The Secretary of State for Culture, Media and Sport (Lucy Frazer)

- View Speech - Hansard -

Copy Link

- - Excerpts

I beg to move, That the Bill be read a Second time. I am especially pleased to do so today, as it is World Television Day.

The British media are world renowned. They inform and educate, they challenge and entertain. Content created by our media, be it journalistic exclusives or broadcasting endeavours, attracts domestic and international audiences and helps to drive our creative economy. However, the world in which this content is competing is changing rapidly. Technology has transformed every facet of our lives, and nowhere is that more evident than in the way we watch and consume television and listen to the radio. We have seen the rise of streaming giants and on-demand content, YouTube and smartphones, tablets and TikTok, and all those have combined to reshape our whole broadcasting landscape. Today, that landscape is unrecognisable in the context of what followed the last major reform of the rules that governed broadcasting in 2003.

We need to support the British media to enable them to compete and continue to serve their audiences with high-quality content. We need regulations fit for the digital age, and that is what this Media Bill will give us. In keeping with the Government’s defining mission, the Bill makes long-term decisions for a brighter future for our viewers, our listeners and our public service broadcasters. It is a pro-growth Bill that is designed to level the playing field for public service broadcasters such as the BBC, Channel 4, STV and ITV, among others, so that they can continue to provide first-class content and reach their audiences. As Members will know, we have engaged heavily with all parts of industry, from the streamers to the independent production sector and our public service broadcasters, to get the Bill right, and if we want our broadcasters to be ready for the next wave of technology, it is imperative that we get it right.

Lucy Frazer

- Hansard -

Copy Link

- - Excerpts

I recognise the great contribution made by Gaelic speakers. We have agreed that we will, in the first instance, bring together the BBC and Scottish Government officials to discuss the co-ordination of funding decisions for Gaelic language production between the two organisations. We considered funding arrangements for minority language broadcasting, including programming for the Gaelic language, at the previous charter review, and those arrangements will be considered again at the next review.

Lucy Frazer

- Hansard -

Copy Link

- - Excerpts

We are of course anxious to protect S4C. As it is a public service broadcaster, many of these provisions apply to S4C, which we strongly support.

Lucy Frazer

- Hansard -

Copy Link

- - Excerpts

Absolutely. My right hon. Friend makes an excellent point, because this Bill is all about protecting our public service broadcasters, whether that is the BBC, ITV, Channel 4 or S4C, and I am proud to be bringing it forward.

Lucy Frazer

- Hansard -

Copy Link

- - Excerpts

I am always happy to discuss matters with my right hon. and learned Friend. This provision will help to protect radio more broadly through the smart speaker provision and there are other measures on protecting. The Government understand the issue of online local news, which is very important, and Ofcom has concluded proposals in relation to its role, but there are always matters we can look at further.

Lucy Frazer

- Hansard -

Copy Link

- - Excerpts

My hon. Friend will know that this is a matter that the Government are considering—that is, the question of the licence fee. We have already started looking at the issue that faces the BBC in a changing media landscape. People consume their media in a different way. Last year, 400,000 people did not renew their licence. This is something we are looking at, but it is not a question for this Bill.

Lucy Frazer

- Hansard -

Copy Link

- - Excerpts

As the hon. Member will know, we are bringing forward the matters in this Bill, but he is right to state the importance of Channel 4. We have brought forward measures to ensure that it retains its ability to be sustainable while also protecting independent producers.

I was talking earlier about how it was important to engage to get this Bill right. We have engaged heavily and are very grateful to the wide number of people who have helped to ensure that the Bill has the appropriate scrutiny and has landed in the right place. I would like to put on record my thanks to the Culture, Media and Sport Committee under the chairmanship of my hon. Friend the Member for Gosport (Dame Caroline Dinenage). The Committee invested heavily in the Bill and I am grateful for its recommendations. I want to thank it for its constructive engagement with my Department and for its pre-legislative scrutiny earlier this year. Alongside views from the industry, its reports have played a crucial role in ensuring that the Bill delivers for audiences and listeners.

But it is not just the Select Committee that has called for this Bill. The Welsh Affairs Committee, led by my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb), and the Scottish Affairs Committee have both called for its introduction. I would like to thank Baroness Stowell of Beeston for her leadership of the Communications and Digital Committee, which also called for this Bill’s introduction and worked hard on the issues in it for a number of years. I would like to thank my hon. Friends the Members for Folkestone and Hythe (Damian Collins), for Aylesbury (Rob Butler), for East Devon (Simon Jupp) and for Warrington South (Andy Carter) for their thoughtful and considered engagement. I would also like to thank the previous iteration of the shadow Front Bench for its support, and I am sure that this shadow Front Bench will also provide constructive engagement.

It is not just films that are central to our creative industries and our national life. We are in a golden age for the silver screen in the UK, and public service broadcasters are the main reason why. Whether it is reality TV shows such as “The Great British Bake-off” and “I’m a Celebrity…Get Me Out of Here!”, or dramas such as “Time”, “Broadchurch” and “The Night Manager”, our public service broadcasters have proven that they can continue to go toe to toe with the streaming giants, but it is clear that this Bill is needed to enable our world-leading broadcasters to compete in an ever-more online world. Measures in the Bill will introduce simpler, more up-to-date rules on what our public service broadcasters have to broadcast and how they reach viewers, making sure that the high-quality public service content for our audiences remains easy to find as viewer habits evolve.

For a renowned public service broadcaster such as Channel 4, this Bill will help to support its long-term sustainability. This includes removing its publisher broadcaster restriction, which will free up Channel 4 to make more of its own content if it wants to, and open new options for diversifying its revenue away from advertising. Alongside this, we are bringing forward measures to safeguard Channel 4’s significant role in driving investment into the production sector. As many Members will recall, I set out the core aspects of this package, which the Government have designed in consultation with Channel 4 and the independent production sector, in a written statement to this House on 8 November.

Lucy Frazer

- Hansard -

Copy Link

- - Excerpts

I am grateful to the hon. Gentleman for raising that issue. He will be aware that Alba is not in the same position as S4C because it is a programmer rather than a channel. In that way, it has a relationship with the BBC, and that is how its funding arrangement is determined.

Lucy Frazer

- Hansard -

Copy Link

- - Excerpts

I am going to make some progress.

I was talking about Channel 4, but it is not just Channel 4 that is going to benefit from this Bill. The Bill includes measures specific to S4C, the Welsh language broadcaster. We worked closely with S4C on the provisions in the Bill, which will enable S4C to broaden its reach and offer its content on new platforms in the UK and beyond. The Bill also updates S4C’s public service remit to include digital and online services, and implements in statute other recommendations made in the independent Williams review in 2018. These provisions are a crucial part of the Government’s support for regional and minority language broadcasting. We know how important this kind of broadcasting is, giving many people content in a language familiar to them and providing a cultural outlet for communities across the UK. It was no surprise that, in its recent report on broadcasting in Wales, the Welsh Affairs Committee called on the Government to introduce a media Bill to Parliament as early as possible in the next Session, and I am glad that we have been able to deliver on that commitment.

It is clear that online demand streaming services are now an important part of the broadcasting landscape. From Netflix to iPlayer, they provide huge value to UK audiences and in many cases make significant and growing contributions to the UK economy. While UK audiences enjoy having instant access to the programmes they love, it is also essential that when they watch them on their smart TVs, they enjoy similar protections to live TV.

Lucy Frazer

- Hansard -

Copy Link

- - Excerpts

The hon. Member will know that sport is devolved in Scotland, and if the Welsh Government want to make any recommendations to us in relation to listed events, of course we would be very happy to listen to them.

Lucy Frazer

- Hansard -

Copy Link

- - Excerpts

I will make a little progress.

The Bill will provide greater protections for children and vulnerable audiences through a proportionate new on-demand video code, to be drafted and enforced by Ofcom, bringing streaming services in line with the protections that already exist for the audiences of public service broadcasters.

The Bill will also require greater provision of subtitles, audio description and sign language. This will lead to a much improved service for millions of people living with a hearing loss or visual impairment when they watch or listen to television programmes on demand.

Lucy Frazer

- Hansard -

Copy Link

- - Excerpts

I was pleased to meet my right hon. Friend to discuss these important points, and I am very proud that this Bill will ensure greater access so that those with impairments can enjoy the things that those of us without impairments already enjoy.

Lucy Frazer

- Hansard -

Copy Link

- - Excerpts

I am grateful to my hon. Friend for raising this important point, because we want to ensure that everybody has access to television. That is why I made those comments in my speech. We are looking at this matter. There are a number of ongoing reviews to make sure we have evidence bases. I am happy to stay engaged with him on that subject.

From Wimbledon to the FIFA World cup final, live sports are among the most important fixtures on our television schedules every week. To protect British viewers’ access to major sporting events, the Bill will modernise the listed events regime. In line with the Culture, Media and Sport Committee’s recommendation, we have acted to close the streaming loophole.

Millions of us tune into the radio every single day to spend time with our favourite presenters or our favourite music. Whether it is Cambridge 105 Radio or LBC, we rely on local radio to keep us entertained and informed. Few know more about this issue than my hon. Friend the Member for Warrington South, and I thank him for his tireless work to champion this vital sector. But as modern technology continues to transform how, when and where people tune in, we must ensure that stations across the UK have the right support in place so that they can reach their listeners.

Lucy Frazer

- Hansard -

Copy Link

- - Excerpts

I was pleased to visit my hon. Friend’s constituency and to take part in a session on his local radio station. As he knows, the BBC is operationally and editorially independent but, of course, local news is important. We have measures in this Bill to protect local news.

Because listeners increasingly listen to radio using smart speakers, the Bill will require that major smart speakers ensure that the UK radio stations that listeners love remain available on request. The Bill will also remove a number of outdated and burdensome regulations that are holding back the commercial radio sector, while strengthening protections for local news and information.

Finally, one of my central priorities as Secretary of State is to protect media freedom so that our world-leading media can continue to thrive. The Bill has media freedom at its core. One of its most significant measures is the removal of a long-standing threat to that freedom by repealing section 40 of the Crime and Courts Act 2013. Section 40 and the possibility of publishers having to pay the legal costs of the people who sue them, even if they win, has hung over our media like a sword of Damocles. The Bill removes the sword for good.

The Labour party, of course, is no friend of the free press. The shadow Secretary of State has, in the past, called for boycotts of some of this country’s most well-respected papers. The Labour party has accused the Government of muddying the waters of this crucial legislation by including the repeal of section 40, but for us the water is clear. The position is clear: we will protect our free press.

Lucy Frazer

- Hansard -

Copy Link

- - Excerpts

The hon. Gentleman is very knowledgeable on this point, and I am always grateful for his interventions. I am proud that, together with the Minister of State, my right hon. Friend the Member for Maldon (Sir John Whittingdale), I have brought forward provisions to strengthen the anti-SLAPP regime via a taskforce. The Ministry of Justice has proposed further legislation and the hon. Member for Hammersmith (Andy Slaughter), who is extremely knowledgeable, will know that currently it applies only to economic crime. Section 40 applies across the board, and SLAPPs are strategic lawsuits of a particular client, so repealing section 40 is necessary. I am proud to be bringing forward that repeal in this Bill.

I am sure that today we will hear significant contributions on this important Bill, and I look forward to the debate. We should be under no illusions about the urgent need to press ahead with reforms. Success today is never a guarantee of success tomorrow, and it is our job, as a Government and as a House, to enact reforms that keep our broadcasters at the top of their game in the years ahead. That is what the Bill will do: levelling the playing field, removing threats to the media’s sustainability, and opening up opportunities for them to maximise their potential and unlock growth. I commend this Bill to the House.

The Minister of State, Department for Culture, Media and Sport (Sir John Whittingdale)

- View Speech - Hansard -

Copy Link

- - Excerpts

May I start by thanking all hon. Members who have contributed to this debate? It has been wide ranging and remarkably consensual with one small exception. Nevertheless, there has been much support for what the Government are seeking to do in this Bill from right across the House. That is perhaps in part because it has been a long time in the preparation, but I think that it is all the better for that. The Government decided to publish the Bill in draft form, and we have consulted very widely since that time.

We are extremely grateful to the Culture, Media and Sport Committee, under the chairmanship of my hon. Friend the Member for Gosport (Dame Caroline Dinenage), and to the Lords Communication and Digital Committee. We have also held extensive discussions with broadcasters, platforms and all those who have an interest including—just to reassure the Father of the House—with Colin Browne of the Voice of the Listener & Viewer, whom I met recently. We intend to continue to engage with all those with an interest in the Bill to make absolutely sure that we have got it right.

A number of hon. Members, in the course of their contributions, remarked on the extraordinary transformation that has occurred in the media landscape over the past few years. It is absolutely the case that things such as EPGs and linear television are becoming less and less part of everyday behaviour, particularly for young people who access television content. It has meant that there has had to be a succession of Bills to update the legislation to take account of the changes. I have to admit that I was a member of the Broadcasting Bill Standing Committee in 1996. I led for the Opposition in the Committee on the Communications Act 2003, and I am delighted that I shall be taking this Bill through Committee in the next few weeks.

