Media Bill

Lord Parkinson of Whitley Bay Excerpts

2nd reading
Wednesday 28th February 2024 Lords Chamber

Moved by

[Lord Parkinson of Whitley Bay]

That the Bill be now read a second time.

[The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, it is a great pleasure to move the Second Reading of this Bill. I do so at a time when the UK’s media landscape faces enormous technological change, but in the face of which I am proud to say it is thriving. British-made programmes are watched and enjoyed by audiences at home and across the globe. Our public service broadcasters not only produce fantastic shows which keep audiences glued to their screens but inform and educate them, and project British values and the best of British creativity around the world.

Similarly, our radio environment is exceptionally rich and diverse—there is a radio station for everyone. UK radio stations provide an incredible service, again not just entertaining their listeners but disseminating local news and information throughout the country. That is something that we want to value and protect.

We should also celebrate the thousands of excellent and exciting job opportunities that the sector creates across the United Kingdom, and the billions of pounds that it adds to the economy. This is a pro-growth Bill. It will not only enable people to continue to watch and listen to the content that they love but help to grow our world-leading creative industries and maintain their status as world leaders.

It has been more than 20 years since the last major piece of broadcasting legislation reached the statute book. The world has changed significantly since then, as have the ways in which we consume media. The growth of the streaming giants, smart televisions and online radio has completely changed consumers’ demand and expectations. Our world-renowned media industry has embraced the challenge, adapting rapidly not just to survive but to thrive.

His Majesty’s Government have heard the passionate support for the Bill from the industry and from Members of both Houses of Parliament. I am delighted that it is now before your Lordships’ House, and I look forward to working with noble Lords from across the House to ensure that it delivers for our brilliant media sector and for viewers and listeners.

The Government are grateful to the Culture, Media and Sport Select Committee in another place for its thorough examination of the Bill during pre-legislative scrutiny last year. We were pleased to accept the majority of the recommendations set out in the committee’s two reports; there is no doubt that those have improved the Bill before us. I also thank the Communications and Digital Committee of your Lordships’ House—under the expert chairmanship of my noble friend Lady Stowell of Beeston and, before her, of my noble friend Lord Gilbert of Panteg—for the work that it has carried out on the many areas relating to the Bill. Its reports on public service broadcasting and on the future of journalism and, most recently, its inquiry into the future of news have helped to shape the Bill and the Government’s wider work in this area.

The Bill has also benefited from extensive engagement with industry and with Members of both Houses. We have heard from public service broadcasters, commercial broadcasters, the radio and news media, radio and television selection services, on-demand streaming platforms and Ofcom throughout the drafting of the Bill, in its pre-legislative scrutiny and during its passage through another place. Together, that has helped to produce a Bill that incorporates their views and addresses their challenges, and one which we hope will work for everyone. We are very grateful for the time and effort that everyone has gone to while working with us on the Bill.

I thank Ofcom for the work that it has undertaken to get the Bill to this stage. Its research in this area and its close work in supporting the drafting of the Bill have been invaluable. It has already made clear its plans for implementation in the materials that it published earlier this week. The Government look forward to continuing to work with Ofcom on the remaining stages of the Bill and on the implementation of its provisions.

I turn to what the legislation does. The Bill supports our public service broadcasters to ensure that they are able to provide high-quality content to United Kingdom audiences for years to come. As it stands, our public service broadcasters are governed by laws written more than two decades ago. Part 1 of the Bill seeks to modernise the framework for public service television. This will ensure that our public service broadcasters are encouraged to focus on what makes them distinctive, while having the flexibility to serve audiences across the UK with high-quality programmes on a wider range of services.

Many noble Lords, like countless people beyond your Lordships’ House, are passionate sports fans. We want to make sure that fans are able to continue to watch the biggest sporting events that this country has to offer. That is why we are modernising the listed events regime to protect viewers’ access to the major sporting events that define our nation. We are extending the protections that the regime offers for live listed events coverage in line with where audiences choose to watch it. TV-like services providing live content to audiences in the UK via the internet will now need to comply with our rules. We are also making qualification a public service broadcaster benefit, recognising the role that these broadcasters play in delivering national sporting moments, and providing certainty in the future.

Part 2 of the Bill deals with prominence. We know that audiences value public service content. We want to make sure that it is always available and easily accessible for them. As is the case in linear broadcasting, the Bill ensures that public service content is made available and easy to find on modern platforms such as smart televisions, set-top boxes and streaming sticks. Not only will that improve the audience experience but it is a vital reform for the sustainability of our public service broadcasters.

Part 3 contains measures specifically designed to support the sustainability of Channel 4. The Government are clear in our intent to support Channel 4 in continuing to make ground-breaking, unique and distinctively British content for years to come. Some of the means to do that can be found in the Bill, such as the measures to strengthen the broadcaster’s governance arrangements and allowing it to make more of its own programmes. Others can be found in the memorandum of understanding undertaken between the Government and Channel 4 when the Bill was introduced in another place on 8 November last year.

The Government have also worked closely with Sianel Pedwar Cymru—S4C—to make sure that it has the tools it needs to continue to provide Welsh language content. I am pleased to say that the Bill will implement in statute recommendations from Euryn Ogwen Williams’s 2018 independent review into the future of the broadcaster. This includes allowing S4C to broaden its reach and offer its contents on new platforms across the United Kingdom and beyond, and updating its public service remit to include digital and online services. S4C will be able more easily to adapt to market change, maximising the benefits to its audiences, and to continue to deliver high-quality content.

The ways in which we watch television have changed a great deal in recent decades. Watching several episodes of “Coronation Street” back to back was once possible only during an omnibus on Sunday afternoons; now people can do it with a few clicks on ITVX, any day of the week and any time they choose. The growth of video on demand services has been extraordinary, but we know that audiences would like to see these services held to the same standards that are required of normal television services. That is why we are introducing a new video on demand code, drafted by Ofcom, by which the streaming giants will be required to abide. Noble Lords will, I know, be pleased to hear that this code will better protect children and uphold the standards that we see on our linear services. In addition, Ofcom will have a new duty to review and ensure that all on-demand services’ audience protection measures are effective and fit for purpose. We are also making sure that streamers provide greater access to their programmes by increasing the amount of subtitled, audio-described and signed content available on their services.

