Channel 4 Privatisation

Lord Bassam of Brighton Excerpts

Tuesday 5th April 2022 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

On the noble Lord’s first point, the responses to the consultation will be published alongside the White Paper to which I alluded in my initial Answer. I disagree deeply with the rest of his question: the Government value highly Channel 4 and the part it plays, and has played for 40 years, in our broadcasting ecosystem. We want to ensure that its next 40 years and beyond are just as successful and that it can flourish. It is doing that in a very rapidly changing and increasingly competitive media landscape. Channel 4 is uniquely constrained by its current ownership model and limited access to capital. It is such a successful broadcaster that we think it will make an attractive proposition for people to buy, and private ownership will allow it to create new revenue streams and compete as effectively as possible to be fit for the future.

[Lord Bassam of Brighton (Lab)]

My Lords, last Friday the energy price cap increased by £700; inflation continues to climb and may reach 10%; we face record costs at petrol pumps and bumper increases to phone and broadband bills; and social security payments are to be cut in real terms from tomorrow. All this is at the same time as fines have been dished out to Downing Street officials for breaches of Covid regulations, so can the Minister tell us why the Government have chosen now to announce the privatisation of Channel 4, and can he give us three good reasons for doing so? It is not in the interest of public services or public service broadcasting.

[Lord Parkinson of Whitley Bay (Con)]

I must say that I find that a weak argument from the noble Lord. The Government are capable of doing many things. There is an urgency in addressing this issue so that Channel 4 is fit for what is a rapidly changing media landscape. The proportion of viewing on subscription on-demand services has trebled since 2017; it is important that Channel 4 is able to compete with the likes of Netflix and Amazon, so that it can continue to support the independent production sector and produce the viewing for which it is rightly renowned. That is why, as part of a wider package of reforms to public service broadcasting, the Secretary of State has announced her decision, ahead of having the vehicles to do that.