I particularly welcome the offer from the shadow Secretary of State to work with us in taking the Bill through and I look forward to working with her and the hon. Member for Barnsley East (Stephanie Peacock) in Committee as I think that there are areas where we share a common objective. We are also keen to work with all members of the Committee to ensure that we get this right.

As I say, there has been a remarkable transformation in the media landscape. We are particularly grateful for the recommendations, and I want to touch on one or two made particularly by the Culture, Media and Sport Committee. I have always had a high regard for that Committee, having spent 10 years chairing it. As ever, the report produced by the Committee was extremely valuable and we were delighted that we were able to accept a large number of the recommendations.

There were one or two recommendations on which we took a different view. In particular, one that has been raised by a number of hon. Members, including my hon. Friends the Members for Gosport and for Folkestone and Hythe (Damian Collins), was the distinction between “significant” and “appropriate”. A number Members have recommended that we should use the words “significant prominence”, rather than “appropriate prominence”. The Government have taken a different view, which can be summed up as, “Significant can indeed be appropriate, but appropriate is not necessarily significant.”

S4C is an example of that. In Wales, it is very important that it should be highly visible, and therefore significant prominence in Wales is appropriate. On the other hand, it would not necessarily be appropriate for S4C to have significant prominence outside Wales. It should obviously be findable, but it has a different position outside Wales. The Government remain of the view that “appropriate” is a more fitting term than “significant”.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

As I say, in a large number of cases the appropriate position would be a significant one, but we think there needs to be a degree of flexibility to take account of regional differences, and therefore that Ofcom is perhaps better placed to look at each individual example and decide the appropriate level.

I come to Channel 4, which has featured a lot in the course of the debate. Channel 4, set up by a Conservative Government, has played an extremely valuable role in the broadcasting landscape. I think it was my hon. Friend the Member for Folkestone and Hythe who rightly said that when Channel 4 was created, the independent production sector did not really exist at all. The indie sector was created by Channel 4 and the fact that Channel 4, as a broadcaster, commissioned all its content from the indie sector.

As a result, we now have one of the most successful independent production sectors in the world, which to some extent does not now need the support of Channel 4; it is making content for all the broadcasters, in this country and beyond. Nevertheless, it is the Government’s decision that, to provide Channel 4 with a more sustainable revenue base moving forward, we should allow it to acquire an in-house production capacity if it so chooses. We talked to the independent production sector at length and felt it was appropriate that in those circumstances we should increase the independent production quota to 35%, in order to provide some underpinning of the independent production sector. We hope that that will ensure the continued sustainability of the independent production sector at the same time as giving a Channel 4 an additional ability to diversify its sources of revenue.

There have been a number of contributions from north of the border during this debate, particularly around Gaelic broadcasting. One measure in the Bill for the first time makes the provision of services in the minority languages across the United Kingdom part of the public service remit. That did not exist before. It is for Ofcom to decide an appropriate level of provision, but there is now a requirement that there should be such provision.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

Well, I would say to the hon. Gentleman that clause 1 makes clear that there should be a significant quantity of

“audiovisual content that is in, or mainly in, a recognised regional or minority language”.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I apologise to the hon. Lady. She is absolutely right: it does say a

“sufficient quantity of audiovisual content”.

That will be a matter for Ofcom to rule on. MG Alba already gets support—

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I share the right hon. Gentleman’s wish to see continuing provision both for the Welsh language and indeed for Gaelic. I would, however, draw a contrast. Some have suggested that there should be some kind of equity in the support given to the Welsh language and to Gaelic. Of course, S4C receives funding from the licence fee, but that is in recognition of the fact that there are nearly 1 million Welsh speakers in the United Kingdom. MG Alba gets some support from the Scottish Government, which is welcome, but there are approaching 100,000 people in Scotland who speak Gaelic, so there is a big contrast between the two.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I am afraid that all I can say to the hon. Gentleman is that the Government recognise the importance of continuing support. We expect the BBC to continue providing a channel in Gaelic, in the form of BBC Alba, and we welcome the fact that MG Alba produces content through an arrangement with the BBC and with the support of the Scottish Government. We have now, for the first time, put into the public service remit the requirement to provide

“a sufficient quantity of audiovisual content”.

That is a significant step forward, even if it does not go quite as far as SNP Members would like.

The provisions covering radio have been rightly welcomed and described by my hon. Friend the Member for Warrington South (Andy Carter), who is an acknowledged expert in this area. We have worked closely with the radio sector, and I think that the audio review identified the need to ensure the protection of radio services as more and more people adopt smart speakers.

A number of hon. Members raised local television, of which the Government remain supportive. However, at the moment, local television is not available through apps, so including it in the provisions for prominence was not appropriate, but we will of course keep the situation under review, should it evolve in future. The Government are consulting on the future of local television.

My hon. Friend the Member for Penistone and Stocksbridge (Miriam Cates) raised a specific point about the regulation of video-on-demand streaming services. The Government completely share her wish to see adequate protection for children. Having sufficient protections in place will be part of the new requirements on the major streaming services. She is right to praise the BBFC. I have worked with the BBFC for many years, going right back to James Ferman, who for 25 years was its director. It is absolutely true that the BBFC is recognised as expert in this field. I very much welcome that a number of streamers have chosen to adopt the BBFC to carry out their age ratings, including Netflix and Amazon.

The Government’s objective, however, is to ensure that protection is in place, rather than necessarily to specify that it has to be done by the BBFC. It will be left to Ofcom to oversee that, and it already has a lot of experience in this area. It enforces the broadcasting code, which also requires age-appropriate broadcasting. As my hon. Friend rightly said, that was traditionally via the watershed, although that is now changing with the move to on-demand TV. Ofcom also undertakes other protections such as parental controls and so on, so it is not just age rating. I entirely share her view that the BBFC does an excellent job, and I hope that all services will consider using it when reaching decisions, but the Government are not at the point of wishing to mandate that at this time.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

In determining whether the requirements are met, Ofcom will have to take into account whether the rating is easily understood by viewers. Even if that is not necessarily the BBFC’s triangles and particular age ratings, it will nevertheless need to meet those requirements and ensure that viewers can easily see what is an appropriate age for that particular content. I am a viewer of Disney+ along with the other services, and I agree with my hon. Friend. Disney+ has some content that is highly appropriate for children, but it has other content that is perhaps less so.

I move on to the repeal of section 40, which is of concern to a number of Members. I very much welcome the contribution of my right hon. Friend the Member for Suffolk Coastal (Dr Coffey), who served with me on the Select Committee when we carried out the inquiries into phone hacking. I hope I am not being too immodest in saying that the Committee was responsible for exposing phone hacking, and none of the events that followed would have occurred had the Select Committee not persisted in our summoning of representatives of News International, as it was at that time, and pursuing that inquiry. It led to the police investigations and ultimately to the establishment of the Leveson inquiry.

My right hon. Friend the Member for Camborne and Redruth (George Eustice) was right to set out the historical background to the establishment of the Leveson inquiry. However, the one thing that he did not cover, which I recall very well, is that the intention behind section 40 was to put pressure on one or two newspapers that might have been standing out against seeking the approval of the recognised regulator. What nobody anticipated when section 40 was established was that every single national publication would say that they were not willing to comply with that requirement. It was not just the tabloids or the red tops; it was The Guardian, The Independent and the Financial Times. No national newspaper was willing to comply with the Government’s proposals under the royal charter, and that did change things, because it made the system unworkable.

My hon. Friend the Member for Aylesbury (Rob Butler) —to whom I am grateful for taking over the APPG on media freedom—is right to point out that campaigning organisations for press freedom such as Reporters Without Borders were equally critical of the Government’s proposals on section 40 and have been campaigning for its repeal. The Government reached the conclusion that the system had not worked and should be repealed, and we therefore put that in the Conservative party manifesto of 2017. It was repeated in the Conservative party manifesto of 2019, and I am delighted that we will now put that commitment into effect by repealing section 40.

I have seldom agreed with the right hon. Member for Islington North (Jeremy Corbyn), but on this occasion, I thought he made one or two extremely good points. He is absolutely right to highlight the digital divide. We are very conscious that as more and more people access TV content through streaming services and via the internet, there is a group who have not done so. Several Members asked whether the Government can make a commitment to the continuation of Freeview beyond 2034. The Government would not consider switching off digital terrestrial television unless we had reached the point where the overwhelming majority were no longer using it to access TV. We are very conscious of that group in the population who still rely on traditional Freeview, and that will be in our thoughts.

The right hon. Member was also right to pay tribute to news reporting from around the world and to point out that it does not get enough attention. I was delighted to be able to attend the Society of Editors’ media freedom awards recently, where Sky received two awards for its reporter Stuart Ramsay’s reports from Myanmar about the civil war raging there. That is a terrible conflict that does not get enough attention. The right hon. Member is right that it is important that both PSBs and other providers continue to bring us reports from right around the world about things that we would otherwise be unaware of.

Lastly, I welcome the right hon. Member’s stressing the importance of local newspapers. I have been deeply concerned about the decline of local newspapers for many years. I am delighted that the BBC’s local democracy reporting service, which was established following the last charter, continues to support local newspapers, and we continue to look for other ways to support them.

This has been an excellent debate. I look forward to working with all Members and the Opposition as we take the Bill into Committee. I am delighted to commend the Bill to the House.

Question put and agreed to.

Bill accordingly read a Second time.

Media Bill (Programme)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the Media Bill:

Committal

(1) The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Thursday 14 December 2023.

(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.

Consideration and Third Reading

(4) Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.

(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.

(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and Third Reading.

Other proceedings

(7) Any other proceedings on the Bill may be programmed.—(Mark Fletcher.)

Question agreed to.

Media Bill (Money)

King’s recommendation signified.

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Media Bill, it is expedient to authorise the payment out of money provided by Parliament of any increase attributable to the Act in the sums payable under any other Act out of money so provided.—(Mark Fletcher.)

Question agreed to.

Media Bill (Ways and Means)

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Media Bill, it is expedient to authorise:

(1) the charging of fees under the Act; and

(2) the payment of sums into the Consolidated Fund.—(Mark Fletcher.)

Question agreed to.

The Minister for Media, Tourism and Creative Industries (Sir John Whittingdale)

- Hansard -

Copy Link

- - Excerpts

I beg to move,

That—

1. the Committee shall (in addition to its first meeting at 9.25 am on Tuesday 5 December) meet—

(a) at 2.00 pm on Tuesday 5 December;

(b) at 11.30 am and 2.00 pm on Thursday 7 December;

(c) at 9.25 am and 2.00 pm on Tuesday 12 December;

(d) at 11.30 am and 2.00 pm on Thursday 14 December;

2. the proceedings shall be taken in the following order: Clauses 1 to 17; Schedule 1; Clauses 18 to 27; Schedule 2; Clause 28; Schedule 3; Clauses 29 to 36; Schedule 4; Clause 37; Schedules 5 to 7; Clauses 38 to 40; Schedule 8; Clauses 41 to 48; Schedule 9; Clause 49; Schedules 10 and 11; Clauses 50 and 51; Schedule 12; new Clauses; new Schedules; remaining proceedings on the Bill;

3. the proceedings shall (so far as not previously concluded) be brought to a conclusion at 5.00 pm on Thursday 14 December.

It is a great pleasure to serve under your chairmanship, Mr Vickers, and to debate with the hon. Member for Barnsley East, reprising the enjoyable time we had in the Data Protection and Digital Information (No. 2) Bill Committee not long ago. This Bill is important for the future of our public service broadcasters and the media in this country. It has been some time in the preparation. It has been through pre-legislative scrutiny, and has been amended considerably to reflect the views put forward to the Government. As a result, I hope that it is generally non-controversial, but it is obviously important that we scrutinise it in detail.

The Programming Sub-Committee met yesterday evening to debate the programme for consideration of the Bill. It was agreed that we should meet today at 9.25 am and 2 pm, again on Thursday, and then again on Tuesday and Thursday next week. That was the unanimous view of the Committee. On that basis, I commend the programme motion to the Committee.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I hear what the hon. Lady says and understand her points. However, as I indicated, the Bill has been in gestation for a long time. I chaired the Culture, Media and Sport Committee until 2015, and it called for a number of the measures in the Bill, so certain parts have taken at least seven or eight years. As she rightly points out, the Government published the Bill in draft form, and that led to lengthy Select Committee hearings, in which a large range of stakeholders gave evidence. Indeed, there was the Select Committee’s report, and the Scottish Affairs and Welsh Affairs Committees also made recommendations. All those were taken into account by the Government, and published evidence was available.

Since that time, we have held a number of roundtables to hear from stakeholders. I obviously recognise that those were private meetings, so there is not a public record of them, but nevertheless, as the hon. Lady points out, there has been an opportunity for all stakeholders to submit written evidence. I am shocked at her suggestion that there could be members of the Committee who have not read all the written evidence submitted, but it is publicly available. Given the time spent consulting on the Bill, it was felt that a public oral evidence session in the Committee was not necessary. If anybody wishes to make further representations, we would gratefully receive them.