Turning to the radio industry, I am sure that noble Lords will welcome the provisions for radio in Part 5 of the Bill. These seek to boost the growth of our fantastic radio industry by reducing regulatory burdens and costs on commercial radio stations, and supporting investment by broadcasters in content and the long-term sustainability of the sector, while also strengthening protections for the provision of local news and information. As with television, we have seen a shift in how people enjoy the radio. While traditional broadcast methods remain popular, recent years have seen rapid growth in listening via devices such as smart speakers, too. The Government want to encourage innovation in the growth of new technology, but we also recognise the need for protections for radio and the huge public value that it provides, as noble Lords have often raised in our exchanges in this House. Again, we are grateful to the radio industry and to technology companies for their engagement on these measures.

Finally, in Part 7, and fulfilling a manifesto commitment, the Bill will remove a threat to the freedom of the press by repealing Section 40 of the Crime and Courts Act 2013. That section has not been commenced; if it were, it could force publishers to pay the legal costs of people who sue them, even if they win. Members of your Lordships’ House, along with Members of another place, have taken a strong interest in the practices and culture of our free press over recent years. There now exists a strengthened, independent self-regulatory system for the press. But, as the manifesto on which the Government were elected makes clear, we will make sure that the heavy-handed measures of Section 40 are not able to stifle the independence or threaten the sustainability of the British press.

I am mindful that my noble friend Lord Forsyth of Drumlean has tabled a regret amendment to the Second Reading. I will listen to his reasons for doing so when he rises shortly. Let me pre-empt his comments, if I may, by assuring him that the Government take this issue seriously.

Under the Enterprise Act 2002, the Secretary of State has powers to intervene in media mergers on certain public interest grounds, including where there are concerns about media freedom and freedom of expression. The Government also already have tough powers, including through the National Security and Investment Act 2021, to address foreign interference and to scrutinise—and, if necessary, intervene in— acquisitions on grounds of national security. The Bill before us has only one clause pertaining to the press: the repeal of Section 40, which I have just mentioned. It is concerned with the removal of burdensome obligations on news media outlets and not press ownership, which is beyond the scope of the Bill. As my noble friend will be aware, there are ongoing discussions and amendments to the Digital Markets, Competition and Consumers Bill on this issue.

I am grateful to noble Lords for their involvement in and support for the Bill as it has made its way to your Lordships’ House. I look forward to the debates ahead and the scrutiny that we will give it, and I beg to move.

--- Later in debate ---

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I am grateful for the widespread support that has been expressed for the Bill from across your Lordships’ House, and the recognition of the important difference that it will make for our much-valued broadcasters and media organisations. I reassure noble Lords that I do indeed get it, and I share the warm appreciation that they have expressed for our public service broadcasters.

In fact, my very first paid employment, at the tender age of 14, was playing the part of a French ghost named Guillaume, in a children’s television programme which was broadcast on ITV on Halloween in 1997. As well as getting to film that in a château outside Dijon, I was paid £400, a princely sum for a 14 year- old, which I used to buy a television set of my own, for my room. That was the TV set on which, two years later, I watched the seminal Channel 4 drama “Queer as Folk”, the 25th anniversary of which we mark this year, and its ground-breaking importance is still keenly appreciated by so many people.

I share the strong sentiments that noble Lords have expressed about the importance of public service broadcasters, the programmes they produce and the fulfilling jobs they support and sustain. I am grateful to noble Lords for their enthusiasm for the Bill and look forward to working with them in the many areas in which they have set out their interests.

A number of noble Lords, including the noble Baronesses, Lady Kidron and Lady Foster, the right reverend Prelate the Bishop of Leeds, the noble Lord, Lord Hall of Birkenhead, focused on the changes to remit and the question of genres. I reassure noble Lords that the Government recognise the importance of a diverse media sector in the UK, where audiences can select from a wide range of programmes, according to their own tastes and interests, and indeed to have those tastes and interests expanded. Our public service broadcasters have an important and distinctive role to play in helping to achieve that. To ensure that the regulatory framework supports these outcomes, the Bill replaces the 14 overlapping purposes and objectives to which public service broadcasters must contribute with a new, modernised remit. It is intended to provide a much clearer sense of our public service broadcasters’ distinctive role in the sector.

At the same time, it has always been our intention that the revised public service broadcasting framework, including the new remit, should retain the requirement on our public service broadcasters to produce a wide range of programmes. The Government have listened to the views expressed by the Culture, Media and Sport Committee in another place; in particular, the committee’s concerns that the remit is not clear enough on this point. As a result, as the noble Viscount, Lord Colville, noted, we have added an explicit requirement that our public service broadcasters should, together, continue to make a range of genres available.

Ofcom will continue to collect and publish data on the prevalence of different genres; we have retained the current requirement under Section 358 of the Communications Act, which, among other things, requires Ofcom to report annually on the availability of principal genres on television and radio services. At present, Ofcom fulfils this duty in its annual communications and markets report, which last year reported on 15 key genres including religion and belief, arts and classical music, and educational content. We expect this reporting to be retained.

Moreover, should Ofcom identify a problem with the spread of genres, including in relation to religious programming—which a number of noble Lords mentioned —then the Bill allows for the remit to be updated, and indeed for the creation of additional quotas for underserved content areas. I am happy to reassure the noble Baroness, Lady Kidron, that the House does indeed have my ear on this, and I hope that she and others will recognise from the changes that we have already made to the Bill in this area that it also has the ears of my ministerial colleagues.

I agree that the noble Baroness, Lady Benjamin, made a powerful speech about the importance of children’s television, and I strongly agree on the importance of ensuring that our children continue to have access to the public service content, indeed as does my colleague Julia Lopez, the Minister in another place. She spoke passionately there about the profound and positive impact that high-quality, original British programming can have. As the noble Baroness noted, children now have access to an endless library of global content at their fingertips. While there is some great programming out there for them to access, a lot of it can be generic and lack substance. That is why the Bill includes specific measures to ensure that original British children’s programming, which reflects the world around children here in the UK, remains front and centre of the public service remit.

A number of noble Lords rightly focused on the provisions and the benefits in the Bill for Scotland and the Scottish broadcasting sector and creative economy. The Government are clear about the incredibly valuable contribution that the Gaelic media service MG Alba makes across Scotland and the rest of the UK. Its partnership with the BBC is particularly significant for Gaelic language broadcasting. I assure noble Lords, including the right reverend Prelate the Bishop of Newcastle, the noble Lord, Lord Stevenson of Balmacara, the noble Baroness, Lady Bull, and my noble friends Lord Dunlop and Lady Fraser of Craigmaddie, that the ongoing provision of Gaelic broadcasting and the future of MG Alba will be key considerations as we take forward the BBC funding review and the forthcoming charter review concluding in 2027. The right time to consider these issues is during the review of the royal charter, given the closeness of the link between the BBC and MG Alba. We will provide further details in due course on our timeline for that important review. The Government certainly—

[Lord Stevenson of Balmacara (Lab)]

I am sorry to interrupt the noble Lord. He is making a very important point, and we respect the way it has been expressed, but is it not also the case that the negotiations between the Government and the BBC are limited to those two participants, and therefore the role for Parliament is not clear? Could he perhaps explain what contribution we could make as Parliament?

