Channel 4: Privatisation

Yvonne Fovargue Excerpts

Wednesday 21st July 2021 Westminster Hall

[John McDonnell (Hayes and Harlington) (Lab) [V]]

I am secretary of the National Union of Journalists parliamentary group, so naturally, when this issue came up again, I sought a meeting with those at the NUJ and talked with them about their views, and they consulted their members. I think we are all in the same position: we just cannot believe that this matter has come around yet again—especially those of us who were involved in the 2016 discussions, when we thought that the future of Channel 4 had been sensibly resolved. The privatisation seems to be a particular obsession of the Minister—it is almost as though he needs some counselling. It has become an addictive obsession that he has been pursuing since the 1990s, as others have said, and it is completely irrational.

From the trade union point of view, we look at the security of jobs and the economics of the organisation that we are negotiating with. When looking at the economic performance of Channel 4, I cannot for the life of me understand what the problem is for the Government. The latest figures show a record £74 million pre-tax surplus. As other hon. Members have said, including my hon. Friend the Member for Leeds North West (Alex Sobel), Channel 4 is now opening up offices around the country—hubs in Leeds, Glasgow and Bristol—and is doing exactly what the Government want by investing in the regions as part of the levelling-up strategy. Channel 4 is economically sound and completely in line with the Government’s policy direction.

Channel 4 provided 10,600 jobs across the UK in 2019, of which 3,000 were jobs supported by Channel 4 in the nations and regions. As the hon. Member for Warrington South (Andy Carter) set out, it is working with private sector producers to bring forward talent on an eminent scale. It has done so successfully, and has been well rewarded by the various independent bodies that adjudicate on these matters.

It is very difficult to understand the rationale for the Government’s pursuit of this privatisation. Others have given their views about the range of attitudes. The Father of the House has demonstrated yet again his wide-ranging experience of what has been going on over decades. The right hon. Member for Sutton Coldfield (Mr Mitchell), in a very balanced way, indicated the concerns that he and many others in the Conservative party have. Paul Siegert, the NUJ’s national broadcasting organiser, gave a true reflection of its members’ views in saying:

“It’s hard to see any justification for privatising Channel Four other than ideology. Channel 4 has achieved what it was asked to do and has proved a hit with viewers.”

If it is not broken, why are the Government proposing the fix of privatisation? Four years ago—I remember this, because I was there—the Government said that Channel 4 would continue to be owned by the public. In our view, they should honour that promise. I hope they see sense. I have to say that the consultation that is going on, particularly over the summer period, flies against all the rules of consultations.

Let me ask one final question of the Minister. At the moment, the Government are being advised by a panel they set up on the future of public service broadcasting. The panel does not publish its minutes and is not meeting in public. Why is that happening? Why is it not more open and transparent? Why can the Minister not explain the role of the panel, and indeed its composition? That generates concerns that there is more to this than any rational thought about the future of broadcasting. It is more about ideology, and maybe an element of political spite.

[Yvonne Fovargue (in the Chair)]

I remind Members that I will be calling the SNP spokesperson at 10.28 am.

--- Later in debate ---

[John Nicolson (Ochil and South Perthshire) (SNP) [V]]

Here we go again. Only four years ago, in what turned out to be the Government and Channel 4’s phoney war, the privatising zealots were licking their lips at the thought of a corporate takeover at Channel 4, a much-loved public service broadcaster. After all, bus, water and rail privatisations under the Tories had been such resounding successes, so why not turn to yet another institution about which they knew absolutely nothing? In the end, the privatising zealots backed off. Why? The then Secretary of State told us at the time that Channel 4 works, that it delivers on its remit and that privatising it would involve too much grief for too little financial return.

In the intervening years, nothing has changed—well, apart from an 80-seat Tory majority and an enhanced desire to clip the wings of a pesky station with a news outlet that No. 10 fears for its independence and high journalistic standards. The thing is that Channel 4 does work. The Conservatives are fond of reminding us that they set it up. They did, and it delivers on the remit that it was given.

