Channel 4 Privatisation

Debate between Damian Collins and Ian Murray

Tuesday 14th June 2022 Commons Chamber

[Ian Murray]

Yes, it is the cultural levelling up that Channel 4 has been able to achieve as part of its own agenda.

Analysis by EY—Ernst and Young—which was mentioned by my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty), estimates that over £1 billion would be lost from the UK’s nations and regions if Channel 4 did not invest in the way that it does now, and that nearly 2,500 jobs in the creative sector would be at risk. That is independent analysis. It is not just those directly employed by the broadcaster who would be impacted, but the entire British creative economy. As my hon. Friend mentioned, it is a creative economy that relies on economies of scale, security of funding and a pipeline of skills.

In its lifetime, Channel 4 has invested—we have heard this already—£12 billion in the independent production sector in this country. Every year, it works with almost 300 production companies, many of which are tiny, as well as medium and large-scale production companies. This proposal does not just impact the big stars in London studios, but the camera operators, the crew runners, the location scouts and everything that makes a production happen in every single region and nation of the UK. The harsh reality is that a privatised Channel 4 would be commercially incentivised to buy in programmes from overseas instead of supporting new and innovative projects in the UK. Why? Because it costs a lot of money to make content and that would hit profits. Look at some of the big loss makers, such as the award-winning Paralympics coverage which has not really been mentioned in this debate. It is a huge loss for Channel 4 in terms of its financial viability, but it does it and it does it incredibly well.

If I could reflect on the contribution made at the end by the right hon. Member for Hereford and South Herefordshire (Jesse Norman), he made a critical point. Not only did he say that there are no options papers on where the future of Channel 4 could be beyond privatisation, but he hit the nail on the head. A lot of the contributions from the Government Benches have been about the headwinds that are just about to hit Channel 4. Those headwinds will hit Channel 4 whether it is in the public sector or private sector. It is hardly a good selling point to say, “We want to privatise one of our national assets to ensure it is not hit with these headwinds,” when a commercial broadcaster would cut the very things that Channel 4 does so well in times of hardship.

[Damian Collins]

The hon. Gentleman implied that commercial companies would look to buy in programmes, rather than make them. Why is it, then, that most TV companies that have their own production studios are massively investing in making more programmes? ITV, BBC, Sky and Netflix are. Everyone recognises that the way to make money in the TV market today is to make programmes to sell, not buy in from other people.

[Ian Murray]

Yes, but Channel 4 puts all those issues on the table in terms of investing directly in production. Channel 4 provides that shop window. If you say to a production company in Scotland which makes “Location, Location, Location”, “Would you like to make that for Channel 4, but you don’t get the IP?” either the costs will shoot up or they will not make it at all. This model works. It is part of the ecosystem. Production in places such as Leeds, Salford and Scotland is working so well at the moment because we have the BBC, ITV studios and Channel 4, all different parts of that ecosystem working together, so we have the economies of scale, the skills and the ability for people to be able to invest, because they know they can make great shows and great films in those places.

Let me reflect on some of the contributions that have been made this afternoon. The Father of the House kicked us off, and was absolutely correct to say that Channel 4 does not want privatisation. The Secretary of State is essentially saying, “We know best, so we will do to Channel 4 what we think is best.” The Father of the House concluded by saying, “stop messing it around”. That is right. Why try to fix something that is not broken?

My hon. Friend the Member for Cardiff West (Kevin Brennan) in his own wonderful style did a superb “Yes Minister” characterisation. Channel 4 does not have a problem to solve, but the Government are trying to find one; he was right to call it “Parliamentary Pointless”.

I will reflect on the impacts on Scotland later in my speech, but the hon. Member for Ceredigion (Ben Lake) was right to say that privatising Channel 4 will have a huge impact on the Welsh production sector. With the BBC investing in Cardiff and Channel 4 putting productions into the city, the sector in Wales has flourished in a way that it did not before.

The hon. Member for North Antrim (Ian Paisley) is right to say that Channel 4 is an enabler. We need the big production companies to be able to make programmes in order to seed smaller production companies and the entire industry. If we do not have those productions—the big returning drama shows—it is difficult to maintain a production company in an area, which Channel 4 does so well.

The hon. Member for Aberconwy (Robin Millar) said, “D’oh!”—maybe the first person to mention Homer Simpson in the Chamber, although I am not sure whether he was impersonating Homer Simpson or recalling the motto of Downing Street.

The hon. Member for Milton Keynes North (Ben Everitt) told us that he watched Channel 4 at night when he was younger, but that he has never watched “Naked Attraction”. Mr Deputy Speaker, he needs to come to the House and correct the record, because nobody believes him! [Laughter.]