The Programming Sub-Committee felt yesterday that the timetable gave sufficient time, given the Bill’s non-controversial nature. Relatively fewer amendments have been tabled than were tabled to the Data Protection and Digital Information Bill, which the hon. Member for Barnsley East and I took through Committee not that long ago. I hope that we will give the amendments proper scrutiny. I view the timetable with a certain amount of schadenfreude, in that I shall be stepping down from my position at the end of the year so that my hon. Friend the Member for Hornchurch and Upminster (Julia Lopez) can return to her role. I am pleased that I shall have the opportunity to take the Bill through the whole of Committee, because it is one that I have spent quite a lot of time on. For those reasons, I think the programme motion and the amount of time allocated for consideration of the Bill are correct, although I join the hon. Member for Aberdeen North in hoping that anybody with further representations to make does make them, even if we are not having oral evidence sessions.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I thank the hon. Members for Barnsley East and for Aberdeen North for speaking to their amendments and allowing us to debate the importance of the Gaelic language. It is something we spent a little bit of time on at Second Reading, but it is an important issue.

The Government absolutely share the view of the vital necessity of supporting the continuation and future of Gaelic, and recognise the important contribution that the Gaelic media service MG ALBA makes to the lives and wellbeing of Gaelic speakers across Scotland and the rest of the UK. It is for that reason that the Government embedded a duty to support regional and minority languages, although I take the point made by the hon. Member for Arfon about Welsh not being a “regional” language in that sense. It is, nevertheless, a minority language—as is Gaelic. There is a duty within the BBC’s general duties under the current charter arrangements. We want to help ensure that audiences are able to access this culturally important minority language content in the decades to come.

The Bill goes further than existing provisions. Clause 1 makes the importance of programmes broadcast in the UK’s indigenous languages, including the Gaelic language, clear in legislation, by including it in our new public service remit for television. That is a new addition, which puts on the face of the legislation the need to continue to support minority languages of this kind. We will debate later the way in which the public service broadcasters are required to contribute to the remit and are held accountable for doing so. The purpose of clause 1 is to place a requirement on Ofcom to consider how the public service remit has been fulfilled. It sets a high-level mission statement for public service broadcasters, and is underpinned by a more detailed system of quotas in later clauses. It is intended to be simpler and to provide PSBs with greater flexibility.

That point notwithstanding, I reassure the hon. Member for Barnsley East that the availability of Gaelic language content is provided for elsewhere. As she knows, the BBC has a specific responsibility in the framework to make arrangement to provide BBC Alba, which is a mixed-genre television channel for Gaelic speakers and those interested in the Gaelic language. Ofcom also places a number of more detailed responsibilities on BBC Alba in the BBC’s operating licence. For example, it must provide music of particular relevance to audiences in Scotland, live news programmes each weekday evening—including during peak viewing time—and a longer news review at the weekends.

It is for Ofcom to determine whether these requirements remain appropriate, including on the basis of feedback. It is the case, however, in terms of the amount of Gaelic language broadcasting that takes place, that at the moment BBC Alba broadcasts in Gaelic from 5 pm until midnight. That is seven hours each day, starting an hour later at weekends. When not broadcasting television programmes in Gaelic, it plays—forgive me if I pronounce this wrong—BBC Radio nan Gàidheal, which is the Gaelic language radio station. That is broadcast with static graphics during the periods when television programmes are not being aired. That means that there is a total of something like 2,579 hours of Gaelic television content, certainly in the course of last year.

I think that the amount of Gaelic language already being broadcast meets the ambition set out in the amendment from the hon. Member for Aberdeen North, and it is now contained in the public service remit, serving all channels, and the BBC charter agreement. For that reason, I think there is already considerable provision to ensure the continuation of Gaelic language.

I want to turn to the issue raised by the hon. Member for Barnsley East in new clause 5, which refers specifically to the manner in which Gaelic is delivered. BBC Alba is a requirement as part of the charter, and we will again consider how it is delivered by the BBC when the charter renewal takes place. The charter review starts in 2025 and has to be completed by 2027, and we will set out further details in due course on precisely how it is to be carried out.

In the more immediate term, we have recently brought together BBC and Scottish Government officials to discuss the co-ordination of funding decisions for Gaelic language broadcasting between the two organisations. In that respect, I hope that the hon. Member for Aberdeen North and the hon. Member for Barnsley East will recognise that the intention behind their amendment and new clause is already delivered by the Bill and on that basis will be willing to withdraw their amendments.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

The hon. Lady is absolutely right to say that Ofcom has a duty under the Bill to monitor the delivery of the public service remit, but she will be aware that in addition Ofcom has the duty to oversee the BBC’s delivery of its requirements under the charter and the agreement. To that extent, Ofcom will be monitoring whether or not the BBC is meeting is obligations.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I start by agreeing with both Opposition spokesmen about the importance of supporting the production sector outside London and across every region and nation of the United Kingdom. The growth of the independent production sector outside London has been a phenomenal success in recent years, and we now have very strong companies in all parts of the UK. That is shown by the fact that since 2010, PSBs’ production spend allocated to programmes outside London has increased from 39% to over 50%, with ambitions to go even further. For instance, the recent publication of the BBC’s “Across the UK” strategy commits it to increasing the proportion of its own TV production budget outside London to 60% by 2027.

The amendment tabled by the hon. Member for Aberdeen North focuses on Scotland, where production spend is now worth over £266 million, supported by developments including the opening of a Channel 4 creative hub in Glasgow in 2019. As I say, the BBC’s “Across the UK” strategy includes commitments to expand its production studios within the city.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

My hon. Friend is absolutely right. It is not just the public service broadcasters that are committing to spending money on production in Scotland; it is right across the range of broadcasters. That exemplifies the strength of Scottish independent production. Indeed, similar figures can be quoted for Wales; it is not unique to Scotland. Every part of the UK is benefiting. Of course, Scotland has its own broadcasting company in the form of STV, which has a production arm, STV Studios, which has an ambition to become a world-class content producer for global networks and streaming services.

The success of the production sector in Scotland and across the UK has been supported and underpinned by a regulatory system. The importance of programmes being made outside London is in the new public service remit. In addition, all public service broadcasters, with the exception of S4C, are subject to regional programme-making quotas for spend and hours of production outside London. Channel 4 has its own out-of-England quota; the BBC also has a specific quota for content made in Scotland. Those quotas are set by Ofcom, which has the power to amend them, where appropriate. One example of the success of that regulatory system is the “Made outside London programme titles register”, published by Ofcom, which, in 2022, had 811 entries, including 543 from English regions outside London, 53 from Northern Ireland, 117 from Scotland and 72 from Wales. In each case, broadcasters are exceeding the production quotas quite comfortably. The Government will continue to support screen industries across the UK through a system of tax reliefs, investment in studio infrastructure and the UK global screen fund.

In line with the Government’s broader ambition to level up the UK, we want the production sector in all areas of the UK to continue to thrive, and we believe that PSBs play a very important role in our meeting that ambition. Returning to comments made by the hon. Member for Arfon, which I did not address earlier, S4C plays an extremely important part in that. I have not had the opportunity to visit production facilities in Scotland, but I have been to visit both BBC Wales in Cardiff and S4C, where I went on the set of “Pobol y Cwm”, and production in Wales is thriving. The position for S4C is slightly different from that for Scotland, in that there is, as the hon. Gentleman pointed out, a dedicated television channel for the Welsh language in the form of S4C. However, the Government are committed to supporting the production sector in all the nations of the UK.

I share the view of the hon. Member for Barnsley East that attempting to set quotas that are exactly in line with the population proportions would impose a constraint, which would be limiting and unnecessary. For that reason, I ask the hon. Member for Aberdeen North to withdraw her amendment.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

The past decade has seen a complete transformation in the way in which people access television. Ten years ago, streaming services barely existed; now, they are ubiquitous. That is why the Bill is so important in modernising our approach and, in particular, ensuring that the public service broadcasters continue to thrive in this new landscape.

Clause 1 amends section 264 of the Communications Act to create a modernised remit for public service broadcasting against which Ofcom must report at least every five years. The new remit replaces and simplifies the purposes and objectives of the current public service broadcasting system. That is set out in proposed new subsection (4), and it will be fulfilled when the public service broadcasters provide a range of content that satisfies the interests of different audiences and is delivered in a way that meets the needs of those audiences.

Proposed new subsection (5) identifies the principal types of public service content that should form part of the PSBs’ collective contribution to the remit, specifically news and current affairs, children’s content and distinctively British content, as well as original, independent and regional productions. For the first time, regional and minority language content—content in Gaelic, Welsh, Scots, Ulster Scots, Irish and Cornish—is specified as contributing to the public service remit.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

While I completely share the hon. Lady’s love of music and recognition of the importance that broadcasters play in the promotion of music, the purpose of the new remit is to remove the specific naming of individual genres and instead put a requirement for them to be a “broad range”. In my view, that would certainly include music. Ofcom will have a duty to ensure that the broad range of different aspects of public service broadcasting is delivered, and there is a backstop power. If it is felt that broadcasters are failing to deliver sufficient quantities of the specific genre, it is possible for us to pass additional regulation to include a named additional genre. While music is no longer specifically mentioned in the remit, I am confident that that will not lead to any reduction. Indeed, the broadcasters have made clear that they have no intention of reining back on specific genres just because they do not appear in the legislation.

On how content is delivered, the Bill updates the present system so that on-demand provision contributes to the fulfilment of the remit, but to count towards the remit, as has been mentioned, it has to be online for at least 30 days. The only exceptions to the requirement are news and the coverage of live sports, which are regarded as being of instantaneous value, but value that perhaps diminishes over a short space of time. We thought about including music, but I think the value of music lasts beyond 30 days—I am as keen to see a performance from Glastonbury today as I was at the time it was broadcast. It would therefore not be appropriate to include it as one of the exemptions to the requirement. The Government recognise that it is valuable for audiences to be able to access news and current affairs in a traditional format, and the Bill accounts for that by ensuring our public service broadcasters are still subject to quotas that require them to deliver news via traditional linear television. Taken together, these changes will help ensure that our regulatory regime keeps up with modern viewing methods.

Clause 2 updates section 264A of the Communications Act in the light of the new public service remit for television. Section 264A describes how Ofcom, when undertaking a review under section 264, should consider the contribution that other media services, including those provided by commercial broadcasters, make to the remit. The changes made by the clause are needed to implement the new public service remit.

Clause 7 makes changes consequential to clause 1. In particular, it amends section 271 of the Communications Act to apply the existing delegated powers in the section to the new public service remit, as opposed to the old purposes and objectives. That will ensure that, should there be a need, the Secretary of State can by regulation modify the public service remit in clause 1, as I was suggesting to the hon. Member for Luton North. I therefore commend the clauses to the Committee.

I understand the intention behind amendment 19, which is to ensure that the range of content shown is broad. We want that too, but we feel that no longer specifying a large number of individual genres simplifies the current system of public service broadcasting. We want to set a clear and simple vision for the industry that narrows in on what it means to be a public service broadcaster, but we do not see that that need comes at the expense of breadth. We continue to want to see a wide range of genres, and we believe the clause achieves that.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

Ofcom has a duty to monitor the delivery of the remit, and that includes satisfying itself that there is a sufficient range of genres and that there has not been a diminution of a particular genre that would be considered part of the public service remit. If, however, it becomes clear that broadcasters are failing in any area, there is a backstop power that allows the Secretary of State to add a specific genre to the remit. We believe that safeguard is sufficient to ensure continued delivery of the range of genres that the hon. Lady and I want to see.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

The position is that Ofcom has a duty to monitor the delivery of genres, and it produces a report on that. If it becomes clear, and Ofcom states, that the public service broadcasters are failing to deliver aspects of the remit, section 271 of the Communications Act, which is amended by clause 7, provides a delegated power to amend the remit following the report by Ofcom. Proposed new section 278A allows for the creation of additional quotas for underserved content areas. Those powers are designed to address any underserved content areas that have been identified, and could be used to add a specific genre if that proved necessary.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I am very happy to provide the hon. Lady with a written briefing on exactly how the powers can be used.

New clause 1 would put a specific duty on Ofcom to report on how public service broadcasters deliver the public service remit. We agree that that is very important, but we think that the Bill already achieves that. Clause 1 amends section 264 of the Communications Act to put a responsibility on Ofcom to review and report on the extent to which public service broadcasters fulfil the remit. Regarding the specific requirement of delivery of the remit on linear, I think that we are straying into the territory of debate on the next group, about how long viewers should be able still to rely on digital terrestrial television. I am very happy to debate that, but I think that discussion that is more appropriate to the next grouping.

The hon. Member for Aberdeen North raised a specific question about how the measurement of the 30 days requirement should operate. I can assure her that the broadcaster would certainly not be able to pick out individual days and put them all together to make up that 30. It is 30 consecutive days starting from the day that the content is first made available.

I believe that the clauses that we are debating represent a modernisation that will ensure that public service content remains at the heart of our broadcasting landscape but is modernised to take account of the extraordinary transformations that are occurring. On that basis, I commend clauses 1, 2 and 7 to the Committee, but I would, I am afraid, be unable to support new clause 1 or, indeed, amendment 19.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I want first to make it clear that the Government remain committed to the future of digital terrestrial television. We absolutely accept that millions continue to rely on it. We have already legislated, as hon. Members know, to secure its continuity until at least 2034 through the renewal of the multiplex licences. Obviously, I understand that the Opposition would like to go further and give a commitment going beyond 2034, and the amendments are tabled with that purpose in mind.