On diversity in programming and staffing, Channel 4 has been a trailblazer for women, black and minority ethnic people, and lesbian, gay, bisexual and transgender people, as well as people living with disabilities. According to Ofcom, Channel 4 employs a greater proportion of women than any other public service broadcaster. The same is true of staff with disabilities. In 2019, Channel 4 also committed to doubling its target for employing staff with disabilities from 6% to 12%. According to last year’s Ofcom report, more than 10% of staff at Channel 4 were living with disabilities. Channel 4 News has a higher proportion of black, Asian and minority ethnic viewers than any other public broadcaster in the UK.

Channel 4’s commitment to diversity stems from its statutory remit to appeal to culturally diverse groups, to offer alternative perspectives and to nurture new talent. That is underpinned by Channel 4’s unique not-for-profit model. It is lamentable, therefore, that only months after we discovered that the BBC has so far spent over £1 million in legal fees fighting equal pay cases, the UK Government are now seeking to put one of our best and most diverse public service broadcasters at risk through a threatened, albeit sleekitly planned, privatisation.

I came out as gay—the first BBC network TV presenter to do so—when I was presenting BBC Breakfast on BBC 1. My bosses were furious, and my BBC Breakfast presenting gig was soon over. By contrast, over at Channel 4, the company was blazing a different, more inclusive trail. In February 1999, the first episode of the award-winning series “Queer as Folk” aired. Written by Russell T. Davies, the series chronicles the lives of three gay characters living in Manchester, and it marked a significant watershed moment for LGBT programming across these islands. For the first time, young gay men had people like themselves portrayed proudly onscreen. Fast forward to 2021, and both Channel 4 and Russell T. were breaking new ground again with the incredible “It’s a Sin”, which powerfully depicted the human impact of the HIV/Aids epidemic. What is more, the show has been credited with an upsurge in HIV testing, taking the channel’s public service obligations to a whole new level.

In news and current affairs, Channel 4 has also been trailblazing, with outstanding, high-quality factual output, in particular “Channel 4 News” and “Unreported World”. In an age of festering misinformation and disinformation and plummeting trust in the media, impartial and accurate public service broadcasting has never been so important. Public service broadcasters such as Channel 4 have been lifelines during the pandemic, providing coverage of daily briefings from leaders in all our nations across the UK. Huge efforts have been made to ensure that expert voices are featured and truthful information provided, in accordance with the public service broadcasting ethos.

As the vaccine is rolled out, Channel 4 coverage could not be more appreciated. In a world where anyone can spread disinformation and misinformation about covid, it is vital that we bolster the presence of our public service broadcasters on TV and online as a means of combating it.

The privatisation of Channel 4 would almost inevitably mean cuts. No privatised company would fund “Unreported World” or the Channel 4 daily news programme at its current length. Of course, that is perhaps what the Government want. A privatised Channel 4 would bring more commercially lucrative entertainment output. It might mean editorial lines being subjected to the whims of advertising and profit. We cannot afford to lose a second of factual programming in the dangerous times in which we live.

The Government have presented no serious case for the privatisation of Channel 4. If they press ahead, privatisation would see profit put first. It would mean slashing the half a billion pounds which go annually to independent production companies. There would also be a centralisation of Channel 4’s headquarters—the very antithesis of levelling up. Perhaps most concerning of all, we would likely see cuts to Channel 4’s hard-hitting news and current affairs programming, which effectively hold this Government to account. I suspect that is why the UK Government are so passionate about the prospect of privatisation. With record profits recorded last year and not a single penny taken from the taxpayer, it is certainly not to satisfy any public demand to tinker with—or attack—this much-loved public institution.

We all know what this is about for the Government. It is revenge—payback time, as the hon. Member for Solihull (Julian Knight), the Conservative Chair of the DCMS Committee has suggested. Channel 4 is all the things it is meant to be: innovative, inclusive, and, above all else, independent. The Secretary of State wants it brought under control. It is time for us as MPs to defend independent programme-making and journalism.

[Yvonne Fovargue (in the Chair)]

I confirm that we can go on until 11 am if necessary for this debate.