Media Bill (First sitting)
Stephanie Peacock ExcerptsTuesday 5th December 2023
(2 years, 5 months ago)
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Hywel Williams
I thank the hon. Member for that point, and I will refer to it if I am lucky enough to be called to talk on the relevant provision later. Welsh programmes are available on all kinds of platforms, but a large number of Welsh-speaking people in England, for example, cannot see programmes in Welsh, because those are not available digitally to the extent I would want. As one would imagine, people have found a way around that, but for the language to prosper and thrive and for provision to be right across the available platforms, we must move forward, and I will speak to that later.
Stephanie Peacock (Barnsley East) (Lab)
It is a pleasure to serve under your chairship, Mr Vickers, and to welcome the Media Bill as it enters a new stage in its passage. Before I begin, I refer hon. Members to my entry in the Register of Members’ Financial Interests.
As I said many times on Second Reading, I am supportive of the Bill on the whole; I only wish it could have been brought forward sooner after the Government U-turned on their decision to privatise Channel 4. Good progress has been made on the Bill thanks to the excellent work of the Culture, Media and Sport Committee, whose recommendations the Government have largely taken on board. That is to the credit of the many interested stakeholders who provided detailed evidence.
It is with that in mind that I have tabled only focused amendments where I feel they are really needed, and I will not unduly dwell on areas where no concerns have been raised. I would like to make as much progress as possible, so that our creative industries can reap the benefits at the earliest opportunity. I look forward to having productive discussions with the Minister and with members of the Committee on both sides of the House in the coming days about how we can ensure that the Bill best achieves its aims and truly secures the future of UK television and radio for years to come.
It is with that in mind that I turn to amendment 39 and new clause 5 on Gaelic broadcasting. Language is a cornerstone of culture; it is not just a way of communicating. Languages are daily expressions of history, reflecting a way of life, values and heritage as they are spoken. The diversity of languages in our nations and regions is therefore a living, breathing expression of the rich identities and traditions that we are lucky to carry with us. Understanding that, however, also requires an understanding that, if we lost a language such as Gaelic or Welsh—if they are not nurtured and passed down through the generations—that rich culture would also be at risk of being lost. With that recognition in mind, I am pleased that we are explicitly discussing the importance of Gaelic at the top of the Bill.
According to the Scottish Government’s Gaelic language plan, census results in 2011 found that, of the population aged three and over in Scotland, 1.7%—just over 87,000 people—spoke, read, wrote or understood Gaelic. While that represented a decrease in the proportion of people able to speak Gaelic in most age groups since 2001, there was actually an increase among those under 20 years old. That is perhaps due in part to Scottish Government initiatives to encourage Gaelic education, including the Education (Scotland) Act 2016, which gives parents the right to ask their local authority to provide a Gaelic-medium education for their child.
In order to nurture a language, however, progress cannot be limited to education. There must be cultural opportunities surrounding the language too, and Gaelic broadcasting can and should play an important part in that. Indeed, BBC Alba—the Gaelic-language television service launched in 2008 as part of a partnership between MG ALBA and the BBC—is a huge asset to Gaelic culture, providing a wide range of high-quality Gaelic programming for speakers to enjoy. I was pleased to meet representatives over Zoom a few weeks ago.
MG Alba is also of economic importance, sustaining around 340 jobs, half of which are in economically fragile areas. The Government have acknowledged that contribution on multiple occasions, saying that MG ALBA makes a hugely valuable contribution to the lives and wellbeing of Gaelic speakers and recognising that certainty over the future is important for MG ALBA if it is to continue to deliver in that way. The fact that Gaelic broadcasting is recognised for the first time in the public service remit in clause 1 of the Bill is therefore welcome.
However, as was mentioned several times on Second Reading, the Bill, and legislation more broadly, seem not to recognise Gaelic-language broadcasters in the way they do S4C in the Welsh language, despite apparent cross-party support for doing so both here and in Scotland. That is not to dismiss the importance of the provisions made for S4C or to say that the situations of the Gaelic and Welsh languages are comparable—there is currently a much larger population of Welsh speakers than of Gaelic speakers—but it seems to be a disparity that MG ALBA, for example, is not mentioned in the legislation at all. Indeed, there is somewhat of a cycle of reinforcement here: if having fewer Gaelic speakers means there is less provision for Gaelic programming, then less Gaelic programming may in turn mean there are fewer Gaelic speakers. Conversely, a boost for Gaelic broadcasting could be hugely beneficial to the language as a whole. That is something new clause 5 and amendment 39 seek to highlight.
Amendment 39 tries to address the problem by directly rectifying disparities in quota requirements. Specifically, a quota requires the BBC to provide S4C with at least 10 hours of Welsh-language programming per week, but no such quota exists—not even at a lower level—for Gaelic broadcasting. The amendment tries to mirror that requirement with a similar measure for content in the Gaelic language. There is more to be done to understand how we can best incorporate quotas and support for Gaelic services in existing legislation, which is why the new clause I have tabled looks to review the status of Gaelic services in legislation in the round.
I want to be careful to make sure that there is enough flexibility in the legislation to ensure that any future changes and partnerships in the area of Gaelic broadcasting are accounted for. However, I am supportive in principle of the idea of ensuring that there are regulatory and legislative measures in place that give Gaelic broadcasting the status it deserves. That may well be the start of a minimum level of content being available in the Gaelic language.
I anticipate that some might say this particular measure is not necessary given that, for the first time, the public service remit now acknowledges the importance of providing content in minority languages, which I of course welcome. However, as the hon. Member for Aberdeen North has argued, without a definition of “sufficient quantity” of content, there is a risk that that inclusion will not result in the kind of tangible change and assurance needed to ensure the growth or even maintenance of minority language content. I therefore support the idea that “sufficient” should be better defined, whether that be through legislation, Ofcom or elsewhere, so that the provision can be truly enforced and upheld.
New clause 5 takes a more holistic look at the ways in which the Bill fails to address Gaelic broadcasting and suggests an assessment be made on whether giving a Gaelic language service a remit as a public service broadcaster might be suitable. That would be an opportunity to look at how we can ensure the statute catches up with events—BBC Alba did not even exist when the Communications Act 2003 was passed—and would reflect Parliament’s will for there to be an enduring television service in both Welsh and Gaelic. Further, it would provide a chance for Government, Parliament and Ofcom to view the Gaelic service as something to be acknowledged in reference to its own needs, benefits and missions, rather than only being considered as a small part of the wider BBC portfolio.
For instance, just a few days ago Ofcom published its sixth review of BBC performance, and mentions of a Gaelic service totalled four lines in an 80-page report. That comes from the need to assess BBC Alba only as a BBC portfolio service, as that is what the BBC operating agreement does. Given, however, the importance of the service to Gaelic speakers, it would be appropriate to see it acknowledged and assessed as such, irrespective of whether the service remains tied to the BBC. Indeed, new clause 5 is not prescriptive, and recognises that although the partnership between BBC and MG ALBA has been working well, this may not always be the preferred set-up for either or both parties involved. Therefore, with future-proofing in mind, it simply looks to provide an opportunity for Gaelic broadcasting to be recognised in its own right, whatever form that might take.
I hope the Minister might be able to lend his support to the new clause, but if he chooses not to, I would like to hear from him on the measures the Department is taking to support Gaelic broadcasting in the way it deserves and needs. This should matter not only to those who speak Gaelic and will enjoy the content, but to our society as a whole, as we look to keep alive the unique culture and heritage of all our nations.
Kirsty Blackman
Absolutely. If there were a requirement for more broadcasting, not just outside the M25, and for looking at population share, even reporting on spend and population share, there would be clarity and transparency about that spend, and whether it is anywhere close to population share. I think that public sector broadcasters would have a look and think, “Actually, we could probably do better than this. We could produce more content that is more exciting and relevant to people across all of these islands, produced in places with incredibly diverse scenery and people taking part in it.”
As for the Government’s position on levelling up, a fairly general statement on content produced outside the M25 is not going to cut it. It will not bring about levelling up or an increase in broadcasting in places that do no currently see significant amounts. As I said, I appreciate that the Minister and his Government are trying with the outside-the-M25 quota, but it could be done better in order to encourage more content, or at least transparent reporting on the level of broadcasting, spend and content creation in various parts of the UK. As expected from an SNP MP, I have highlighted Scotland, but many parts of these islands could make a pitch for more content to be made in their area, or at least reporting on the level of spend and content created in each region.
Stephanie Peacock
Not too long ago, just after the Scottish Affairs Committee concluded its important inquiry into the topic, I was joined by colleagues in Westminster Hall to talk about Scottish broadcasting. One of the biggest takeaways from the debate was just how important the sector is to people.
Scottish broadcasting brings communities together. It promotes pride in place and strengthens local economies. For those reasons, and many more, I strongly believe that Scottish broadcasting can and must continue to form a vital piece of the puzzle in the UK’s creative sectors. Indeed, Scotland is already a popular destination for broadcasters. Not only is it home to Amazon, but the BBC and Channel 4 operate there alongside STV, which in 2021 reached 80% of Scottish people through its main channel. Content made in Scotland often represents Scottish people’s lives and the diversity within them. That sort of representation matters. I know, for example, that it was exciting for many when the first Scottish family finally appeared on “Gogglebox”.
I am very sympathetic towards the aspect of the amendment that looks to ensure that the level of content made in and for Scotland is proportionate to the number of people who live there. However, I have questions about the mechanism used to achieve that. For example, what are the implications of directly attaching spend to population? How would population be measured and how frequently, and how would that impact the legislative requirements to match it? I wonder whether this issue could be better addressed through individual channel remits. For example, both the BBC and Channel 4 have existing nation quotas. Perhaps it would be better to focus on that rather than insert a strict spend requirement, tied to population, on the wider remit.
I would like to show my support for Scottish broadcasting, but further investigation might be needed into how we can best ensure that there is a comprehensive and holistic package of regulation and legislation to secure its future.
Sir John Whittingdale
I start by agreeing with both Opposition spokesmen about the importance of supporting the production sector outside London and across every region and nation of the United Kingdom. The growth of the independent production sector outside London has been a phenomenal success in recent years, and we now have very strong companies in all parts of the UK. That is shown by the fact that since 2010, PSBs’ production spend allocated to programmes outside London has increased from 39% to over 50%, with ambitions to go even further. For instance, the recent publication of the BBC’s “Across the UK” strategy commits it to increasing the proportion of its own TV production budget outside London to 60% by 2027.
The amendment tabled by the hon. Member for Aberdeen North focuses on Scotland, where production spend is now worth over £266 million, supported by developments including the opening of a Channel 4 creative hub in Glasgow in 2019. As I say, the BBC’s “Across the UK” strategy includes commitments to expand its production studios within the city.
Stephanie Peacock
I beg to move amendment 19, in clause 1, page 3, line 13, at end insert—
“including education, entertainment, music, arts, science, sports, drama, comedy, religion and other beliefs, social issues, matters of international significance or interest and matters of specialist interest.”
This amendment would add detailed description of the range of genres which Ofcom must report on whether the public service broadcasters have made available.
The Chair
With this it will be convenient to discuss the following:
Clause stand part.
Clauses 2 and 7 stand part.
New clause 1—Delivery of public service content on relevant television services—
“After section 264A of the Communications Act 2003, insert—
‘264B Delivery of public service content on relevant television services
(1) Ofcom must monitor the extent to which the public service remit for television in the United Kingdom is met in respect of relevant television services.
(2) If Ofcom considers that the public service remit for television in the United Kingdom is not being met in respect of such services, it may set whatever programming quotas it considers necessary to ensure that the remit is met.
(3) For the purposes of this section, “relevant television services” means—
(a) the television broadcasting services provided by the BBC;
(b) the television programme services that are public services of the Welsh Authority (within the meaning of section 207);
(c) every Channel 3 service;
(d) Channel 4;
(e) Channel 5.’”
This new clause would give Ofcom powers to measure the delivery of public service content on the linear services of the public service broadcasters, and set quotas if it considered the current level to be unsatisfactory.
Stephanie Peacock
On the whole, I am pleased to welcome the clause, which looks to simplify the public service remit, and to allow broadcasters to contribute to the remit with programmes that are made available on a wider range of services, including their on-demand service.
Clause 1 makes an important attempt to simplify the public service remit. Currently, the remit consists of a set of purposes that public service television must fulfil in accordance with a different set of public service objectives. The Bill condenses those requirements, so that the PSB remit is considered fulfilled when providers together make available a wide range of audiovisual content that meets the needs and satisfies the interests of as many different audiences as possible. A list is then provided, setting out the types of content that can form part of such a contribution.
That simplification is, on the whole, a welcome idea, and the inclusion of minority language services and children’s programming in the remit is is great to see. However, the Voice of the Listener & Viewer, the Media Reform Coalition, the International Broadcasting Trust and others have expressed concerns that the simplified format has been coupled with the removal of requirements for public service broadcasters to provide specific genres of content.