I said “overwhelming majority” on Second Reading, because I do not want to be tied down to a specific figure, particularly when we are now looking 10 years ahead, but I repeat that it would be a brave Government who switched off DTT while there was still a significant number—even a small number—of people relying on it.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I am happy to say a little more about what the Department is doing. First, the hon. Member for Aberdeen North is absolutely right that broadband availability is one of the factors that would need to be taken into account. I also have ministerial responsibility at the moment for digital infrastructure, and I can confirm to her that the Government remain committed to the universal availability of gigabit broadband by 2030; if we achieve that target, that is one factor that will have been met. There is also the availability of low-cost tariffs, and I agree with her about the importance of those.

The hon. Lady also talked about resilience. Resilience is important, but it is worth bearing in mind that the Bilsdale transmitter fire was not that long ago—that took out DTT for a significant number of people for quite a few months. Every technology is subject to occasional risk, and that was a rather more dramatic one.

On getting vital messaging across, I gently say to Opposition Committee members that radio is, of course, available through a variety of different technologies as well as television.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

We completely recognise that terrestrial TV is important to many in the country. I was in my second incarnation as a Minister at the time of the Bilsdale fire, and I talked to Arqiva about the importance of restoring services as rapidly as possible. A very large number of people were left without the ability to access information, entertainment and all the things that people rely on television to provide.

Looking forward, as hon. Members may be aware the Secretary of State recently announced that the Department is going to carry out a new programme of work on the future of television distribution. That includes a six-month research project working with a consortium led by the University of Exeter, looking at changing viewing habits and technologies. We have also asked Ofcom to undertake an early review on market changes that may affect the future of content distribution. I am very happy to keep the House updated on those. That will be looking at all the various factors that would need to be taken into account.

I make one final point about amendment 37. It puts a particular requirement on channel 3 licensees to use particular standards for compression technology. As with all technologies, the standards for television distribution will change over time. We want to ensure that there remains flexibility, so restricting channel 3 to a particular use of one technology would be severely limiting and actually be contrary to precisely what the Bill is designed to achieve.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

As I say, we are committed to keeping the House updated about the research. I recognise the point, and my own expectation is that DTT will be around for quite some time to come. For the reasons I have explained, I am not able to accept the amendments. I hope that the Opposition will withdraw them.

The Minister for Media, Tourism and Creative Industries (Sir John Whittingdale)

- Hansard -

Copy Link

- - Excerpts

I beg to move amendment 1, in clause 3, page 7, line 33, at end insert—

“(5A) In this section, a reference to making available audiovisual content, in relation to a licensed public service channel, is a reference to the provider of that channel making available audiovisual content.”

This amendment describes how audiovisual content contributing to the fulfilment of the public service remit for a licensed public service channel is provided.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I welcome you to the Chair, Mrs Cummins. Clause 3 amends section 265 of the Communications Act 2003 to update public service remits of licensed public service channels to make clear that the high-quality and diverse programmes they make available must themselves contribute to the public service remit and together represent an adequate contribution. In line with the changes made by clause 1, it allows licensed public service channels to fulfil their remits by using a wider range of services.

Government amendment 1 ensures that when a public service broadcaster is required to fulfil the public service remit for a given channel, and that remit is to make available content, then it is the public service broadcaster that should be making that content available, either themselves or through others. That point of detail was arguably included in the Bill at its introduction, but we felt it necessary to bring forward the amendment in order to put this matter beyond doubt. It is a technical amendment, and I hope the Committee can support it.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

Section 266 of the Communications Act 2003 puts a duty on Ofcom to require providers of licensed public service channels to prepare statements of their programme policies that set out how they intend to fulfil their individual channel remits. Currently, these statements must only be prepared in relation to the content provided by public service broadcasters on their traditional TV channels. Clause 4 amends section 266 of the 2003 Act. It expands these statements to reflect that the fulfilment of the public service remit could now include, as set out in clause 1, content delivered by on-demand services.

Going forward, the providers of licensed public service channels—channels 3, 4 and 5—must set out in their statement the services they are using to contribute to the fulfilment of the public service remit and explain how each service is contributing. The publication of these statements is important to allow proper scrutiny of our public service broadcasters.

Clause 5 of the Bill, which is grouped with clause 4, amends section 267 of the 2003 Act to update the definition of “a significant change”, so that it would apply if any of the services that a licensed public service broadcaster is using to deliver its remit—not just the main channel, as before—were to become “materially different in character”. For example, this will include on-demand services as well as the traditional TV channels. And like the previous clause, clause 5 will ensure that these statements continue to allow scrutiny of all the ways that the public service remit is fulfilled.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

As the hon. Member for Barnsley East has already set out, section 270 of the Communications Act gives Ofcom enforcement powers to use in the event that it believes the provider of a licensed public service channel has failed to fulfil its statutory remit, or to make an adequate contribution to the public service remit for television. In those circumstances, Ofcom could issue a direction to the public service broadcaster setting out the steps for remedying the failure. Should it not give effect to that direction, Ofcom can also then impose additional obligations on the broadcaster.

In that context, clause 6 does three things. It amends section 270 to make clear that Ofcom can make directions and impose licence conditions in relation to any services that the public service broadcaster has indicated it is using to fulfil its channel remit. In the light of the ability of licensed public service broadcasters to use a wider range of services to deliver their remits, it will allow Ofcom to consider the record of the provider in using on-demand programme services when considering enforcement action.

Turning to amendment 20, I understand the Opposition’s concern about whether Ofcom will have the tools it needs, which we absolutely share. However, we believe the particular change sought by the amendment is not necessary and would carry with it some dangers. First, as the Government have already set out to the Culture, Media and Sport Committee, there are reasons why Ofcom might form the opinion that the failure of a provider is serious, but it may consider that a failure is more serious if it is likely that it will be repeated without regulatory intervention.

Secondly, the power to enforce against the licensed public service broadcaster is not the only tool available to Ofcom. Ofcom can also take less formal action, working with public service broadcasters to produce good outcomes; it also has legal options.

Thirdly—this is perhaps the most important consideration —the amendment breaches what is quite an important principle: public service broadcasters need to be independent to make their own decisions about how they best run their channels now and in the future. Ofcom’s role is to reach judgment on whether broadcasters have succeeded in meeting their public service remit. The amendment would make Ofcom a pre-broadcast regulator rather than a post-broadcast regulator. It would give Ofcom the ability to penalise failures that have not yet occurred.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

My hon. Friend is right. It is a long-established principle that Ofcom is a post-transmission regulator. The acceptance of the amendment would change that and give Ofcom an ability to intervene before transmission. That would be a breach of what we consider quite an important principle. Therefore, on that basis, we cannot accept the amendment.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

We are about to debate the fact that individual channels will be subject to some quotas. There are also the statements of programme policy that Ofcom will be required to approve. Having said that, Ofcom will reach a judgment on delivery of the remit, looking across the broad extent of public service broadcasting. Ofcom will be able to make it clear if it thinks a particular genre has not been sufficiently provided either by an individual public service broadcaster or, indeed, across the whole range of public service content. It will be for Ofcom to determine that, but I believe the Bill gives it that ability.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

Clauses 8 to 17 make amendments to the current system of quotas, which I will discuss in this group and the next.

Quotas are an important tool to ensure that public service broadcasters produce an appropriate range of content. Unlike the public service remit, which is judged by Ofcom in regard to the PSBs as a whole, quotas allow Ofcom to put licence conditions on specific public service broadcasters to ensure that they make available certain types of content. That is how we can ensure an appropriate balance of key types of content, such as news and current affairs, independently produced content and original content. It is worth stressing that such requirements are floors, not ceilings, and that PSBs routinely exceed them, often by a considerable margin.

Section 277 of the Communications Act sets out a minimum proportion of broadcast hours that must be independent productions. It is set at 25% for each of the licensed public service channels. Clause 8 amends this to change the way in which the provider of a licensed channel may deliver the independent production quota. In particular, subsection (2) replaces the existing requirement on the

“provider of a licensed public service channel”

to allocate time on the channel to the broadcasting of a

“range and diversity of independent productions”.

Together with clauses 11 and 12, it will allow the requirements to be fulfilled using a public service broadcaster’s designated on-demand programme services to better reflect modern viewing habits.

The subsection also replaces references to a proportion of hours that the provider of licensed public service channels must make available, with reference to a number of hours. The number of hours that each licensed public service channel must include is to be specified by the order of the Secretary of State. Given that this requirement can now be met using on-demand services, it is more appropriate to use the number of hours of content made available as a measurement rather than the proportion of hours.

Subsections (5), (7) and (9) make comparable provision in relation to expenditure quotas for independent productions that the Secretary of State may establish. In setting the new hours-based quota, the intention is for them to be no more or less demanding than the existing 25% quota. We therefore intend to calculate the effective level of the quota over the last five years and replicate that. Of course, in Channel 4’s case, which we will come to later, that will be revised upward to the equivalent of 35% should Channel 4 decide to start a production business.

We believe that the consequence of that provision represents proportionate and reasonable requirements on our public service broadcasters. Of course, it is open to PSBs to go further and exceed their independent production quotas as they do now. Clause 9 makes similar amendments to section 278 of the Communications Act, which provides that a minimum proportion of broadcasting hours must be allocated to original productions. The proportion for each licensed public service channel, as well as the proportion in peak viewing times, is determined by Ofcom. As with clause 8, this clause ensures that the provider of the licensed public service channel can fulfil the quota using their designated on-demand services. That change is achieved by replacing the requirement to allocate time on the channel to the broadcasting of original productions with a more general requirement. Again, it makes provision for this to be measured by duration rather than as a proportion of broadcast hours as it is currently.

Clause 14 relates to the quotas for making programmes outside of London. The Communications Act currently provides that a minimum proportion of programmes made in the United Kingdom have to be made outside the M25 area. Similarly comparable provision is made in respect of expenditure. We debated this earlier, particularly in relation to the effect on production in Scotland and in Wales. Similarly, clause 14, read with the previous clauses, amends the Communications Act to preserve the substance of the provision, but it changes the way in which the provider may deliver their regional production quotas. In similar fashion, it again makes the change to measure the quota in terms of duration, rather than proportion of hours.

Together, these changes modernise our system to reflect the change that has occurred in audience viewing habits over the past 20 years, and ensure that it will continue to be meaningful and delivering value.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I am grateful for the general expression of support from the Opposition. As I said, it is not the Government’s intention to make the quotas any less demanding than they are at present by moving from a proportional measurement to a numerical measurement of the number of hours.

The hon. Member for Barnsley East asked for an indication of what that meant. It is complicated, but using the data published for 2018 to 2022, we expect the quotas to be roughly as follows: all together, the BBC will have an independent production quota of 1,725 hours; regional channel 3 services will have a quota of 725 hours; Channel 4 will have a quota of 450 hours, rising to 625 hours if it chooses to start a production business; Channel 5 will have a quota of 325 hours; and S4C will have a quota of 425 hours. There is a significant variation between them, which, given that they were all at 25%, came as something of a surprise to me when I first looked at the data, but it is a reflection of the proportion of new, original programming commissioned by each channel. There is therefore a variety.

Ofcom will still have the duty to ensure that the quotas are met. If, by some chance, a PSB fails to meet its quota due to extraordinary circumstances, Ofcom can take that into account when considering whether to take enforcement action. However, the purpose of the change is to move the quota requirement into the modern world.

I hear what the hon. Member for Aberdeen North says about the risk of the number being hard to define. As we debated earlier, a programme will count towards the public service remit only if it is available on demand for 30 days, and Ofcom will need to be satisfied that it is accessible in the way the hon. Lady describes. On that basis, I hope that the clause can stand part.

Question put and agreed to.

Clause 8 accordingly ordered to stand part of the Bill.

Clause 9 ordered to stand part of the Bill.

Clause 10

Power to create additional quotas for qualifying audiovisual content

Question proposed, That the clause stand part of the Bill.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

Clause 10 inserts proposed new section 278A into the Communications Act 2003. This will establish a mechanism for the creation of additional quotas for audio-visual content that has not been made available by one or more providers of

“licensed public service channels…to the extent that is appropriate.”

That is achieved by empowering the Secretary of State in new subsection (1) to specify

“by regulations…a description of qualifying audiovisual content”.

This will include both specifying the type of content—for example, a particular type or genre—and how that content is to be delivered.

The power is essentially a backstop should there be a type of content that is neglected in the fulfilment of the public service remit, as we discussed. It will only be used as an exception rather than by rule. We believe that a modernised public service remit, deliverable across a wide range of services, will in most cases be sufficient to ensure a range of high-quality public service broadcasting. The power will ensure that the legislation is future-proofed against changes in how content is delivered—for example, by allowing the Secretary of State to require that certain content be delivered on certain services.

The bar for imposing additional quotas of this kind will be high. The more specific the proposed quota, the higher it should be. Before making a recommendation under these sections to introduce regulation, Ofcom will be required to consult members of the public, affected licensed public service channels and any other providers of television or on-demand programmed services. Any regulations made under the new section will be subject to the draft affirmative mechanism.

Clause 11 inserts proposed new section 278B into the 2003 Act, which introduces some important definitions that are relied on by other clauses. It defines “qualifying audiovisual content” and what it is to make available a “qualifying audiovisual service”. It also specifies that this must be free of charge where it has been included in an on-demand programmed service, and it must have been included, as we said, for at least 30 days. These important definitions are needed for the functioning of the Bill.

