Future of the BBC
Debate between John Leech and Gareth Johnson
Mr Leech
Certainly, there are examples of money not going into broadcasting, but I think the new director-general has got a grip of what has gone on in the past, and I would expect it not to happen in the future. One good example is the restriction of pay-offs for senior executives to a year’s salary or £150,000, which is line with senior civil servants. My biggest concern is that future cuts to BBC funding would be most severely felt in local and regional broadcasting.
Mr Leech
If the hon. Gentleman will allow me to make a little progress, I will give way.
The cuts have already seriously stretched resources in local and regional broadcasting, and no doubt further cuts would have a severe impact, which is why we must ensure that there are no further cuts to the BBC after the six-year licence fee freeze comes to an end.
Gareth Johnson
I am grateful to the hon. Gentleman for his patience. Does that not effectively mean saying to doctors, nurses, police officers and firemen, “You can’t have any more salary”, but to the BBC, “Here you are BBC, here’s an increase”?
Mr Leech
That is not what I am saying. Had the hon. Gentleman let me continue for two more seconds, he would have heard me say that we should commit to inflation-linked rises in the licence fee after 2017, with a similar commitment to maintaining inflation-linked rises for at least the next five to six years. I realise that that would not be popular with some hon. Members, who believe that the licence fee should be scrapped altogether or reduced, but the current £145.50 fee works out at about 40p a day to watch the BBC, compared with around four times that amount for Sky. Furthermore, about a quarter of Sky viewing involves BBC programming that people have already paid for. The BBC is good value for money.
Good quality public service broadcasting sets the bar high and ensures good quality commercial broadcasting, because the commercial quality needs to be good to compete. Where public service broadcasting is poor, the commercial sector does not need to provide high-quality programming to gain market share. The BBC sets the bar high, and needs to continue to do so. Recent research shows that public service broadcasting raises audience expectations and forces the commercial sector to raise its game too. Enhanced quality in the commercial sector then challenges public service broadcasters to achieve ever-higher levels of quality and investment to sustain public service broadcasting’s distinctiveness. Some hon. Members have questioned whether the BBC needs to continue to create certain programmes when commercial broadcasters such as Sky are now producing good-quality content. I would argue strongly that Sky is now doing that precisely in order to compete with the BBC, rather than the other way round.
Owing to time constraints, I have concentrated my brief comments on the future funding of the BBC. I make no apology for doing so, because that funding is vital to its long-term future. If I had had more time, I would have liked to cover many more of the BBC’s opportunities and challenges. I shall briefly mention four of them. One opportunity relates to the success of BBC Worldwide and the need to encourage it to do even more. It generated more than £1 billion in revenue in 2011-12, and there is plenty of scope for improving on that figure. Secondly, I would have liked to talk about the BBC’s role in sport, and particularly its role in enhancing and showcasing women in sport. Thirdly, we need to end the anomaly whereby the BBC pays Sky to have its programmes on Sky’s platform. That is a ludicrous situation and it needs to come to an end. It should be the other way round, because Sky benefits from having BBC programmes on its platform. At the very least, the arrangement needs to be cost neutral; the BBC should not be paying.
Finally, there is a need to protect public service broadcasting through guaranteed positioning on the electronic programming guide. That is a bit of a geeky issue, but I hope that the Select Committee will look into it as part of our BBC inquiry. The electronic programming guide could become even more important as television changes in the coming decades, and we need to set it in stone that public service broadcasting will have the prominence that it deserves on the electronic programming guide.