Channel 4 Privatisation

Debate between Nadine Dorries and Alun Cairns

Tuesday 14th June 2022 Commons Chamber

[Ms Dorries]

As someone who has worked in the industry, my hon. Friend is deeply knowledgeable about how Channel 4 and the industry works. As I said in a previous answer, “Up Next”, the broadcasting White Paper, makes it very clear that that distinctive British content that makes Channel 4 so successful is part of the criteria.

The broadcasting White Paper is a fantastic piece of work, and I strongly recommend that everybody in the House reads it, as it makes it very clear what the Government’s objectives are for the broadcasting sector. Furthermore, we are taking the decision as a Government to look at broadcasting in the round—to look at the whole broadcasting landscape in the UK. I know that the conversation and the debate are focusing mainly on Channel 4, but we have to consider broadcasting in the round right now.

In addition, Channel 4 faces a series of unique challenges—challenges that other public service broadcasters with different ownership models do not face. Streamers such as Netflix spent £779 million on UK original content produced in 2020, more than twice as much as Channel 4. While other PSBs, such as the BBC and Channel 5, have the freedom to make and sell their own content, Channel 4 has no inhouse studio. Its ownership model restricts it from borrowing money or raising private sector capital. It is left almost entirely reliant on ad revenues. Those revenues were already shifting rapidly online, and the competition is only set to heat up now that Disney+ and Netflix have confirmed their plans to enter the advertising market. In addition to that, we have, later this year, new, huge streamers coming into our homes, which will also, quite probably, be operating on an advertising model.

Under its current form of ownership, Channel 4 has fewer options to invest, fewer options to innovate and, crucially, fewer tools with which to grow. There are serious challenges that require serious plans to overcome, not the kneejerk reaction or hyperbole of the Opposition.

[Alun Cairns]

Will the Secretary of State join me in calling on the Opposition to engage positively in this debate? We all respect the interest in the independent sector and we all want to see it grow, and it will have that opportunity under the new model. Rejecting any form of change will simply undermine the industries that we are seeking to support.

[Ms Dorries]

I could not agree more. Labour may not like to hear it, its refusal to even engage with the profound changes in the broadcast landscape is further evidence that it does not have a serious plan for broadcasting. If it really wants to protect Channel 4 and to protect the wider broadcasting ecosystem, it is not enough to consider only Channel 4’s current success.

BBC Funding

Debate between Nadine Dorries and Alun Cairns

Monday 17th January 2022 Commons Chamber

[Ms Dorries]

The BBC, as I have said, will continue to receive billions of pounds-worth of funding, and it will continue to meet its mission and core purpose, but I cannot dictate how it spends its money and I do not have editorial control. It is up to the BBC to decide how it spends its licence fee settlement.

[Alun Cairns (Vale of Glamorgan) (Con)]

I warmly welcome my right hon. Friend’s statement and recognise the priority she has given to Welsh language broadcasting and its importance to the Welsh-speaking community in Wales. In supporting her statement and helping the BBC to achieve its objectives under the new settlement, will she call on the BBC to follow other public sector organisations in improving its transparency and to publish every invoice in excess of £500, just like every other organisation does?

[Ms Dorries]

S4C plays a vital role supporting the Welsh economy, culture and society. The funding will support S4C in reaching more Welsh language speakers, including younger audiences. I am sure S4C heard what my right hon. Friend just said, and I shall certainly take his points back.

Oral Answers to Questions

Debate between Nadine Dorries and Alun Cairns

Thursday 18th November 2021 Commons Chamber

[Alun Cairns (Vale of Glamorgan) (Con)]

1. What plans she has for the future of the BBC licence fee.

[The Secretary of State for Digital, Culture, Media and Sport (Ms Nadine Dorries)]

The Government have committed to maintaining the licence fee funding model for the duration of the charter period. Ahead of the next charter review process, we will undertake a detailed look at the TV licence model to ensure that it is fit for the future.

[Alun Cairns]

I warmly welcome the encouraging comments made by the Secretary of State, publicly and in the Chamber, on the BBC. There is the potential to cut or at least freeze the licence fee. It raises over £3.5 billion a year, much of which is used to create quality broadcasts. However, significant sums are used to squeeze out competition from the independent sector. This is the most regressive form of taxation, akin to the poll tax, so does she agree that a freeze or a cut would be not only a welcome boost to hard-pressed families, but a way of facilitating innovation within the BBC and encouraging competition from outside, creating a much more dynamic broadcast provision?

[Ms Dorries]

I thank my right hon. Friend for his question. My priority is to secure a settlement that delivers value for money for those hard-pressed constituents and for the licence fee payer, while making sure that the BBC can continue to provide those very high-quality services to which he just referred. I have been having constructive discussions with the BBC and I believe that we are close to reaching an agreement. I hope he understands that I am unable to comment further while negotiations are taking place and are ongoing.