Government amendment 2 is a technical amendment to clause 11, clarifying that, where qualifying audio-visual content has been made available through services provided by persons associated with the licensed PSB, arrangements must be in place between the PSB and that person. That corrects a theoretical anomaly between section 264, as amended, and the proposed new section, which could have resulted in quota content not counting towards a PSB’s remit.

Clause 12 makes further provisions about how quotas can be fulfilled. It inserts proposed new section 278C into the 2003 Act, requiring the Secretary of State to make provision, either directly or through Ofcom, for the appropriate treatment of material that is made available by public service broadcasters multiple times. It can apply whether the repeats are on the same service, as with the traditional repeat, or across multiple services. We believe that this complex issue needs more detailed treatment. Before making any regulations in this area, the Secretary of State must consult Ofcom.

In respect of original and regional productions, and other additional quota conditions that may be determined, clause 12 allows for the treatment of repeats to be determined not by the Secretary of State but by Ofcom. Given that Ofcom is responsible for setting the level of those quotas, in our view it makes sense for it to continue to determine the treatment of repeats.

Turning to clause 13, section 285 of the 2003 Act requires that the provider of each licensed public service channel draws up a code of practice that they will apply when commissioning independent productions for that channel. Those codes of practice must be consistent with guidance issued by Ofcom, and this gives rise to a system of regulation known as the terms of trade regime. The purpose of the codes, and indeed, the terms of trade regime as a whole, is to ensure that broadcasters work fairly with independent production companies and do not take advantage of their dominant market position.

Clause 13 makes amendments to section 285 of the 2003 Act to extend the scope of the codes of practice to cover independent productions commissioned for other audio-visual services—for example, programming that is put on on-demand programme services—should the PSB wish to count those programmes as part of its independent productions quota. Subsection (3) is complementary, in mandating Ofcom to issue guidance with a view to ensuring that the PSB provides the person who is being commissioned with information about the application of the code. These essential provisions support the modernisation of our PSB system, and I commend Government amendment 2 and clauses 10 to 13 to the Committee.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

We debated earlier whether we should continue to have specified genres as part of the public service remit. As I said, the Government considered it better to specify that there should be a broad range without necessarily going through each individual category. That does not mean that Ofcom will not have the power to consider the provision of precisely the same genres as they have in the past, and those will include things such as arts and classical music, religion, sport and drama. Ofcom will also be required to produce an annual report on what it considers to be the principal genres and on whether those are being met. Some of the concerns that the hon. Member for Barnsley East identified will be met by the Bill.

The treatment of repeats is complicated, as the hon. Member for Aberdeen North indicated. The Secretary of State will have the power to make regulation under the affirmative procedure, having consulted Ofcom. We cannot go into specific detail at this stage about how the power will be used, but I can say, in respect of independent productions, that the intention is that repeats should not count towards the quota, given the focus on the way in which programmes are made. But in respect of original and regional productions and other additional quota conditions that may be determined in the future, this allows for the treatment of repeats to be determined by Ofcom. Given that Ofcom will have the responsibility for setting the level of quotas, it makes sense for it to continue to determine the treatment of repeats. I hope that that provides a little more clarity, if not an absolute clear statement at this stage of how this will work.

Question put and agreed to.

Clause 10 accordingly ordered to stand part of the Bill.

Clause 11

Quotas: meaning of “qualifying audiovisual content” etc

Amendment made: 2, in clause 11, page 12, line 29, leave out from beginning of line to “by” in line 30 and insert—

“(a) that content is provided by—

(i) the person, or

(ii) a person associated with the person, under arrangements made between the person and that associated person,”.—(Sir John Whittingdale.)

This amendment adds a requirement that the provision of qualifying audiovisual content by a person associated with the provider of a licensed public service channel should be under arrangements made between the provider and the associated person.

Clause 11, as amended, ordered to stand part of the Bill.

Clauses 12 to 14 ordered to stand part of the Bill.

Clause 15

Networking arrangements for Channel 3

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I beg to move amendment 3, in clause 15, page 17, line 28, after first “for” insert “available”.

This amendment and Amendment 4 secure that networking arrangements must be arrangements that provide for programmes made, commissioned or acquired by one or more holders of regional Channel 3 licences to be available for inclusion in qualifying audiovisual services that are connected with every licence holder, as services provided by the licence holder or by a person associated with the licence holder.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

Clause 15 of the Bill amends section 290 of the Communications Act, relating to the existence of a system of networking arrangements that govern the interaction between the providers of the different regional channel 3 services—that is, ITV and STV. Any such arrangement must be approved by Ofcom and, in considering whether to approve the arrangements proposed by a provider, Ofcom must consider whether the arrangements meet the three networking objectives set out in subsection (4). The basic premise of those arrangements is that the regional channel 3 services should be distinctive, but should nevertheless share programming between them.

Clause 15(2)(a) amends the second networking objective, which relates to the providers of a channel 3 service making programmes available

“for broadcasting in all regional Channel 3 services”.

It replaces those words with the words,

“available for inclusion by every holder of such a licence in qualifying audiovisual services provided by that person”.

Together with Government amendments 3 and 4, this will ensure that the networking arrangements remain relevant in a world where many viewers are choosing to watch programmes on demand.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I am grateful to all those who have made contributions. I will come on to address the points made by the hon. Member for Barnsley East returns, but first I will address the points made regarding Scotland and Wales.

I have some sympathy with that, because while we maybe do not feel as strongly about these things as representatives of the SNP and Plaid Cymru, my own constituents frequently have to listen to news about what is happening in London, rather than Essex, because of the way in which some people receive regional programming.

I fully understand the point made by the hon. Member for Aberdeen North. It is perhaps a consequence of the fact that the boundaries of regional services television do not necessarily coincide with national boundaries, which may mean that people on the border are receiving television services that are less appropriate for them, given their geographic location. I think that is probably a difficult issue to solve, but I would certainly encourage her to discuss it with Ofcom, which will obviously need to be satisfied that each of the channels is delivering the public service remit across the geographic area that it is covering. I think that is probably a matter for Ofcom; I will certainly draw it to its attention and suggest that it might like to talk to the hon. Lady further.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

My hon. Friend tempts me to go down a route that could open up a whole new area of debate. I have to say that I share his concern about some of the decisions taken, particularly in relation to local news provision, by the BBC on radio and, indeed, in local news services. He will be aware, and he has a lot of experience in this area, that this is a matter for the BBC. That does not mean that we do not make clear our own views to the BBC about how it is delivering its obligations to provide for local news. We will continue to do that, but it is ultimately a matter for the BBC.

In relation to some of the points made by the hon. Member for Barnsley East, we want the BBC to have a consistent approach, recognising its distinctive contribution. We will be looking at all these matters when we come to consider the renewal of the charter which, as we discussed this morning, will start not instantly, but in the not too distant future.

Amendment 3 agreed to.

Amendments made: 4, in clause 15, page 17, line 29, leave out from “substitute” to end of line 30 and insert

“”, in relation to each holder of such a licence, available for inclusion in one or more qualifying audiovisual services provided by that holder or a person associated with that holder”;”.

See explanatory statement to Amendment 3.

Amendment 5, in clause 15, page 17, line 32, after “licences” insert

“and persons associated with any of those holders”.

This amendment secures that the purpose of networking arrangements is to enable holders of regional Channel 3 licences and persons associated with those holders to provide qualifying audiovisual services that (taken as a whole) are able to compete effectively with other television programme services and on-demand programme services provided in the United Kingdom.

Amendment 6, in clause 15, page 17, line 35, at end insert—

“(2A) After subsection (4) insert—

“(4A) Section 362AZ12(6) (meaning of references to a person associated with a public service broadcaster) applies for the purposes of subsection (4)(b) and (c) as it applies for the purposes of Part 3A.””

This amendment is consequential upon Amendments 4 and 5.

Amendment 7, in clause 15, page 17, line 36, leave out “(4)” and insert

“(4A) (inserted by subsection (2A))”.—(Sir John Whittingdale.)

This amendment is consequential upon Amendment 6.

Clause 15, as amended, ordered to stand part of the Bill.

Clauses 16 and 17 ordered to stand part of the Bill.

Schedule 1 agreed to.

Clause 18

Power to require information

Question proposed, That the clause stand part of the Bill.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

Clause 18 inserts two new sections into the Communications Act to ensure that Ofcom has the powers to gather the information which it needs to regulate this part of the Bill effectively. Proposed new section 338A of the Communications Act will give Ofcom the power to issue information notices to request any information which it needs to carry out its functions under sections 198B to 198D, sections 263 to 294, schedule 11 and certain provisions in schedule 12 of the 2003 Act. It includes its functions and duties to regulate the public service remit, quotas and licence conditions. An information notice will compel the recipient to provide Ofcom with the information specified in the notice, including where such information must first be obtained or generated by the party. An information notice may be served on a PSB other than the BBC or, where necessary, a third party, but only where proportionate. Proposed new section 338A(7) clarifies that the power to require the provision of information includes the

“power to require the provision of information held outside the United Kingdom.”

Clause 18 also introduces proposed new section 338B of the Communications Act, which will allow Ofcom to take enforcement action against any party that does not comply with an information notice under proposed new section 338A. After allowing the person to make representations, Ofcom may issue a penalty notice imposing a financial penalty. This penalty in respect of an information notice cannot exceed £250,000. In the case of a continuing failure to comply with a notice, a penalty notice may also require a penalty of an amount not exceeding £500 per day for each day the failure continues after the penalty notice is issued. I commend the clause to the Committee.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

Clause 19 addresses the calculation of financial penalties in respect of channels 3, 4 and 5. By way of context, the Broadcasting Act 1990 and schedule 9 to the Communications Act 2003 relate to the financial penalties that Ofcom may impose on the provider of a licensed public service channel in certain circumstances. In each case, the maximum penalty that Ofcom may impose is set by reference to the qualifying revenue of the provider or, in the case of section 18, whichever is greater—that or £500,000. Having maximum penalties in reference to revenue helps to ensure that penalties strike an appropriate balance between being dissuasive and proportionate. That link is important in accounting for the differences in size and revenue of different public service broadcasters.

The clause inserts proposed new section 18A of the Broadcasting Act 1990, which will amend the existing definition of the qualifying revenue of the provider of a licensed public service channel specifically in relation to financial penalties. The new definition includes revenues from both the licensed public service channel and certain services included in any designated internet programme service provided by that provider. As part 1 of the Bill will expand the ways in which PSBs can fulfil their remit and meet their quotas, it is only right that should a PSB not complete their responsibilities, the revenue of the internet programme services that they provide and which benefit from prominence should be taken into account. That is the purpose of the clause, which I commend to the Committee.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

This part of the Bill relates to the listed events regime, which seeks to strike a balance, so that broadcasts of key sporting events are widely available and free to air, while sports rights holders are able to use the income that they generate from rights to invest in their sport. Clause 20 updates the listed events regime to make qualification for the regime a PSB-specific benefit, reserved for PSB services that are free of charge. This change was first recommended by Ofcom in its “Small Screen: Big Debate” report in 2021.

The change we are proposing recognises both the practical difficulties around the current audience reach-based approach and the fact that our PSBs play a key role in distributing content that is of interest to British audiences. The current qualifying criteria stipulate that a qualifying service must be free and received by 95% of the UK population. In a changing market, in which audiences can use a range of technologies to access content, we need to ensure that the qualifying criteria are both appropriate and future-proofed.

The clause also closes the streamer loophole; it brings into the regime TV-like service providers that are not based in the UK but intend to show live coverage of listed events to UK audiences. The change recognises that audiences have increased access to content provided by global providers. If we did not bring these providers into scope, there is a risk that the contents of live listed events could be purchased via a streaming service and put behind a paywall, without the provider adhering to the rules of the regime.

The PSB services that will qualify are those that are free and genuinely used by PSBs to fulfil remit. Those are either the PSB licensed channels or the internet programme services that have been designated by Ofcom for prominence. It is important to note that changes to the regime do not preclude non-PSBs from bidding for rights. The regime does not guarantee that an event will be broadcast live or on a free-to-air channel. Rights holders are not required to sell live rights, and broadcasters are not obliged to purchase them or to show events. The legislation sets out that where live rights to a listed event are sold, they must be offered to both PSBs and non-qualifying services. That ensures that the right balance is struck between audiences being able to watch coverage of our major national sporting events, and rights holders and broadcasters having the commercial freedom to negotiate deals in their interest, so that they can reinvest in elite and grassroots sport.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I am concerned to hear from the hon. Lady about the bias that has crept into BBC Scotland’s coverage.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

However, I understand her point. As the hon. Member for Arfon highlighted, under clause 20, the right to listed events that are broadcast free to air must be extended to public service broadcasters, so in future, that will include S4C. I am grateful for the support that the hon. Member for Barnsley East expressed for the closure of the streaming loophole; we think that the Bill will close that, and therefore preserve the ability to watch live broadcasts of listed events.