[Lord Parkinson of Whitley Bay (Con)]

Through debates such as the one we have had today, and through Questions, which I am always happy to answer from this Dispatch Box on behalf of His Majesty’s Government to set out our thinking. As I say, once we have set out more details on the timetable for that review, I am happy to provide updates to the House on the Government’s thinking as we take those discussions forward.

I and the Government certainly agree with noble Lords on the importance of Gaelic language broadcasting. The Bill will help to ensure that audiences are able to access content in languages other than English, as well as content which is so culturally important to people across the UK, for decades to come, by including it in the new public service remit for television for the first time.

Not wanting the noble Lord, Lord Wigley, to feel outgunned—and I point to my noble friend Lord Harlech on the Government Front Bench for this Bill—I also highlight that the Media Bill will implement legislative reforms following the independent review of S4C, which took place in 2018, to reform S4C’s remit, governance structures, commercial powers and audit arrangements. It also provides for changes to the statutory content arrangements set out between the BBC and S4C, to add greater flexibility. These changes will help to deliver the Government’s manifesto commitments to support Welsh institutions such as S4C and to support the Welsh Government’s ambition for a million people in Wales to be able to speak Welsh by 2050.

A number of noble Lords focused on the issue of “significant” or “appropriate” prominence, which was extensively debated in another place. One point that has been lost in the debate so far is that the test under the existing linear prominence regime is already one of appropriateness and not significance. The overwhelming evidence that we have received is that that test has worked well, so I suggest that the question is not why “appropriate” is better than “significant” but why the Bill should move away from terminology that is widely understood and has delivered for audiences.

The Government agree on the importance of ensuring that public service content is prominent and easily accessible on major TV platforms. As is already the case in the linear sphere, public service broadcasters’ applications, and the content they provide, should be among the most prominent on the platform, whether that is on the home page, in search results or through the recommendations, such as those that currently confound the noble Baroness, Lady Thornton.

In addition to that core aim of securing prominence for public service broadcasters’ services and content online, the regime must also be operable and proportionate to allow for innovation and consumer choice. For example, it must account for the differing requirements of audiences in different parts of the UK. While it remains important that designated STV services receive prominence in Scotland and designated S4C services are prominent in Wales, it would not, for instance, be appropriate to require those services to be given the same degree of prominence outside Scotland and Wales.

As the Government set out in our response to the Culture, Media and Sport Select Committee’s final report on the Bill, we have looked carefully at whether requiring “significant” prominence would be preferable to requiring “appropriate” prominence, and we concluded that the descriptor “significant” would not be sufficiently flexible or operable. For instance, it would not address the question of regional prominence that I have just outlined. As any visitors to their local department store can attest, there is now a huge range of potential user interfaces and routes to content available from modern televisions. As a result, there can be no one-size-fits-all approach to delivering prominence, and we believe that “appropriate” prominence—as determined by Ofcom in its code of practice, and with flexibility built in—is fundamentally the right choice.

The noble Lord, Lord Bassam of Brighton, asked whether we would the keep the list of regulated television selection services under review, and I am very happy to say that we will indeed do so.

The noble Lord also asked about how the Government intend to measure the sustainability of Channel 4. As part of the reform package agreed with Channel 4 last year, both it and the Government agreed to updates to the financial reporting information that Channel 4 provides to my department and UK Government Investments, the Government’s corporate finance specialists, on a quarterly basis. While there is no perfect way to measure an organisation’s sustainability, that information will help to support our work in considering how best to enable Channel 4 to remain at the centre of British broadcasting for many years to come.

Although I agree with the noble Lord, Lord Inglewood, that there is more to life than sport, I am also grateful to the noble Baroness, Lady Grey-Thompson, my noble friend Lord Holmes of Richmond, the noble Lord, Lord Addington, and others for underlining its importance to very many viewers across the country. I assure the noble Baroness that there is no intention to weaken the public service broadcasters’ hand in negotiations; rather, we will ensure that partnerships between them and commercial broadcasters can function effectively to deliver the best outcomes for audiences and rights holders. Ofcom will have the ability to bring forward regulations, including on adequacy. We recognise that it is vital that broadcasters maintain complete editorial control of live broadcasts when they enter into partnerships, so that they have the freedom to make decisions about what events to screen for the British public.

My noble friend Lord Holmes touched on digital rights for listed events. Legislating to include digital rights is a very complex issue; not only is it technical in nature but a balance needs to be struck between securing the right access for audiences and the commercial freedoms that allow rights holders to reinvest in sport at all levels. The Government believe that it would be more appropriate to evaluate that issue through the digital rights review before considering any potential legislation that would enact any particular conclusion. I hope that he and other noble Lords will be reassured that the issue remains under careful consideration; I am sure that we will debate it in Committee.

[Baroness Thornton (Lab)]

Why do we need to wait for that review? It seems that we know enough about this and what the problems are, so why not deal with it now? We cannot wait for another 10 years, or however long it takes.

[Lord Parkinson of Whitley Bay (Con)]

We have set up the review because there are important questions to consider, and it is worth considering them properly. As I say, there is a complexity here in striking the right balance. The review is looking into that and more, and from it may flow some suggestions for necessary changes in the law. It is right that we complete the review and look at that picture in the round. As I say, I am sure we will touch on this in Committee, and there are emerging areas which noble Lords will want to press, but we think it is right to complete the review, which is a logical consequence of setting it up.

The Government are also keen to ensure that sporting events are made available for the public as widely as possible. That is why we have the listed events regime. We acknowledge the interest that fans have in watching our sporting teams compete. It is important, again, that that regime continues to strike the right balance between accessibility and the ability of sporting organisations to generate revenues, so that they can invest in sports at all levels. We believe that the current list of events works well to deliver the right outcome and that it strikes an appropriate balance, so we have no plans to review the list at this time.

My noble friend Lord Bethell spoke about the importance of age ratings for television content, and we are in complete agreement on the need to protect children and other vulnerable audiences from harmful and inappropriate video-on-demand content to which they might be exposed. As people move to a digital world, so must our regulation change. That is why, for the first time, we are bringing mainstream TV-like on-demand services in scope of the new video-on-demand code. That will be drafted and enforced by Ofcom, which has a long track record of regulating broadcast television to ensure that it is age appropriate, and protects those who may be more deeply affected by what they see or hear. In addition to creating this new code, the Bill gives Ofcom new powers through its audience protection review duty, so that it can provide guidance and report on and deal with any providers it considers are not providing adequate protections.

