Media Bill

Viscount Colville of Culross Excerpts

2nd reading
Wednesday 28th February 2024 Lords Chamber

[Viscount Colville of Culross (CB)]

My Lords, I declare an interest as a television producer who has worked for all the public service broadcasters.

Like many others, I welcome this long-awaited Bill. The television and film industry has been one of the great successes of our economy. Our public service broadcasters, together with the BBC, are national treasures and admired across the world. What I treasure most is their ability to reflect our country back to ourselves, to stimulate national discussion and to ensure a light is shone on unreported communities and unheard voices.

This view was so well expressed in the actress Samantha Morton’s very moving acceptance speech at this year’s BAFTA awards. She told the audience that watching Ken Loach’s film “Kes”, about poverty, was a seminal moment for her. She recognised her own upbringing and finally saw her own experience reflected on screen. She said:

“You see the stories we tell, they actually have the power to change people's lives”.


She added that the film had transformed her and drawn her into the industry.

Television has made wonderful strides in the last few decades since I joined the industry in the late 1980s. It has provided employment for people from many backgrounds and, thanks to the move out of London, brought work to the nations and regions. The stories they tell have indeed replicated Samantha Morton's experience. However, in the last 18 months the industry has been struck by a shocking downturn in commissions. They are few and far between. Independent production companies are closing down for want of work, and experienced technical and production staff are leaving the industry. Channel 4 has admitted that a 9% reduction in advertising revenue has forced it to call a slowdown in commissioning. In reality, this has meant vanishingly few new commissions. Channel 5 and ITV are not much better. ITV’s head of policy Magnus Brooke called it “past peak TV”.

The resulting effect on the workforce has been dramatic. BECTU, the television union, this week published a survey of workers in the industry, which has revealed that 60% of the respondents across the industry were not working, while 88% were finding it very difficult to make a living. The result has been an exodus of talent. The huge strides made in the last few decades in bringing women and people from ethnically diverse backgrounds into the industry are being reversed. The BECTU survey shows that 40% of women are thinking of leaving the industry and half of black respondents are thinking of following suit. This Bill must do everything it can to protect those unheard voices and ensure that the industry continues to shine a light into the corners of this country that are not normally seen.

I want to praise the Government for bringing forward measures in the Bill such as digital prominence for PSBs, which is so badly needed. However, the privilege of the status of public service broadcaster must be reciprocated by providing distinctive content, which is so important to our national sense of being. In this very competitive marketplace where streamers are bombarding viewers with drama and advertising revenue is declining, the pressure will be on the PSBs to commission only popular shows by big production companies with proven records. Like my noble friends Lady Kidron and Lord Birt, my concern is that the Bill is so vague in many areas designed to protect this distinctive content.

The last Ofcom review of PSB content was published in 2020, so it is already out of date, but it is the best official indicator of the state of factual programming. It said that PSB provision of and investment in arts, religion, formal education and children’s content is low. My fear is that the BBC is increasingly going to become the channel of market failure programmes, although even there it seems that the commissioning of factual science, arts and religion has almost dried up.

The Bill not only drops the “educate and inform” mission for PSBs; it is also particularly vague on their public service remit. The Government inserted Clause 1(6) in the other place in response to these concerns. It is a permissive clause calling for a range of “appropriate” genres of content to be made available by PSBs. It is one thing to permit PSBs to broadcast a range of genres, but being so vague about what they are supposed to be gives the measure no meaning.

I would be grateful if the Minister explained what an “appropriate” range of genres means in the absence of a mission to educate, entertain and inform. I am echoing concerns already expressed in the other place. The Culture Committee, in carrying out pre-legislative scrutiny of the Bill, warned that replacing a list of specific commitments required of public service broadcasters with a general remit was “a step too far”. The Government’s response was that the amendment was a simplification. Without a firm list of genres that need to be covered, what is the incentive or capacity for Ofcom to judge whether the PSBs are sticking to their public service remit? I imagine that news and children’s content will be measured, but what about the rest?

I ask noble Lords to take these concerns seriously. These distinctive genres need to be protected, because they create commissions and jobs in the very communities which the Government say they want to foster. Channel 4 has a vision statement that talks of elevating unheard voices from diverse communities, to encourage emerging writers and producers from different points of view. I have to praise the Government for not going ahead with their policy to privatise Channel 4, but I want to ensure that the company recovers from its present commissioning drought, and that the Government, together with Ofcom, ensure that it continues to commission from as wide a range of small independent production companies as possible, because that is where the freshest and newest ideas are coming from.

Once again, the Bill is very vague on how this is to be achieved. It talks about

“an appropriate range of independent productions”,

and

“an appropriate range of programme made outside the M25”.

I applaud the sentiment, but I fear the vagueness. I know that the Minister will tell me that appropriateness will be decided by Ofcom, the expert regulator, but, as parliamentarians, I think we have a duty to steer Ofcom.

In 2022, production companies with turnovers of more than £25 million annually received 70% of Channel 4’s primary commissioning spend. The channel, despite its mission statement, has been too risk-adverse in its commissioning. Its new licence agreement states that 35% of productions for Channel 4 will be made by qualifying indies—those not partly owned by a UK broadcaster. But these indies could include Banijay, a huge production company with massive annual revenues. More needs to be done to guarantee that smaller indies are protected. There are various ways in which the threshold could be calculated, but I ask the Minister to engage seriously with protecting these small but unheard voices.

Similarly, I applaud the Government for emphasising the need for local radio, regulated by Ofcom, to be protected in the digital world and for encouraging locally collected news. As online listening hit over 26% of listeners last year, I encourage the Government to extend the scope of these protections to cover all online services and podcasts generated by these stations. I really would not like to see these digital offerings diluted by commercial interventions by the platforms, either in charging a fee for carrying them or superimposing endless advertising on them.

I also applaud the Government for focusing on regulating voice-activated services, and ensuring that the platforms do not have too much power to promote their own content over that of the audio provider. However, I think that the Government ought to bring into scope in-car entertainment systems that are not voice activated. It would be good to get a steer from the Minister on this and not to leave all future-proofing to regulations.

This Bill does so much to propel our world-class television and radio services into the digital world. I hope that it will pass with all speed, but I ask the Government to protect the small players in the audio-visual industry and to ensure that they have a place in the increasingly competitive digital sphere.