As more and more people access digital broadcasting, digital rights are clearly something that we will need to consider. That is why we are undertaking the digital rights review. I note that the review was a recommendation of the Culture, Media and Sport Committee, so we recognise that there is quite a lot of interest and support for it. It is important that we get this right. As I was saying, the listed events regime is about balancing the ability of a large number of people to watch iconic sporting events free to air, and the ability of rights holders to raise revenue from the sale of rights—revenue that can obviously be invested back into the sport. Striking that balance has always been the difficulty with the listed events regime. If the regime is to be extended in this way, we want to get it right.

New clause 2, tabled by the hon. Member for Barnsley East, does give quite a broad power, which could lead to uncertainty for broadcasters and rights holders when they are negotiating deals, given that at the moment we have not spelled out how and whether we would extend the regime to digital rights. That is actively under consideration.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I cannot guarantee that there will be a successor media Bill immediately. Equally, although it was suggested that media Bills only come around every 20 years, I hope that we would not have to wait that long. As I say, at this stage, we are concerned with getting this absolutely right, and I have no doubt that we will continue to debate the issue. I hope that we can publish the results of the review very soon, but at this stage, we cannot accept new clause 2.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

As we have just debated, the listed events regime seeks to ensure that key supporting events are widely available and free to air, while achieving balance that ensures that rights holders are able to use the income that is generated from a sale. One of the ways in which we seek to achieve this outcome is by prohibiting exclusive contracts for live rights to show coverage of listed events. This applies equally to PSBs and non-PSBs. It encourages competition and stops a situation in which a broadcaster can work with a rights holder to shut down an open process by concluding an exclusive deal.

The purpose of this clause extends the application of existing legislation that prohibits exclusive contracts for live coverage of listed events to the new wider range of services that the regime covers. The existing section 99 of the Broadcasting Act 1996 ensures that exclusive contracts are void. This stops rights holders and broadcasters bypassing the regime and it enables Ofcom to conduct its work on establishing whether live coverage is being shown by a provider in another category and is therefore authorised, or whether rights were offered to other services without fear of legal repercussions flowing from contracts that have already been concluded. The existing section 100 requires that a contract between a broadcaster and a sports rights holder must specify the category of service on which a listed event is to be televised. In line with the changes we have made to close the streaming loophole, this clause amends the scope of services caught by sections 99 and 100 to include those services which will be in scope of the listed events regime under the Bill. It would be inconsistent to require these services to heed the rules of the listed events regime without also putting in place the relevant protections to allow Ofcom to conduct its assessments.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

The hon. Member for Aberdeen North rightly highlighted that the issue that the new clause addresses is a matter that the hon. Member for Paisley and Renfrewshire North has been rigorous in pursuing. Indeed, not only have I heard him speak about it in the Chamber; I have also actually met him to hear him put directly his case. I am afraid that we were unable to reach agreement, but I recognise that he feels strongly about the subject. In the grouping which follows this one, we will address the more specific issue which he wants to amend the Bill to cover, which is the inclusion of matches involving the Scottish national team. One of the reasons why we have been resistant to the suggestion—and as I have indicated in a previous debate—is that it is all about establishing a balance. Inclusion of any sport on the listed events regime inevitably means that the potential for raising revenue is diminished, because it excludes a number of broadcasters from bidding for that particular right. It is a question of establishing a balance between the need to raise revenue and the need to ensure that as many people as possible are able to view an event.

The new is clause is quite ingenious in seeking to address that dilemma by asking the Government to set up a fund to compensate rights holders who are subject to inclusion on the list and therefore unable to sell to a non-free-to-air broadcaster. I have to say that that is not something the Government would consider. It would be quite a significant market distortion, and it would be open to potentially a number of other sports or rights holders. What I would say, however, is that sport, as the hon. Member for Aberdeen North is very much aware, is a devolved matter. Should the Scottish Government decide to set up such a fund, they would be free to do so, but I am afraid we are not able to accept the new clause.

Question put and agreed to.

Clause 21 accordingly ordered to stand part of the Bill.

Clause 22

Restriction on showing live coverage of listed events

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I beg to move amendment 8, in clause 22, page 26, line 30, after second “to” insert “the coverage of”.

This amendment and Amendment 9 are minor drafting changes.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

Clause 22 updates section 101 of the Broadcasting Act 1996 to make specific provision for group B events and to take into account the updated scope of services captured by the regime. That includes TV-like services based both inside and outside the UK providing live content to UK audiences via the internet. We have updated the services in scope of the regime in line with other measures in the Bill that recognise that audience viewing habits and technology have changed significantly in recent years. That has brought all TV-like services, including those delivered via the internet, in scope. 

Since publishing the draft Bill in March 2023, we have heard from stakeholders that the approach to widening the scope of services that can qualify may inadvertently harm the ability of PSBs and non-PSBs to work together, in partnership, to deliver multi-sport events to UK audiences. Partnerships help ensure that rights holders can extract maximum value, both in terms of income and access to a broad audience base, while ensuring that all audiences still have access to the most incredible moments of multi-sport events. Where partnerships deliver great outcomes for audiences, we want that to continue. We have therefore introduced the concept of adequate live coverage for events that involve different sports—multi-sport events like the Olympics—and will require Ofcom to set out in regulations what the threshold for this coverage will be.

That is necessary because previously to receive automatic authorisation for live coverage partnerships between PSBs and non-PSBs had to be arranged so that both held the same rights to show coverage on the services in scope of the regime. That concept worked when there were only a handful of TV channels, but it is now outdated in an age when dozens of sporting events can be taking place concurrently and can all be broadcast live across different distribution channels. Ofcom’s new regulations on adequate live coverage will set out how this will work in practice and will help to ensure that the regime does not deliver suboptimal outcomes for audiences.

Clause 23 amends Ofcom’s existing regulation-making powers in the Broadcasting Act 1996 to take into account the new provision for multi-sport events being added by clause 22. It sets out that Ofcom may make regulations to determine what will be considered adequate coverage. It also updates some language, replacing “televising” with the more general term “coverage”. Ofcom will continue to define in regulations what is to be considered to be “live coverage” for group A events and what is to be considered “adequate alternative coverage” for group B events. Currently, its code defines that as highlights and live radio commentary.

Turning to Government amendments 8 and 9, their purpose is to clarify that the restrictions set out in the clause relate to the coverage of a listed event in part or in whole, as was intended. Government amendment 10 makes it clear that Ofcom’s regulations on adequate live coverage may also relate to parts of multi-sport events, as well as the whole. For the reasons I have set out, I hope that Members will support those three technical Government amendments and the new clauses—I mean, the existing clauses.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

First, I welcome the support in principle of the hon. Lady for partnerships. They play a very important role in ensuring that iconic events are shown free to air even if they are not necessarily listed events. The one example that I can recall is Emma Raducanu’s US Open final, which certainly was not one of the listed events. Nevertheless, Amazon made it available to Channel 4, because clearly there was huge demand to watch it. Those kinds of partnerships play a very valuable role.

Regarding the definition of adequate live coverage, which the hon. Lady raised, and how Ofcom will define it, it is certainly not the intention of the new clauses to reduce the threshold. However, in terms of setting parameters as to what is adequate live coverage, that is a question for Ofcom, which has a lot of experience in this area, and it includes setting the standard for adequate alternative coverage for group B events, as well. In doing so, Ofcom would consult widely with stakeholders and analyse what metric works best to balance the interests of audience, broadcasters and rights-holders, and it can look at previous partnership deals to see how such partnerships have been arranged in the past. There are a number of different factors that are taken into account, but it is a matter for Ofcom to determine.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I cannot say specifically why they were not included earlier, although I have tried to set out why we think it is important that they should be included now. We will provide any additional information that we can provide in writing to the hon. Lady and to the rest of the Committee.

Regarding the support from the hon. Members for Aberdeen North and for Barnsley East for women’s football, there is no question that the increased popularity of and demand for women’s football has been enormous. Both hon. Members will be aware that the most recent changes to listed events were to include the FIFA Women’s World Cup finals and the European Women’s Football Championship finals on the list. I was not sure whether the hon. Ladies were suggesting that the parliamentary women’s football team should be put on that list, too. I am sure that the idea has considerable support, even if that team has not reached the iconic level quite yet.

I am also quite sure that the Opposition welcomed the recent announcement by my right hon. Friend the Secretary of State for Culture, Media and Sport of the £30 million Lionesses fund, which will be invested in grassroots women’s football. Hopefully, it will enable us to reach even greater heights than we have already reached.

I turn specifically to new clauses 6 and 7. New clause 6 is ingeniously phrased, but I understand the frustration of the hon. Member for Aberdeen North regarding coverage of the home nations. Of course the matches involving the England football team, and indeed the matches involving the Welsh football team, are available free to air— through S4C for the Welsh team—but it is harder to find coverage of the Scottish national team and indeed the Northern Ireland national team.

The only thing I would say to the hon. Lady is that inclusion on the list does not mean that events will be broadcast free to air; indeed, it does not mean that they will be broadcast at all. That is a matter for the broadcasters to determine. We have already debated the difficulty of balancing the need for audience accessibility with the need for revenue-raising. At the end of the day, however, it will remain a matter for the broadcasters to decide, as they do in England and Wales, as to whether or not they wish to bid for the right to cover the Scottish team. I am afraid that new clause 6 would not achieve that, because it remains a matter for the broadcasters to decide.

Turning to new clause 7, the Government believe that, as I say, regional and minority language broadcasting has an important role to play, providing an opportunity for speakers of minority languages to access them. Currently the Secretary of State does consult the BBC, S4C, Ofcom and relevant rights holders when revising the list of events protected under the listed events regime.

The BBC and S4C are of course licence-fee-funded public service broadcasters. Although the current legislation does not require the Secretary of State to consult other affected broadcasters, it does not restrict them from doing so. If updates to the list were to be proposed, my right hon. Friend the Secretary of State would of course listen to all relevant representations. We therefore do not feel there is any need to list out any additional organisations who may or may not have an interest in particular changes. I am afraid that we are unable to accept new clauses 6 and 7. I urge the Committee to accept Government amendments 8 to 10, and to agree to clauses 22 and 23 standing part of the Bill.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I would just say to the hon. Lady that the list will be kept under review. I note her hostility to the inclusion of the Derby on the list, although I am not sure it would have been shared by a former leader of her party, who, as I recall, was a keen fan of horseracing. It is not a matter of unfairness. Scotland is not singled out as not being included on the list of events. None of the home teams are on the list. It is a matter for the broadcasters that they have chosen not to bid for the rights to show matches involving the Scotland team. I am afraid that, at the moment, the Government consider the listed events to be appropriate and we have no intention of changing them at this time. I regret that we are unable to accept her new clause.

Amendment 8 agreed to.

Amendment made: 9, in clause 22, page 26, line 31, after “to” insert “the coverage of”.—(Sir John Whittingdale.)

See explanatory statement to Amendment 8.

Clause 22, as amended, ordered to stand part of the Bill.

Clause 23

Regulations about coverage of listed events

Amendment made: 10, in clause 23, page 27, line 11, leave out “of an event”.—(Sir John Whittingdale.)

This amendment makes clear that regulations under section 104ZA(1)(aa) of the Broadcasting Act 1996 (inserted by clause 23) may also relate to cases about the coverage of part of a multi-sport event.

Clause 23, as amended, ordered to stand part of the Bill.

Clause 24

Provision of information

Question proposed, That the clause stand part of the Bill.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

Clause 24 makes amendments to extend Ofcom’s existing powers to gather information and, if necessary, undertake enforcement action to reflect the changes made in clauses 20 to 23. Without these new powers, Ofcom would not be able to enforce the regime against the extended list of services brought in scope by the Bill. The clause amends section 104A of the Broadcasting Act 1996 to create a new power for Ofcom to require providers of the services in scope of the listed events regime and, in limited circumstances, certain other persons to supply it with any information it requires to carry out its functions in relation to listed events. It also creates a new section 104B that sets out the penalties that may be applied for failure to provide information.

Clause 25 is a saving provision for clauses 20 to 23. It ensures that contracts that have already been agreed before the introduction of the new provisions will not be affected. Any contract entered into prior to the commencement of the new provisions will be governed by the old listed events regime. That ensures certainty for deals that have already been concluded.

Government amendment 11 is needed to ensure that the existing list of events, as published on gov.uk, is revised into groups A and B. It replicates transitional provisions contained in the Communications Act 2003 that mean that the existing list will otherwise be preserved without need for consultation. While provision was made for this division in the Communications Act, for some reason, relevant sections have not been commenced. The Government’s overarching objective for the listed events regime is to ensure that key sporting events are widely available and free to air for all audiences, particularly those who cannot afford to watch sport behind a paywall. As has already been debated, rights holders use income for the benefit of the wider sporting sector, so it is important for the regime to strike the right balance.

The Government believe that the current list of events works well to deliver the best outcome and that it strikes an appropriate balance. The amendment requires the Secretary of State to revise the list into groups A and B but provides that, so long as the list remains the same—other than the division into groups A and B for the purposes of the legislation—there will be no need to consult in relation to that list. For reasons I set out, I hope that Members can support this amendment.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I am grateful to the hon. Lady for her indication of support. Essentially, my understanding is exactly that: the division is in effect already there and it had to be formalised through this clause.

Question put and agreed to.

Clause 24 accordingly ordered to stand part of the Bill.