Taken together, these changes mean that the on-demand streamers will no longer be marking their own homework; that, rightly, will be for Ofcom to assess and do. The British Board of Film Classification, which my noble friend mentioned, does a fine job and the Government encourage all services to consider using it when reaching decisions. However, it is not the only source of effective child protection. Many streamers, including our public service broadcasters, for example, have very effective child protection measures in place and do not use BBFC age ratings. We do not want inadvertently to discourage services from investing in, developing and using the most effective child protection technology that is available and becomes available, which includes but is not limited to age ratings. The Government’s overriding goal here is to ensure that effective protection is in place as the outcome, rather than specifying from the top down how that should be done.

The measures in the Bill will ensure that all streamers are given the incentive to place child protection at the heart of their product development, rather than just relying on the regulator to tell them what the bare minimum is they can get away with. For example, protections such as parental controls and warnings, in addition to age ratings, can be more effective than any individual age-rating system. However, we are listening to what my noble friend and others are saying and have been listening to the debate in another place as well, and we look forward to continuing to debate these issues as the Bill progresses.

My noble friend Lord Black of Brentwood raised concerns about the risk of complaints tourism arising as a result of Ofcom’s regulation of video-on-demand services. As with existing broadcasting regulation, how these rules are implemented would be for Ofcom to set out. However, to be clear, Ofcom will be regulating only on-demand providers’ UK libraries. In addition, following feedback from providers during pre-legislative scrutiny, we have already considered the issue of complaints tourism. The Bill now ensures that Ofcom will be able to consider the length of time that content has been available when considering complaints, which will reduce mischievous accusations. However, this is not new territory. Ofcom has a long history as an international regulator, and we have full confidence that it has the expertise and powers to deal appropriately with complaints of this nature.

More broadly, noble Lords rightly asked about the additional responsibilities Ofcom has taken on in recent years. As they know from our exchanges on the Online Safety Act, the Government are invested in Ofcom, which has taken on many more staff to cover its additional responsibilities. We are confident that it has the capability and resources it needs. Like others, I am very grateful that the noble Lord, Lord Grade of Yarmouth, attended our debate on the Bill today. Ofcom will continue to be accountable to Parliament. The Bill extends its powers in areas it has much experience in regulating. My department has worked closely with Ofcom throughout the drafting process. As I said in my opening speech, we are very grateful for the contribution it has made.

I am grateful to some—not all—noble Lords for expressing support for the repeal of Section 40 of the Crime and Courts Act. Views differ on this across your Lordships’ House but, as I said, this is a government manifesto commitment. We worry that commencing Section 40 would risk creating a chilling effect on freedom of speech, undermining high quality journalism and causing serious damage to local newspapers. The Government consulted on repeal in 2016. A huge majority of respondents, some 79%, including press freedom organisations such as Reporters Without Borders, backed repealing Section 40, many arguing that it could have stopped publishers undertaking valuable investigative journalism or publishing stories critical of individuals, for fear of being taken to court and having to pay for both sides. However, I look forward to the further debates that I am sure we will have.

The noble Lord, Lord Stevenson, asked about the Press Regulation Panel. As he knows, that was established through a royal charter on the self-regulation of the press in 2013, which is separate from the Crime and Courts Act 2013. The repeal of Section 40 will not affect the Press Regulation Panel. Any press regulator can apply to be recognised by the panel. The panel will continue to recognise, review and report on Impress. It can also recognise other press regulators, should they choose to apply.

My noble friend Lord Astor asked how we can prevent strategic lawsuits against public participation if we repeal Section 40. If enacted, Section 40 would protect only news publishers which are members of an approved regulator. SLAPPs typically target individuals instead of their employers and can target people other than journalists, including consumers, tenants or victims of sexual assault. Many SLAPPs never reach court as their intention is to silence people before the case is pursued. As I hope my noble friend knows, the Government are taking broad action against SLAPPs to create a changed culture and raise awareness of them, alongside legislative change. The task force on SLAPPs that we established published its workplan in December, outlining action from government as well as from media and legal organisations to tackle SLAPPs. The Economic Crime and Corporate Transparency Act, which received Royal Assent in October, includes measures to tackle economic crime-related SLAPPs, which we believe represent up to 70% of all these lawsuits. The Government are also supporting a Private Member’s Bill introduced in another place by Wayne David MP, Second Reading of which was last Friday. It has cross-party support, and we will update the measures in the 2023 Act to cover a broader scope, blocking SLAPPs across all types of litigation.

I am conscious that I am reaching the end of my time, so I will turn finally to the amendment moved by the noble Lord, Lord Forsyth. The noble Lord, Lord Bassam, asked whether a meeting with the Secretary of State might be possible. As he will appreciate, at the moment she is acting in a quasi-judicial capacity in relation to this matter, so she is very restricted in what she can say. A meeting would not therefore be helpful. However, I and other Ministers have kept your Lordships’ House and the other place updated as much as we are able to while that legal process unfurls. I pointed in—

[Lord Bassam of Brighton (Lab)]

Does the Minister have a sense of the timetable for this review to be completed?

[Lord Parkinson of Whitley Bay (Con)]

If I may, I will point the noble Lord to the answers we have given which set out some of the timelines; there are different timelines under the different Acts and the work that Ofcom and the Competition and Markets Authority do. I will set them out, rather than try to give them off the top of my head, but I have answered questions from this Dispatch Box before and will continue to do that and through Written Questions where possible.

I pointed my noble friend Lord Forsyth to the Enterprise Act and the National Security and Investment Act, which cover the actions available to the Secretary of State, including where she has concerns about media freedom and freedom of expression. As my noble friend indicated, his lively discussions with the Public Bill Office and his resorting to this regret amendment reflect that this is not a matter for this Bill, but, as the contribution from our noble friend Lady Stowell of Beeston showed, she has had more success with tabling an amendment to the Digital Markets, Competition and Consumers Bill. I would certainly encourage them both to continue their conversations with my noble friends Lord Camrose and Lord Offord of Garvel.

[Baroness Stowell of Beeston (Con)]

I am grateful for what my noble friend has just said, but am I to take it from what he said to the noble Lord, Lord Bassam, that the DCMS is not going to engage in this matter at all? Am I to direct my questions to the noble Lords who are responsible for the DMCC Bill?

