Future of the BBC

Robert Halfon Excerpts

Monday 21st October 2013 Commons Chamber

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

Thank you for calling me to open the debate, Mr. Speaker. I also thank the Backbench Business Committee for agreeing to the debate in the first instance.

As you have indicated, Mr. Speaker, support for the debate came from a range of quarters: from those who are no doubt ardent champions of the broadcaster, and from those who feel that it is long past its sell-by date. I am sure that an array of views will be expressed, and, given the BBC’s recent history, I think it important for Parliament to be encouraged to comment on what has happened. I pay tribute to the way in which the Culture, Media and Sport Committee and the Public Accounts Committee have pursued many of the issues, and I am pleased that a debate in the main Chamber will allow more Members to participate, comment and air their concerns.

It is important to consider not just the issues themselves, but the way in which the BBC has responded to them, both internally and externally. The way in which the organisation reacts reflects its culture, which is something with which we all need to be happy and content. I see myself as a critical friend of the BBC. I do not want to offer a post-mortem on each issue that has made the BBC the subject of news reporting over recent years, but I do want to question the way the broadcaster has reacted to many of those issues, which, I suggest, is defensively rather than in an open, positive and transparent way. I want the debate to be about how the BBC needs to adapt, change and reform to become a more open and transparent organisation that welcomes criticism to better inform its own internal operations. Likewise, any criticism that follows should be constructive.

This debate builds on my ten-minute rule Bill of last November calling on the BBC to publish all invoices in excess of £500, as local authorities in England do, and asking it to give unfettered access to the Comptroller and Auditor General. I was very disappointed by its response to that call at the time, which was basically an unequivocal rejection. However, I received a letter last Friday evening advising me it was looking into ways in which it could be more open and transparent, which I naturally welcome.

[Robert Halfon (Harlow) (Con)]

I congratulate my hon. Friend on securing this debate. Does he agree that the BBC is anti-competitive, undemocratic and unaccountable and one way to reform that would be to democratise the licence fee and give licence fee payers a vote on the BBC’s board, chairman and annual reports?

[Alun Cairns]

I am grateful to my hon. Friend for raising those points, and I hope the BBC will actively look at such innovations as it moves forward. It needs to be more responsive and adaptable, and that model may well carry favour.

--- Later in debate ---

[Dame Tessa Jowell]

I thank the right hon. Gentleman for his intervention. I think that transparency is absolutely of the essence in that regard. The BBC, as an independent entity, must be able to account to licence fee payers for the decisions taken about remuneration. I certainly think that increased transparency would be one of the ways of rebuilding trust.

[Robert Halfon]

Given what the right hon. Lady has just said, does she not agree that the best way to improve transparency would be by giving licence fee payers a vote on the board, on the running of the BBC and on major decisions, such as whether or not it should spend money on local radio, BBC 3, Formula 1 or whatever else?

[Dame Tessa Jowell]

I thank the hon. Gentleman for his contribution; I hope that he will find some common cause with the point that I am about to develop.

The licence fee income that comes to the BBC is the public’s money and not public expenditure in the normal sense, so I argue that it should be dealt with differently. This is an opportunity to rehearse some of the often cited arguments, so I should also say that of course the BBC distorts the broadcasting market. However, it exists, by consent of the public, as a deliberate market intervention. When I was Secretary of State for Culture, Media and Sport, I realised the importance, at a time of rapid innovation, of ensuring that the power of the BBC was not chilling in its effect on other areas of investment and innovation. We need constantly to keep a close eye on that issue.

I want to say a couple of things about the recent revelations. They are historical, but disturbing none the less. There was much in Lord Hall’s speech on strategy to be optimistic and enthusiastic about, but the BBC as an organisation has to be concerned about culture, as that will always trump strategy and undermine the ability to deliver a strategy aligned to the licence fee payer. There has to be a sense that the Augean stables have been cleaned out. Transparency and shining a bright light on such practices is one of the ways of doing that.

I turn briefly to the BBC Trust. There has been a profound misunderstanding about its role. The BBC Trust is the cheerleader not for the BBC, but for the licence fee payer. That places a different set of expectations and responsibilities on it. I want to set out some ways in which it might cheerlead in that way more effectively. As we move to charter review, which the Secretary of State will be thinking closely about, one of the big threats to the independence of the BBC is interference by Government—any Government. That is why the BBC must be structurally reinforced against the temptation of Governments to intervene and unduly influence it.

The public and licence fee payers should be in the driving seat. The argument is that the BBC should indeed be owned by its licence fee payers and should become the country’s biggest mutual. I do not want to take too much of the House’s time going through the detail of how that would work, although I have given a lot of thought to that. I offer the House this idea at a time of charter review to raise public confidence and create a firewall between the public interest and the Government of the day.