Clause 25

Sections 20 to 23: saving provision

Amendment made: 11, in clause 25, page 29, line 34, at end insert—

“(2) On the date on which section 21 comes into force, the Secretary of State must revise the list maintained for the purposes of Part 4 of the Broadcasting Act 1996 in order to allocate each event which is a listed event on that date either to Group A or Group B.

(3) Where—

(a) the events listed in the list in force immediately before the Secretary of State revises it under subsection (2) are treated, for any of the purposes of the code in force under section 104 of the Broadcasting Act 1996 at that time, as divided into two categories, and

(b) the Secretary of State’s revision under subsection (2) makes the same division,

section 97(2) of the Broadcasting Act is not to apply in relation to that revision of the list.”.—(Sir John Whittingdale.)

This amendment requires the Secretary of State to revise the list of sporting and other national events so as to divide them into Group A and Group B events. It disapplies the requirement for consultation in section 97(2) of the Broadcasting Act 1996 if the division follows the division into Group A and Group B events by reference to which OFCOM’s code under section 104 of the 1996 Act operates at that time.

Clause 25, as amended, ordered to stand part of the Bill.

Clause 26

Public teletext service

Question proposed, That the clause stand part of the Bill.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

Clause 26 ensures that our legal framework is up to date—I have to say this with a degree of nostalgia—by removing the now obsolete legal provision for a public teletext service. This is achieved by repealing sections 218 to 223 of the Communications Act 2003, which established such a service. I can remember consulting Teletext and Ceefax on many occasions, but I am afraid that it has now passed into the mists of time.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I am very happy to join my hon. Friend in paying tribute to the journalists who made Teletext, for a time, such an essential service in keeping the nation updated with news as it happened. Indeed I do recall—

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I am very happy to join the hon. Lady in paying tribute to the huge number of benefits that Teletext brought for quite a considerable length of time. It was not just news that could be accessed via Teletext; I understand that one of my colleagues booked her holiday regularly through Teletext. I think there was even a dating service that was provided by Teletext for a time. All these things are now available online in perhaps a little more sophisticated form than was originally the case.

I am afraid it is the case that the most recent public teletext provider ceased to provide a service in 2009, and its licence was revoked in 2010. Therefore, in accordance with the intention of this Bill to modernise the legislative framework and to take account of the changes in the broadcasting landscape, I am afraid I must ask the Committee to support that clause 26 stand part of the Bill.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I commend the clause, with sadness.

Question put and agreed to.

Clause 26 accordingly ordered to stand part of the Bill.

Clause 27

Further amendments relating to public service television

Question proposed, That the clause stand part of the Bill.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

This clause and the Government amendments to it are technical in nature and I hope will not detain the Committee for long. Clause 27 introduces schedule 2, which makes amendments to broadcasting legislation to maintain operability of that legislation in light of the changes in part 1 of the Bill that we have already debated. For example, many of these amendments are intended to remove redundant references to the public teletext services from the 2003 Act. Government amendments 16 and 17 correct references to provision added by clause 20. If this were not taken forward, schedule 2 would incorrectly refer to the incorrect type of relevant service.

Government amendment 18 is essentially a tidying-up exercise. It removes transitional provisions that related to section 300 of the Communications Act, which was never brought into force and is now being repealed by this Bill. Government amendment 11 adds replacement transitional provisions. On this basis, I hope the Committee will support clause 27 and the Government amendments to it.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

On a point of order, Mrs Cummins. If I may make a small correction, I understand that when we were debating the listed events earlier, I said that it excluded bidders if the event is listed. It is not the case that it excludes non-PSBs from bidding, but they may be inadvertently precluded from doing so.

The Minister for Media, Tourism and Creative Industries (Sir John Whittingdale)

- Hansard -

Copy Link

- - Excerpts

I am grateful to Opposition Members for their general support for these clauses. The hon. Member for Arfon has taken us through the history of S4C, and he is right to say that it now has widespread acceptance and has become part of the institutional landscape. There is only one part of what he said that I would question: having worked as political secretary to Margaret Thatcher for five years before I entered this place, I can assure him that she would not have done anything unless she wanted to do it.

The hon. Gentleman raised a point about the BBC’s funding of S4C. The Government determine the funding for S4C. It merely comes from the licence fee pot. The BBC is being given knowledge of its funding for the coming year in today’s statement by my right hon. and learned Friend the Secretary of State for Culture, Media and Sport. That does not affect the funding of S4C, which has already been determined. The hon. Gentleman also spoke about the flexibility that we are giving S4C and the BBC to determine, potentially, alternative arrangements for the BBC’s support for S4C. That was a request from S4C, which saw it as a benefit that it might receive other forms of support from the BBC, but of course it will have to be by agreement, so the BBC will not be able to change that unless S4C and the BBC reach an agreement together.

The hon. Member for Barnsley East asked for further details about the Secretary of State’s power to approve commercial activities of S4C. We feel that allowing that to be done in writing, rather than by order, provides greater flexibility. The timescale for taking advantage of commercial opportunities, together with the confidential nature of the activities sometimes involved, makes it difficult to do that by order. The Secretary of State will be required to publish any approvals, exempting only confidential matters, and the Secretary of State of course remains accountable to Parliament. I do not think that there is any cause for concern in either case.

The clause is essentially based on the recommendations of the review of S4C, which the hon. Member for Arfon pointed out was widely welcomed across Wales.

Question put and agreed to.

Clause 32 accordingly ordered to stand part of the Bill.

Clauses 33 to 36 ordered to stand part of the Bill.

Schedule 4 agreed to.

Clause 37

Tier 1 services

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I welcome the hon. Lady’s general support for what the Government are trying to do by bringing video-on-demand services within the scope of regulation. We believe it is important for audiences to be appropriately protected when watching TV on demand. We will do that through what we see as a proportionate regulatory approach, which will ensure that all the mainstream streaming services that target UK audiences are subject to rules similar to the existing ones governing UK TV broadcasters.

Under the Bill, any UK on-demand service used by a PSB other than the BBC will automatically be designated as tier 1. Alongside that, other mainstream TV-like video-on-demand services will be designated after the Media Bill comes into force, following a review of the market by Ofcom. I can tell the hon. Lady that all the streaming services with which most people are familiar will certainly come under tier 1, but at this stage we cannot publish a list or the general categories to determine it because the market is rapidly evolving. Once again, as elsewhere in the Bill, we want to have a degree of flexibility and we believe that regulatory change needs to be proportionate and practical.

At the moment, more than 270 video-on-demand services are notified with Ofcom. Many of them simply do not provide TV-like content and nor are they widely accessible, so it is important to balance audience protection with freedom of expression, and to avoid placing unnecessary burdens on them. Consultations that have been conducted already tell us that extending tier 1 regulations to the smallest niche services, such as a football team’s on-demand service, could unfairly and unnecessarily penalise them with little or no benefit to audience protection.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

My hon. Friend is right that at the moment linear TV channels are required to be licensed by Ofcom, but in the new world it is much more likely that we are going to see quite small niche channels, which serve a particular audience. There has been a proliferation of such services, which simply could not really have taken place in the old linear world. That is why the Government felt it was right that new services that command considerable audiences and target a broad range of viewers should be subject to the same sorts of requirements as exist for linear broadcasters.

However, it would be excessive to place those requirements on every single new notified VOD service, including those that are relatively small and serve very small and defined audiences. If it is determined that a small service has the potential to cause harm, the Bill allows that it can be designated as tier 1. The Government retain the power to do so if there is evidence supporting a need for it. That will allow us to ensure that regulation can be updated or added to.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

My hon. Friend is right that there are different levels of service that require different amounts of monitoring and oversight. To my hon. Friend the Member for Warrington South, I would say that UK-based on-demand services are already required to abide by the on-demand programme service rules, which are less restrictive than the Ofcom regulations but control things such as hate speech and have basic protections for young audiences. It is appropriate that we determine the appropriate level of regulation on the basis of the audience and the size of the station. As I say, Parliament will be given further information that sets out the list or description of services at least five sitting days ahead of any regulation, so there will be transparency and oversight. For that reason, we do not feel it necessary to bring all the existing video-on-demand services within tier 1 at this time.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I think that there is general agreement across the Committee about the importance of archiving television programmes that are of cultural significance. That is already the case, as we know, for the public service broadcasters. Indeed, I can recall the excitement when various episodes of, for instance, “Doctor Who” or “Only Fools and Horses” were rediscovered, having been lost before the requirement for archiving was in place. The hon. Member for Aberdeen North is absolutely right that there are now examples of programmes or series commissioned by on-demand services that are of similar value—she mentioned “Bridgerton”, for instance. I was fortunate enough to go and see the final episode of “The Crown”, which Netflix showed us a couple of night ago, in advance of its being made available, and that undoubtedly will be seen for a long time to come as a culturally important programme that needs to be preserved.

Where we differ slightly is that the Government’s view is that a non-legislative approach is best able to achieve the objective of archiving on-demand content. The BFI is extremely active in this area and works directly with mainstream services such as Netflix and Amazon. The BFI National Archive has already entered into initial partnerships with Netflix and Amazon to provide both financial contributions and a curated selection of their UK content. The BFI is also talking to other subscription video-on-demand platforms and will continue to do so as it moves ahead with its Screen Culture 2033 ambitions.

We are pleased that considerable progress is being made and we do not want to impose unnecessary additional requirements on organisations at this time. Therefore we do not see a necessity to legislate at the moment.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I recall discussing this matter with the BFI some years ago and I absolutely share its wish, and indeed the hon. Lady’s wish, that it should have access to any of the programming content that it felt was important to preserve. I hope that the circumstances that she describes will not happen, but should they do so, I or whoever is holding my position would, I hope, be keen to assist in those discussions with any video-on-demand provider.

Finally, I come to the amendment that the hon. Lady tabled. Amendment 38 includes Trinity College Dublin, which of course is not a UK institution, and we do not feel that it would be appropriate to instruct the deposit of important works with an overseas institution. For that reason, and for the reasons that I have described, we cannot accept the amendment.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

We now come to the core of this part of the Bill, which is the extension of regulation to the major video-on-demand services. Take-up has grown dramatically in recent years, and many of them make a significant contribution to the UK economy. Audiences now have access to thousands of hours of their favourite television programmes at the touch of a button, but providers are not regulated in the UK to the same extent as linear TV channels, and some mainstream international services are not regulated in the UK at all. That means that TV-like content in the UK is regulated differently depending on how audiences choose to watch it.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

As I said in my earlier remarks, we feel that the hon. Lady’s amendment in particular is unnecessary. Regarding the phrase “matters to be taken into account” by Ofcom in drawing up the list, those matters that are specified in the Bill are not exclusive; there is an ability to take other matters into account. The purpose of this measure is to set out the general regard for the principles that Ofcom is required to consider, so I do not think that this amendment would add anything to the existing position. For that reason, we do not support it.

I agree with the hon. Lady very much about the importance of accessibility. As she rightly said, that is something that the organisations representing disabled people have been campaigning on for a long time. Regarding the targets in the Bill, it is the hope and expectation that broadcasters will exceed the minimum targets wherever possible, but it is possible for the Secretary of State to increase the minimum targets at some future date.

Interestingly, the hon. Lady said that she does not want to add to the burden on smaller services. To some extent, that is exactly why the tier 1 provisions were put in place: so that the requirements are different for much smaller services, which would otherwise find them quite burdensome. As for her comments about Ofcom’s resource, it is certainly not the intention that Ofcom should become a sort of global policeman acting on behalf of anybody around the world who wants to make a complaint, particularly about content that is designed for global audiences. Some of the big streaming platforms commission programmes that are intended to be viewed right around the world, but Ofcom’s role is to protect UK consumers, and obviously it will need to take that into account in how it administers the code.

I am grateful to the hon. Lady for her support for the overall intention behind these measures. I am sorry that I cannot accept her amendment, but I think the Bill will deliver what she wants to see.

Question put and agreed to.

Clause 37 accordingly ordered to stand part of the Bill.

Schedules 5 to 7 agreed to.

Clause 38

Audience protection reviews

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I absolutely share the desire of the hon. Member for Barnsley East, and I suspect all members of the Committee, to protect children and vulnerable audiences from harmful and inappropriate video-on-demand content. As we discussed earlier, the principle underlying this part of the Bill is to bring mainstream TV-like on-demand services in scope of the new code to be drafted and enforced by Ofcom.

Ofcom already has considerable experience in the regulation of broadcast TV to ensure that it is age-appropriate, and those those who may be deeply affected by what they see or hear are protected. Clause 38 inserts new section 368OB into the Communications Act 2003, giving Ofcom a new ongoing duty to review audience protection measures on all UK-based video-on-demand services and on any non-UK services that are brought under Ofcom regulation for the first time as a result of being designated as tier 1.

As we previously discussed, while linear television has a watershed that means unsuitable material should not be shown before 9pm, it is not possible to have a similar arrangement for on-demand content, so alternative protection measures are needed. Age-ratings, content warnings and parental controls in particular are necessary tools for parents and guardians; they give information to all audiences on what they are about to see. We do not want to restrict Ofcom on what it considers to be protection measures. It needs to be able to take account of the impact of systems that evolve in the future through new technology and audience trends. The Bill gives Ofcom powers to request information from providers, to provide guidance, to report, and to use existing sanctioning powers to deal with any providers that they consider are not providing appropriate audience protections.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I am interested to hear that example. There will always be disagreement about what is suitable for children and what is not. Some parents will take a much stronger view on what is appropriate than others, who will think it part of the education. Ofcom has a lot of experience in this. I am not sure whether it was “A Christmas Carol”. I remember a good version that contained some quite graphic material, which perhaps was not in the original by Dickens. I think that was on the BBC, so it would have already been subject to Ofcom’s scrutiny.