[Lord Parkinson of Whitley Bay (Con)]

As it falls to my noble friends Lord Camrose and Lord Offord to take that Bill through, it will be more fruitful to have the discussions with them—they will be having them on behalf of the whole Government. But, as my noble friend will appreciate, because my right honourable friend the Secretary of State has a quasi-judicial role, she is limited in what she can say, and so it limits what we can say. I am very happy to continue to answer questions on the process while my noble friends continue their discussions with my noble friends who are answering for the Government on the Digital Markets, Competition and Consumers Bill. I look forward to the discussions with my noble friend Lord Forsyth, who I hope will not press his regret amendment this evening. With that, I beg to move.

Media Bill

Lord Parkinson of Whitley Bay Excerpts

Committee stage
Wednesday 8th May 2024 Lords Chamber

[Lord Bassam of Brighton (Lab)]

My Lords, this has been a fascinating debate, capped by a single show of dichotomy from the noble Lord, Lord Vaizey. I am sure that most of us found it both entertaining and enlightening, in line with true Reithian values.

As we draw this debate to a close, we should congratulate the noble Baroness, Lady Bull, on tabling her amendments in this group. As we have heard, they broadly relate to the Reithian principles that have under- pinned public service broadcasting for much of the last century. We on the Labour Benches have co-signed Amendments 1 to 3 and 7. Additionally, we support Amendment 8 in the name of the noble Baroness, Lady Boycott, so ably spoken to by the noble Baroness, Lady Hayman. We also support Amendment 33 on diversity. On reflection, having spoken to my colleague, the noble Baroness, Lady Thornton, I feel that we should have had a separate debate on the whole issue of diversity. It is merited in the context of the Bill. The noble Baroness, Lady Benjamin, underlined the importance of workplace diversity, as referred to by the noble Baroness, Lady Bonham-Carter. There is much to think through about what we see and how it is measured to ensure that our public service broadcasters reflect the diversity of our great nation.

I turn to the Reithian principles. My honourable friend Stephanie Peacock in another place said that she welcomed the attempts to simplify the remit of PSBs. I made a similar observation at Second Reading. As we have heard, a number of commentators have argued that this may have the unintended consequence of leading to rather more restricted content. The Communications Act 2003, which this part of the Bill seeks to update, gave a fair expression of the PSBs’ Reithian principles. Over time, these have become partly enshrined in particular genres. These amendments attempt to take the debate beyond genres and to talk to the issue of the fundamental purpose of public service broadcasting, in particular the purpose of broadcasting in a multimedia world now tackling the challenges of the digital age and digital content.

At Second Reading I said that, while the Bill was very welcome—it continues to be very welcome—and for the most part highly supportable, it seemed to lack an overarching purpose and principle: an abiding vision, if you like. As we have heard, Lord Reith believed that PSBs should “inform, educate and entertain”. The 2003 Act sought to flesh out what that meant. Labour enshrined those principles in legislation. In that regard, it did a more than serviceable job. This new legislation seeks to do it slightly more flexibly. Flexibility is one thing, but I think we need firm statements of principle and purpose. These amendments move to set Reithian standards and values in a more modern context.

We want public service broadcasters to retain high standards of content. We want them to maintain high- quality production and editorial integrity, as referenced in Amendment 1. We want to see content that meets the Reithian dictum of informing, educating and entertaining, while recognising the role of the sector in stimulating, reflecting and supporting the cultural and creative industries.

Finally, these amendments take us to the educative purpose of public service broadcasters and help promote a culture that values learning as a lifelong activity to serve all. Together, one could paraphrase a sort of John Prescott-ism and place old-style Reithian values in a modern setting. For that, and for the other reasons I have set out, we are very happy indeed to support this group of amendments. We hope to receive some words of encouragement from the Minister. I do not think public service broadcasters will object at all to this renewed obligation. It does much that will help Ofcom in its periodic reporting on this aspect of the public broadcasters’ remit.

[The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, I am grateful to the noble Baroness, Lady Bull, for starting our deliberations in Committee in such a careful and considered way. We have already had allusions to Chesterton, Orwell and Sonia from “EastEnders”, so we are off to a good start.

--- Later in debate ---

[Baroness Thornton (Lab)]

My Lords, I am delighted to respond to this group and speak to my Amendment 11. I think that, by now, the Minister will be aware of the strength of feeling about these matters in the Bill. Amendments 4, 5, 6 and 10 all address the place of minority languages—I hesitate to use that word, having heard what the noble Lord, Lord Wigley, said; I certainly have some sympathy—in public service broadcasting today and in the future.

The preservation of the Gaelic language through public service broadcasting was debated at Second Reading and discussed at some length in the Commons. The subject is important. It exercises people in Scotland and throughout the rest of these islands. There is concern about the lack of a requirement for Gaelic language public service broadcasting. There is no requirement for a minimum amount and no requirements relating to new content. There could, for example, have been a requirement in the Bill for the BBC to produce new Gaelic language content.

That is important because language is the cornerstone of culture. It is not just a way of communicating but a daily expression of history and stories reflecting ways of life, values and heritage as it is spoken. The diversity of the languages in our nations and regions is therefore a living, breathing expression of the rich identities and traditions that we are lucky to carry with us.

However, understanding that requires an understanding of the risk of losing such a language, be it Gaelic or Welsh. That is very unlikely, but, if they are not spoken, nurtured and passed down through the generations, that rich culture would be at risk of being lost. With that recognition in mind, I think it is good that we are discussing this absolutely at the top of the Bill. We believe that the Bill and legislation more broadly seem not to recognise Gaelic language broadcasters in the same way as they recognise, for instance, S4C, which we absolutely support. This is despite there being cross-party support for recognising them, both here and in Scotland. For example, Clause 17 talks specifically about the quota for S4C.

When Ofcom published its sixth review of BBC performance, mentions of the Gaelic service totalled four lines in an 80-page report—and that came from the need to assess BBC Alba only as a BBC portfolio service, which is what the BBC operating agreement does. Given the importance of the service to Gaelic speakers, it would seem appropriate to see it acknowledged and assessed properly, so I hope the Minister might be able to lend his support to the new clause we are putting forward. If he chooses not to, I would like to hear from him about the measures the department is taking to support Gaelic broadcasting in the way it deserves and needs.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, as several noble Lords have noted, the indigenous languages of these islands are crucial to the lives of those who speak and cherish them. As my noble friend Lord Dunlop and the noble Lord, Lord Wigley, pointed out, that includes holders of high office and substantial majorities in certain parts of the UK. The Bill seeks to ensure that people are able to access content in those languages, as well as content that is culturally important to them, for many decades to come. However, I note the sad paradox that the number of Welsh speakers has declined since devolution rather than grown.