Media Bill

Viscount Colville of Culross Excerpts

Committee stage
Wednesday 8th May 2024 Lords Chamber

Moved by

[Viscount Colville of Culross]

9: Clause 1, page 3, line 11, leave out subsection (6) and insert—
“(6) The requirements in this subsection are that—(a) that the relevant audiovisual services (taken together) comprise a public service for the dissemination of information and for the provision of education and entertainment, (b) the range of audiovisual content genres made available by the public service broadcasters (taken together) include but not be limited to content about—(i) religion and other beliefs,(ii) science,(iii) arts and cultural content,(iv) social issues,(v) matters of international significance, and(vi) matters of specialist interest, and(c) there is a sufficient quantity and range of programmes within each genre.”Member's explanatory statement
This amendment would statutorily require OFCOM to report on whether public service broadcasters have made available an appropriate amount and range of programmes in named societally valuable public service genres both on broadcast channels and on their online Broadcast Video on Demand (BVOD) platforms. Without specifying these genres in law OFCOM will not be required to monitor them.

[Viscount Colville of Culross (CB)]

I declare an interest as a freelance TV producer who has worked for all four public service broadcasters. I thank the Voice of the Listener & Viewer and the Media Reform Coalition for their support in putting this speech together, and the commercial public service broadcasters for their information. I am also grateful to noble Lords who have attached their names to this amendment.

I welcome a lot of the Bill. However, I have tabled this amendment because I am convinced that the public service remit set out in Clause 1 is not worthy of the name. The White Paper says that it replaces the

“outdated set of fourteen overlapping purposes … with a new, shorter remit, focussed on the things that”

the PSBs

“are uniquely positioned to deliver”.

Unfortunately, this new remit does not deliver either of those things for audiences or for the industry.

I degrouped this amendment so that noble Lords would have a chance to direct their speeches specifically towards the need for genres within public service broadcasting. In looking at Clause 1, I ask the Minister: are the Government really not going to insist that our commercial PSBs commission and broadcast any content on science, on the arts, on social issues, any content of international significance—or, as the right reverend Prelate the Bishop of Leeds said earlier, any content on religion? In a society where there is a desperate lack of knowledge about those matters, surely the media, which has been so privileged and protected in this Bill, should be mandated to battle against ignorance and bring illumination and context to the lives of people in this country. It has never been more important than now to have reliable information easily accessible by everybody. Surely, this is the antidote to the swirl of fake news and conspiracy theories which so dominate the internet.

--- Later in debate ---

[Viscount Colville of Culross (CB)]

I am very grateful to noble Lords for their support on this amendment. I think it proved that I was right to degroup it so that we could have a specific discussion about the need for genres.

The Minister said that it is going to be fine because we have Ofcom, which will oversee the remit and make sure that the PSBs give us good, broad content. However, as the noble Lord, Lord Foster, and the noble Baroness, Lady Stowell, warned us, this does not give Parliament anything like enough power to hold Ofcom to account. This is an issue we have had in this Chamber a number of times, on different Acts. We discussed it quite a lot on the Online Safety Bill and were very concerned by the enormous powers that were given to Ofcom and the inability to control them. In fact, the noble Baroness, Lady Stowell, suggested a parliamentary committee that could look at the way Ofcom carried out its powers.

There is obviously a battle between regulation and competition, as the noble Baroness, Lady Stowell, said. The Minister is obviously content that new subsection (6) in particular is going to help direct the PSBs to deal with this problematical and knotty area. However, I remain unconvinced and extremely concerned that the fiercely competitive economic environment in which our PSBs find themselves will drive them inexorably away from serious factual programming and towards entertainment.

I hope that between Committee and Report the Minister will meet me and other noble Lords to discuss this issue, but in the meantime I beg leave to withdraw this amendment.

Amendment 9 withdrawn.

Media Bill

Viscount Colville of Culross Excerpts

Committee stage
Wednesday 8th May 2024 Lords Chamber

Moved by

[Viscount Colville of Culross]

14: Clause 8, page 9, line 29 at end insert—
“(2A) After subsection (1), insert—“(1A) The regulatory regime for Channel 4 includes the conditions that OFCOM consider appropriate for securing that, in each year, not less than 35 per cent of Channel 4’s total spend on qualifying audiovisual content is allocated to independent productions made by independent production companies with an annual turnover not exceeding £25,000,000.(1B) The Secretary of State may by order amend subsection (1A) by substituting a different figure for the annual turnover specified in that section.(1C) Before making an order under subsection (1B) the Secretary of State must consult—(a) OFCOM,(b) Channel 4, and(c) independent production companies that are likely to be affected by the order.””Member's explanatory statement
This amendment would add an “SME Guarantee” for Channel 4 commissioning, requiring that at least 35% of Channel 4’s annual spend on qualifying audiovisual content is allocated to productions made by “indie” producers with annual revenues smaller than £25m. This amendment also provides the Secretary of State the power to amend, following consultation, the revenue figure defining the production companies eligible under the SME Guarantee.

[Viscount Colville of Culross (CB)]

My Lords, I declare an interest as a freelance television producer who works for small independent production companies making content for public service broadcasters. I am also an officer of the Channel 4 APPG, so I speak as a critical friend to the channel. I thank the noble Lord, Lord McNally, for putting his name to this amendment. I also thank the many small independent companies to whom I have spoken, as well as Tom Chivers from the Media Reform Coalition, and Channel 4 itself.

I put down Amendments 14 and 15 to Clause 8 because I want to ensure that Channel 4 focuses its commissioning on future support for the SMEs. I hope the amendments will encourage the channel to expand its present commissioning process, which too often rewards large suppliers with large commissions. There will be much argument about the level of the cap below which companies qualify as SMEs. However, subsections (1B) and (1C) of this amendment give the Secretary of State the power to be flexible and alter the threshold figure if it proves to be too low for small drama producers, for instance, but only after she has consulted Ofcom, Channel 4 and independent companies.

Amendment 15 requires the criteria to be extended to an annual revenue of £25 million a year over five years. This would mean that a single large drama commission would not adversely affect a company’s status as an SME by pushing its annual revenue in a single year over the £25 million mark. The information on the company’s revenue will not be hard to find; it will be readily accessible in Companies House.

Channel 4 was set up in 1982 by Mrs Thatcher’s Government in order to break the duopoly of BBC and ITV. Its purpose was to disrupt the television ecosystem, which it did wonderfully well. Its aim was not just to have content different from the existing public service broadcasters and to reach new audiences, but to allow a thousand flowers to bloom. As Mrs Thatcher’s deputy, Willie Whitelaw, said:

“We must aim for a channel that says something new in new ways”.