Part of Ofcom’s overall objective, in determining whether a system of age rating is appropriate or viable, will be to make sure that it is in line with other systems, so that parents have a basic level of assurance, whatever they are watching and whatever system for determining age ratings is chosen by that provider.

Amendment 30, tabled by the hon. Member for Barnsley East, seeks to add information about where viewers can seek help, if they have been affected by content, to the list in new section 3680B of examples of audience protection measures. I completely agree that it is sometimes absolutely right that audiences be given a warning if they might suddenly encounter content that they were not expecting and which could be distressing. That already takes place across the broadcasting sector, and it is appropriate. However, the Bill already fully enables Ofcom to review or provide guidance on any such measures. The Bill purposely does not give an exhaustive list of measures that Ofcom can consider. As a result, it will enable Ofcom to take into account anything it considers to be appropriate. That can certainly include signposting.

The hon. Lady’s amendment 34 would impose requirements on Ofcom when it is assessing age ratings on VOD services. However, we feel that there is a danger that that might restrict innovation and impose extra requirements and costs on VOD providers that will not necessarily equate to increased protection. As I think I said on Second Reading, I am a great admirer of the work of the BBFC, with which I have worked for at least 30 years. Generally, it reaches very sensible decisions on what is deemed appropriate. It goes to great lengths to ensure that its ratings reflect the current standards of what the public views as appropriate for particular age ratings. My reluctance to support the hon. Lady’s amendment in this area is not in any way a reflection on or a criticism of the BBFC. The Government take the view that we do not think it appropriate to mandate the use of BBFC ratings at this time.

The important thing is that each channel should have a system of age ratings that delivers effective protection for young people. It is for Ofcom to assess whatever audience protection measures are put in place by that channel to ensure that they are effective and fit for purpose. We think that that is more effective than specifying any individual system. Ofcom will have the power it needs to provide guidance and to report and deal with any providers that it considers are not providing appropriate audience protections. For that reason, we feel that amendment 34 would put unnecessary restrictions on Ofcom and could preclude any new form of age ratings from entering the market. I am afraid that I am therefore unable to accept the hon. Lady’s amendments.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

This is a very brief return to S4C, which we debated before our lunchtime break. All clause 39 will do is amend the Communications Act to update the regulation of S4C’s video-on-demand services to bring them into line with other UK on-demand services. It removes the red tape that currently means that Clic, the S4C on-demand service, is regulated not by Ofcom directly, but by S4C’s board, which could be fined by Ofcom if it contravened the basic requirements that other VOD services have to follow. The change will also mean that Clic will, in due course, be rightly regulated under Ofcom’s new VOD code. It will also have the accessibility requirements for subtitles, audio description and signing to support those with sight and hearing loss. I should add that the clause is also fully supported by S4C.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

Clause 40 introduces schedule 8, which contains minor amendments to part 4A of the Communications Act 2003, covering existing legislation for video-on-demand services. The changes will ensure that existing legislation will be updated where necessary to take into account the new regulatory regime for tier 1 services. These are simple, minor and technical amendments, which include updates to existing enforcement definitions to include the newly defined tier 1 non-UK services. Schedule 8 will also remove or amend old target-setting provisions on accessibility that are not needed after the addition of new, more robust accessibility requirements contained in schedule 5. I commend clause 40 and schedule 8 to the Committee.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

We now turn to part 5 and the provisions affecting radio. Clause 41 is the first of seven clauses through which the Government are updating the legislative framework for the licensing and regulation of commercial radio. The intention behind the changes is to ensure that the regulatory structure continues to support investment by broadcasters in content and the long-term sustainability of the sector. They will also strengthen the protections for local news and information which are a fundamental part of radio’s public value.

To that end, clause 41 will make a number of changes to the Broadcasting Act 1990 to allow Ofcom greater flexibility when exercising its powers in relation to analogue radio licensing. Subsection (2) removes the current statutory requirement for Ofcom to provide for a diversity of analogue services. The requirement is no longer necessary, given the wide range of stations now available over digital. Subsection (3) gives Ofcom a new power to extend analogue licences in the event that a date is set for a digital switchover which postdates the expiry of any remaining licences. I commend the clause to the Committee.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I welcome the hon. Lady’s invitation to speak a little more broadly on radio in general. About 20 years ago, lots of people were saying that radio was in permanent decline. It was thought that the advent of things like podcasts and streaming services such as Spotify would mean that people slowly gave up listening to radio.

I am delighted that that has proved to be completely wrong. Actually, radio is going from strength to strength, particularly in the commercial radio sector, at which these clauses of the Bill are primarily aimed. It is doing very well, which is extremely welcome.

Similarly, about 20 years ago there was a great debate about when we should switch off analogue transmission as people moved to digital. The hon. Lady is right to say that the take-up of digital broadcasting has been considerable and continues to grow. We now have additional means of radio reception, such as via smart speakers or online, which we will debate when we consider later clauses of the Bill. There is a wealth of ways in which listeners can access radio, but I think analogue, rather like digital terrestrial television, will be around for some considerable time. I am afraid that I cannot give the hon. Lady a date by which we think we might switch off analogue, but it is not under consideration at the moment. Actually, I do not think that radio is particularly pressing for it in the way it was some time ago, for cost reasons.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I give way to my hon. Friend, who is a considerable expert in the matter.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

My hon. Friend is correct that attention has mainly been focused on small-scale DAB roll-out, which provides options for communities to access more locally based stations. My view has always been that we should let a thousand flowers bloom. Therefore, in whatever format, I would be keen to encourage the licensing and starting up of new stations, if possible. I am a great supporter of community radio as well.

I note that our hon. Friend the Member for Rutland and Melton (Alicia Kearns) has been active in pressing the case for a station in her constituency. She is always active on behalf of her constituents and she has been outspoken in this policy area, having already been to see me about it once. I will draw Ofcom’s attention to the remarks of my hon. Friends the Members for Warrington South and for Rutland and Melton, because I share the wish to see that take place, if possible.

The means by which they choose to transmit is up to stations. However, there is currently a requirement under their licence for national commercial stations to continue to maintain an analogue service. A point may come when there is no longer any particular benefit in doing so. That will not be covered by the Bill, but I would like to put on the record that I am personally quite sympathetic to the idea that, although analogue is appropriate in many cases, we should not necessarily force it where it is no longer appropriate.

Question put and agreed to.

Clause 41 accordingly ordered to stand part of the Bill.

Clause 42

Licensing and local services

Question proposed, That the clause stand part of the Bill.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

Clause 42 makes a number of changes to the Ofcom process for advertising local and restricted service licences and for renewing local licences. The provisions will give Ofcom a greater degree of flexibility in relation to the process for the licensing of local analogue commercial radio stations, given that the licences for nearly all such services will be eligible for renewal over the coming years. There should therefore be very few occasions when a licence needs to be advertised.

Subsection (3) will allow a licence holder to renew its licence in circumstances where the station intends to broadcast on digital but is not in a position to do so because a suitable digital multiplex service is not available in its broadcast area. In these circumstances, the station would have to nominate a suitable, either local or small scale, multiplex service as soon as it is reasonably possible to do so and commit to taking carriage when that service launches. That will ensure that smaller stations that have been unable to take advantage of renewals will be in the same position as larger stations.

Clause 43 makes a number of changes to the Broadcasting Act 1990 and the Communications Act 2003. It provides stations with increased flexibility to respond to changing listener preferences by removing the requirement for them to commit and adhere to conditions in their licences requiring them to, for instance, broadcast specific genres of content or target a particular age group. These requirements made sense in 1990, when they helped the Radio Authority to manage the development of local FM services on limited spectrum and to seek to maximise the public value of the spectrum, but they have become obsolete given the range of stations available across the UK on digital. However, Ofcom will still be required to ensure that there is local news and information on local radio, as set out in clause 44, which I look forward to debating very shortly. In the meantime, I commend the clauses to the Committee.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

Perhaps I should start by outlining the purpose of clause 44, which makes changes to section 314 of the Communications Act to reflect the evolution of the market and the findings of the Government’s 2017 consultation on commercial radio deregulation.

In particular, it is clear from that consultation, and the steps taken since by Ofcom to relax its definition of locally made programming, that the requirements in this area are too onerous and are constraining the industry from rationalising its production base. This is making it harder for stations to compete effectively against new online services, so the clause removes the requirement for Ofcom to secure that stations provide a certain amount of programming from a studio within their coverage area. However, it is the case that local news and information remain of great importance to listeners, and their provision remains central to radio’s public value. Commercial radio’s local news provision plays an important role in ensuring plurality in the sector. Stations will, then, be specifically required to provide news that has been gathered within the area to which they broadcast.

The provisions do not require stations to directly employ journalists to gather local news. A station could, for example, enter into a partnership with a newspaper agency or a freelance journalist who gathers news in the local area. We also taking powers to apply the requirements to DAB services if there is a future shortage of available local news. This could take a variety of forms—for example, Ofcom could be required to impose conditions in local radio multiplex licences that require the multiplex operator to carry at least one digital radio station that carries local news and information. Alternatively, the multiplex operator could be required to reserve capacity on the multiplex for a radio service that carries local news and information. At the moment, many existing digital radio services are simulcast versions of analogue stations that carry local news and information, so we do not consider that there is currently a need to consider in detail how the powers would be exercised.

Amendment 31 seeks to add a requirement for the Government to publish statutory guidance on the interpretation of the clause, including on the meaning of “local news”. Ofcom would then need to have regard to that guidance in developing its own guidance for holders of local sound broadcast licences on how they are able to meet the new local news and information requirements as set out in the Bill.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

That is a matter for Ofcom to determine. As I said, Ofcom will be able to ensure that a local radio multiplex, through its licence, can provide space for a local news service. For the moment, that might well be provided by the existing analogue service, but if we reached a point where none of the services wishing to go on to the multiplex provided a local news service, the operator could restrict remaining space on the multiplex, so that it is available if someone comes forward.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

The powers relate to future shortages. I suspect that we could not backdate the provisions to kick someone with a contract off a multiplex. Perhaps it would be helpful if I later provided a bit more information to the Committee on precisely how that would work.

To go back to the definition of “local news” in the amendment of the hon. Member for Barnsley East, I understand that her purpose is to refine that definition and that of “locally gathered”, but I think that the amendment is unnecessary.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I hope to provide my hon. Friend with further detail in my response to the amendment of the hon. Member for Barnsley East. I take my hon. Friend’s point, however; people expect to hear local news, relevant to the place where they live. In some cases, the definition of local news seems to be stretched somewhat. This is not a debate about the BBC, but I am sure that it might crop up in our discussion.

Local news and information are not defined in section 314 of the Communications Act 2003. They are mentioned as elements of local “material” that Ofcom is required to secure as part of the licensing of local commercial radio. Ofcom is also required to

“draw up guidance as to how they consider the requirements…should be satisfied; and…have regard to that guidance in carrying out their functions”.

Clause 44 amends section 314, and enables Ofcom to impose local news requirements in stations’ licences. It also enables Ofcom to ensure that this local news includes “locally-gathered” news. The hon. Lady suggested that she wanted further clarity on the definition of local news, but the provisions include a definition of local news for the first time. Under clause 44(7), to be regarded as “locally gathered-news”, news will need to be gathered

“by persons who gather news in the course of an employment of business”—

in other words, by professional journalists. We considered whether there was a case for being even more specific about how much news should be provided, or the times of day when local news should be available, but we felt that it would be most beneficial to the effective operation of the licensing system for Ofcom to continue to have responsibility for drawing up guidance on how stations should meet requirements.

Ofcom will draw up guidance that will replace the existing local news guidance. That will ensure continuity, while retaining a degree of flexibility in an approach that has been taken ever since 2003. It must have regard to the new definition of local news, and the requirement for at least some of that local news to be “locally-gathered”. We do not think it is either necessary or helpful for the Bill to require the Government to provide guidance to Ofcom on drawing up its guidance.

Sir John Whittingdale

- Hansard -

Copy Link

- - Excerpts

I would love to spend time debating the importance of local newspapers with the hon. Lady; it is a point on which I completely agree. I also share her concern about the disappearance of local newspapers in so many places, but that matter of concern is slightly outside this Bill. Nevertheless, she is right that it means that the remaining sources of local news become all the more important.

As she suggests, I would expect Ofcom to consult widely in local communities before it decides precisely how the guidance should work. We differ from the Opposition, however, in not thinking that it would be helpful to have two sets of guidance, one emanating from the Bill and the other from Ofcom. I think that would simply add to the complication and confusion, and we need Ofcom to be able to apply the new provisions across a wide range of stations with flexibility. The provisions, which include a requirement for at least some local news to be gathered locally, give a degree of clarification. I hope that on that basis, that the hon. Member for Barnsley East will withdraw her amendment.