I turn to Amendments 6, 10 and 11. As some of my noble friend Lord Dunlop’s amendments recognise, the Gaelic Media Service, MG Alba, already has a statutory function under the Communications Act to ensure that a wide and diverse range of high-quality Gaelic programmes are available to people in Scotland. I recognise his and other noble Lords’ keenness to ensure that we do not lose such a valuable function. That is why Clause 1 makes clear in legislation the importance of having programmes made available in the UK’s indigenous, regional and minority languages, including Gaelic, by including it in our public service remit for television for the first time. Moreover, elsewhere in the Bill, we make it clear that public service broadcasters must contribute to this remit and that they will be accountable for the extent of their contributions.

As my noble friend Lady Fraser of Craigmaddie noted and anticipated, His Majesty’s Government are formally considering the funding of minority language broadcasting, including Gaelic, as part of the BBC funding review launched in December. As part of that review, we have already asked MG Alba for a range of evidence, including its assessment of the sustainability of its current funding model and of how any changes to the BBC’s funding model could affect it and minority language broadcasting more broadly. I acknowledge what she said about timing vis-à-vis the Bill, but we feel that it is right to wait for the funding review to conclude and then to consider the overall future of MG Alba and the ongoing provision of Gaelic language broadcasting. Given the closeness of the link between the BBC and MG Alba, we think that these considerations are best made alongside the upcoming review of the BBC’s royal charter, for which we will set out further details of the timeline in due course.

In addressing his Amendments 4 and 5, the noble Lord, Lord Teverson, referred to the Cornish language. I recognise the importance that regional and minority language programming plays in representing the rich and diverse tapestry of culture across the country, including in the noble Lord’s home of Cornwall. Amendments 4 and 5 would require each of the UK’s six public service broadcasters to provide a sufficient quantity of programming in each of the six regional or minority languages that are now recognised and set out in the Bill. Adding further rigour to the legislation regarding regional and minority languages is an ambition that the Government share with the noble Lord, which is why we have, for the first time—as he noted—listed Cornish and a range of other languages in this legislation. His amendment would require each broadcaster to provide content in each language stated in the Bill, a proposal that we think would be excessively onerous on the public service broadcasters. It would result in a situation where, for example, S4C would be obliged to broadcast in Ulster Scots and STV in Cornish, which is not, I am sure, the outcome he seeks. There may be some confusion here and it might be easier to clarify it—particularly regarding the choice of brackets—in a format where we do not have to try to describe the shape of punctuation. I will happily do that with him. The choice of parentheses is not a drafting error: “(taken together)” is the formulation used in the Communications Act and indeed elsewhere in Part 1 of this Bill, but if it is helpful to speak about that outside the Chamber, I am happy to do so.

The Bill already puts new obligations on Ofcom to monitor whether a sufficient quantity of minority and regional languages is provided. In our view, any additional obligation on broadcasters would be excessively burdensome. Given the provision already made in the Bill in respect of Gaelic and other languages, as well as the further work I have outlined, although I echo what noble Lords have said about the importance of these languages, the culture and tradition they represent for people and our shared anxiety to make sure that they are passed on to new generations and shared with many—not just in the places where they are currently commonly spoken, but where others can hear them and learn them too—I am afraid that I am unable to accept the amendments noble Lords have proposed in this group. I am happy to continue to talk to them about these important issues, but I hope that, for now, they will be willing not to press them.

[Lord Wigley (PC)]

I invite the Minister to comment on the question of whether the Welsh and Gaelic languages should be counted in the 2031 census in England. If they are regarded as British languages, as is suggested in the context of the Bill, surely, they should be.

[Lord Parkinson of Whitley Bay (Con)]

Questions relating to the census are a matter for colleagues in other departments, but I shall happily take the noble Lord’s point to them. I imagine that he has raised it with them directly, but I am happy to let them know that he has raised it again today.

[Lord Teverson (LD)]

My Lords, I thank all noble Lords who have contributed to this debate, particularly the noble Lord, Lord Wigley. In fact, I worked with Mebyon Kernow on this amendment, and it would probably also criticise me for not referring to Cornish as a national language rather than a minority one—but that is how it started with the Council of Europe in 2002. I suspect that Gaelic language proponents are also not particularly happy with the Minister’s reply.

I agree absolutely with the Minister, in that I am not expecting Cornish to be broadcast sufficiently in Northern Ireland, even though I would love that to be the case. The purpose of my amendment is not that all languages should be broadcast everywhere, but that there is an obligation in each of the regions, nations or areas that the relevant language should be sufficiently broadcast. It seems to me that the Bill does not say that, so I shall have a further conversation, and I thank the Minister for his help in that area. In the meantime, I beg leave to withdraw the amendment.

--- Later in debate ---

[Baroness Thornton (Lab)]

When the Government first released Up Next, the White Paper that preceded the Bill, it made no reference to genres such as entertainment, drama, science and religion being removed from the remit, as they have been in this Bill. That is why this is an important question, and why we were very keen to add our name to the amendment from the noble Viscount. As other noble Lords have said, we have seen the effect—particularly with children—of what happens when we do not have specific mention of genres with which we can hold the regulator to account.

It is good that the public service broadcasters have issued reassurances that the new remit will not significantly impact on programming in the removed areas, but I agree with the noble Viscount that the addition of “appropriate range of genres” to the Bill is a small protection. We believe the removal of references to specific genres is still a matter of concern. We think that there is no guarantee, therefore, that Ofcom will be held to account to monitor. In many ways, this is what the right reverend Prelate the Bishop of Leeds was talking about when he mentioned the matrix: how do we know that things have been delivered properly? That is why we support this amendment.

We do not propose that every genre would have to be addressed by every provider, but I hope the Minister can take on board what Amendment 9 proposes. Simplifying the remit is a worthwhile objective, but not if it is done at the cost of the kind of content that sets our public service broadcasters apart.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, the noble Viscount degrouped his amendment to give us a chance to look at genres again and in more detail. There was much overlap with the debate we had on the first group, so I hope he will forgive me if I am relatively brief and do not repeat myself but allude to what I said previously. It has, however, given noble Lords the opportunity to ask further questions and make further points.

Let me turn first to what the noble Lord, Lord Foster of Bath, asked about the royal charter. It is not quite as simple as he expects. The Secretary of State must lay the final terms of reference for the royal charter review before Parliament, and a draft of the proposed charter and framework agreement must be laid before Parliament and debated by each House. Both Houses can, of course, hold the Government to account—as they do—for the way they go about their work on charter renewal. I hope that gives the noble Lord some further detail.

In relation to the question posed by my noble friend Lady Stowell of Beeston, there is no change to Ofcom’s accountability to Parliament through this Bill. It is accountable to Parliament and routinely appears before Select Committees, such as the one she chairs in your Lordships’ House.