My hon. Friend the Member for Canterbury (Rosie Duffield) reeled off a list of wonderful television programmes and films that Channel 4 has made over the years, including “Drop the Dead Donkey”, or, as it was rebranded last week, “Vote of No Confidence”.

The hon. Member for Mansfield (Ben Bradley) also tried to create a problem that does not exist. Along with a number of contributors this afternoon, he said that Channel 4 should be released from its shackles to be able to borrow. Well, it has not borrowed or required to borrow in 40 years. Maybe it will not require to borrow in the next 40.

Let us not forget about film, as this is not just about the impact of privatisation on television. As we heard from my hon. Friend the Member for Manchester Central, the broadcaster is the single largest investor in British film through Film4. We can see how wonderful some of those films have been, as they have won BAFTAs every single year and have really put the British film industry on the map. I think that gets to the heart of why so many people are outraged by the Government’s proposals.

Our great nation punches so well above its weight when it comes to our cultural impact on the world. There are few better examples of that than the British stars of screen—big and small. Many of our most famous faces got their big break through Film4 productions, many of which were huge risks to Channel 4, but because of its funding model and way it was set up, it was able to take those risks and some of those productions were hugely successful. I think of Ewan McGregor, Olivia Colman and Dev Patel, who we have heard about already, and film-makers including Danny Boyle and Steve McQueen. It is little wonder that so many stars, film-makers and directors have come out against and condemned the Government’s plans.

What of training, skills and jobs? We have heard from my hon. Friend the Member for Leeds North West (Alex Sobel) on this issue. Let us not beat about the bush: getting into the television and film industry is incredibly difficult for those who are lower down the socioeconomic scale. Channel 4 has been at the forefront of helping young people to get into the industry through 4Skills, which gives 15,000 young people a year opportunities to get into the sector. That costs money and is not the kind of thing that a commercial broadcaster will do. It has an industry-leading production training scheme through its supply chain that focuses solely on social mobility. That is all at risk. Why? Because it is not protected in the White Paper.

The move to sell off Channel 4 will have a particular impact on the Scottish creative economy. Since 2007, Channel 4 has spent more than £220 million on Scottish productions—about £20 million a year in recent years. It is the key commissioner from Scottish independent production companies and other Scottish broadcasters such as Scottish Television. Channel 4’s features and daytime team, its largest creative team, is now based at its Glasgow office. The broadcaster’s emerging indie fund and its indie growth fund have provided support to fantastic Scottish production companies such as Black Camel Pictures, which was responsible for the BAFTA-winning “Sunshine on Leith”.

And who can forget “Location, Location, Location”, one of Channel 4’s most successful shows, which is produced by IWC, a Scottish production company? Maybe the Prime Minister might need Phil and Kirstie’s help in finding a new place soon. I hope so. Even TV’s most famous house hunters might struggle to find a place with a built-in karaoke bar, but that is the challenge

Channel 4’s influence is not just on Scottish television. Film4 has produced memorable Scottish hits—perhaps none more so than “Trainspotting” in my home city, even though it did not portray Edinburgh in the best of lights. Film-making brings in £600 million a year in UK-bound tourism, right across the United Kingdom, although I am not sure that “Trainspotting” did Ladbrokes toilets any good. Channel 4 has given us generation-defining entertainment, and it will again.

I am grateful for the SNP’s support for our motion. The hon. Member for Ochil and South Perthshire (John Nicolson) made an excellent speech, but I must say that Channel 4 is also under threat from the SNP’s plans for independence. It proposes to put an end to Channel 4 in Scotland, because it would be independent, and it set out in 2014 that it would do the same for the BBC. What are its proposals for Channel 4 and the BBC? Governments are attacking our public sector broadcasters because those broadcasters hold the powerful to account, whether they like it or not. They are attacking the very principle of a UK-wide public service broadcaster delivering for diverse audiences all over the country. None the less, we are grateful for the SNP’s support for the motion.

Today, though, it is for Conservatives to make their decision. As we have heard, 91% of respondents to the Government’s own consultation made their opposition to the proposals clear. Those who oppose the proposals include the advertisers that pay for advertising on Channel 4 because of the diverse audiences that it produces, which other broadcasters cannot reach. If the Secretary of State is looking for a “Countdown” of Conservative Members who do not support her proposals, I say to her, “Three from the top, two from the middle and one large one.”

Will Conservative Members vote to sell the broadcaster to a private entity that is likely to centralise creative output in London, or will they vote to continue a model that invests in our creative economy in their very own constituencies? Will they sell a cornerstone of modern British culture to the highest bidder, or will they continue a great British institution that proudly exports our culture around the world?

The country would be grateful, the industry would be grateful and viewers would be grateful if the Secretary of State scrapped this privatisation. In the words of Mrs Doyle from another of the channel’s famous shows, “Go on, go on, go on.”