BBC

Debate between Sheryll Murray and Lord Vaizey of Didcot

Tuesday 10th July 2012 Westminster Hall

[Mr Vaizey]

Forgive me for the use of the vernacular, Sir Roger, but it appears that things are really kicking off now, and we have only seven minutes of the debate left. If the hon. Member for Hammersmith would like to come back on that point, I will of course give way.

Let me deal with some of the issues that were raised, particularly by my hon. Friend the Member for Shrewsbury and Atcham who secured the debate. I do not think that the BBC lacks innovation—one only has to look at iPlayer or the Space. The BBC innovates as much as any other public broadcaster. I do not believe that it pulls back from competing. In fact, most criticism from other media companies about the BBC is that it is too competitive. Nor do I think that the BBC is uncommercial. BBC Worldwide, headed by an excellent chief executive, John Smith, now commands sales of more than £1 billion a year and returns almost £200 million in profit.

The salaries issue is vexed and constantly exercises hon. Members. We should recognise that the new director-general of the BBC will be paid approximately a third less than his predecessor, with the salary reducing from £671,000 to £450,000. That is still a lot of money by anybody’s standards, but we should recognise that he will be running an organisation that employs 22,000 people and has an income of £3.5 billion a year.

[Sheryll Murray]

Will my hon. Friend the Minister not acknowledge that someone being paid so much in excess of the Prime Minister seems, to the general public, very unrealistic?

[Mr Vaizey]

I certainly agree with my hon. Friend that some executive salaries cause concern. There is no doubt that they will continue to be debated, but we should also recognise that from a high of approximately £800,000, the salary of the director-general of the BBC has been reduced considerably. As my right hon. Friend the Member for Bath pointed out, details of executive salaries are now available on the BBC website. My personal view is that I would like greater transparency. Talent salaries could be more transparent, and outside interests could be considered for some of the more prominent broadcasters. Viewers have a right to know the additional earnings of people who work for the BBC and whether there is a potential conflict of interest.

The subtext of another perennial issue raised in the debate is that we would all like to run the BBC, so that we could fashion it to our own interests. My hon. Friend the Member for Shrewsbury and Atcham has an interest in foreign news and is concerned that not enough coverage is being given to the impeachment of President Fernando Lugo in Paraguay. That is a view. I would say that the BBC has covered the conflict in Syria and the Arab spring very effectively. I am a devoted fan of “From Our Own Correspondent” on Radio 4 and the web. The hon. Member for Bishop Auckland would like the Durham miners’ gala to be covered; I would like the Olivier theatre awards to be covered. My hon. Friend the Member for Shrewsbury and Atcham would like to see more foreign films. The BBC recently broadcast the film “City of Life and Death”, and we are now devoted fans of Danish and Scandinavian television thanks to broadcasts on the BBC.

The future of the licence fee will no doubt be debated when the renewal of the charter comes up in the next few years. The licence fee is the most effective way to support the BBC and enshrine its independence. The cost of collections has halved, and the income from the licence fee has increased by more than 25%. We have frozen the licence fee, recognising the pressure on hard-working families, and that is, frankly, making the BBC live within its means.

The hon. Member for Hammersmith pointed out some of the concerning decisions the BBC has made in managing its estate. That is an example of the BBC suffering through bad management, not a lack of revenue. Furthermore, we have succeeded, as part of the coalition agreement, in ensuring that the National Audit Office has fairly unfettered access to the BBC’s books. When an issue arises, such as whether the BBC has spent money wisely in managing its estate, it will be possible to have an independent view from the NAO. That is a very important part of the transparency and accountability of the BBC.

My hon. Friend the Member for Shrewsbury and Atcham mentioned IR35 and contractors. I will go back and look at that issue, which comes up time and again. I am particularly concerned about some well-remunerated employees of the BBC being paid through a company. The issue is normally raised with regard to the possibility that appropriate tax is not being paid, rather than the BBC shirking its responsibilities in paying national insurance, but I will consider that in more detail and engage with my hon. Friend if he wishes to pursue the matter further.

I stress the important principle, which I think unites us all in the Chamber, that the BBC is independent, and independent of the Government. It is one of the finest, if not the finest, public service broadcaster in the world, so when we criticise the BBC, it is worth remembering that it is a jewel in this nation’s crown.