BBC Mid-term Charter Review
Debate between Damian Green and John Nicolson(3 weeks, 2 days ago)
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Damian Green
I do not disagree at all. There is an interesting point about statistical analysis as opposed to other qualitative, perhaps more fuzzy analysis of the BBC’s output and performance. There is clearly a case for both.
I congratulate my hon. Friend on the timeliness of the debate, because although our Benches are slightly denuded today, the country’s attention will be on the BBC over the next few days, particularly on Saturday night when there are two new episodes of “Doctor Who” followed by Eurovision on BBC1. I can tell hon. Members where the nation will be on Saturday night: watching the BBC. It is the only institution that can do that. Even in the completely different media world in which we now operate and that we all enjoy, there are times when the nation comes together, and that will be one of them. This is the second debate in a row where I quote a former tourism Minister who said that his experience of what attracted people around the world to this country were three institutions that they held in the highest regard: the royal family, the premier league and the BBC. We put them in peril at our own peril.
As Members, we all inevitably have a skewed perspective, because we concentrate on news and current affairs. Like everyone else here, I share many of the irritations and frustrations. I sometimes shout at the TV and the radio when I am at home, and I sometimes want to shout at the interviewer when I am on TV or radio. The BBC must get its news coverage right as part of its core mission. On that, the mid-term charter review is clear: it finds that there is clear evidence that adherence to impartiality and editorial standards is now at the heart of the BBC’s priorities, and so it should be.
The hon. Member for Ellesmere Port and Neston (Justin Madders) gave the impression that the BBC was a dying institution, with fewer and fewer people watching it or listening to it. However, eight out of 10 adults in this country on average consume BBC news every week. That is double the figure for the next nearest provider. At the same time—this is directly relevant to the mid-term charter review—the BBC is overwhelmingly the UK’s most trusted source of news. Some 45% of UK adults say they would turn first to the BBC. In second place, on 6%, are ITV or Sky. Regardless of the political views of the individual, BBC news is more trusted by people in the UK than any other institution. Interestingly, it is also the most trusted news brand in the US. At a time when the challenge to democracy and the capacity to have balanced debate is under threat as never before, that is really important. This House should acknowledge, for all our frustrations and irritations, that we are lucky in this country to have an institution that has that reach and that level of trust, and that we should therefore seek to preserve and enhance it.
I contrast the situation with news and debate here with that in the United States, where people increasingly get their news from a channel that reflects the views they already have. There are right-wing news channels and left-wing news channels in the United States. Therefore, its political debate is polarised and increasingly toxic. Anything we can do in this country to avoid going down that track seems to me to be very worth while. It is an essential part of public service broadcasting, and public service broadcasting by and large works.
We have talked about the changing landscape and the arrival of the streamers. The question is often asked: who needs the BBC when we have Netflix, Prime, Disney, Apple and Paramount? It is a good question, and the answer is: anyone who cares about having a distinctive British voice in media, drama, comedy and all the things that people want to watch. The thing that unites all the streaming services I mention is that they come from the United States. Sometimes they make programmes in Britain—we welcome them here to keep our media industry thriving—but nevertheless, in the end, they are not going to reflect the voice of people in this country, and in particular people in the parts of this country that are furthest away from London. Therefore, having a broadcaster whose basic role is to do that seems to me to be very important.
The BBC contributes £4.9 billion to the UK economy each year, with 50% of the gross value added generated outside London, and supports about 50,000 jobs around the country, again operating largely outside London. We know that the creative economy is one of our strongest economic sectors, and we know that the BBC is the largest single investor in original UK content. Knowing those facts seems to me, again, to reinforce the argument that, for all of the reviews and investigations that need to be conducted, on the whole the BBC is a force for good.
Another criticism, which must be taken head-on, concerns over-expansion. Has the BBC tried to provide services that could be provided by private operators or by the market, and in doing so has it tried to make itself too all-embracing in the British media landscape? I think that is a permanent discussion that is well worth having. It is important to ensure that the BBC is only doing things that would not be done otherwise, or doing things better and in a way that others would not do.
My hon. Friend the Member for Stone was very critical of Ofcom. I am sometimes critical of it myself, although less so than he is. Nevertheless, it is absolutely right to identify Ofcom, in the era of regulation that we have entered, as a crucial element of ensuring that the BBC sticks to doing what it needs to be doing. If there are signs that Ofcom is not doing that job effectively, this House—perhaps through the Culture, Media and Sport Committee—will play an important role in ensuring that the BBC stays on the right track.
The overall context of this is, of course, the funding settlement for the licence fee, which has lasted for more than a century now and is increasingly under threat. We know about the short-term pressures; for reasons good or bad, the Government have not kept the licence fee in line with inflation levels over the past few years, and the BBC has therefore suffered painful rounds of cuts that have affected services that many of us value hugely, such as local radio. That is an important enough debate, which we have had in the Chamber previously, but an even more important debate is this: how long can a licence fee settlement continue?
I can reveal that the licence fee has survived for at least 30 years longer than some expected. I did some work on the 1990s licence fee and charter review, and in those days the much maligned—and unfairly so—John Birt was saying that he thought that it might be the last licence fee settlement, because he could see what was going to happen with the internet and new modes of delivery such as video and, at that time, just text. He thought that those would ultimately render the licence fee untenable.
Having sat through those debates in the 1990s, I find it fascinating that we are sitting here, 30 years later, still debating the same issues, and that by and large the people of this country are happy to pay the licence fee, although I agree that an increasing number are not doing so. Given what we get for it, it is still relatively cheap in comparison with the amount that many of us will spend on streaming services. It has survived longer than we expected, but in an age of declining linear viewing, whether it can continue is genuinely a key question. To those who wish to trot through the options, I can only commend the report that the Culture, Media and Sport Committee published a few years ago.
Damian Green
I am grateful for that vocal support from the Opposition Benches.
Having run through the options, the Committee concluded that, as things stand, technically it would be quite difficult to find a better way of doing this. We all know what the imperfections are, but there may not be anything better at the moment. The key principle, it seems to me, is that because everyone in the country has some stake in this, perhaps a financial stake—everyone is, in some way, buying BBC services—everyone is entitled to some education, information or entertainment in return. It is that striving to provide a universal service that keeps the BBC honest, and keeps it doing the things that only it does. If we take away that obligation, we may have a successful programme maker, but we would not keep the BBC doing the things it has done successfully for more than a century.
I often feel that the licence fee settlement works in practice but does not work at all in theory. Nevertheless, anything that might be theoretically better might actually be worse in practice, so I do not envy the Ministers who have to grapple with this matter. It is a genuinely difficult and hugely important issue to which there is no obvious answer.
I hope that the House agrees that the UK has a hugely valuable asset in the BBC and that, regardless of whatever changes need to happen, we need to preserve and enhance its ability to make a significant and positive contribution to our national life. That should be the test that Parliament sets itself when it considers the future of the BBC.