When the Government first released the “Up next” White Paper that preceded the Bill, it made no mention of references to genres such as entertainment, drama, science and religion being removed from the remit, as they have been in the Bill. Content from those genres is important to people, and has huge societal and cultural value. If we remove explicit reference to them in the remit, there is a risk of less programming in those areas, particularly where they might be of less immediate commercial benefit. That is surely contradictory to the aim of having a public service broadcaster, which is fundamentally to ensure that public benefit is balanced against purely commercial interests.
The change is especially concerning at a time when, commercially, there is more choice than ever before in popular genres such as entertainment and drama, and less choice when it comes to dramas that provide diversity and difference for UK audiences. This would not be the first time that a reduction in requirements for PSB content led to a decline in culturally valuable content. As the Select Committee on Culture, Media and Sport highlighted in its report on the draft Bill, Ofcom identified how provision of non-animation programming for children became limited outside the BBC after the quota for children’s programming was removed.
I am pleased that the public service broadcasters have issued reassurances that the new remit will not significantly impact programming in the removed areas, and I am glad that, since its draft version, a small protection has been added in the Bill to secure
“an appropriate range of genres”.
However, the removal of references to specific genres is still a concern, even after these reassurances and amendments. Indeed, if there is no clear specification of what counts as a “range of genres”, there is no guarantee that Ofcom will monitor the amount of content in each of the removed genres. Without such monitoring, falls in provision will be difficult to identify and rectify.
It is with that in mind that I proposed amendment 19, which would ensure that public service content continues to be provided across a range of genres, including entertainment, drama, science, and religion and other beliefs. Further to that, in combination with the powers in clause 10, the amendment would enable Ofcom to properly monitor those genres and make proper suggestions, where content is lacking.
I want to be clear that this addition is not intended to change the nature of the remit, so that the issue would be covered by the PSBs as a whole. I understand that it is not, and should not be, the responsibility of each and every individual public service broadcaster to hit each and every one of the remit requirements, and that is no different for the provision of genres. For example, ITV provides nations’ and regions’ news in a way that means it is not realistic for it to meet some of the other obligations; those are then covered by the likes of Channel 4 and Channel Five, which do not provide the same level of news coverage. That sort of balance works well, and I want to explicitly state that I do not propose that every genre would have to be addressed by every provider. I hope that, bearing that in mind, the Minister can take on board what amendment 19 proposes. Simplifying the remit is a good idea, but not if is done at the cost of the kind of content that sets our public service broadcasters apart.
I move on to the other major consequences of clause 1: the changes that allow content provided through a wider range of services to contribute to the remit. This change makes sense as viewing habits start to shift in a digital age. As the Government know, last year, the weekly reach of broadcast TV fell to 79%, down from 83% in 2021. That is the sharpest fall on record. Meanwhile, on-demand viewing increased, reaching 53 minutes a day this year. Having the flexibility to meet the remit through an on-demand programme service is reasonable, given that this pattern is likely to continue for years to come.
In the meantime, online content can also help to deliver content to niche audiences. Indeed, ITV estimates that 3.8 million households in the UK are online only, meaning that they have no traditional broadcast signal. However, it is important to note that, while habits are shifting, a number of households still do not have internet access. Having previously served as shadow Minister for Digital Infrastructure, I have engaged extensively with telecoms providers and organisations such as the Digital Poverty Alliance, all of which have shared their concern and acknowledged that not everyone has access to or can afford a broadband connection. There is a movement to ensure that social tariffs and lower-cost options are available, as well as to improve the roll-out of gigabit-capable technology, so that as many people as possible can be connected.
Regardless of those efforts, there has been and will remain a section of the population for whom broadcast signal is their sole connection to media, news, entertainment and information. It is incredibly important that those people, who are likely to be older citizens, families in rural areas and those struggling with bills as a result of the cost of living crisis, are able to access public service content as usual on linear channels, delivered through a broadcast signal. That case has been argued extensively by the campaign group Broadcast 2040+, which is made up of a number of concerned organisations. We recognise that the direction of travel is that people are watching content online more than ever, but that does not need to mean diminishing content on broadcast linear services, especially where that content caters to a local audience. That belief goes beyond this Bill and ties into wider worries about the impact that a digital-first strategy will have on traditional means of broadcasting, and, as a result, on audiences.
It has been four months, for example, since the BBC decided to replace some of its vital and unique local radio programming with an increase in online journalism, which has been to the detriment of local communities up and down the country. That decision was made without consulting the communities that would be impacted, and it could easily be repeated in other areas, since there is nothing to stop many more services being axed in favour of online services. This is not to say that there will be no decline in audiences in the years to come as the rise in online content consumption continues, but no co-ordinated effort has been made to ensure that our infrastructure is ready for a mass movement toward online broadcasting. That effort must be made before such a transition takes place. The consequences for the internet capacity that will be needed to cater for spikes, and the implications for national security in a world where TV and radio are no longer methods of communication between the Government and the public, have not been thought through. As long as that remains the case, we must think of those for whom internet connection is not an option. That is why I tabled a new clause to protect the provision of high-quality content on linear services.
The new clause would introduce a safeguard, so that if Ofcom believes that the delivery of PSB content on broadcast linear services is less than satisfactory, it will have the powers needed to set a quota—to ensure that a certain proportion of public service content remains available to linear audiences through a broadcast signal. In short, quality content should remain available to those families up and down the country who rely on their TV rather than watch online content. The new clause makes no prescriptive requirements on how that should be achieved; nor does it set a specific figure for how many programmes must be available to a certain percentage of people. It simply allows Ofcom to monitor the effect of the Bill, which allows PSB content to be delivered online, and allows Ofcom to intervene with such measures as it sees fit if the new remit has unintended negative outcomes.
As well as encouraging him to accept the new clause, I urge the Minister to update us on whether the Government intend to support linear broadcasting beyond 2034. If they do not, what plans are they putting in place to manage a possible transition away from linear services? We have simply not heard enough about this from the Government, and I would be grateful to hear today what the Department’s position is and what work it is already doing on this.
Finally, I come to the rules that state that for on-demand content to count toward the remit, it must be available for at least 30 days. In the draft Bill, public service broadcasters including ITV and the BBC raised concerns that that minimum period was not appropriate for every type of content, because on-demand rights in certain areas, especially sport, news and music, often mean that such programmes are available for limited periods. It is welcome that those concerns are recognised in the Bill, and that an exemption is being introduced for news programmes and coverage of sporting events. Did the Department consider adding programmes covering music events to the list of exemptions? If it did, why was the decision made not to do so? Overall, I support a simplified remit, and the change in clause 1 that allows online content to count toward the remit, but further safeguards around certain genres of content and linear television are needed to protect against unintended or negative consequences.
I am broadly happy with clauses 2 and 4, which are consequential to clause 1. Clause 2 updates Ofcom’s reporting requirements to reflect the changes being made; likewise, clause 7 makes consequential changes to section 271 of the Communications Act 2003. On those issues, I refer Members to my remarks on clause 1 as a whole.
Kirsty Blackman
I want to pick up a couple of points relating to clause 1 that I have not mentioned yet, but that the shadow Minister has mentioned.
I am happy to support the provision in new clause 1 that would ensure that public service content is available on linear TV, but I do not think it goes far enough, and it does not add much to Ofcom’s requirements. The same concerns arise around matters such as “significant prominence”. The Minister said from the Dispatch Box on Second Reading that the move away from broadcast terrestrial television would not be made until the overwhelming majority of people in the UK were able to access television by other means. I hope that is a fairly accurate version of what he said. I am concerned that the phrase “overwhelming majority” is also not specific enough, although I appreciate the direction of travel that the Minister was indicating with that remark. My concern, like the shadow Minister’s, about the potential removal of terrestrial TV and non-digital output is for the groups who would be significantly disadvantaged by that loss.
Sir John Whittingdale
I am very happy to provide the hon. Lady with a written briefing on exactly how the powers can be used.
New clause 1 would put a specific duty on Ofcom to report on how public service broadcasters deliver the public service remit. We agree that that is very important, but we think that the Bill already achieves that. Clause 1 amends section 264 of the Communications Act to put a responsibility on Ofcom to review and report on the extent to which public service broadcasters fulfil the remit. Regarding the specific requirement of delivery of the remit on linear, I think that we are straying into the territory of debate on the next group, about how long viewers should be able still to rely on digital terrestrial television. I am very happy to debate that, but I think that discussion that is more appropriate to the next grouping.
The hon. Member for Aberdeen North raised a specific question about how the measurement of the 30 days requirement should operate. I can assure her that the broadcaster would certainly not be able to pick out individual days and put them all together to make up that 30. It is 30 consecutive days starting from the day that the content is first made available.
I believe that the clauses that we are debating represent a modernisation that will ensure that public service content remains at the heart of our broadcasting landscape but is modernised to take account of the extraordinary transformations that are occurring. On that basis, I commend clauses 1, 2 and 7 to the Committee, but I would, I am afraid, be unable to support new clause 1 or, indeed, amendment 19.
Stephanie Peacock
I appreciate the Minister’s comments on amendment 19, but it still remains the case that, without clear specifications as to what counts in the “range of genres”, there is no guarantee that Ofcom will monitor the levels of content in each of the removed genres. Without such monitoring, it will be very difficult to identify whether there is a reduction and to rectify that. With that in mind, I would like to press amendment 19 to a vote.
Question put, That the amendment be made.
Stephanie Peacock
As I outlined during the discussion about my new clause 1, it is incredibly important that we recognise the value of broadcast television services and ensure that they are available where needed, particularly when thinking about making public service content available to as many people as possible. Indeed, the Government have themselves highlighted that millions of households in the UK still rely on broadcast television as their form of access to visual content—a trend expected to continue over the next decade.
Furthermore, unlike internet streaming services, PSB content on terrestrial TV does not require a strong broadband connection or rely on monthly subscription fees. Such content is primarily relied on by those already marginalised in society—people on the lowest incomes, people of an older age and those in isolated rural areas. There is a higher population of such people in Scotland given its increased rurality, island communities and comparatively older population, so I understand and support the reasons why the amendment has been tabled. It wants to ensure the future of terrestrial services for those who need them. That is particularly important because, as we have discussed, under the Bill on-demand content can now contribute to public service remits. That is the right move but it should come with safeguards for content on terrestrial TV, which is what my new clause seeks to address.
A host of implications are not being properly considered when digital-first plans are put forward in the Bill for broadcasting. If we move away from broadcast services prematurely, there will be huge implications for telecoms operators, who will have to handle unprecedented surges in internet traffic. For example, if everyone watched the World cup final online rather than on their broadcast TV, the infrastructure would need to be strong enough to carry that. Without due preparation and regulation, questions may arise about how that would be funded without costs being passed on to consumers and without raising bigger questions on topics such as net neutrality.
As we have discussed, there are also national security implications to moving away from broadcast infrastructure in its entirety. How would local and national Government communicate with the public if the internet was down due to an emergency situation? With all that in mind, we need to consider the future of our broadcasting landscape and the important role that terrestrial television will continue to play in the years to come.
I am unsure, however, whether the amendment is right to be so prescriptive in legislation about the percentage of the population who must be reached through digital terrestrial television, particularly given the rapid advances in technology taking place around us. There are already statutory obligations in the Broadcasting Act 1996 that feed into broadcast and multiplex licences, which require the likes of ITV to use DDT on the UHF frequencies to broadcast. Those obligations mean that 98.5% of the population are able to receive broadcast television.
However, although the current infrastructure broadly allows for 98.5% reach, I do not believe that is a precise enough figure or a stable enough measurement to warrant requiring it specifically in legislation; if the Bill wants to be future-proofed and recognise the importance of terrestrial television, I am not sure that quite strikes the balance. I hope the Minister takes on board the strength of feeling on this issue and seeks to ensure that the public service content remains available up and down the country. I also hope the Department puts a future plan in place that really considers the importance of broadcast services and of the certainty over the future that that could provide these services and the people who rely on them.
Sir John Whittingdale
I want first to make it clear that the Government remain committed to the future of digital terrestrial television. We absolutely accept that millions continue to rely on it. We have already legislated, as hon. Members know, to secure its continuity until at least 2034 through the renewal of the multiplex licences. Obviously, I understand that the Opposition would like to go further and give a commitment going beyond 2034, and the amendments are tabled with that purpose in mind.
I said “overwhelming majority” on Second Reading, because I do not want to be tied down to a specific figure, particularly when we are now looking 10 years ahead, but I repeat that it would be a brave Government who switched off DTT while there was still a significant number—even a small number—of people relying on it.
Stephanie Peacock
Since the Minister is not willing to commit to going further than 2034, will he outline when he will make a decision on whether he will extend it past 2034? If not—this is quite important—what plans are the Department putting in place to ensure any future transition takes place effectively?
Sir John Whittingdale
I am happy to say a little more about what the Department is doing. First, the hon. Member for Aberdeen North is absolutely right that broadband availability is one of the factors that would need to be taken into account. I also have ministerial responsibility at the moment for digital infrastructure, and I can confirm to her that the Government remain committed to the universal availability of gigabit broadband by 2030; if we achieve that target, that is one factor that will have been met. There is also the availability of low-cost tariffs, and I agree with her about the importance of those.
