Channel 4

Tim Loughton Excerpts

Tuesday 19th July 2016 Westminster Hall

[Graham Jones]

That is an intuitive and well-made point. I was going to come to it further in my speech, though not with such eloquence and detail as the hon. Gentleman. Besides the Paralympics, long-term programmes such as “Dispatches” have been highly successful, and Film4 productions have been critically acclaimed so it is of little surprise that Channel 4 has been unfailingly popular since its creation. What is more, as a publicly-owned but commercially-funded broadcaster, it continues to air such innovative content in a sustainable manner. Because Channel 4 is funded by advertising and is financially self-sufficient, taxpayers can watch high-quality programmes at no cost.

[Tim Loughton (East Worthing and Shoreham) (Con)]

I, too, am a fan of Channel 4, for all of the reasons that the hon. Gentleman and my hon. Friend the Member for North Swindon (Justin Tomlinson) have already mentioned, and because Channel 4 supports something like 19,000 jobs and spends more—some £600 million—on content from independent producers than any other channel in the UK. Does the hon. Gentleman agree that if it ain’t bust, don’t fix it?

[Graham Jones]

Mr Stringer, I assure you I did not distribute my speech in advance of the debate, but that is a further point I will go on to elucidate. The hon. Gentleman made the point I am going to make about the financial benefits of Channel 4 and the fact that it is an aggregate benefit, operating as now in the public sector but with private funding, and it is an asset to the public.

The model is unique within the UK’s broadcasting ecology. Unlike other organisations, Channel 4 operates as a publisher-broadcaster, meaning that it does not produce its in-house programmes. Instead, it commissions all of its content from independent production companies from across the UK private sector and works with more independent producers than any other channel. As a result, Channel 4 supports a vast network of small and medium-sized enterprises. Since its creation in 1982, it has spent £12 billion on content and, as the hon. Gentleman said, it spent a record £600 million on content last year alone, of which £455 million was spent on British programming. While other public service broadcasters have cut their investment in UK content, Channel 4’s model has enabled it to weather market forces and increase its investment, and it therefore makes a huge contribution to the wider economy. Indeed, its own analysis has found that it adds over £1 billion to the UK’s gross added value and supports 19,000 jobs per year, as the hon. Gentleman said.

Just as Channel 4 occupies a crucial space in the UK’s broadcasting ecology, it also play a vital role in ensuring that the ecology is representative of our society. According to Trevor Phillips, a former chair of the Equality and Human Rights Commission, Channel 4 has been at the forefront of promoting minorities within our national media. Its news has a higher proportion of young and black, Asian and minority ethnic viewers than any other public service broadcaster. It is the only public service broadcaster whose overall viewership is getting younger, and its transformative impact on social attitudes, by presenting the viewpoints of BAME and lesbian, gay, bisexual and transgender people, as well as people with disabilities, has been remarkable.

--- Later in debate ---

[The Minister for Digital Policy (Matt Hancock)]

It is a great pleasure to serve under your chairmanship, Mr Stringer. I am very grateful to the hon. Member for Hyndburn (Graham Jones) for his contribution and for bringing me to Westminster Hall on day two of my new job. As he mentioned, I have had discussions about this issue with the previous Secretary of State for Culture, Media and Sport, and we decided as a Government to ensure that we would look at all options on the following bases.

Like the hon. Gentleman, I cherish Channel 4. It was introduced by a Conservative Government and we are proud of what it has achieved over the past 34 years. I want to see Channel 4 continue to thrive and have a sustainable future. The question is, how do we best do that? I am focused on the challenge of ensuring that the public service broadcasting system, with Channel 4 at its heart, can continue to play a leading role in the UK’s cultural life for many years to come.

We are committed to public service broadcasting in the UK, which is a key driver of one of the most successful TV markets in the world. Ofcom reviews consistently show that public service broadcasting is valued by the public. Its 2016 review, which was published only last week—I am sure the hon. Gentleman has seen it—found that last year, 84% of the TV population aged over 4 watched some of the main five PSB channels in a typical week; 86% of viewers believed PSB news programmes were trustworthy; and 83% of viewers felt PSB channels helped them to understand the world.

Channel 4 is a fundamental part of the PSB system because of the range of programmes it broadcasts, its reflection of the UK’s cultural identity and its distinct and different offering. As the hon. Gentleman said, it performs a role in challenging the establishment. That is something I have had direct experience of, and I have always enjoyed the rigours of the challenge that Channel 4 provides. It stands up to authority through, for instance, “Dispatches”. I also endorse the comments of my hon. Friend the Member for North Swindon (Justin Tomlinson) on the coverage of the Paralympics in 2012, which was outstanding.

Channel 4’s commitment to diversity in all its forms—in terms of not only gender or ethnic background but also, for example, LGBT diversity—is a valuable and important part of its remit. Channel 4 has developed a unique character since it was established under the then Conservative Government 34 years ago. From “Countdown” to “Gogglebox”, “Father Ted” and “Unreported World”, Channel 4 is known for its innovation, originality and outspoken nature. It has also played a key role in the development of the independent production sector, which is now a huge sector that exports around the world and is worth more than £3 billion to the UK economy.

We need to think about this more broadly than just the channel. Through Film4, the Channel Four Television Corporation has played a role in some of the British film industry’s biggest successes—“Slumdog Millionaire”, “Four Lions” and “12 Years a Slave” come to mind, but there are many others. The importance of Channel 4 is recognised across the industry and across the House.

[Tim Loughton]

I congratulate the Minister on his new appointment. In his first week in the job, may I suggest that this is an opportunity to preserve the innovative legacy of Mrs Thatcher when she created Channel 4 in the 1980s, and to make a name for himself by creating certainty for what is, as he and other hon. Members have commended it for, the most successful, diverse, creative, youth-engaged and innovative British-backed broadcaster, by saying once and for all that Channel 4’s future in its current form is safe in his hands?

[Matt Hancock]

My hon. Friend tempts me, but the broadcasting market is changing rapidly. That is why the previous Secretary of State decided to look at all the options. It would be a bit previous of me, on day two in my job, not to consider where that work has reached in our goal of a sustainable future for Channel 4.