He added:

“We must seek to provide an outlet for the talent of independent producers”.


Channel 4 has been very successful in encouraging thousands of people across the television industry to leave their comfortable staff jobs in the other public service broadcasters and take the risk of setting up small, independent television production companies. It created a culture in the media where independent producers became risk takers and small business owners, supplying a channel which aimed to reach minorities and poorly served audiences.

For much of the last few decades, Channel 4 has been at the centre of nurturing Britain’s independent television sector, which is the engine of our world-beating creative economy, the seed corn of the industry. But the media environment has changed dramatically in the last few years, both in content commissioning and in the supply side of the industry. Hundreds of small companies, which make up the lifeblood of the industry, have been bought up by mega television production companies such as Banijay and All3Media, which is owned by the American company Warner Brothers.

It is not surprising that these big companies have been so successful. In 2022, over three-quarters of Channel 4’s UK commissioning spend went to production companies with turnovers in excess of £25 million per year, while just 21% went to producers with annual revenues of under £25 million per year, despite these smaller companies making up more than half of all independent production companies in the UK.

Unfortunately, the latest figures, from 2022, show the percentage of Channel 4’s spend on commissioning from those bigger companies to have increased from 64% in 2020 to over three-quarters two years later, while the figures for the under £25 million companies have gone down from 36% in 2020 to 26% in 2022. This has happened at a time when Channel 5—which is privately owned—commissioned an amazing 81% of those smaller companies, a figure which has gone up even further in 2022.

This is contributing to the crisis in the industry, with commissions to smaller indies, and regions, collapsing. The latest BECTU survey of its members estimates that nearly three-quarters of its members are not working. Some 30% have not worked in the past three months, while 34% have had less than a month’s work since November 2023. As a result, there is a dramatic exodus from the industry, which has been one of the beacons of our economy. In February 2024, 37% of the respondents to the BECTU survey said that they were planning to leave the industry, with 40% of women and half of black respondents saying that they were going to look for work outside the sector within five years.

The money to build these small companies comes from the terms of trade, set up to ensure that they get the majority share of the back-end revenue from further sales of these programmes. This comes only from commissions by British broadcasters. US companies pay a straight production fee and keep all the back-end profit, so the Bill needs to focus on ensuring that British broadcasters support the future of up-and-coming content suppliers across the UK. The BBC is carrying much of the burden, but I and many other colleagues have fought hard to ensure that Channel 4 remains in public ownership. That mission having succeeded, the emphasis must be to encourage the broadcaster to support the next generation—the seed corn of television production.

I fear that Channel 4’s attitude can be summed up in its submission to Ofcom when renewing its 2024 licence, in which it said that

“the UK production sector continues to be significantly smaller outside London”,

with

“fewer production companies, often smaller in scale, and therefore with less capacity to develop creative ideas and produce them”.

This statement also relates to Amendments 16 and 17 in the next group, in the name of the noble Baroness, Lady Fraser of Craigmaddie, which will support quotas for commissioning in the regions and nations.

I have been talking to small indies across the country and have been told horrendous stories of the Channel 4 commissioning process—or lack of it. One told me of a series being cancelled just three weeks before filming was due to start. Others had the extreme difficulty of getting programme ideas through the channel’s commissioning process.

I want to balance my statements by pointing out that Channel 4 is capable of commissioning astonishing programmes from small production companies, such as “The Push”, from a small Leeds-based company, Candour, which had good ratings, and told an important story from a diverse community, but there are not nearly enough of these. The channel did point out to me that its emerging indie fund has invested £17 million over the last four years, to identify and nurture emerging talent and to help them grow their businesses. The fund also provides guidance to selected indies about the Channel 4 commissioning process, to provide them with the skill set to pitch for further work. This help must, of course, be welcome, but it is not revenue from commissions.

This great channel, which is still one of the jewels of public service broadcasting, is battling against the headwinds of a fiercely competitive television economy. As it is a publicly owned company, I call on the Government to push it further in supporting SMEs and to help to bolster the future of our creative industries. Channel 4’s slogan is “4 All the UK”, and I ask the Minister at least to look at Amendments 14 and 15, to ensure that this publicly owned channel does just that.

[Lord McNally (LD)]

My Lords, I point out that I did not speak at Second Reading. I was here until 6 pm and then went off to speak at a long-standing engagement at Queen Mary University of London.

It is a great pleasure to follow the noble Viscount, Lord Colville. I put my name to Amendment 14 because I strongly support his campaign, as he has explained it, to make sure that we do not get stampeded or bamboozled into policies because the world is changing, globalising and internationalising and we therefore think that certain things are inevitable. One of the things that we enjoy in the British broadcasting environment is that, for 100 years, we have been bucking the market. It was a Conservative Government that created the BBC as a public corporation safeguarded by a royal charter. It was a Conservative Government that introduced ITV as a confederation of regional television companies. Even today, ITV retains some of the DNA of that regional network; I still consider myself as coming from “Granada land”, and you can still find some of that company’s ethos in ITV today. As was pointed out, it was a Conservative Government, under Mrs Thatcher, that created Channel 4. Let us not be bullied; we have a good record of making television that is national—in the broadest sense—and distinctly British and that sets standards for others around the world.

Unfortunately, I cannot stay for the debate on the next group, but I crept into the meeting that was held on it. I felt like a Sassenach in the gathering of Scots and Welsh and Northern Irish people, putting the point, which has been proved time and again with a little nudging by government, that there is talent out there in the regions. But if you leave it just to the market, you have to make some effort to get results, because London is such a massive black hole of energy.

I am sometimes teased by my colleagues when I refer to the fact that I was on the Puttnam committee that gave pre-legislative scrutiny to the 2003 Act. One of the great advantages of the House of Lords is having that kind of perspective. When I look at that, I see that it was amazing that we got so many things right when we were not just looking through a glass darkly at what was happening. There was no internet and none of the technologies that have been developed in the last 20 years. In that Act, there were still various safeguards for making sure that our broadcasting ecology retained a British stamp to it—a British DNA—and that is why I support this amendment now.

I do not think that the idea for Channel 4 was to create a whole new industry of successful British indies, but that is what it did. It was perhaps too successful, in that many of those indies, as was referred to, were then swallowed up by other companies or themselves became big—not little—minnows.