The hon. Lady also talked about resilience. Resilience is important, but it is worth bearing in mind that the Bilsdale transmitter fire was not that long ago—that took out DTT for a significant number of people for quite a few months. Every technology is subject to occasional risk, and that was a rather more dramatic one.
On getting vital messaging across, I gently say to Opposition Committee members that radio is, of course, available through a variety of different technologies as well as television.
Stephanie Peacock
The fire that the Minister referenced really outlined how important linear television is to many parts of the country. Actually, the further north we go, the more communities rely on it. In that particular case, I think that a prison was affected as well as a number of older people. It is a good example of how important terrestrial TV still is to many in the country.
Sir John Whittingdale
We completely recognise that terrestrial TV is important to many in the country. I was in my second incarnation as a Minister at the time of the Bilsdale fire, and I talked to Arqiva about the importance of restoring services as rapidly as possible. A very large number of people were left without the ability to access information, entertainment and all the things that people rely on television to provide.
Looking forward, as hon. Members may be aware the Secretary of State recently announced that the Department is going to carry out a new programme of work on the future of television distribution. That includes a six-month research project working with a consortium led by the University of Exeter, looking at changing viewing habits and technologies. We have also asked Ofcom to undertake an early review on market changes that may affect the future of content distribution. I am very happy to keep the House updated on those. That will be looking at all the various factors that would need to be taken into account.
I make one final point about amendment 37. It puts a particular requirement on channel 3 licensees to use particular standards for compression technology. As with all technologies, the standards for television distribution will change over time. We want to ensure that there remains flexibility, so restricting channel 3 to a particular use of one technology would be severely limiting and actually be contrary to precisely what the Bill is designed to achieve.
Media Bill (Second sitting)
Stephanie Peacock ExcerptsTuesday 5th December 2023
(2 years, 5 months ago)
Public Bill CommitteesRead Full debate Media Act 2024 View all Media Act 2024 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 5 December 2023 - (5 Dec 2023)
Sir John Whittingdale
I welcome you to the Chair, Mrs Cummins. Clause 3 amends section 265 of the Communications Act 2003 to update public service remits of licensed public service channels to make clear that the high-quality and diverse programmes they make available must themselves contribute to the public service remit and together represent an adequate contribution. In line with the changes made by clause 1, it allows licensed public service channels to fulfil their remits by using a wider range of services.
Government amendment 1 ensures that when a public service broadcaster is required to fulfil the public service remit for a given channel, and that remit is to make available content, then it is the public service broadcaster that should be making that content available, either themselves or through others. That point of detail was arguably included in the Bill at its introduction, but we felt it necessary to bring forward the amendment in order to put this matter beyond doubt. It is a technical amendment, and I hope the Committee can support it.
Stephanie Peacock (Barnsley East) (Lab)
I too welcome you to the Chair this afternoon, Mrs Cummins. As well as the remit covering all the public service broadcasters, there also exist separate remits covering the activity and content of each individual channel. The channel remits are important, as they ensure that the specific aims of each channel are clear in the context of the wider contribution these channels must make as a whole.
Section 265 of the Communications Act 2003 sets out the specific remit for channel 3, Channel 4 and Channel 5. As will become the theme in coming clauses, only channel 3, Channel 4 and Channel 5 are dealt with by this clause, with many of the same changes to the BBC and S4C made later on in the Bill due to their differing arrangements. In any case, section 265 ensures that channel 3 and Channel 5 must provide a range of high-quality and diverse programming. Meanwhile, Channel 4 has an extended remit that requires its programming to: be innovative, creative, experimental and distinctive; appeal to the tastes and interests of cultural diversity; include a significant contribution to meeting the need for education programmes; and exhibit a distinctive character.
The clause amends section 265 to update the remits. First, it makes clear that the high-quality and diverse programmes they make available must themselves make an adequate contribution to the wider public service remit. This is sensible, as it makes it explicitly clear how the individual channels will feed into the broader remit. Secondly, the clause allows public service broadcasters to fulfil their channel remits by means of any audio-visual service, echoing changes made in clause 1 that allow for on-demand programming to count toward the wider remit.
While I believe it is important we see public service programming on linear services protected, it makes sense that as on-demand viewership increases, channel remits should be given the same flexibility as was provided for the wider remit in clause 1. I therefore welcome the clause and the clarification it provides for each channel and the consistency it ensures for the new public service remit as a whole. I understand that amendment 1 is largely a technical clarification that specifies that audio-visual content contributing to a channel remit must be content made available by the provider of that channel. This seems to be a very sensible tidying up of phrasing.
Amendment 1 agreed to.
Clause 3, as amended, ordered to stand part of the Bill.
Clause 4
Statements of programme policy
Question proposed, That the clause stand part of the Bill.
Sir John Whittingdale
Section 266 of the Communications Act 2003 puts a duty on Ofcom to require providers of licensed public service channels to prepare statements of their programme policies that set out how they intend to fulfil their individual channel remits. Currently, these statements must only be prepared in relation to the content provided by public service broadcasters on their traditional TV channels. Clause 4 amends section 266 of the 2003 Act. It expands these statements to reflect that the fulfilment of the public service remit could now include, as set out in clause 1, content delivered by on-demand services.
Going forward, the providers of licensed public service channels—channels 3, 4 and 5—must set out in their statement the services they are using to contribute to the fulfilment of the public service remit and explain how each service is contributing. The publication of these statements is important to allow proper scrutiny of our public service broadcasters.
Clause 5 of the Bill, which is grouped with clause 4, amends section 267 of the 2003 Act to update the definition of “a significant change”, so that it would apply if any of the services that a licensed public service broadcaster is using to deliver its remit—not just the main channel, as before—were to become “materially different in character”. For example, this will include on-demand services as well as the traditional TV channels. And like the previous clause, clause 5 will ensure that these statements continue to allow scrutiny of all the ways that the public service remit is fulfilled.
Stephanie Peacock
Clause 4 amends requirements on channels 3, 4 and 5 to report on how they intend to fulfil their channel remit. Indeed, due to clause 3, these channels will now be able to meet this remit using qualifying audio-visual services, including both linear and on-demand programmes.
As a result, licensed PSBs will now have to set out in their statement of programme policy which audio-visual services they use to fulfil their channel remit, as well as the contributions that each service will make. This is a necessary change to ensure that reporting standards, and as a result the standards of public service TV, do not slip or falter as a result of the changes made by clause 3.
However, making this change will also be beneficial, as it will help Ofcom to build a clear picture of how the new rules are being used and whether they are working effectively to serve both linear and on-demand audiences. Therefore, as a result of both the necessity for and benefit of clause 4, I am happy to welcome it.
Similarly, clause 5 makes further updates to the reporting requirements on channels 3, 4 and 5. Currently, public service broadcasters must make changes to their statement of programme policy if their public service channel makes “a significant change”. “A significant change” is defined in the 2003 Act as the channel becoming
“materially different in character from in previous years.”
To reflect the new rules, which will mean channel remits can be met by services beyond the public service channel, clause 5 updates the definition of “a significant change”, so that it will apply if any of the services that a licensed public service broadcaster is using to deliver its remit becomes “materially different in character”.
Widening the scope of the 2003 Act to include more than just the public service channel is sensible and necessary in relation to the changes made in clause 3 and, as such, I welcome the inclusion of clause 5 in the Bill.
Question put and agreed to.
Clause 4 accordingly ordered to stand part of the Bill.
Clause 5 ordered to stand part of the Bill.
Clause 6
Enforcement of public service remits
Stephanie Peacock
I beg to move amendment 20, in clause 6, page 8, line 21, at end insert—
“(2A) In subsection (2)(a), after “serious”, insert “, or at risk of becoming serious””.
This amendment would lower the threshold for Ofcom’s intervention if it considers that a public service broadcaster has failed to fulfil its remit.
Stephanie Peacock
Clause 6 is another example of necessary changes being made to the Communications Act 2003 to reflect the changes in clause 3. Indeed, since public service broadcasters can now use on-demand services to deliver their remit, Ofcom’s power to consider whether such a broadcaster has failed to fulfil its remit must be adjusted accordingly, so that on-demand services can be taken into account.
Likewise, it is right that Ofcom will be able to make directions and impose licence conditions that apply to audio-visual services, ensuring that its enforcement and monitoring now reflect the new flexibility in the remit. I therefore welcome the premise of this clause.
However, I want to speak briefly about Ofcom’s enforcement powers more generally with reference to amendment 20. Given the increased flexibility that public service broadcasters have been given in meeting their remit, concern has been raised about the strength of Ofcom’s position in being able to step in when things look as though they may go wrong. The British Association of Public Safety Communications Officials and Ofcom can step in only when failure to meet the remit is considered to be serious; and any failure is not excused by economic or market conditions. That seems to be an unreasonably high threshold for intervention that does not allow for preventive action to take place in order to stop an issue becoming serious in the first place.
As the Culture, Media and Sport Committee highlight in its comprehensive report on the Bill, enabling Ofcom to step in earlier if it perceives there is a risk of a breach becoming serious would not only protect the integrity of the new regime but increase public confidence that the new remit would not come with a decline in standards. Ofcom itself has also recognised that, saying in its submission to the Committee that,
“it is important that this flexibility is accompanied with appropriate ‘step in’ powers so the commercial and PSB incentives remain effectively balanced.”
Further, we will speak many times during the passage of the Bill about how important it is for Ofcom to be empowered as a result of it. Indeed, many of the new regimes in the Bill are reliant on Ofcom being able to act confidently in enforcement. As such, it must be given the tools to intervene where needed across the board. Therefore, my amendment proposes that section 270 of the Communications Act is updated to lower the threshold at which intervention can take place in the case of remit breaches. The phrase “is serious” will be adjusted to “is serious or at risk of becoming serious”, thus ensuring that Ofcom can remedy any failures efficiently and in good time. Indeed, it is not my hope that that power will have to be used on a regular basis; there is every reason to believe that the public service broadcasters will continue to do their best to deliver on their remit for UK audiences. However, should that not be the case, it is important that we do all we can to mitigate any failure. I ask for Committee members support for this amendment.
Andy Carter (Warrington South) (Con)
Can the hon. Lady give the Committee any examples of when Ofcom has been unable to act with its current powers against public service broadcasters in the linear world? She talks about making changes for the digital world, but are there current examples where Ofcom is concerned?
Stephanie Peacock
I do not believe so, no, but obviously the Bill is changing, and giving more powers to, Ofcom. Like any regulator, it needs to be able to enforce them properly; so it is really a preventive measure. We hope that the Minister will take the amendment in the spirit in which it is put forward.
Kirsty Blackman (Aberdeen North) (SNP)
I rise briefly to support the amendment. This changes the remit requirements on public service broadcasters. I do not think that anyone is disagreeing with some of the changes that are being made. It makes sense for the public sector remit to be able to be fulfilled on some of the on-demand services, for example, in a way that currently they are not. However, the concerns that were raised earlier around genres, for example, are not written into the Bill. There is a requirement for there to be a range of genres but those definitions are no longer included. The system will probably need to bed in; it will probably take a bit of time. I agree with the shadow Minister that we do not expect public service broadcasters actually to create serious risk or enter this situation. If they do, though, I believe it is better for everyone for Ofcom to be able to intervene at an earlier point, for a number of different reasons.
If Ofcom can intervene earlier and is empowered and asked to do so, it will be cheaper, easier and quicker to sort out the issue. If it can act only once the issue is serious enough, then undoing that harm is difficult. Stopping the harm is better for the general public, better for the broadcasters, better for the staff who work within those broadcasters, and better for Ofcom, which will have to spend less time clearing up a mess and ensuring that a mess can be cleared up.
On the empowerment that it gives to Ofcom, I agree with the shadow Minister that it will not be used terribly often, but it does give Ofcom sufficient power to say to the broadcaster, “Things are not going right here. We think there is a risk of things becoming serious, so we would like you to make some changes,” particularly when some of the quotas have been removed, for example, or some of the requirements for genres have been changed. It is going to take a while for the system to work as intended. The Government do intend it to work—I have no doubts that that is the case—but Ofcom needs to be empowered to ensure that it can do that.
Sir John Whittingdale
We are about to debate the fact that individual channels will be subject to some quotas. There are also the statements of programme policy that Ofcom will be required to approve. Having said that, Ofcom will reach a judgment on delivery of the remit, looking across the broad extent of public service broadcasting. Ofcom will be able to make it clear if it thinks a particular genre has not been sufficiently provided either by an individual public service broadcaster or, indeed, across the whole range of public service content. It will be for Ofcom to determine that, but I believe the Bill gives it that ability.
Stephanie Peacock
Throughout the Bill, we are giving more powers and responsibility to Ofcom. The amendment speaks to the idea that prevention is better than cure. I do not agree with the Minister’s interpretation; indeed, the Select Committee spoke of the matter and the amendment echoes that. However, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 6 ordered to stand part of the Bill.