On the question of genres—which I will continue to refer to in the Norman French because I do not know the Welsh or Gaelic words for it yet—

[A noble Lord]

Would the Minister like some help?

[Lord Parkinson of Whitley Bay (Con)]

Yes. The point is, as my noble friend Lady Stowell put it, echoing the point raised by my noble friend Lord Vaizey in the debate on the first group, to strike the right balance with a streamlined remit that gets to the heart of what it is to be a public service broadcaster and does not dilute that. As I mentioned, we have added a new subsection (6) making clear that public service broadcasters must together produce a range of genres in order to fulfil the public service remit. Although we do not object to any of the specific genres that have been mentioned, we are concerned that reintroducing further granularity would serve only to complicate the role we have given Ofcom in regulating this important area.

We are confident that the streamlined remit treads the right line between providing the broadcasters with the flexibility to meet the new challenges of a market that changes very rapidly, as the noble Viscount is right to say, and ensuring that a wide range of genres will continue to reach our screens. The Bill ensures that Ofcom has the tools it needs to ensure that public service broad- casters continue to produce that wide range. It can take enforcement action, should it judge that a licensed public service broadcaster has failed to fulfil its public service remit, which includes making an adequate contribution to the overall public service remit for television.

My noble friend Lady Fraser of Craigmaddie asked in what circumstances the Government would consider using the delegated power in the Bill to add a quota for an underserved genre. That is set out in new Section 278A and follows a recommendation from Ofcom in its reports under Section 229 or 264 of the Communications Act. We would of course carefully consider any such recommendation alongside any other information from Ofcom, such as information from its market report conducted under Section 358, and information provided by the public service broadcasters and other providers in line with the process set out in new Section 278A.

With those further points, and reiterating my response to the noble Baroness, Lady Bull—which gives me the opportunity to acknowledge the distinction she was trying to make in her amendment and the relisting of genres that we value and are familiar with—I hope the noble Viscount will be satisfied to withdraw his amendment.

Media Bill

Lord Parkinson of Whitley Bay Excerpts

Committee stage
Wednesday 8th May 2024 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, I thank the noble Baronesses, Lady Benjamin and Lady Thornton, for their important contributions on the value of public service media for children.

The noble Baroness, Lady Benjamin, has also personally made huge contributions to this industry, not just through her time as a presenter—I count myself as one of her proud “Playschool” babies—but through her valuable championing of legislation in this space. This is a good opportunity for me to congratulate her on the wonderful news of the BAFTA Fellowship, the academy’s highest honour, which will be bestowed upon her this weekend. It is in recognition, as BAFTA has said, not just for her work on screen but her work in your Lordships’ House and outside it on the legislation that touches these important areas.

I will refer to both noble Baronesses’ amendments together. I strongly agree with them about the importance of ensuring that our children continue to have access to high-quality, original content which is relevant to their lives. The Government recognise that children’s television has a unique social and educational importance; it can be used to reflect and share our values and to support learning and development in a way that is fun and compelling for young people. My honourable friend Julia Lopez, the Minister for the Bill in another place, also feels passionately about this issue and has spoken about the significant impact that culturally relevant, original British programming can have on our children.

We are, however, aware of the challenges increasingly being faced by the children’s media industry, which the noble Baronesses alluded to. The way that our children are accessing content is changing rapidly, with shifts away from the traditional linear schedule and an almost endless digital library of global content easily accessible to them.

That is why we have included specific measures in the Bill to ensure that original British children’s programming, reflecting the lives of young people here in the UK, remains front and centre of the public service remit. I hope that sends a clear signal about the importance of high-value children’s programming being available to families across the UK on a free-to-air basis.

These updated remit requirements will complement Ofcom’s existing powers relating to children’s content. For example, the work that the noble Baroness, Lady Benjamin, did on the Digital Economy Act 2017 resulted in the introduction of a section to the Communications Act specifically on this topic, allowing Ofcom to publish criteria on the provision of children’s programmes if it sees fit. This is supported by several of Ofcom’s ongoing reporting duties. In this way, the legislation already provides for considered assessment of the provision of the types of valuable content we have debated in this group. As the independent regulator, Ofcom is well placed to consider the broader market and how children are accessing content in an increasingly digital world. Of course, it has the powers given to it through the Online Safety Act, during the passage of which we debated some similar topics. It already has a wealth of experience in this area.

Ofcom’s current duties and reporting will continue to give us an invaluable insight into the challenges faced by the children’s television industry. This will be key to helping both the Government and industry to consider in the round, and in more detail, whether further work is needed in this important area. We will of course do that. In addition to this, as the noble Baronesses mentioned, organisations such as the Children’s Media Foundation have been doing some fantastic work recently to convene industry partners to look to the future and consider these important questions in more detail.

Amendments 12 and 34 would require reviews into children’s access to culturally relevant and age-appropriate original content, and children’s access to public service broadcast content respectively. Given the specific reference to children’s content, which we already have in the Bill, and given the extensive powers that Ofcom has to report and act in this space, as I have mentioned, as well as the updates we have made to allow flexibility to the ways in which the public service broadcasters can fulfil their remits, I am not persuaded that we need the amendments that the noble Baronesses have put forward. I would, however, certainly join them in recognising the importance of high-quality children’s programming, and I am glad for their continued vigilance in this area. I would be very happy to keep talking to them as we continue our scrutiny of the Bill, but I hope I have been able to reassure them that we have tried to cover this already in the Bill as it stands.

[Baroness Thornton (Lab)]

I thank the noble Baroness, Lady Benjamin, for her wonderful peroration and saying exactly the right things. I thank the Minister for his answer, but I confess to being disappointed, because if this Bill is about future-proofing, then it really does need to address what our children will be doing in the next few years in terms of what they are watching, what they are consuming and what they are hearing. I do not see anything in this Bill that is going to mandate Ofcom to do that kind of exercise of reviewing that. This is about the quality of what our children are viewing, and we certainly are not giving them any guidance on that. There is nothing in this Bill that does that. I do not think so: I have not seen that. That is what this amendment is about.

I am disappointed, and I hope we can continue to talk. Perhaps the conversation needs to be with Ofcom about what it thinks its remit is with regard to children. Perhaps that is the next conversation that we need to have. On that basis, I beg leave to withdraw the amendment.

--- Later in debate ---

[Baroness Bonham-Carter of Yarnbury (LD)]

I was going to speak to these amendments, but they have been so comprehensively covered by the noble Baronesses, Lady Thornton and Lady Fraser, and my noble friend Lady Featherstone that I will just say that I support the amendments and I hope that the Minister has listened and will respond positively.