However, that is the great effort: if we can keep this diversification of commissioning in Channel 4, and in the other countries and the regions, we are distorting the market to a certain extent but beneficially, by forcing it to find the talent in the regions and in the smaller companies. The noble Lord, Lord Vaizey, in his intervention earlier referred to the crude market forces “squeezing out” those opportunities. I therefore hope that Channel 4 will think again.

--- Later in debate ---

[Lord Parkinson of Whitley Bay (Con)]

The diversity of our world-leading television production sector is one of the main reasons that it is so successful. We have companies of different sizes operating all over the UK, focusing on genres ranging from specialist factual to high-end drama and everything in between. Last year, these companies delivered the highest sector revenues on record: just under £4 billion. Smaller producers are, of course, hugely important for ensuring a healthy production ecosystem, and the current regulatory regime for independent production has been very successful indeed in promoting and supporting them. Boosting this independent sector was one of the purposes behind the design of Channel 4. I do not want to make the noble Lord, Lord Bassam, feel old, but I was not around to be a sceptic at the time of those debates—they happened before I was born. But Channel 4 has, as I have said from this Dispatch Box, done a great service over the last four decades, and the regulatory regime has supported that too.

PACT, the industry body, estimates that there are more than 250 independent producers with an annual turnover of less than £1 million operating in the market today. Its statistics also show that 75% of independent producers have an annual turnover of less than £25 million. These are the producers that the noble Viscount, Lord Colville of Culross, had in mind, particularly with his Amendments 14 and 15. The issue of providing further support for smaller independent producers is one that we have looked at closely, most recently through our work on the mitigations to accompany the removal of Channel 4’s publisher-broadcaster restriction, which noble Lords have noted.

The clear message from the sector when we did that was that the measures which singled out smaller producers specifically—for example, via a turnover threshold, as the noble Viscount’s Amendment 14 proposes—would not be welcome on the grounds that they would be anti-competitive and penalise success. Producers want an incentive to win more commissions and grow their businesses, not to stay small. Those we spoke to also raised concerns that such measures would be difficult for Ofcom to enforce and could lead to increased monitoring and compliance costs for the regulator. Although these issues are addressed in part by the additional flexibility which the noble Viscount offers through his Amendment 15, the overarching concerns that we have with this approach still stand.

The Government recognise that this is a challenging time for producers and the production sector because of the slowdown in commissioning activity as a result of the downturn in the television advertising market, and we are taking steps to support producers and the production sector at this time, including the generous tax reliefs across studio space and visual effects, investing in studio infrastructure, supporting innovation and promoting independent content through the UK Global Screen Fund, but, for the reasons I have set out, we do not feel that we are able to support the amendments which the noble Viscount has put before us, but we are grateful for the opportunity to have this debate.

[Viscount Colville of Culross (CB)]

I thank the Minister for his reply. I think we all agree that we want to try to encourage the diversity of Channel 4, which has been so successful in creating a vibrant independent sector. But the truth is that the small indies that I have spoken to are having a really hard time. I am grateful to the noble Lords, Lord Bassam and Lord McNally, for talking about the diversity of the production sector and the role that the channel has played in helping that to develop. I listened carefully to what the Minister said about the regulatory regime as it stands having been successful in developing the market, and that his work with PACT and other producers has delivered a message that the sector and small producers do not welcome any kind of threshold, which I am suggesting in this amendment.

All I can say is that I have spoken to a great many small independent production companies across this country. They are really struggling; they are having a really hard time getting their commissions even looked at, let alone getting any kind of positive response. I ask the Minister to go back and talk to some of the smaller ones—not just PACT, but some of the smaller indies as well. I know that the Conservative Government see themselves as being on the side of entrepreneurs, so I encourage the Minister to do all he can to support the courageous and determined men and women who have set up these independent production companies across our country and made the sector so successful. I beg leave to withdraw the amendment.

Amendment 14 withdrawn.

Media Bill

Viscount Colville of Culross Excerpts

Committee stage
Monday 20th May 2024 Lords Chamber

In its Broadcasting in Wales report, the Welsh Affairs Committee in the other place recommended clamping down on brass-plating and specifically called for the Bill to be the avenue by which this could be achieved. I hope that the Minister replying to this debate will take it on himself to give very serious consideration to this issue. It would gain the Government a resonance in Wales, Scotland and Northern Ireland—and I suspect in the northern regions of England—which they very much need at this point in time.

[Viscount Colville of Culross (CB)]

My Lords, I declare my interests in the register. I am also an officer of the Channel 4 APPG.

I am pleased to have put down my name to Amendments 16 and 17 in the name of the noble Baroness, Lady Fraser of Craigmaddie. I very much support the principal aim of these amendments, which is to push content commissioning towards the regions and nations. I will also focus my comments on the publicly owned Channel 4.

These amendments complement my amendments in the previous group, which demanded more support for small independent television producers. The majority of SMEs are in the regions and nations, which Channel 4 should support. In doing so, it will support SMEs. These small companies are the lifeblood of the television production industry. They are often in areas where stories and lives are not covered by the mainstream media. It is in these places that the untold stories from an underserved audience will spring. After all, fresh ideas and stories from places overlooked by the metropolitan-based companies are surely central to the PSBs’ remit.

The production base in the nations and regions has come a long way in the last 20 years. With the growth of STV and the establishment of a Channel 4 lifestyle programmes production base in Glasgow, there has been a big increase in the number of people employed in the industry in Scotland, but the regional hubs in Cardiff and Scotland are struggling in the present climate. Now is the time for Channel 4 to play its part in the continued expansion of production talent across the industry.

It is a long-held view by many in the industry that it is expensive to commission from the nations. They say that staff have to be sent up from London, with all the extra costs that incurs. Surely, the response to that is to ensure that Scottish and Welsh independent companies are commissioned. They will employ producers and talent they know and trust, who will most probably be local. They will carry out post-production locally and employ indigenous Scots, Welsh or Yorkshire editors, graders and sound engineers in facilities houses based near them. The aim of these amendments is to build a big enough indigenous talent base that local staff can be employed and their work can go some way to reflect the parts of the United Kingdom they live in.