Clause 7 ordered to stand part of the Bill.
Clause 8
Quotas: independent productions
Question proposed, That the clause stand part of the Bill.
Sir John Whittingdale
Clauses 8 to 17 make amendments to the current system of quotas, which I will discuss in this group and the next.
Quotas are an important tool to ensure that public service broadcasters produce an appropriate range of content. Unlike the public service remit, which is judged by Ofcom in regard to the PSBs as a whole, quotas allow Ofcom to put licence conditions on specific public service broadcasters to ensure that they make available certain types of content. That is how we can ensure an appropriate balance of key types of content, such as news and current affairs, independently produced content and original content. It is worth stressing that such requirements are floors, not ceilings, and that PSBs routinely exceed them, often by a considerable margin.
Section 277 of the Communications Act sets out a minimum proportion of broadcast hours that must be independent productions. It is set at 25% for each of the licensed public service channels. Clause 8 amends this to change the way in which the provider of a licensed channel may deliver the independent production quota. In particular, subsection (2) replaces the existing requirement on the
“provider of a licensed public service channel”
to allocate time on the channel to the broadcasting of a
“range and diversity of independent productions”.
Together with clauses 11 and 12, it will allow the requirements to be fulfilled using a public service broadcaster’s designated on-demand programme services to better reflect modern viewing habits.
The subsection also replaces references to a proportion of hours that the provider of licensed public service channels must make available, with reference to a number of hours. The number of hours that each licensed public service channel must include is to be specified by the order of the Secretary of State. Given that this requirement can now be met using on-demand services, it is more appropriate to use the number of hours of content made available as a measurement rather than the proportion of hours.
Subsections (5), (7) and (9) make comparable provision in relation to expenditure quotas for independent productions that the Secretary of State may establish. In setting the new hours-based quota, the intention is for them to be no more or less demanding than the existing 25% quota. We therefore intend to calculate the effective level of the quota over the last five years and replicate that. Of course, in Channel 4’s case, which we will come to later, that will be revised upward to the equivalent of 35% should Channel 4 decide to start a production business.
We believe that the consequence of that provision represents proportionate and reasonable requirements on our public service broadcasters. Of course, it is open to PSBs to go further and exceed their independent production quotas as they do now. Clause 9 makes similar amendments to section 278 of the Communications Act, which provides that a minimum proportion of broadcasting hours must be allocated to original productions. The proportion for each licensed public service channel, as well as the proportion in peak viewing times, is determined by Ofcom. As with clause 8, this clause ensures that the provider of the licensed public service channel can fulfil the quota using their designated on-demand services. That change is achieved by replacing the requirement to allocate time on the channel to the broadcasting of original productions with a more general requirement. Again, it makes provision for this to be measured by duration rather than as a proportion of broadcast hours as it is currently.
Clause 14 relates to the quotas for making programmes outside of London. The Communications Act currently provides that a minimum proportion of programmes made in the United Kingdom have to be made outside the M25 area. Similarly comparable provision is made in respect of expenditure. We debated this earlier, particularly in relation to the effect on production in Scotland and in Wales. Similarly, clause 14, read with the previous clauses, amends the Communications Act to preserve the substance of the provision, but it changes the way in which the provider may deliver their regional production quotas. In similar fashion, it again makes the change to measure the quota in terms of duration, rather than proportion of hours.
Together, these changes modernise our system to reflect the change that has occurred in audience viewing habits over the past 20 years, and ensure that it will continue to be meaningful and delivering value.
Stephanie Peacock
Clauses 8, 9 and 14 change the way in which licensed public service channels may deliver their independent production, original production and regional production quotas respectively. In short, they will first be changed to allow qualifying audio-visual services to fulfil this quota, meaning that on-demand and online services can make a contribution. That is the case with both the channel and the wider remit.
As a consequence of this move, the quotas are moving away from having to fill a certain proportion or percentage of content towards being based on a set number of hours of content and spend to be specified by the Secretary of State. I will look at each of these changes in turn, but first I want to emphasise how important the quotas themselves are, because they maximise the contribution our PSBs make to the wider broadcasting sector. For example, as the Minister just outlined, the requirement to have a number of programmes made outside the M25 area recognises the importance of reinvigorating our creative economy beyond simply the south-east. At the moment, our creative economy is densely concentrated in London, resulting in limited opportunities and entry points in the sector in other regions, including my constituency of Barnsley East. Yet, wherever we look in the UK, there is no shortage of culture and creativity. I am very supportive of the modernising and future-proofing of quotas, like those on content outside the M25, so that steps continue to be taken across the broadcasting industry to make use of the creativity that exists in every corner of the country.
Stephanie Peacock
I will speak to each clause in this grouping in turn, starting with clause 10, which enables the Secretary of State to create additional quotas for audio-visual content by licensed public service channels. On the whole, I welcome the clause. In particular, I am pleased that changes have been made to the draft version of the Bill to ensure that the Secretary of State can make regulations only following a recommendation from Ofcom. As the Culture, Media and Sport Committee observed, no explanation was given regarding the circumstances in which it would have been necessary to use this backstop without an Ofcom recommendation. Media regulation is rightly independent from Government through Ofcom, and the adjustment will ensure that there are no concerns about a shift away from that.
On the intent of clause 10 more broadly, in theory, the new power that it provides is important. It is right that Ofcom should be able to mandate new quotas if it believes that audiences are being under-served. This is particularly true given the adjustments in clause 1 that make a number of simplifications to the remit, most notably removing explicit mention of the genres of content that must be provided, including, as we discussed, science, religious beliefs and matters of international importance. However, given that the genres have been removed, Ofcom’s ability to monitor and recognise the gaps is unclear. That creates a sort of paradox: how can Ofcom judge whether audiences are being served properly if it is no longer monitoring the genres of content needed to ensure that there is a good service for those audiences? For that reason, I tabled amendment 19, which would ensure that genres would still be explicitly mentioned in legislation so that could be monitored accordingly. Without such a measure, the clause is at risk of failing to live up to its potential as a backstop measure to ensure that audiences are protected from a fall in quality programming.
Clause 11 underpins almost all the clauses in the first section of this Bill by defining phrases such as make available and “qualifying audiovisual content”. Those phrases allow for on-demand content to count towards remit and quotas, and as such, it is important that they are properly and sensibly defined. I am happy with the definitions on the whole, and it is pleasing that there is also room for additional audio-visual services to be added to the list of qualifying audio-visual content, subject to consultation with Ofcom and the affirmative procedure. That will effectively future-proof the measures in the Bill, subject to proper parliamentary scrutiny.
Clause 12 allows the Secretary of State to make regulations regarding whether content that is made available multiple times—more commonly known as repeats—counts towards production quotas. As I mentioned during the discussion on clauses 8, 9 and 14, some have raised concerns about how changes in this area could impact the ability of public service broadcasters to fulfil their quotas. At present, programmes that have been broadcast before in substantially the same form count towards some of the production quota. Any change, therefore, that results in repeats no longer counting towards those quotas, will mean that the quotas are harder to reach. For example, excluding repeats from counting towards quotas on original content will mean that more original content will have to be produced to meet existing obligations.
However, in the context of on-demand content, which will now count towards quotas, it is unclear how the concept of repeats could possibly be applied. Indeed, when viewing on-demand content, it is usually available 24/7 at the choice of the viewer, rather than run multiple times at the choice of the broadcaster, as is the case on linear. That brings up complex issues relating to how the contribution of repeats will be calculated as counting towards quotas in the digital age, the detail of which will need to be worked out promptly.
I therefore ask the Minister for guidance on how the Department intends to proceed in this area and use the power that the clause will give to the Secretary of State. Will repeats continue to be counted towards quotas on both linear and on-demand content, and if so, how will a repeat be defined on the on-demand service? Ultimately, it is important that the way that repeats count toward quotas and the level of new quotas are considered hand in hand. We must ensure that the quotas remain at levels that are meaningful enough to ensure quality content for audiences and encourage a healthy broadcasting ecology in the UK, while being at a reasonable level, given the economic constraints on the broadcasters.
Finally, I turn to clause 13. As I am sure we will touch on in more detail when we discuss the changes made to Channel 4’s publisher-broadcaster restriction, our public service broadcasters are crucial to the success of the wider UK TV production sector. As stated in the submission from the Producers Alliance for Cinema and Television to the Culture, Media and Sport Committee, PSBs account for 77% of original UK commissions and, as a result, hold immense buyer power in the UK domestic commissioning market. Given their role and bargaining power in the sector, it is crucial that fair principles apply when public service broadcasters commission independent productions. The terms of trade regime, which was established following the Communications Act, has done a good job so far of ensuring that that is the case.
That is not to say that the landscape operates perfectly, and I know that some have raised concern over the rise of super-indies, which may make it more difficult for smaller indies to compete. Overall, however, it is welcome that the clause looks to maintain a successful supply side to the market by ensuring that the terms of trade regime will apply to any qualifying audio-visual content. That is important for the health of the sector as a whole. In particular, it has been welcomed by PACT, which has worked hard at many stages of the Bill to ensure that independent production companies are well represented and do not feel adverse effects as a result of the Bill.
Kirsty Blackman
I am pleased that the Minister has confirmed, for all these clauses, that any changes by regulation must be made using the affirmative procedure. Particularly on clause 10—a power he suggested would be used very rarely, if at all, and only if needed—it makes sense, given the level of importance attached to the power that it should have to go through the affirmative procedure to be implemented. I appreciate that the Government have chosen to do that.
It is important that additional services can be added by regulation rather than by primary legislation, particularly when there are continual updates and renewals—on digital platforms especially, we are seeing changes on a very regular basis. As I said, I was on the Online Safety Bill Committee, and it was so important to ensure that that Bill was future-proofed as far as possible. There are potentially on-demand services that we cannot conceive of or genres that currently do not exist that will be a massive part of daily life in a few short years. The Minister has ensured that there is flexibility, in concert with the Secretary of State and Ofcom, and then through the affirmative procedure in the House. I think it is sensible to future-proof the legislation by allowing regulations to be decided on using the affirmative procedure.
The same applies to the requirement of quotas for potential genres or ways that television is delivered that we cannot foresee today. I agree with the points made by the shadow Minister, the hon. Member for Barnsley East. It is important to look at what happens with repeats and to ensure that everybody is clear about what happens. I probably do not have a firm view of how those should be judged, but I do have a firm view that everybody should understand how they are judged, and people should understand it in advance, so that they know what the expectations are of them.
A clear definition of what a repeat looks like on an on-demand service is important. If something is available for 30 consecutive days, goes away for a day and then comes back for 30 consecutive days, would that be a repeat, or would it not? Would it be included in the quota? It is important that some of the public service broadcasters that are producing this stuff can take it down so that they can sell it abroad for a period of time if they need to in order to generate some income. As long as it is on the service for a length of time here—they are required to include it for those 30 days, for example, or longer—I think it is perfectly acceptable for them to use some of the productions to gain some cash to continue to produce their excellent programmes.
Stephanie Peacock
This grouping covers clauses 15 to 17, schedule 1, and a small set of Government amendments. I will address all of those briefly in turn.
Clause 15 makes amendments that are largely consequential to the issues already discussed. It acknowledges the ability of public service broadcasters to use qualifying audio-visual services to meet their remits, and ensures that that also applies to requirements around network arrangements. I have mentioned previously that I am in favour of that new flexibility for broadcasters, given changing audience patterns, and I believe it makes sense to mirror this change in network arrangement requirements.
Clause 16 removes the Channel 4 quota to create a specified level of programmes intended for use in schools. It is my understanding that the quota is currently set at the low bar of 30 minutes, as the Minister has just mentioned. Channel 4 surpasses that quota, and it is somewhat arbitrary, given Channel 4’s wider commitments around education. These wider themes around educational content are extremely important, but it seems that this specific quota is no longer making an active contribution in the way it once did. I am therefore happy to move on without raising any particular issues. I also have no particular issues with the Government amendments, which are largely technical and consequential, and clear up confusion in some areas.
Finally, clause 17 and schedule 1 primarily echo the major changes made in this part of the Bill for ITV, Channel 4 and Channel 5, applying them to the BBC and S4C too. That includes confirming that quotas on independent content will be set at a number of hours, rather than as a percentage for both S4C and the BBC. The concern around a move to pure number targets from percentages is something I have already raised, but I wish to note that the BBC in particular took objection to that during the process of pre-legislative scrutiny. In its submission to the Committee, the BBC argued that the Government should take advantage of the distinctive regulatory framework to maintain proportional targets. Would the Minister use this opportunity to explain whether that was something which the Department explored?
Kirsty Blackman
I have some questions from colleagues about channel 3, in particular on the provision of ITV Border, which is the cross-border channel 3 provider that operates around Dumfries, Galloway and, across the border, Carlisle. People in the south of Scotland in such areas do not receive STV; they receive ITV Border, with its regional news and other channel 3 provision.
