S4C

Simon Hart Excerpts

Wednesday 18th January 2017 Westminster Hall

[Mr Williams]

I very much agree and will develop a more extensive answer to that comment in the rest of my speech. I think that that view is widely shared, including, I am pleased to say, on the Conservative side. The hon. Lady will remember, as I do, the 2 am debate in the Chamber last January, initiated by the hon. Member for Carmarthen West and South Pembrokeshire (Simon Hart). I was grateful for the opportunity of that debate, despite its being at 2 in the morning. Notwithstanding bleary eyes, we saw strong opposition from Members across the House to an attempt to make a severe cut to S4C’s funding from DCMS. We were relieved that staying up was worth while, because spending was frozen at the original level for 2016-17, pending a review into S4C’s remit. According to the then Digital Minister, the right hon. Member for Wantage (Mr Vaizey), that would:

“ensure financial stability—”

critically, now—

“through the review process.”

Although it represents a real-terms cut, I greatly welcome, with the caveats I mentioned, the decision to give S4C stability over its funding through the licence fee for the next few years. I also welcome the freezing of the cut to the DCMS portion of its funding last year.

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

Does the hon. Gentleman agree that the Government could immediately grant S4C borrowing powers, which it has asked for and which would not have a detrimental effect on budgets? None of us can see any reason why that should be rejected. Perhaps the Minister will respond to that during the debate.

[Mr Williams]

I am not averse to that suggestion at all; it would be a positive step forward. However, I will develop how I intend to achieve for the coming year what the hon. Member for Clwyd South (Susan Elan Jones) achieved last year.

There is little doubt in my mind or, I think, in the minds of Members from other parties, that cuts to S4C have been almost to the bone, not only making it extremely difficult for the broadcaster to meet the obligations of its remit, but making it particularly challenging to be innovative and to cater to the changing demands of the Welsh public. However, S4C has to date, with increasing difficulty, continued to meet its obligations and the changing demands.

With the difficulties facing the broadcaster as a result of those cuts, it is absolutely right that a review takes place to ensure that it has the necessary funding to fulfil its remit and strategy over the longer term. A comprehensive review into S4C announced in February of last year by the former Secretary of State, the right hon. Member for Maldon (Mr Whittingdale), along with a reversal of the cuts prior to the outcome of the review, was welcome. However, we are now in 2017, and we still waiting for that promised review. There is cross-party concern about the delay, as well as concern in the creative industries that rely so heavily on a strong Welsh broadcasting sector.

I hope the Minister will enlighten us as to the reason for the delay. Why is a statement from February 2016, made in the early hours of the morning during the debate called by the hon. Member for Carmarthen West and South Pembrokeshire, only now being actioned? Critically, can he also give us details about when the review is likely to take place, its timetable and when it is anticipated to conclude? With that in mind, and with the former Secretary of State’s commitment, I would also appreciate the Minister’s assurance that cuts to Government funding of S4C that were frozen under the previous Secretary of State will continue to be frozen at least until the review gives its recommendations.

One big issue that requires Government assurance is on the specifics of the review. Many hon. Members, and many people outside the Chamber, hope for confirmation from the Minister that the review will be chaired by an independent individual with a thorough understanding of Wales, the Welsh language and broadcasting. It is also important that the remit of the review considers the need to update S4C’s remit, to reflect changes in the broadcasting industry and to ensure that the channel meets the needs of its audience, both in the short and long term.

--- Later in debate ---

[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.