The present crisis of commissioning in the industry, for both scripted and unscripted programmes, has meant that not just small companies but medium-sized companies are closing. As a result, the Scots, Welsh and regional facilities houses are also closing and struggling. The lack of work has meant that people are leaving the industry, and the promises of expanding production bases in the regions and nations are dying. At this rate, the naysayers in the industry will be right: it will be too expensive to produce programmes in the nations and regions, because talent will have to come from London and the south-east, if not from abroad.

In my speech on the first day in Committee on the need for Channel 4 to focus on commissioning from SMEs, I read out the channel’s submission to Ofcom for licence renewal, which claimed that the smaller scale of the production sector outside London meant that the companies in the regions and nations were not able to develop or realise big ideas. This statement reflects badly on Channel 4’s view of television production in the parts of the country affected by Amendments 16 and 17. Not surprisingly, Scots indies responded that, far from being unable to develop and deliver big ideas, they were capable of making programmes for the biggest streamers and broadcasters in the world. I can say from personal experience of working with American commissioners that they are very demanding. If a company can supply a streamer or an American broadcaster, it can almost certainly supply Channel 4.

However, unfortunately, while those international commissions prove that the indies in the nations have talent and capacity, the revenues generated from them are not sufficient to sustain the production bases. They often pay a straight production fee with little back end, unlike the terms of trade that British channels use when dealing with indies, guaranteeing them the back-end revenue to build their businesses.

The letter by the Scots production companies continued:

“As a publicly owned public service broadcaster with a stated ‘strong commitment to represent the whole of the UK’ and ‘to stand up for diversity across the UK’, Channel 4 must fulfil its remit for the benefit of the UK as a whole and support the sustainable growth of the industry outside of London”.


The CEO of Channel 4, Alex Mahon, responded shortly afterwards, in April this year, when she told the Creative Cities Convention in Bristol that there had been questions about making the quota bigger. She said:

“We will try and do more because we need to think more carefully about how we represent people on air. It is time to make that shift to support companies more sustainably”.


Since then, Channel 4 has issued a statement to me, saying that

“we are announcing that we would support, in principle, a managed timely and carefully considered increase in our commitment to programme making in the nations”.

However, Channel 4 did not go any further on the detail of this proposal, or reveal by how much it would increase its spend in the nations and regions. It is leaving it up to Ofcom to decide the appropriate quota.

Once again, Parliament is leaving an important decision to be made by Ofcom. As Bills pass through this House giving Ofcom increasing power, it is beholden on us parliamentarians to give the regulator guidance. Parliament, not Ofcom, should decide the national and regional quotas for content commissioning. We must do what we can to encourage one of our great public service broadcasters to stand by its chief executive’s words, to support companies more sustainably and to increase the quota to the nations beyond 9%. I ask the Minister to support the figure of a 16% quota in the nations and 50% outside London.

Channel 4 reset itself in 2020, with the slogan “4 All the UK”. At the time, Ofcom increased its quota for the nations from 3% to 9%. However, now is the time to go further. Channel 4 aims its commissioning strategy at fewer, bigger, better programmes. I ask noble Lords to consider where that leaves the middle ground—the hundreds of hours of television annually filled by content with a medium spend. These companies are the backbone of the industry outside London and are suffering from the present commissioning strategy. As one of the leading figures in Scottish television, Alan Clements, who runs the independent production company Two Rivers Media, said:

“If you make your corporate slogan 4 All The UK, then you really need to walk the walk as well as talk the talk”.

Media Bill

Viscount Colville of Culross Excerpts

Committee stage
Wednesday 22nd May 2024 Lords Chamber

[Baroness Berridge (Con)]

My Lords, first, I need to apologise to noble Lords that I was not present at Second Reading. I am grateful to a number of local radio stations, and especially to Rob Persani of Rutland radio, which is where the Vale of Catmose is, for bringing to my attention the issue in Amendment 72. I am also grateful to the noble Viscount, Lord Colville, and the noble Lord, Lord Foster, who have put their names to the amendment. I also want to thank my noble friend the Minister for the meeting yesterday with the Secretary of State and the MP for Rutland and Melton, Alicia Kearns.

I support Amendments 71 and 73 in the name of the noble Lord, Lord Storey. The purpose of Amendment 72, however, is to ensure that Ofcom issues licences where there is no digital coverage. I accept that the wording of the amendment would need redrafting on Report to more clearly define the test needed where there are areas of no coverage. Applying for licences needs to be in the system outlined in Amendments 71 and 73. Ofcom does not need to run expensive competitions any more for FM licences, and it is not surprising that no new FM licences have been issued since 2009 if it has to run such a competition. As has been outlined, if you have a DAB licence, your FM licence is now automatically renewed. That simple process of renewal online with the payment of a fee could apply to new licences, rather than the expensive competition process that we had previously.

Commercial radio stations used to come in all shapes and sizes, so it is sad to learn, as the noble Lord, Lord Storey, outlined, of the demise of local radio. “Much in little” is Rutland’s motto, and there are about 41,000 people living there, plus tourists. Rutland radio is a great way to find out what is happening in the local area, especially as you drive around, but it has areas where digital has no reach.

The vision of Ofcom for the digital switchover for local radio is called small-scale DAB—smaller areas where it issues what are called polygon licences. I assume for the purpose of Amendment 72 that, as with the internet, His Majesty’s Government’s policy is that everyone should have radio access. Looking at SS-DAB and FM, even if small-scale DAB was the answer technically, it is not small scale enough to work economically.

Instead of the one frequency that you need for an FM station—at a cost, I am informed, of around £15,000 plus your annual fee to Ofcom—under a polygon licence a station such as Banbury radio, as the noble Lord just mentioned, would have to buy three such licences for that small-scale area delineated by Ofcom, at triple the cost. The local economy of advertising, which is what supports those local FM radio stations, just cannot sustain that; the areas envisaged by small-scale DAB are just too big.

I am grateful that the noble Viscount, Lord Colville, will cover the more technical issues relating to small-scale DAB, but, as I have outlined, it does not reach everywhere. In a place such as Rutland, it comes in and out when you drive between the villages and the two towns—yes, villages and two market towns is Rutland. Alicia Kearns MP recited to us yesterday how the digital signal goes out for lengthy periods when driving around. SS-DAB is fine for areas of greater population, but those areas do not need it. Apparently, there are pockets all around the country where you cannot get digital radio. No one is sure precisely where all those are, but it would be interesting to know from His Majesty’s Government whether they have looked at where the gaps are and what the internet coverage is in those areas. I suspect that there is quite a lot of correlation, but it is merely a suspicion.