One of my colleagues, Emma Harper, who is a Member of the Scottish Parliament and has done a significant amount of research and work on this on behalf of her constituents has expressed concerns about the percentage of the content made south of the border compared with the proportion made north of the border. If we are to ensure that, for example, the regional dialects and languages of the UK are part of the public service remit, having a significantly unbalanced situation with ITV Border is a slight concern. It is a bit of an issue for my colleague’s constituents.
Another matter that comes into play concerns news, or updating the general public and ensuring that they are aware of issues. STV—channel 3—is a significant place for people to get access to local news in particular so that they can understand what is going on in their areas more widely, as well as nationally. People in the ITV Border region are being given information about school, legal and policing policies that apply south of the border, but not in Scotland. The content has to be significantly delineated because it is split across two very different jurisdictions—that is in some, not all, legal areas, such as school policy. For example, the school systems are completely different north and south of the border.
What consideration has the Minister given to asking Ofcom to look at ITV Border and whether it is best serving the populations on both sides of the border to ensure that everyone has the most up-to-date regional content in their area? I am not suggesting that we should always have certain delineations, but in this sector in particular, which people rely on for news services and updates, having a disparity that particularly affects the people of the Scottish Borders, rather than the English borders—because more content is made in the south—is a concern.
I would very much appreciate it if the Minister agreed to have a look at this, or to have a chat with Ofcom about the provision of ITV Border to ensure that he and Ofcom believe that the broadcaster is appropriate and properly serving people on both sides of the Scotland-England border.
Sir John Whittingdale
Clause 18 inserts two new sections into the Communications Act to ensure that Ofcom has the powers to gather the information which it needs to regulate this part of the Bill effectively. Proposed new section 338A of the Communications Act will give Ofcom the power to issue information notices to request any information which it needs to carry out its functions under sections 198B to 198D, sections 263 to 294, schedule 11 and certain provisions in schedule 12 of the 2003 Act. It includes its functions and duties to regulate the public service remit, quotas and licence conditions. An information notice will compel the recipient to provide Ofcom with the information specified in the notice, including where such information must first be obtained or generated by the party. An information notice may be served on a PSB other than the BBC or, where necessary, a third party, but only where proportionate. Proposed new section 338A(7) clarifies that the power to require the provision of information includes the
“power to require the provision of information held outside the United Kingdom.”
Clause 18 also introduces proposed new section 338B of the Communications Act, which will allow Ofcom to take enforcement action against any party that does not comply with an information notice under proposed new section 338A. After allowing the person to make representations, Ofcom may issue a penalty notice imposing a financial penalty. This penalty in respect of an information notice cannot exceed £250,000. In the case of a continuing failure to comply with a notice, a penalty notice may also require a penalty of an amount not exceeding £500 per day for each day the failure continues after the penalty notice is issued. I commend the clause to the Committee.
Stephanie Peacock
During discussion of clause 6, I mentioned that, as a result of the changes in the Bill, it will be increasingly important for Ofcom to be able to step in where there is a risk of public service broadcasters failing to fulfil their remit and quotas. I am therefore supportive of this clause, as it gives Ofcom the power to issue information notices and financial penalties to public service broadcasters in respect of breaches in the fulfilment of their duties. Although I have confidence in the willingness of our excellent public service broadcasters to carry out their remits and quotas, it is important that Ofcom is able to ensure that and provide a backstop where necessary.
I will say this more than once: the Bill really does rely on a strong and empowered Ofcom. It is with that in mind that I believe the powers to find out further information and impose penalties where necessary are proportionate and important tools that will enable the regulator to do its job. I therefore welcome the clause.
Question put and agreed to.
Clause 18 accordingly ordered to stand part of the Bill.
Clause 19
Amount of financial penalties: qualifying revenue
Question proposed, That the clause stand part of the Bill.
Sir John Whittingdale
Clause 19 addresses the calculation of financial penalties in respect of channels 3, 4 and 5. By way of context, the Broadcasting Act 1990 and schedule 9 to the Communications Act 2003 relate to the financial penalties that Ofcom may impose on the provider of a licensed public service channel in certain circumstances. In each case, the maximum penalty that Ofcom may impose is set by reference to the qualifying revenue of the provider or, in the case of section 18, whichever is greater—that or £500,000. Having maximum penalties in reference to revenue helps to ensure that penalties strike an appropriate balance between being dissuasive and proportionate. That link is important in accounting for the differences in size and revenue of different public service broadcasters.
The clause inserts proposed new section 18A of the Broadcasting Act 1990, which will amend the existing definition of the qualifying revenue of the provider of a licensed public service channel specifically in relation to financial penalties. The new definition includes revenues from both the licensed public service channel and certain services included in any designated internet programme service provided by that provider. As part 1 of the Bill will expand the ways in which PSBs can fulfil their remit and meet their quotas, it is only right that should a PSB not complete their responsibilities, the revenue of the internet programme services that they provide and which benefit from prominence should be taken into account. That is the purpose of the clause, which I commend to the Committee.
Stephanie Peacock
The clause amends the definition of “qualifying revenue” where it is used as a reference measure to help set the maximum penalty Ofcom can impose on public service broadcasters. The change will see the revenue a PSB gains by providing on-demand and online services included alongside the revenue that it gets from its public service channel when making the calculation. Given that online and on-demand content can now count towards quotas and remits, it makes sense that the revenue from such content should be considered when determining maximum fines. I am therefore happy to support the clause.
Question put and agreed to.
Clause 19 accordingly ordered to stand part of the Bill.
Clause 20
Categories of relevant service
Question proposed, That the clause stand part of the Bill.
The Chair
With this it will be convenient to discuss new clause 2—Digital rights to listed events—
“(1) The Secretary of State may by regulations amend the Broadcasting Act 1996 to make provision for coverage of listed events which is not live coverage.
(2) A statutory instrument containing regulations under this section may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.”
Sir John Whittingdale
This part of the Bill relates to the listed events regime, which seeks to strike a balance, so that broadcasts of key sporting events are widely available and free to air, while sports rights holders are able to use the income that they generate from rights to invest in their sport. Clause 20 updates the listed events regime to make qualification for the regime a PSB-specific benefit, reserved for PSB services that are free of charge. This change was first recommended by Ofcom in its “Small Screen: Big Debate” report in 2021.
The change we are proposing recognises both the practical difficulties around the current audience reach-based approach and the fact that our PSBs play a key role in distributing content that is of interest to British audiences. The current qualifying criteria stipulate that a qualifying service must be free and received by 95% of the UK population. In a changing market, in which audiences can use a range of technologies to access content, we need to ensure that the qualifying criteria are both appropriate and future-proofed.
The clause also closes the streamer loophole; it brings into the regime TV-like service providers that are not based in the UK but intend to show live coverage of listed events to UK audiences. The change recognises that audiences have increased access to content provided by global providers. If we did not bring these providers into scope, there is a risk that the contents of live listed events could be purchased via a streaming service and put behind a paywall, without the provider adhering to the rules of the regime.
The PSB services that will qualify are those that are free and genuinely used by PSBs to fulfil remit. Those are either the PSB licensed channels or the internet programme services that have been designated by Ofcom for prominence. It is important to note that changes to the regime do not preclude non-PSBs from bidding for rights. The regime does not guarantee that an event will be broadcast live or on a free-to-air channel. Rights holders are not required to sell live rights, and broadcasters are not obliged to purchase them or to show events. The legislation sets out that where live rights to a listed event are sold, they must be offered to both PSBs and non-qualifying services. That ensures that the right balance is struck between audiences being able to watch coverage of our major national sporting events, and rights holders and broadcasters having the commercial freedom to negotiate deals in their interest, so that they can reinvest in elite and grassroots sport.
Stephanie Peacock
The listed events regime is a vital scheme that allows for major sporting events of national importance to be broadcast on free-to-air channels. Its success since its introduction decades ago has been outstanding. Almost everyone in this room and across the country will have a fond memory of watching a listed event, whether that be watching Mo Farah cross the finish line at the London Olympics in 2012 or seeing Andy Murray win at Wimbledon.
These major occasions bring our country together, and unite us in victory and loss, but the benefit does not end after the programme has finished. An event being televised can be a catalyst for the nationwide success of a sport. The final of the women’s Euros, for example, was watched by more than 17 million people. As a result, the number of women and girls participating in grassroots football has no doubt increased, and attendance at women’s league events has reached a record high, generating further revenue for reinvestment in the sport. Televised sporting events are also a big boost for our hospitality businesses, allowing people to watch major matches together in pubs, bars and restaurants, no matter where they are in the country. With that in mind, it is right that we do all we can to preserve the listed events regime and ensure that important sporting events are available to watch as widely as possible.
An event’s being listed does not guarantee that it will be broadcast live or on a free-to-air channel, but if rights are made available to qualifying services, there is the best chance of the event being seen by as many people as possible. The definition of a qualified service is a broadcast channel that is received by 95% of the population and is free to air. I have spoken many times about the importance of ensuring that there is sufficient content available on linear television. Over the coming years, we must anticipate that viewing on a range of devices will increase. A listed events regime based on broadcast audience reach is therefore no longer fit for purpose because, as Channel 4 notes in its submission to the Culture, Media and Sport Committee, there is a risk of some PSBs falling out of the regime altogether in future. It is welcome, therefore, that the clause amends the scope of the listed events regime, so that it is a PSB-specific benefit. That ensures that no one drops out of the regime. It also allows channels such as S4C— a PSB that does not reach 95% of the UK—to be included.
I am also pleased that the clause looks to end the streaming loophole, which has caused widespread concern. Until now, the listed events regime has applied only to television programme providers, meaning those who hold Ofcom broadcast licences, plus the BBC and S4C. The draft Media Bill proposed extending the regime to include “internet programme services”, but that failed to capture unregulated online services such as livestreams. Theoretically, those services could buy the rights to a listed event and put it behind a paywall, and so undermine the regime. It is welcome that the new version of the Bill creates a new definition of services that fall within the scope of the regime, so that TV-like services providing live content to UK audiences via the internet are captured.
The likes of the BBC and ITV had concerns about the effectiveness of some of the other options on the table for shutting the loophole, such as extending regulation of electronic programme guides. What assurances has the Minister received, this time round, that the clause will close the loophole once and for all? If we can be confident that it is the solution, I will be more than happy to support the clause.
Given the effort that Ministers have put into future-proofing the integrity of the listed events regime when it comes to the streaming loophole, it is extremely disappointing that there has been no attempt to include digital rights in the Bill. It seems quite straightforward: if we want to ensure that sporting events of national importance are available for people to view for free in years to come, the regime should be extended to reflect the new ways that people consume content, including online.
Again, as Channel 4 highlights in its submission to the Culture, Media and Sport Committee, in recent years, its content on social media platforms, such as YouTube and TikTok, has generated a
“record number of hits for highlights and digital clips of live sport.”
Last year, Channel 4’s sport content on YouTube drew 16.8 million viewers globally and 8.2 million viewers in the UK. Those figures were driven mostly by Nations League and Formula 1 coverage, and were up 430% on the year before. That type of content seems to be catering to a growing younger audience: more than a quarter of the Channel 4 Corporation’s sport content on YouTube is viewed by 13 to 24-year-olds in the UK. However, this is not just about putting content where it is likely to be viewed in years to come. It is about ensuring the integrity of the regime.
As significant sporting events are often global competitions, they may take place in various time zones, including when it is night-time in the UK. In such situations, the live broadcast of the event may be of limited value to UK citizens, who will be asleep during the event. However, the next day, digital and on-demand clips could be immensely popular, as they would allow UK audiences to experience the moments they missed. As the BBC highlights, when Charlotte Worthington won gold at Tokyo in 2020, just 400,000 people were able to watch that in the middle of the night, but in the days that followed, different forms of short-form coverage of the event gathered more than 3.4 million views. If the BBC does not have access to those digital and on-demand rights, which will likely be the case in the future if there is no change to the regime, such national moments of pride could become restricted and hidden behind paywalls. That would go against the entire objective of the listed events regime. I know the Government recognise that, because they are conducting a review of digital rights, but we have had no updates on the progress of the review, and it is unclear how its recommendations will be implemented, if not through this Bill.
Sir John Whittingdale
However, I understand her point. As the hon. Member for Arfon highlighted, under clause 20, the right to listed events that are broadcast free to air must be extended to public service broadcasters, so in future, that will include S4C. I am grateful for the support that the hon. Member for Barnsley East expressed for the closure of the streaming loophole; we think that the Bill will close that, and therefore preserve the ability to watch live broadcasts of listed events.
As more and more people access digital broadcasting, digital rights are clearly something that we will need to consider. That is why we are undertaking the digital rights review. I note that the review was a recommendation of the Culture, Media and Sport Committee, so we recognise that there is quite a lot of interest and support for it. It is important that we get this right. As I was saying, the listed events regime is about balancing the ability of a large number of people to watch iconic sporting events free to air, and the ability of rights holders to raise revenue from the sale of rights—revenue that can obviously be invested back into the sport. Striking that balance has always been the difficulty with the listed events regime. If the regime is to be extended in this way, we want to get it right.
