friend for giving way again; she is being very generous. We have talked about hospital radio, but I want to mention radio in universities and colleges. Runshaw College, which you know very well, Mr Deputy Speaker, has a fantastic radio station that broadcasts in the college, but it has so many links with local businesses and community enterprises that it could take advantage of this new technology and the proposals in the Bill. Does my hon. Friend agree?

[Pauline Latham]

Yes, and I thank my hon. Friend for that intervention. It could also be used as part of a degree to give students real live practice on radio, which they would not normally have. I am sure that the University of Derby would embrace that, as it already uses the local theatres to give students real live practice of producing and acting in plays so that they have a practical example when they go into the world of work. People working in local university radio would have real experience to draw on in interviews, which we all know, as employers, is incredibly important.

The Bill provides an opportunity to alter the current legislative framework for digital radio multiplex licensing, as set out in the Broadcasting Act 1996, to introduce a more appropriate, lighter-touch regulatory framework. Greater numbers of small radio stations could expand into a digital market to which they currently do not have access. I particularly commend how the proposed approach has adopted features of effective previous secondary legislation, such as the Community Radio Order 2004, that has successfully modified primary legislation by allowing for provisions of the 1996 Act to be modified rather than replaced. That slight but important distinction will not only make things simpler, but allow for the creation of a new licensing regime that will take account of the varying needs of smaller stations.

Although the use of small-scale DAB is a relatively novel form of technology, implementing this Bill fits into the Government’s long-term radio strategy, published in 2014 in the Department for Culture, Media and Sport’s “Digital Radio Action Plan.” The plan recognised that “radio is changing”, and that the Government must respond by helping to facilitate a digital-friendly environment where 50% of all listening is digital. The paper also states that the transition to digital and the changes the Government make should always be “driven by the listener.” To some extent, the change must also be driven by the concerns of radio station providers themselves, and it is clear from Ofcom trials that smaller stations really do want to access a digital market. We must not ignore their views.

As well as setting out the digital criteria, the paper stresses the major contribution that radio makes to the UK, outlining that 90% of the adult population consume in excess of 1 billion listening hours each week, which is a huge number. That allows them exposure to an endless variety of cultural topics and the chance to listen to myriad fantastic music genres from acid jazz to zydeco—I have probably not pronounced that right. I must admit that I had to probe the internet rather thoroughly to find a musical genre beginning with z and it was rather difficult, but I was rewarded with the discovery of the wonderful Louisiana Creole blues that is zydeco.

The economic impact of the sector is highlighted by the digital plan, and the fact that this Bill can lead to economic growth and job creation cannot be dismissed. Having so many more digital stations will mean that young people—I presume that it will mainly be young people—can take up a valuable real-life experience and go on to bigger and better things in the larger broadcasting corporations, whether in the BBC or in commercial operations. That cannot be dismissed. The Bill would create many jobs. At the moment, the entire radio sector is worth an estimated £1.2 billion and employs 17,000 people. Ensuring that legislation that affects the sector is helpful and up to date is an important responsibility and one that should encourage us to vote in favour of the Bill. I am sure that the Minister will cover many of those points in his response.

I once again congratulate my hon. Friend the Member for Torbay on introducing the Bill and urge the House to support its Second Reading. Let us make sure that his sleepless night was worth it.

Oral Answers to Questions

Debate between Seema Kennedy and Pauline Latham

Tuesday 14th June 2016 Commons Chamber

[Pauline Latham (Mid Derbyshire) (Con)]

11. What steps his Department is taking to improve education in prisons.

[Seema Kennedy (South Ribble) (Con)]

17. What steps his Department is taking to improve education in prisons.

Oral Answers to Questions

Debate between Seema Kennedy and Pauline Latham

Monday 23rd November 2015 Commons Chamber

[Pauline Latham (Mid Derbyshire) (Con)]

9. What steps he is taking to increase the proportion of his Department’s procurement expenditure which goes to small and medium-sized enterprises.

[Seema Kennedy (South Ribble) (Con)]

11. What steps he is taking to increase the proportion of his Department’s procurement expenditure which goes to small and medium-sized enterprises.