Internet radio is also not the solution for those areas. Statistics from the UK Consumer Digital Index from Lloyds Bank show that 2.1 million people in the UK are offline, and 4.7 million people do not access the internet. Age UK did a survey of over-65s, and 2.7 million people, which is about 22% of that age group, are not accessing the internet. That could be due not to lack of coverage but to disability, cognition failure or vision problems. They will continue to rely on digital or FM radio.

It was rather prescient that, only yesterday, we raised with the Secretary of State that national resilience needs FM. In the national resilience strategy, it turns out that FM is the most resilient form of communication, so we will not be switching off FM in the near future. In the event of power outage or solar flares, it is the most resilient. Today, it just so happens that the Deputy Prime Minister is outlining the preparedness of household strategies to boost national resilience. The advice is to boost your analogue capabilities and buy a wind-up radio—but to receive what? FM, of course.

Why not allow those who want a new licence to broadcast on an FM frequency that will remain for the foreseeable future? All the commercial risk is on the operators. It will not cost His Majesty’s Government a penny. Also, the more people who continue using FM radios, the more resilient households are. They will know that their FM radio works and will not be scrambling around in the back of the wardrobe to dust it off in an emergency—but perhaps I am only the person who, on reading the national resilience strategy, is wondering where the batteries are for that torch that I bought, and where the candles are that I bought when the Deputy Prime Minister last talked to me about resilience.

Finally—and to give my second “it just so happens”—your Lordships’ House has just had a repeat of an Urgent Question from the other place on South West Water. In areas with no digital coverage and an emergency that is not a power outage, sometimes there is time to communicate with your population—for example, if there is flooding or a forest fire. But if you need to tell the public, “Stop drinking your tap water”, that is an immediate message. I hope that His Majesty’s Government are looking at how South West Water managed to communicate with all its customers in the local area. Sadly, as we renew only 0.1% of our mains water network each year, instead of the 1% average on the continent, I think that such incidents will be more frequent.

Many in your Lordships’ House will know of “Rutland Weekend Television” by Eric Idle, but the local coverage of Rutland radio and other local stations is not a comedy; it is essential. I hope that my noble friend the Minister will have some good news to tell your Lordships’ House on this amendment.

[Viscount Colville of Culross (CB)]

My Lords, I rise to speak to Amendment 72, to which I have put my name, and also to support Amendments 71, 73 and 74 in the name of the noble Lord, Lord Storey. These amendments will do much to support local radio.

The noble Lord, Lord Storey, has already explained to us the regionalisation of local radio and the destruction it has caused. This has not been helped by cuts at the BBC, which are forcing many of its stations to regionalise as well. In the area in which I live, East Anglia, BBC Suffolk and BBC Norfolk broadcast the same content for much of the day. These stations are not local; they are regional, and in some cases national. They have fired local staff and closed local studios, and as brands move towards national broadcasting there are fewer regional centres.

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[Baroness Thornton (Lab)]

The last group was fascinating and, in a way, this debate moves us on to how to future-proof access to radio stations. I will also speak to Amendment 78, to which I have added my name, and Amendment 81 from my noble friend Lord Bassam.

In the course of discussions with stakeholders in preparation for the Bill, it emerged that there is an issue about radio selection services. It was expressed to us as a matter of some concern. Given that the Bill is about future-proofing, the amendments in this group address an issue with regard to radio selection services in car entertainment systems, through which a person navigates access to the radio as well as using voice activation. The Bill seems to address the issue of selection services only with regard to internet radio services, which are of course a new category of designated radio selection services. These services are voice assistance services that enable listeners to select and listen to internet radio services by using voice-activated audio devices.

These amendments address the issue of how people might access radio not through internet or voice-activated mechanisms. Certainly, my car is much too old to do anything quite so sophisticated. They also address what happens to FM, which is very important. What concerns us is the place of public service broadcasters in such a system. Who decides on that prominence? I imagine that car manufacturers might be quite pleased if they also knew who deals with the regulatory regime that would apply under these circumstances. I read the Explanatory Notes to the Bill, since the Bill itself is a bit dense on this matter. I cannot see where the issue of public service broadcasting radio is addressed. My first question is: can the Minister tell us that?

Who will ensure that car manufacturers are—“doing the right thing” is not quite the right expression—making sure that our public service broadcasters are not neglected? As an avid Radio 4 and Classic FM listener, I really want to jump between the two with the sort of ease that I can at present. These amendments seek to address such issues, as well as the mandate to Ofcom, the accountability of the Secretary of State and Parliament, and how that might be best achieved.

My noble friend’s Amendment 81 is also about future-proofing, and would require the Secretary of State, through regulations, to expand the new protection for on-demand and online-only content, such as on-demand listening and podcasts. This is a group of amendments some of which are probing and some of which address quite a serious matter, which I suspect will have to be looked at as time goes on. I look forward to the Minister’s remarks on them.

[Viscount Colville of Culross (CB)]

My Lords, radio is the background to my life; I have it playing at home, in the car and even when I am walking about, whether it is the BBC, Global’s LBC or Bauer’s Greatest Hits stations. I cannot be alone in enjoying this wonderful medium, so I am glad that today it is getting the attention it deserves.

The way we listen is changing, and Clause 48 recognises this with the acceptance that, in the future, most people will be listening to the radio online. It covers the Ofcom-regulated stations—BBC, Bauer, Global and others—which make up 85% of our listening, but the methods by which we listen to this medium are changing fast. I have tabled Amendment 78—I thank the noble Baroness, Lady Thornton, and the noble Lord, Lord Foster, for their support—because I want to ensure that the way we listen is future-proofed, and that in the future online radio can be listened to wherever people are and on whatever device they want to use.

I very much appreciate that this clause is the Government’s response to fears that deals can be done between the manufacturers of listening devices, such as voice-activated speakers, to promote their own radio content, or even the content of stations which have paid them to promote their content over that of the Ofcom-regulated station. The clause’s “must carry” obligations for the top three voice-activated speakers takes its cue from the work that Ofcom has done on prominence in TVs, which has already been debated. However, my concern is that the focus on these three big voice-activated devices will be to the exclusion of other methods of listening to radio.

I also support Amendment 77, in the name of the noble Baroness, Lady Thornton, about the benefits of being able to listen to relevant internet radio services on in-car radio, which is not voice-activated and not covered by Clause 48.