New clause 2, tabled by the hon. Member for Barnsley East, does give quite a broad power, which could lead to uncertainty for broadcasters and rights holders when they are negotiating deals, given that at the moment we have not spelled out how and whether we would extend the regime to digital rights. That is actively under consideration.
Stephanie Peacock
I appreciate the points that the Minister makes, and I am not against them, but would he enlighten the Committee on how the recommendations made in the review will be put into action and into law, if not through this Media Bill?
Sir John Whittingdale
I cannot guarantee that there will be a successor media Bill immediately. Equally, although it was suggested that media Bills only come around every 20 years, I hope that we would not have to wait that long. As I say, at this stage, we are concerned with getting this absolutely right, and I have no doubt that we will continue to debate the issue. I hope that we can publish the results of the review very soon, but at this stage, we cannot accept new clause 2.
Stephanie Peacock
My apologies; I responded in my intervention. I believe we can vote on the new clause later, but the points that I made in the intervention stand. I am very keen to hear about the findings of the review, and to find a vehicle for changes to be put into action, because I am not sure that the Minister has fully responded to my points.
Question put and agreed to.
Clause 20 accordingly ordered to stand part of the Bill.
Clause 21
Contracts relating to coverage of listed events
Question proposed, That the clause stand part of the Bill.
Stephanie Peacock
I will start by discussing new clause 8. Once again, I reiterate my support for the listed events regime, which connects communities across the UK in experiencing moments of national sporting importance by prioritising rights for free to air channels, soon to be PSBs. In the following debates, I will also go on to speak about how any expansion of the regime requires consideration. In particular, that is due to the need to balance the benefits of investment in the relevant sport, gained through the funds gathered by financial television deals, and the desire for people to see events in that sport free to air.
I understand where the new clause is coming from in this respect, as it looks to recognise that balance and tip it in favour of making more events available on the regime, with the financial losses compensated by a new Government fund. I recognise also that a good attempt has been made to keep proportionality in mind, given that organisations with a turnover of more than £50 million per year are excluded from being entitled to anything from the proposed fund. However, I fear that there may be a few perverse incentives built into new clause 8.
First, if the Government anticipate that they will be responsible for making up for the financial distress of a sport on the listed events regime, that could disincentivise placing such a sport in the regime at all. Further, for the sports themselves, there may be a disincentive to grow beyond a turnover of £50 million, should that mean their Government support is taken away. I am not sure this is best for the health of the regime, or indeed for the sports, as a result. I believe also that the fiscal implications of this new clause more generally need to be analysed before they are committed to.
I would be interested to hear from the Minister, however, what he believes the best way forward is in terms of promoting sports and making them available to the public, while securing the investment needed to secure the future of such sports. It is worth exploring how we strike this balance, and I commend the new clause for bringing the issue at hand to the forefront for discussion as part of the passage of the Bill.
I will briefly address clause 21 as well. The clause updates other sections of the Broadcasting Act 1996 to acknowledge the changed definition of “relevant services” in clause 20. As previously mentioned, the changes made to close the streaming loophole are very welcome—and this clause will support that. Clause 21 also makes clarification about section 99 of the Broadcasting Act, which looks to be relatively straight forward. I am happy to move forward with that in mind.
Sir John Whittingdale
The hon. Member for Aberdeen North rightly highlighted that the issue that the new clause addresses is a matter that the hon. Member for Paisley and Renfrewshire North has been rigorous in pursuing. Indeed, not only have I heard him speak about it in the Chamber; I have also actually met him to hear him put directly his case. I am afraid that we were unable to reach agreement, but I recognise that he feels strongly about the subject. In the grouping which follows this one, we will address the more specific issue which he wants to amend the Bill to cover, which is the inclusion of matches involving the Scottish national team. One of the reasons why we have been resistant to the suggestion—and as I have indicated in a previous debate—is that it is all about establishing a balance. Inclusion of any sport on the listed events regime inevitably means that the potential for raising revenue is diminished, because it excludes a number of broadcasters from bidding for that particular right. It is a question of establishing a balance between the need to raise revenue and the need to ensure that as many people as possible are able to view an event.
The new is clause is quite ingenious in seeking to address that dilemma by asking the Government to set up a fund to compensate rights holders who are subject to inclusion on the list and therefore unable to sell to a non-free-to-air broadcaster. I have to say that that is not something the Government would consider. It would be quite a significant market distortion, and it would be open to potentially a number of other sports or rights holders. What I would say, however, is that sport, as the hon. Member for Aberdeen North is very much aware, is a devolved matter. Should the Scottish Government decide to set up such a fund, they would be free to do so, but I am afraid we are not able to accept the new clause.
Question put and agreed to.
Clause 21 accordingly ordered to stand part of the Bill.
Clause 22
Restriction on showing live coverage of listed events
Kirsty Blackman
Those organisations have been consulted. My hon. Friend the Member for Paisley and Renfrewshire North has been clear on the roundtable discussions he had, including with the Scottish Football Association, which is open to this happening. New clause 8, on the financial support fund, which we discussed previously, was partly to ensure that those smaller organisations are able to claim back, should they lose out on a significant amount of revenue as a result. As I say, these organisations have been consulted, and the SFA is open to this happening.
It is important to ensure that organisations have enough money to invest in their sport. I do not think there will ever be any lack of young men keen to play football; the number certainly does not appear to have reduced in all the years I have been alive. There are still many children at my kids’ school who are very keen to get involved in football. There are still the grassroots structures there. However, I agree that for organisations involved in women’s football, for example, or involved in nations with lower levels of participation, it may be an issue.
I would be very keen to press both new clauses 6 and 7 to a vote when it comes to that point.
Stephanie Peacock
I begin by echoing the comments of the hon. Member for Aberdeen North on the women’s parliamentary football team, having been involved a little over the years. I will address clauses 22 and 23, as well as the associated amendments. It appears from the Government’s explanatory notes on these clauses that their intention is to ensure that partnership arrangements between qualifying and non-qualifying broadcasters on providing coverage of listed events continue as they do now.
I know that many of our commercial and public service broadcasters alike feel they have strong partnerships that allow sporting events to be shown to as many viewers as possible. Indeed, where an event is not on the listed events regime, this kind of commercial partnership is inevitably even more common; for example, Channel 4 has historically teamed up with Sky to show Formula 1 events to many viewers across the UK. These kinds of cross-industry partnerships are integral to the overall ecosystem of sports rights, and I therefore support any movement that seeks to protect these relationships and dynamics.
However, the BBC has raised concerns that clauses 22 and 23 together could undermine the listed events regime, in particular with regard to multi-sport group A events—the summer Olympics and Paralympics and the winter Olympics and Paralympics. In effect, the BBC says the clauses could potentially mean that Ofcom consent is not required for events where there are partnerships such as the BBC and Discovery deal for the Olympics, as long as each partner has adequate live coverage, which lowers the bar from the current expectation of having full and comprehensive rights on both sides. How much that bar is lowered is difficult to gauge. However, given that the Bill does not define what adequate will mean in this context, it only opens the door for live coverage and adequate coverage to be defined. It would be most unfortunate if a Bill that aimed to modernise and protect the listed events regime inserted a change that, in effect, allowed for exclusive rights to parts of the Olympics to be held behind a paywall.
I therefore ask the Minister for a clear indication of what “adequate” is now to be defined as under these new clauses. Further, why were these changes not included in the original drafting, and for what specific purpose did the Government choose to introduce them today? There was a detailed scrutiny process through the Culture, Media and Sport Committee, and it would have been beneficial for these additional clauses on the listed events regime to be analysed by those who know the regime best. If we cannot be absolutely clear on the real intent behind this clause and the impact that it will have on the listed events regime, it will be difficult to support it at this stage.
Let us move on to new clause 6. I hope that by this point it is clear that I am a strong supporter of the listed events regime. It is important in ensuring that British audiences are able to view moments of national sporting importance. However, many Scottish campaign groups and Scottish Members have been long discontented that the definition of such national moments did not seem to encompass crucial events that define their national sporting story. I am aware that these feelings are likely to be echoed by those in Wales and Northern Ireland, too, and I want to be clear that I believe the regime must not be overtly discriminatory in this sense. There has been particular concern over the lack of a formal plan to encourage making Scottish international football free to watch, something which may seem counterintuitive given the intent of the listed events regime. I understand that the new clause hopes to address this issue and to create equality of access to qualifying events for every UK nation.
When considering additions to the listed events regime, however, there is always a careful balance to be struck. It is important that sporting moments are available to watch, but is also important to secure investment in sports through the revenue generated by selling rights. The fact that the number of events in the regime is limited is indicative of the need to recognise that.
I also want to highlight the fact that the listed events regime is not the only method of ensuring that sports are available on a free-to-air basis. As I mentioned when praising commercial partnerships, it was extremely pleasing to see Sky and STV come to a formal agreement that allowed Scots to watch the World cup qualification play-off final. That was a truly beneficial outcome that did not rely on the structure of the regime.
Has the Department thought about the definition of a moment of national sporting importance? It is a fluid concept given changing public attitudes, and it is further complicated by the fact that inclusion in the regime can bolster the status of an event in the public consciousness. However, I think that there will be many more cases in which an argument is made for an event to be added to the regime, and there could therefore be merit in knowing the criteria that events are judged against when considering whether they should be included in the regime.
Finally, I would like to speak to new clause 7. As per section 97 of the Broadcasting Act 1996, the Secretary of State is required to consult
“(a) the BBC,
(b) the Welsh Authority,
(c) the Commission”
and rights holders before drawing up or revising listed events. I understand the intent behind that clause, especially given that many argue that Scottish football and sport has not been duly incorporated into the listed events regime.
Further, we have also discussed at length the desire to improve parity across broadcasting legislation between S4C and Gaelic language services. With that in mind, I believe that there would be benefits to broadening consultation requirements, so that the Gaelic viewpoint can be better taken into account when amendments to the list are being considered.
We could do with more clarity on how decisions about inclusion in the listed events regime are made. There would be a better sense of the fairness of such decisions if requirements to consult those who may be impacted by such a decision were expanded. In fact, the scope of this could have been broadened even further to require consultation with other relevant persons that the Secretary of State deems necessary. That could have perhaps included the other PSBs or relevant stakeholders, such as sporting bodies.
I do not wish to make additions to the listed events regime more onerous than they need be. However, having strong and varied input into decision making would certainly save time in the long run. I hope it is clear that I understand the intent of new clauses 6 and 7, but that I will need answers to my questions on clauses 22 and 23.
Sir John Whittingdale
First, I welcome the support in principle of the hon. Lady for partnerships. They play a very important role in ensuring that iconic events are shown free to air even if they are not necessarily listed events. The one example that I can recall is Emma Raducanu’s US Open final, which certainly was not one of the listed events. Nevertheless, Amazon made it available to Channel 4, because clearly there was huge demand to watch it. Those kinds of partnerships play a very valuable role.
Regarding the definition of adequate live coverage, which the hon. Lady raised, and how Ofcom will define it, it is certainly not the intention of the new clauses to reduce the threshold. However, in terms of setting parameters as to what is adequate live coverage, that is a question for Ofcom, which has a lot of experience in this area, and it includes setting the standard for adequate alternative coverage for group B events, as well. In doing so, Ofcom would consult widely with stakeholders and analyse what metric works best to balance the interests of audience, broadcasters and rights-holders, and it can look at previous partnership deals to see how such partnerships have been arranged in the past. There are a number of different factors that are taken into account, but it is a matter for Ofcom to determine.
Stephanie Peacock
Before the Minister moves on, could he perhaps elaborate and let the Committee know why these new clauses were not included in the original drafting and say what the specific reason is for their being included now?
Sir John Whittingdale
I cannot say specifically why they were not included earlier, although I have tried to set out why we think it is important that they should be included now. We will provide any additional information that we can provide in writing to the hon. Lady and to the rest of the Committee.
Regarding the support from the hon. Members for Aberdeen North and for Barnsley East for women’s football, there is no question that the increased popularity of and demand for women’s football has been enormous. Both hon. Members will be aware that the most recent changes to listed events were to include the FIFA Women’s World Cup finals and the European Women’s Football Championship finals on the list. I was not sure whether the hon. Ladies were suggesting that the parliamentary women’s football team should be put on that list, too. I am sure that the idea has considerable support, even if that team has not reached the iconic level quite yet.
I am also quite sure that the Opposition welcomed the recent announcement by my right hon. Friend the Secretary of State for Culture, Media and Sport of the £30 million Lionesses fund, which will be invested in grassroots women’s football. Hopefully, it will enable us to reach even greater heights than we have already reached.
