UK Journalism (Communications and Digital Committee Report)

Viscount Colville of Culross Excerpts

Wednesday 13th October 2021 Grand Committee

[Viscount Colville of Culross (CB)]

I declare an interest as a freelance TV series producer developing content for Netflix and the Smithsonian Channel.

I add my thanks to the noble Lord, Lord Gilbert, for his able chairing of the Communications and Digital Select Committee, on which I, too, have the honour to serve. This afternoon I will concentrate my remarks on the recommendations in this report to make the media financially sustainable and to support freelancers, who are the backbone of the creative industries and the media.

We heard during the inquiry about the financial pressures on so many media businesses as they face an onslaught on their revenue from tech giants. As the noble Lord, Lord Gilbert, said, the committee has reported on the huge concerns that these companies are using their monopoly control of the digital advertising supply chain to drain the lifeblood from media companies. I am pleased that the DMU has been set up to confront this digital ad monopoly and I, too, urge the Minister urgently to introduce legislation to ensure that it is given statutory powers.

Likewise, media revenues are suffering from underpayment or lack of payment for the use of their news content on tech platforms. The Government’s response is that a code of conduct is being introduced. I urge the Minister to go much further and look at introducing a bargaining code. It must be fair to media companies both large and small, but, if our journalism is to be financially sustainable, it needs to be able to rely on an income stream for the use of its news content by the tech giants.

I also want to use this debate to draw attention to the plight of the people who supply the content: the journalists. They are the ones suffering as the media battles to reverse the downturn in its fortunes. Staff jobs have been cut to be replaced by freelancers. According to the ONS, the number of freelance journalists has doubled in the 10 years to 2019, and during the last two years that trend has accelerated as staff jobs have continued to be cut. Media companies such as the BBC and HuffPost have replaced employees with freelancers, while smaller companies now rely almost entirely on freelancers for copy.

However, not only are the rates for freelance copy falling like a stone, but freelancers are suffering from late payment, payment on publication and unfair kill fees. Freelancers have always suffered from kill fees when their content is not used. Sometimes this is because it is not of good enough quality, but often it is because the news cycle has moved on since the article was commissioned and it is no longer needed. As a result, the journalist can receive as little as 20% of the original fee negotiated.

An increasing problem, especially in the last few years, is the late payment of fees. I spoke to one journalist who had been commissioned to write a series of articles for a medium-sized media company. The 30-days payment on their invoice was repeatedly missed. Each time the journalist called the company, they were told that it was being dealt with by the financial department and that the delay was just a logistical difficulty. After many hours of calls and emails, most of the payments were six months late and some were even nine months late. In desperation, the NUJ took the company to court for breach of contract on the freelancer’s behalf. As a result, they were paid but knew that they would never receive another commission. This story is very familiar to freelancers, especially those working for medium-sized media and small online companies.

When this issue was raised in the report, the Government’s response was that they should not interfere in contract law and that freelancers should negotiate protection for themselves. However, that is to ignore the massive imbalance between the companies and the sole-trader freelancers. It is David against Goliath. In the uncertain world of freelancing, all people have is their reputation, and once that is stained by an attempt to renegotiate a contract or a legal case to reclaim fees, they are tarred as “troublemakers” and work dries up pretty quickly. The report recommends that the Government should consult on legislation strengthening the rights of freelancers, and that the Small Business Commissioner should receive extra powers to address the growing problem of these unfair payment practices.

The Government’s response has been a welcome consultation to look at the new powers for the Small Business Commissioner. I have spoken to the dynamic new holder of the post, Liz Barclay, who has been in situ for 100 days, but who reckons it will take three or four years for legislation to be enacted and these powers to take effect. In the meantime, she is campaigning to make late payers aware of the havoc they are creating. Currently, the Commission can deal only with businesses employing more than 50 people. In an industry with decreasing numbers of employees and increasing numbers of freelancers, this criterion needs to change so that much smaller companies come within her scope. I ask the new Minister to take this very seriously and pass on these concerns to his colleagues in BEIS. Give the Small Business Commissioner the powers to campaign against all bad payers and tilt the balance towards the Davids and away from the Goliaths.

At a time when we have heard so much about supporting the British worker, in the face of skills shortages it appears that, instead of getting higher pay, many of these British workers are struggling to make a living. Action needs to be taken now. Every day, British media companies are reducing news content and failing to cover council meetings and courts and to disseminate vital information to keep citizens informed so that they can play their part in our democracy. I urge the Minister to take these issues seriously and deal with them urgently.