Myriad different devices that might carry these stations in the future are also not covered. We need to be certain that our PlayStations, iPhones and even fridges, to name but a few devices, will carry these popular stations. For example, Sony Interactive Entertainment, which owns PlayStation, is a very competitive and successful company; it could do a deal with a youth station to the exclusion of other stations, stopping gamers accessing and being introduced to the joys of what is described in the new section inserted by the clause as “relevant internet radio services”. I know that the criteria for the “must carry” devices is set out in new Section 362BC(4) and that the Secretary of State can amend this section, but my amendment seeks to anticipate these changes, calling for a review of what devices people are listening on. The Government see this clause as a regulatory burden for the biggest speaker manufacturers, but I see it as protection both for the listening public and the nascent radio selection services.

I want to throw in another important thought here. The Government have been worrying so much about device manufacturers not carrying radio content that they have introduced a “must carry” burden on them. However, new Section 362BA requires an internet radio service to offer to a DRSS. There is no mandatory requirement for a relevant internet radio station to carry its service. I want the Minister and the Bill team to think very carefully about a world in which designated internet radio stations themselves do a deal with the big device manufacturers to carry their radio channels exclusively. I am sure that whenever this idea was raised during the drafting of the Bill, civil servants would have asked why a radio station would not want to be on a device.

Your Lordships have to look only at what has happened in television to see that content providers are just as active in creating monopolies for their channels as device manufacturers. Netflix and Amazon drove their own discreet prominence regime with specific TV manufacturers for vast sums of money, as noble Lords have already heard in the debate on prominence. It was the content suppliers that drove manufacturers to put a Netflix or an Amazon button on the channel controller and to ensure that they dominated the home screen.

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[Lord Parkinson of Whitley Bay (Con)]

As noble Lords have recognised, the provisions in Part 6 of the Bill are designed to secure the ongoing availability to listeners of UK radio services and will help to maintain the huge public value that radio provides as online listening continues to grow.

Turning first to Amendment 77 in the name of the noble Baroness, Lady Thornton, the Government fully recognise how important it is that radio continues to maintain its presence in the car. On the provisions in the Bill, I confirm that, where a radio selection service using an in-car device is voice-activated and connected to the internet, it will fall within the definition of a “radio selection service” for the purposes of Part 6. Indeed, that is further clarified by new Section 362BB(2), which ensures that the assessment of whether the use of a radio selection service is significant can take account of specific usages, including the level of radio listening via that platform that takes place in a vehicle. Therefore, should a selection service have significant usage among in-car listeners, it would be subject to potential designation under this part of the Bill.

However, it is correct that there are no requirements on car manufacturers more generally, as the measures are focused on designated platforms that provide a radio selection service. Amendment 77 would extend the definition of “radio selection service” to include services not connected to the internet but accessed via the in-car system provided by car manufacturers. We are not persuaded that it is necessary to extend specific regulatory protections further, given that the evolution of systems and their integration into cars is ongoing, and given the progress made by the radio industry in the UK and across Europe in securing partnerships with car manufacturers and platforms.

However, we recognise that ensuring continued access to radio in the car will be an important part of the review of the radio market in 2026—to which the Government committed in their response to the digital radio and audio review of April 2022—and we will continue to keep the matter under consideration. New Section 362BA also contains powers to amend the definition of a radio selection service, if needed in future, as listening habits change. While I thank the noble Baroness for the opportunity to set that all out, I hope she will be satisfied and willing to withdraw her amendment.

Turning to Amendment 78, tabled by the noble Viscount, Lord Colville of Culross, I agree with the sentiment that the definition of a radio selection service could change as technology evolves and listening habits change. New Section 362BA also contains powers to amend the definition of a radio selection service, if needed in future. That could include amending the definition to include different ways in which radio stations are selected if a clear need arises in future. As I mentioned earlier, in their response to the digital radio and audio review, the Government committed to a further review of the market in 2026, and the growth and direction of online listening will be an important part of that review. While I am happy to talk to the noble Viscount, if he wishes, I think he will have discerned our reservations about the need for what he proposes, and I hope he will be content to withdraw his amendment.

[Viscount Colville of Culross (CB)]

The Minister has not responded to my concern that there could be a stitch-up between the device manufacturers and the radio providers. Therefore, we should talk about whether there should be a “must offer” component in the Bill to ensure that the designated radio services actually offer their services. It is not just the device manufacturers that may need to be pushed, but, in a very competitive media world, the radio station providers.

[Lord Parkinson of Whitley Bay (Con)]

As I said in relation to the amendment tabled by the noble Baroness, Lady Thornton, we are heartened by the progress made by the radio industry in the UK and in Europe in securing partnerships with car manufacturers and platforms. We considered representations for a “must carry” provision, including from aggregators, but we concluded that it was not necessary and best left to commercial discussions between radio station platforms and aggregators. If the noble Viscount wishes to speak further about that, I am happy to do so.

The noble Lord, Lord Foster of Bath, tabled Amendments 79 and 80, on access to user data. While I appreciate the intention behind his amendments and the support from both the BBC and Radiocentre for them, the Government consider that it would not be appropriate to include such provisions in the Bill. This part of the Bill contains provisions to address issues specific to radio, such as securing the continued ability of BBC-licensed and Ofcom-licensed commercial and community stations to access their listeners via voice-activated connected audio devices. By contrast, the issues raised in the noble Lord’s amendment are common across a wide range of sectors. The Government have been taking forward broader work on competition, including in digital markets. For example, the Competition and Markets Authority will gain powers under the Digital Markets, Competition and Consumers Bill which could, in certain circumstances, be used to tackle the unfair use of data by the most powerful technology firms.

I hope the noble Lord will also be reassured by the protections that the provisions in new Sections 362BI(3) and 362BI(4) will afford. These measures will allow radio stations to nominate a preferred route for their service to be delivered to listeners, provided that that route is not unduly burdensome for the platform to deliver. As such, they provide scope for routes through which—subject to a listener’s consent; for example, through logging in—a broadcaster may be able to access valuable data, enabling them to improve their service. I hope the noble Lord will appreciate why we cannot agree to his Amendments 79 and 80.

I am grateful to the noble Lord, Lord Bassam of Brighton, for his Amendment 81, which seeks to extend provisions in Part 6 to cover a wider range of audio content that is accessible on connected devices by expressly including a power that would require Ministers to extend the provisions in Part 6 to online only and on-demand content. The amendment would require Ministers to bring forward secondary legislation within a specific timetable to broaden the scope of this legislation significantly, extending the regime to cover online radio and other audio content that is not currently regulated. This could include content that originated outside the UK and is available via the internet.