I turn specifically to new clauses 6 and 7. New clause 6 is ingeniously phrased, but I understand the frustration of the hon. Member for Aberdeen North regarding coverage of the home nations. Of course the matches involving the England football team, and indeed the matches involving the Welsh football team, are available free to air— through S4C for the Welsh team—but it is harder to find coverage of the Scottish national team and indeed the Northern Ireland national team.
The only thing I would say to the hon. Lady is that inclusion on the list does not mean that events will be broadcast free to air; indeed, it does not mean that they will be broadcast at all. That is a matter for the broadcasters to determine. We have already debated the difficulty of balancing the need for audience accessibility with the need for revenue-raising. At the end of the day, however, it will remain a matter for the broadcasters to decide, as they do in England and Wales, as to whether or not they wish to bid for the right to cover the Scottish team. I am afraid that new clause 6 would not achieve that, because it remains a matter for the broadcasters to decide.
Turning to new clause 7, the Government believe that, as I say, regional and minority language broadcasting has an important role to play, providing an opportunity for speakers of minority languages to access them. Currently the Secretary of State does consult the BBC, S4C, Ofcom and relevant rights holders when revising the list of events protected under the listed events regime.
The BBC and S4C are of course licence-fee-funded public service broadcasters. Although the current legislation does not require the Secretary of State to consult other affected broadcasters, it does not restrict them from doing so. If updates to the list were to be proposed, my right hon. Friend the Secretary of State would of course listen to all relevant representations. We therefore do not feel there is any need to list out any additional organisations who may or may not have an interest in particular changes. I am afraid that we are unable to accept new clauses 6 and 7. I urge the Committee to accept Government amendments 8 to 10, and to agree to clauses 22 and 23 standing part of the Bill.
Sir John Whittingdale
Clause 24 makes amendments to extend Ofcom’s existing powers to gather information and, if necessary, undertake enforcement action to reflect the changes made in clauses 20 to 23. Without these new powers, Ofcom would not be able to enforce the regime against the extended list of services brought in scope by the Bill. The clause amends section 104A of the Broadcasting Act 1996 to create a new power for Ofcom to require providers of the services in scope of the listed events regime and, in limited circumstances, certain other persons to supply it with any information it requires to carry out its functions in relation to listed events. It also creates a new section 104B that sets out the penalties that may be applied for failure to provide information.
Clause 25 is a saving provision for clauses 20 to 23. It ensures that contracts that have already been agreed before the introduction of the new provisions will not be affected. Any contract entered into prior to the commencement of the new provisions will be governed by the old listed events regime. That ensures certainty for deals that have already been concluded.
Government amendment 11 is needed to ensure that the existing list of events, as published on gov.uk, is revised into groups A and B. It replicates transitional provisions contained in the Communications Act 2003 that mean that the existing list will otherwise be preserved without need for consultation. While provision was made for this division in the Communications Act, for some reason, relevant sections have not been commenced. The Government’s overarching objective for the listed events regime is to ensure that key sporting events are widely available and free to air for all audiences, particularly those who cannot afford to watch sport behind a paywall. As has already been debated, rights holders use income for the benefit of the wider sporting sector, so it is important for the regime to strike the right balance.
The Government believe that the current list of events works well to deliver the best outcome and that it strikes an appropriate balance. The amendment requires the Secretary of State to revise the list into groups A and B but provides that, so long as the list remains the same—other than the division into groups A and B for the purposes of the legislation—there will be no need to consult in relation to that list. For reasons I set out, I hope that Members can support this amendment.
Stephanie Peacock
As I have mentioned more than once during this group of clauses on listed events, I am pleased to see that the Government have taken action to close the streaming loophole in the listed events regime. However, bringing into scope those who are not licensed by Ofcom will mean that Ofcom needs new powers to enforce this regime against new providers. I am therefore supportive of clause 24, which provides Ofcom with such powers, including the ability to require information and impose penalties where failures occur.
Clause 25 ensures the legality of contracts agreed before the introduction of this Bill. This sensible clause will minimise disruption and provides clarification and certainty for all involved.
Finally, I understand that Government amendment 11 requires the Secretary of State to categorise the listed events into groups A and B. I wonder therefore if we could hear from the Minister how the Secretary of State intends to use this power, and whether this will be limited to what is essentially a tidying up of the legislation. With that answer in mind, I would be very happy to support and move on.
Sir John Whittingdale
I am grateful to the hon. Lady for her indication of support. Essentially, my understanding is exactly that: the division is in effect already there and it had to be formalised through this clause.
Question put and agreed to.
Clause 24 accordingly ordered to stand part of the Bill.
Clause 25
Sections 20 to 23: saving provision
Amendment made: 11, in clause 25, page 29, line 34, at end insert—
“(2) On the date on which section 21 comes into force, the Secretary of State must revise the list maintained for the purposes of Part 4 of the Broadcasting Act 1996 in order to allocate each event which is a listed event on that date either to Group A or Group B.
(3) Where—
(a) the events listed in the list in force immediately before the Secretary of State revises it under subsection (2) are treated, for any of the purposes of the code in force under section 104 of the Broadcasting Act 1996 at that time, as divided into two categories, and
(b) the Secretary of State’s revision under subsection (2) makes the same division,
section 97(2) of the Broadcasting Act is not to apply in relation to that revision of the list.”.—(Sir John Whittingdale.)
This amendment requires the Secretary of State to revise the list of sporting and other national events so as to divide them into Group A and Group B events. It disapplies the requirement for consultation in section 97(2) of the Broadcasting Act 1996 if the division follows the division into Group A and Group B events by reference to which OFCOM’s code under section 104 of the 1996 Act operates at that time.
Clause 25, as amended, ordered to stand part of the Bill.
Clause 26
Public teletext service
Question proposed, That the clause stand part of the Bill.
Sir John Whittingdale
I am very happy to join the hon. Lady in paying tribute to the huge number of benefits that Teletext brought for quite a considerable length of time. It was not just news that could be accessed via Teletext; I understand that one of my colleagues booked her holiday regularly through Teletext. I think there was even a dating service that was provided by Teletext for a time. All these things are now available online in perhaps a little more sophisticated form than was originally the case.
I am afraid it is the case that the most recent public teletext provider ceased to provide a service in 2009, and its licence was revoked in 2010. Therefore, in accordance with the intention of this Bill to modernise the legislative framework and to take account of the changes in the broadcasting landscape, I am afraid I must ask the Committee to support that clause 26 stand part of the Bill.
Stephanie Peacock
This clause repeals provisions in the Communications Act 2003 regarding teletext, due to it no longer existing. I would like to echo the Minister’s nostalgia, and also thank everyone who invented it and worked on it. I must take this opportunity to say that my dad was an avid user of teletext. Right until it closed, he would phone me up and be like, “It’s not really going to close, is it?”. He would always check his weather and his traffic. I feel like I should put that on the record, because people like my dad across the country relied on it. While he might, I do not take any issue with this clause in particular. It would be remiss of me not to reiterate how important it is that information and services are available to everyone, including those who are older, those who have disabilities, and those without the internet. While we remove old services, it should serve as a reminder to all of us to ensure new services are as universally accessible as possible.
Sir John Whittingdale
I commend the clause, with sadness.
Question put and agreed to.
Clause 26 accordingly ordered to stand part of the Bill.
Clause 27
Further amendments relating to public service television
Question proposed, That the clause stand part of the Bill.
Sir John Whittingdale
This clause and the Government amendments to it are technical in nature and I hope will not detain the Committee for long. Clause 27 introduces schedule 2, which makes amendments to broadcasting legislation to maintain operability of that legislation in light of the changes in part 1 of the Bill that we have already debated. For example, many of these amendments are intended to remove redundant references to the public teletext services from the 2003 Act. Government amendments 16 and 17 correct references to provision added by clause 20. If this were not taken forward, schedule 2 would incorrectly refer to the incorrect type of relevant service.
Government amendment 18 is essentially a tidying-up exercise. It removes transitional provisions that related to section 300 of the Communications Act, which was never brought into force and is now being repealed by this Bill. Government amendment 11 adds replacement transitional provisions. On this basis, I hope the Committee will support clause 27 and the Government amendments to it.
Stephanie Peacock
I believe the changes in schedule 2 and clause 27, as well as Government amendment 18, are consequential on the larger adjustments made in part 1. I have had no specific concerns about these changes drawn to my attention, so I am happy to move forward. I refer members of the Committee to my remarks throughout the discussion on the rest of part 1. I am also glad to see some mistakes corrected through amendments 16 and 17.
Question put and agreed to.
Clause 27 accordingly ordered to stand part of the Bill.
Sir John Whittingdale
On a point of order, Mrs Cummins. If I may make a small correction, I understand that when we were debating the listed events earlier, I said that it excluded bidders if the event is listed. It is not the case that it excludes non-PSBs from bidding, but they may be inadvertently precluded from doing so.
Media Bill
Stephanie Peacock ExcerptsTuesday 21st November 2023
(2 years, 5 months ago)
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Stephanie Peacock (Barnsley East) (Lab)
I am pleased to welcome the introduction of the overdue Media Bill. I refer the House to my entry in the Register of Members’ Financial Interests.
It has been 20 years since the last major piece of broadcasting legislation was passed, and the media landscape has since changed dramatically. In 2003, the words “television” and “radio” described the devices on which we consumed our visual and audio content. Now these formats have taken on a life of their own.
Television can be viewed without a physical TV, and radio can be streamed online. As this technology has evolved, so have the habits of audiences and the competitors entering the industry. In the television space, for example, global streaming services now challenge our public service broadcasters for the attention of audiences. Rather than being linear channels, they offer catalogues of content for the price of a subscription.
Against this backdrop, we are pleased to finally have the Media Bill before us today, in order to give our public service broadcasters and UK radio the tools they need to thrive in the digital era. Just last week, I again met stakeholders from across the industry, including from public service broadcasters, radio providers, online platforms and consumer groups. While not everyone agreed on every detail of the Bill, what was clear from the discussions was the almost unanimous desire to get the Bill through as soon as possible.
Too much time has already been wasted in bringing forward the changes that are needed. Around 18 months ago, Ministers first introduced the “Up Next” White Paper, which contained many of the crucial measures we see before us in the Bill today, including welcome commitments to modernise the public service remit, to ensure public service content is prominent and easy to find on smart TVs and streaming sticks, and to futureproof the listed events regime, so that UK audiences can enjoy important national sporting moments.
However, rather than getting on with providing support for the broadcasting industry, the Government chose to waste a year pursuing doomed plans to privatise Channel 4 instead. Thanks to widespread opposition, Ministers finally made a very welcome U-turn on that proposal. That was a huge relief, not least for those local economies across the country who rely on Channel 4 spending over 50% of its commissioning budget in areas outside London, which the hon. Member for Warrington South (Andy Carter) raised some important questions about.
Although I am pleased to welcome the Bill today and look forward to supporting it in its passage, it is vital that the Bill is subject to proper parliamentary scrutiny. Indeed, the Bill has already made distinct progress from its draft thanks to pre-legislative work by the Culture, Media and Sport Committee, which has rightly received praise from across the House. The Chair, the hon. Member for Gosport (Dame Caroline Dinenage), outlined some of the accepted changes, including creating exemptions to the 30-day requirement, making progress in closing the streaming loophole in the listed events regime and adding much-needed protections to help facilitate a smooth end to Channel 4’s publisher-broadcaster restriction.
However, I would like to highlight some areas where clarification may be needed, starting with the first four parts of the Bill, which primarily focus on visual media. It is important that the Bill seeks to ensure that the public service remit is not overly complex or onerous. However, the Voice of the Listener and Viewer, the Media Reform Coalition and the Culture, Media and Sport Committee have raised concerns that removing explicit requirements to cover genres such as entertainment, drama, science, religion and other beliefs could lead to a decline in the provision of content in those areas. Will the Minister clarify what impact assessment the Department has carried out on how the new remit will impact the nature of public service content, particularly with respect to the removed genres?
In the light of changing viewing patterns, it is sensible to provide PSBs with some flexibility to meet their remit through on demand programming, but the Broadcast 2040+ campaign and others have been clear that public service content on linear television must still be protected and maintained. If it is not, we risk excluding those who live in rural areas, do not have an internet connection and an older generation that rely on being able to watch television in its traditional format. Will the Minister explain how the Department will work with Ofcom to hold our PSBs to the highest standards, and ensure that they continue to deliver quality content for as many people as possible?
Further scrutiny will also be needed to ensure the new video-on-demand code is not just a copy and paste of the broadcasting code, and is tailored to the needs of the on-demand environment, a point touched on by the hon. Member for Folkestone and Hythe (Damian Collins). It must also be clear who this code will apply to. Currently, the Government have said tier one services will be subject to the code, but there is confusion over how tier one will be defined.
Discussions will also be important to ensure the new prominence regime achieves the aim of making sure public service content is easily accessible on smart devices, properly considers how best to implement prominence for the likes of S4C, as raised by a number of hon. Members, and takes into account legacy devices.
On listed events, we need further clarification on how the findings from the Government’s consultation into digital rights will be implemented. We do not want a situation where a major sporting event takes place overnight and the next day the online clips are behind a paywall, meaning people in the UK are cut off from viewing it.