[Lord Parkinson of Whitley Bay (Con)]

I thank the noble Baroness for her brevity. I am grateful to the noble Baronesses who have taken part in this debate. I am particularly grateful to the noble Baroness, Lady Thornton, for tabling Amendment 13, which has facilitated an important debate about the provision of linear TV by our public service broadcasters. That is an important aspect of a wider debate about the future of the UK’s television distribution infrastructure.

With regard to linear television, in bringing forward this Bill, we have looked to strike a careful balance between allowing the public service broadcasters to deliver their content more flexibly and ensuring that this continues to suit the needs of audiences across the UK. Indeed, new Section 264(4)(a) of the Communications Act, introduced by Clause 1 of the Bill, requires that, for the remit to be fulfilled, the public service broadcasters must make available content in a manner that satisfies

“as many … audiences as practicable”.

I am glad to say there is an existing requirement on public service broadcasters to deliver a linear service, and they must use this, at a minimum, to deliver their news and current affairs quotas. This is a requirement in primary legislation, which Ofcom is required to report on and enforce. In sum, we know that many viewers still want to receive linear television—for example, over digital terrestrial television, satellite or on a hybrid TV—and the public service broadcasters are required to meet this need. I hope that what I have said today has reassured the noble Baroness that adequate protections for linear television are already in place, and that her Amendment 13 is not needed.

As for Amendment 32, from my noble friend Lady Fraser of Craigmaddie, I know that she has had the opportunity to discuss some aspects of the Bill with my honourable friend Julia Lopez, the Minister in another place, and I am grateful for her engagement on this issue. I know that she and other noble Lords are as keen as we are to ensure that our television distribution infrastructure continues to serve audiences across the UK. Her amendment looks to protect the future of digital terrestrial television, or DTT, the technology that underpins the popular Freeview platform. I am glad to reassure her and other noble Lords that the Government remain committed to the future of DTT. We know that millions of households across the UK rely on it, and we expect that situation to continue over the next decade. That is why we have legislated to secure the continuity of this infrastructure until at least 2034, as she mentioned.

I reassure the noble Baroness, Lady Thornton, and others that this legislative commitment does not mean that DTT will automatically cease in 2034. The framework that supports its provision is set out in law, so even if nothing were done, Ofcom would still be able to re-advertise the multiplex licences, and our public service broadcasters would still be required to continue distributing linear channels over digital terrestrial television. In fact, to turn off DTT, there would need to be specific primary legislation; for example, to revoke the multiplexing regime. Should the Government of the day—who may still be us in 10 years’ time, or who may be somebody else—seek to bring forward such legislation, I have no doubt that your Lordships’ House would want to provide robust scrutiny of it. Given that legal position, my noble friend’s Amendment 32 would have limited effect, but I appreciate that it is also focused more broadly on ensuring that audiences across the UK remain protected and covered, and I am glad to say that that is our focus too.

To ensure that we continue to put audiences at the heart of policy in this area, of course we need to understand how their preferences are changing over time, because as many more people choose to watch some or all of their television online, and as the connectivity that allows them to do so gets better over time, the economic and public policy rationale for supporting DTT changes. That is why my right honourable friend the Secretary of State announced last year a project to consider the future of TV distribution, and it is why, just this morning, my honourable friend the Minister for Media, Tourism and Creative Industries, Julia Lopez, used a speech at the Digital Television Group’s annual summit to provide an update on the progress of this project, including sharing some of the early outputs of the independent research project we commissioned. I will be very happy to share a copy of my honourable friend’s speech if noble Lords would like to see it.

This project is taking a broad approach and must be allowed to consider all possible options for the future of broadcasting in the UK. For in this situation, even a decision to maintain the status quo would, in the context of changing viewership, have quite serious consequences. Audiences are at the heart of this project and, as Julia Lopez announced this morning, we will be launching a new project to engage viewers and make sure that we understand their perspectives. We have also commissioned a six-month independent research project from a consortium led by academics from the University of Exeter. We hope to be able to publish this research in the coming weeks, to help inform this important and continuing debate.

By taking the time to complete this project before making legislative changes, and working with world-class researchers in this way, we will be able to make an evidence-based assessment of what will best serve audiences across the UK, now and in the future. I hope that, on the basis of those reassurances, my noble friend will feel able not to press her amendment, but I know she will continue to maintain her scrutiny of this area of the Bill, not least through her work on your Lordships’ committee, as she mentioned.

--- Later in debate ---

[Lord Bassam of Brighton (Lab)]

My Lords, Amendments 14 and 15 in the name of the noble Viscount, Lord Culross, seek to finesse the Channel 4 commissioning regime that has worked so well for this highly innovative channel. I was one of the sceptics when Channel 4 was first thought of, and I remember writing an article which challenged the model. However, I have been proven wrong over those 40-plus years.

As the noble Viscount explained, he seeks to add an “SME guarantee” by virtue of Amendment 14 to the commissioning process to further stimulate the growth of indie production houses, in particular those with revenues of less than £25 million. Amendment 15 qualifies this to average out the £25 million cap over a five-year period.

The first amendment would require at least 35% of the channel’s spend to be on companies with a revenue of less than £25 million. We on these Benches can see some merit in this approach, and certainly in the direction of travel, given that the strength of Channel 4 has been the diversity it has brought to production, and that it has led to far more production outside the M25 and the south-east.

I am highly conscious that Channel 4 is thinking long term about the removal of the publisher/broadcaster restriction and its potential impact on independent producers. The channel is keen to protect the ecology of small production companies. It argued in a briefing earlier in the year that a move to in-house should be gradual, over a five-year period, and should not alter the value it places on the importance of independent production houses. As it says, its partnerships with indie producers have led to these companies growing, expanding and owning their intellectual property. Moreover, it has helped to spawn a whole new industry.

I can see that increasing the qualifying independent production quota from 25% to 35% would probably strengthen the indie sector, so today we would do well to listen to the Minister’s responses as to the workability of the amendments. I think we all share a common view—I hope we do—that the uniqueness of the Channel 4 commissioning model is of immense value to TV production generally and the development of the market, innovation, and the high production standards that UK TV is internationally renowned for. The Channel 4 approach has helped to give an edge to that. The question is, ultimately, whether this is the most appropriate way of protecting that reputation and ensuring that we have a sustainable independent production output.

The noble Viscount has done us a service this evening in tabling these amendments. We know that we must be very careful in tweaking the commissioning approach; as the noble Viscount said, there are industry concerns that we must listen to, and we have to find the best way forward to protect something that has become uniquely valuable in TV production. It is something that we support right across the House.

[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.