I have noted the points made about the need to future-proof the regime, and Part 6 includes a number of powers to enable the new regime to stay up to date to reflect market and listener behaviour. This includes the power to change the definition of a radio selection service. At the moment, the Government believe that there is no need for powers further to extend the scope to other on-demand audio content available online. That would significantly widen the scope of content covered and create additional uncertainty burdens on the platforms that might be designated without a clear reasoning or evidence that this was necessary on wider public value grounds. But the Government recognise that audio markets and listening habits will continue to evolve. That is why we have committed in our response to the Digital Radio and Audio Review to revisit in 2026 the issues raised in that review.

Media Bill

Viscount Colville of Culross Excerpts

Report stage & 3rd reading
Thursday 23rd May 2024 Lords Chamber

[Baroness Fraser of Craigmaddie (Con)]

My Lords, I support Amendments 1, 2 and 4 from the noble Baroness, Lady Bull, and will speak to Amendments 3, 5 and 6 in my name.

I thank the noble Lord, Lord McNally, and the noble Viscount, Lord Colville of Culross, for their support for my Amendment 6 and the Minister for our rushed discussions as we try to pull all this together. My amendment extends the same nations and regions quotas that apply to the BBC to Channel 4—the only other publicly owned public service broadcaster. It includes a two-year timeframe from the passage of the Bill for these quotas to apply.

In Committee the debate on the nations and regions production quotas attracted the largest number of speakers and support from around your Lordships’ House, for which I was very grateful. This amendment is supported by devolved Governments and industry bodies across Scotland, Wales and Northern Ireland. In Committee the Minister reassured us that he and his colleagues in DCMS had heard the strength of feeling on this issue from the sector, particularly in relation to Channel 4’s “out of England” quota, which is currently set at 9% of eligible programmes and expenditure. He noted that Channel 4 has said that it would support a managed increase in its programme-making commitments in the other home nations. He also offered a further meeting with Ofcom to discuss this in detail.

I am sorry that this will clearly be one of the casualties of wash-up, but I had hoped that this revised amendment, restricted to Channel 4 and giving it two years to enable a managed increase, might have found favour with all parties. If the Government are not minded to accept my amendment, I trust that Ofcom will take note of the strong feelings expressed that the current Channel 4 quota of 9% just will not wash.

I turn to Amendments 3 and 5, which were previously tabled in Committee by my noble friend Lord Dunlop, who cannot be here today and sends his apologies. The issue is that the responsibility for Gaelic broadcasting is split. The Gaelic Media Service, MG Alba, is established under UK legislation while Ofcom is the arbiter of whether there is sufficient Gaelic language broadcasting. The funding of the Gaelic Media Service was devolved in 1998 to Scottish Ministers, who have, for the past 10 years, frozen funding to MG Alba. The SNP is posing as great supporters of Gaelic and Gaelic broadcasting. However, as ever, the support is all for show. They are all talk and no action.

I have tabled modest amendments to the Bill that would make MG Alba a PSB for the limited purpose of guiding Ofcom in the discharge of its responsibility to assess whether there is, taken together in the round, sufficient broadcasting of minority languages. It would have to look specifically at the sufficiency of Gaelic broadcasting. If it was found that there was insufficient Gaelic broadcasting, the responsibility for responding to this would fall on the BBC—it is happy to accept that as it supports these amendments—MG Alba and, by extension, its funder, the Scottish Government.

These amendments are narrowly focused to be discrete and not upset the overall balance of the Bill. For example, they do not add any new responsibilities regarding prominence requirements. They would, as we head into an election campaign, be a powerful demonstration of a unionist government’s care for all parts of the UK, including its most peripheral in the Highlands and Islands.

Turning to the amendments tabled by the noble Baroness, Lady Bull, which I am pleased to support, the Minister accepted in Committee that we need to strike the right balance with a remit that gets to the heart of what it is to be a public service broadcaster. We must not dilute that. He also stated in Committee that he did not object to any of the specific genres mentioned in the revised Amendment 2, tabled by the noble Baroness. I hope he can accept that not having this in the Bill really would be a glaring omission.

I am grateful to the Minister for his engagement. I am sorry that we have not had the time to explore some of these issues further with him and his team at DCMS, but I support him in his efforts to see that this Bill passes. I thank him and all noble Lords from across the House who have been so supportive of my efforts to ensure that the nations and regions have the best possible Bill.

[Viscount Colville of Culross (CB)]

My Lords, I have put my name to Amendments 1 and 2 because it is essential that, in the first clause of this Bill, Parliament gives directed guidance to Ofcom on the content that it would hope to see created by our great broadcasters.

In Committee, the Minister said that the original list of genres and the Reithian mission statement gave “little guidance” to Ofcom on how to focus its assessment of what it is important for public service broadcasters to deliver. Amendment 1 gives a mission statement to provide content that informs and educates viewers. I hope this will ensure that the PSBs do not descend into providing only entertainment and not any information or education.

Amendment 2, which encourages broadcasters to stimulate science and the arts, among other things, is so very important. This is not a list of genres, which the Minister feared, but it does provide a metric for content against which Ofcom can measure the work of our broadcasters.

As other noble Lords have said, we are giving great privilege to broadcasters in this Bill, which I strongly welcome. However, with that must be a burden of responsibility to ensure that they should be distinctive and British. In a world dominated by streamers creating global entertainment, I hope that viewers in this country will be able in future to turn to our PSBs and find content that informs them about subjects that illuminate and bring context to their lives.

I, too, am grateful to the Minister for meeting me and my noble friend Lady Bull to discuss the changes to Clause 1. He was encouraging of the idea of extending the guidance for the public service remit, so I hope that he will support these important amendments.

I have also put my name to Amendment 6 to Clause 14 because I believe that Channel 4 is ready to increase its quota to the nations from the present 9%. The channel’s CEO, Alex Mahon, said as much in her speech to the creative industries last month. I hope that, in the present negotiations for the next licensing round of Channel 4, the Government will give guidance to the channel to increase its quota. It may not be as much as 16%, in line with the BBC, but it needs to be raised from the present 9%.

The television industry in the nations and many regions is collapsing from lack of work. Now is the time for action. I call on the Minister to accept this amendment.