Let me move now to the radio-focused parts of the Bill—particularly part 6. I am aware that there has been a wider concern over the drafting and intent of the clauses. Thanks to the occasions that I have been in this Chamber to discuss the importance of preserving BBC local radio, the Minister will be well aware by now that I believe that radio services are of vital importance to people up and down the country. I am therefore also in full support of the changes that the Bill makes to ensure that UK radio services are available and easy to access, without undue interruption, on devices such as smart speakers.
It is with that support in mind that I wish to ask the Minister how he plans to ensure that these measures are futureproofed, as I know that is something that Radiocentre and the BBC have raised, too. For example, does the Department have any plans to extend the regime where necessary, for instance, to include car entertainment systems? Further, despite the rapid growth of podcasts and online-only radio, these forms of audio are not covered by the Bill’s protections. Does the Minister believe that that, too, should be kept under review?
Although I support these measures, I know that the likes of TuneIn, TechUK, and Google, which I met last week, have shared some concerns over this section. Again, I am pleased that the Department has taken on board some of the important recommendations made by the Culture, Media and Sport Committee to ease some of those concerns. However, I would still be keen to hear from the Minister on what work the Department has carried out to ensure that smart speaker platforms are able to prepare internally for carrying radio services through their preferred routes. It is vital that radio is protected in light of changing listening habits, and, in order for this regime to be successfully implemented, there must be proper engagement with platforms and technology stakeholders to ensure that they are able to comply.
Although the Media Bill is overdue and in need of some clarifications and adjustments, I am very pleased to welcome it today. I look forward to working closely with Ministers and Members from across the House on ensuring that we seize this once in a generation opportunity to update media regulation, and create the change needed to ensure the future of our brilliant British TV and radio.
Oral Answers to Questions
Stephanie Peacock Excerpts(2 years, 5 months ago)
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Stephanie Peacock (Barnsley East) (Lab)
Football clubs are more than businesses; they are at the heart of communities up and down the country, but too many clubs are being pushed to the brink, leaving fans from Scunthorpe to Reading worried that their club might be damaged beyond repair by the time a regulator is brought in. Will the Secretary of State update us on what immediate action and interim measures the Department is taking to ensure that an independent regulator for football is ready to go as soon as new legislation is passed?
Lucy Frazer
We are taking absolutely those measures: we are putting in place a shadow regulator, and we have advertised for the appointment of the regulator’s chief operating officer. We want to ensure that as soon as the legislation is on the books, everything is ready so that it can come into force as soon as possible.
I notice that the Football Task Force was set up in 1997 by the incoming Labour Government to look at systemic issues in football and make recommendations to Ministers on how to address them. However, despite a number of reports identifying significant failings in the sport, a member of that taskforce’s working group reported that the Labour Government made it clear that they could not, and would not, deliver a statutory regulator. This Government are bringing that regulator in.
Oral Answers to Questions
Stephanie Peacock Excerpts(2 years, 11 months ago)
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Stephanie Peacock (Barnsley East) (Lab)
It is one of the BBC’s public purposes to reflect, represent and serve diverse communities of all of the UK’s nations and regions, yet when deciding to change local radio programmes so that they are regional after 2 pm—further to the question asked by the hon. Member for South West Bedfordshire (Andrew Selous)—the BBC did not offer the communities affected any form of public consultation. Does the Minister agree that losing local radio as we know it would inevitably weaken the BBC’s ability to fulfil its purposes, and that it is not too late for the BBC to think again?
Public Broadcasting in Scotland
Stephanie Peacock Excerpts(2 years, 11 months ago)
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Stephanie Peacock (Barnsley East) (Lab)
It is a pleasure to serve under your chairship, Mr Efford. I congratulate the hon. Member for Perth and North Perthshire (Pete Wishart) on leading this important debate.
I begin by thanking the Scottish Affairs Committee for undertaking this timely inquiry over the last two years. During that time, Scottish broadcasting has achieved some big wins, as the hon. Member mentioned, from the first Scottish family finally appearing on “Gogglebox” to STV reaching a deal with Sky that meant Scottish football fans could watch their national team win on penalties to reach the Euro 2020 finals.
Scottish broadcasting forms a vital piece of the puzzle of the UK’s creative sector. Scotland is not only home to Amazon, but our public sector broadcasters—Channel 4 and the BBC—also operate from the nation, alongside the strongly performing STV, whose main channel reaches 80% of Scots every month, as of 2021.
Although broadcasting is a reserved matter, we must ensure that our creative industries represent, and prosper throughout, all our nations and regions, bringing communities together, promoting pride in place and strengthening local economies. However, as the Committee report shows, if the industry in Scotland is to thrive as we know it can and better serve Scottish audiences, there is a range of important issues to be considered, particularly given rapid advancements in technology and the establishment of global media giants as competition for our public service broadcasters. Therefore, I will focus my remarks today on each of the main recommendations in the report.
First and foremost, I will address recommendations 4, 5 and 6 about prominence and the draft Media Bill. In essence, these recommendations reiterate what the industry and the Labour party have been saying for years: our public sector broadcasters and radio services need to be given the tools to survive in the modern era. Amid the rise of the global media giants and the game-changing impact of new technologies, the legislation that supports our broadcasting industry, which was made in 2003, is quite simply out of date.
The Media Bill is exactly the kind of intervention needed to address some of those issues—for example, by ensuring that our public sector broadcasters, including STV, are protected and promoted in the streaming age through a new prominence regime. There are questions to be asked about the detail of how the Bill will ensure that, particularly with regard to how prominence for regional channels in Scotland will work in practice, given the technology available.
However, instead of pushing on with scrutiny, the Government have wasted a year in pursuing the disastrous plans to sell off Channel 4. Now that they have finally U-turned on that decision, it is disappointing that the publication of the draft Bill did not come with a clear timetable for its implementation. As the report highlights, the Government need to get on with bringing those changes into law. The longer we leave it, the longer British broadcasters such as STV will risk losing further market share to the big global media corporations, to the detriment of our creative economy and British audiences, including those in Scotland.
The report also recommends that the UK Government commit to maintaining Freeview beyond 2034. As the Government themselves highlight in their response,
“millions of households across the UK, including in Scotland, rely on”
broadcast TV, and that is expected to continue “over the next decade.” Further, unlike internet streaming services, terrestrial TV does not require an internet connection or rely on a monthly subscription. Terrestrial TV content is therefore primarily relied on by those who are already marginalised in our society—people on the lowest incomes, older citizens and those in isolated rural areas. Indeed, as the Broadcast 2040+ campaign highlights, such services are relied on by an even greater proportion of those in Scotland because of its increased rurality, island communities and comparatively older population.
It is a start, therefore, that the Government have committed to preserving digital terrestrial television for over a decade, but the lack of long-term certainty over the future of the service is causing unpredictability both for the broadcasting industry, in terms of investment, and for the digitally excluded. What does the Department think are the disadvantages of providing long-term certainty about broadcast TV and radio, given their importance to both the industry and the community?
Further, the report makes two recommendations regarding sports rights. It was extremely pleasing to see STV come to a formal agreement with Sky to allow for the viewing of the World cup qualifiers on a free-to-air basis. However, it is understandable that campaign groups are unhappy with the lack of a formal plan to ensure that Scottish international football is free to watch. Indeed, there is a careful balance to be struck between ensuring that crucial sporting moments are available to watch and securing investment in sport through the revenue generated by selling rights.
That is what the listed events regime seeks to recognise but, in the age of streaming clips, the problem goes beyond what is contained in the regime, and the question is whether it is still fit for purpose in the modern era. The Department is right to conduct a review of digital sporting rights, and it is positive that it is looking to ensure the longevity of the listed events regime through the Media Bill. As has been argued, however, it has taken too long for the legislation to see the light of day, and it is unclear how it will address digital rights.
Finally, it is pleasing to see the Government confirm, in response to recommendation 7, that the inter-ministerial group on culture and creative industries will be set up this year and that there will be an industry-led task- force to look at skills. However, there is still more to be done to boost screen industry skills across our nations and regions. As part of our creative compact, Labour wants to see the apprenticeship levy reformed into a growth and skills levy that would allow creative industries to spend up to half their levy on shorter training courses and modular skills. The Government must consider such fundamental changes if we are to truly address the creative skills shortages that are holding industries back.
To conclude, Scottish broadcasting plays a vital role in our creative landscape, but the Government can and must do more if the industry is to thrive in the modern age and continue to serve the needs of viewers across all our nations and regions.
Sir John Whittingdale
I take it back if the hon. Gentleman did, but he is still there.
One of the reasons the Media Bill is important is that the take-up of smart TV will continue at pace. I suspect I am one of only a very small number whose television set receives only internet protocol television—I do not have DTT or a freeview application in my TV—and I have to say that IPTV is extremely impressive. As we move forward with more and more access to gigabit broadband under the Government’s Project Gigabit scheme and the commercial roll-out, more and more people will move in that direction.
That prompts a longer-term question about whether DTT will remain the main means of accessing television. It is too soon to say. What the Government have said is that we foresee DTT continuing until at least 2034, but we will be looking in due course at what should happen after that. Giving that assurance until 2034 should give confidence. Obviously, the debate about what happens beyond that time will continue, and we will see how the market develops.
Stephanie Peacock
Is there a reason why the Government will not go further and give longer-term security until 2040, as some campaign groups have called for?
Sir John Whittingdale
I think 2034 is still a long way off, and this technology is developing fast. Obviously, as we look at the roll-out and at consumer behaviour, that will influence our decision as to how much further to go. The roll-out is happening fast: Scotland is already approaching 70% gigabit coverage, and we anticipate that within a few years every part of the United Kingdom will have access to gigabit coverage. I was pleased to announce earlier this week that the Government will support the provision of gigabit coverage under Project Gigabit to the inhabitants of Papa Stour, a remote part of the Shetland islands, who will in future be able to obtain gigabit coverage from a low Earth orbit satellite as a result of Government investment in this area. No matter what part of the United Kingdom or how remote the area, it is our ambition that everybody should be able to enjoy gigabit coverage in due course. That may affect decisions as to how we continue to ensure that they have access to high-quality television content.
The hon. Member for Perth and North Perthshire concentrated a lot on the issue of listed events. This has always been a “but”. Under the Broadcasting Act 1996, we have a small number of events that are seen to be iconic, which bring all the nations of the United Kingdom together and should remain free to air. The obvious ones are things like the Olympic games, the grand national and the Derby. It is not the case that England football matches are listed. The reason people can watch them on television is that the free to air broadcasters have obtained those rights, but they do not have any exclusive ability to bid for them; others could, too. What are listed events are the FIFA World cup finals, women’s World cup finals, UEFA championship finals and UEFA women’s championship finals. If—as I am sure the hon. Gentleman and his colleagues believe will happen in due course—Scotland reaches the finals in one of those competitions, that will be free to air under the listed events regime. Until then, the Scottish team will have the same rights as the English team and those of other nations of the UK in terms of the football authorities’ ability to decide who they should sell their rights to.
Oral Answers to Questions
Stephanie Peacock Excerpts(3 years, 3 months ago)
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Stephanie Peacock (Barnsley East) (Lab)
Thank you, Mr Speaker. I wish to begin by echoing your words about Holocaust Memorial Day.
From April, families across the country will face a 14% rise to their broadband bills, but, even before that increase, there were already more than 1 million households struggling to pay for the internet. Expanding gigabit coverage is vital, but it is pointless if families cannot afford a broadband package. How will the Department work with Ofcom to examine the impact of mid-contract price increases and wholesale prices rising by inflation?
Julia Lopez
I thank the hon. Lady for her question. She is right to highlight the cost of living challenges that are affecting so many households. We have worked hard on this. It is important that we have a stable regulatory framework that allows companies to invest, but we have hitherto had some of the most competitive telecoms prices in Europe and consumers have benefited from that. In relation to those who are really struggling with their bills, we have done a lot of work with telecoms providers on social tariffs. Unfortunately, the uptake of those tariffs is not where it should be, so I ask every Member of this House to help us raise awareness, because their constituents can get deals from as little as £10 a month. Trying to get them that connectivity is so important to people’s job chances, life chances and so on.
Draft Telecommunications Infrastructure (Leasehold Property) (Terms of Agreement) Regulations 2022
Stephanie Peacock Excerpts(3 years, 5 months ago)
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Stephanie Peacock (Barnsley East) (Lab)
It is a pleasure to serve under your chairship, Ms Elliott. In our modern world, broadband is an essential utility, and in order to access many aspects of society—including shopping, schooling, public services and banking—a reliable, fast and affordable connection is needed. As such, people living in multiple-dwelling units such as blocks of flats or converted townhouses need broadband just as much as everyone else. However, Openreach has warned that without much-needed reforms, it may be unable to connect up to 1.5 million flats, risking the creation of a major digital divide. I am therefore pleased that measures are being introduced that will help operators to connect people living in flats where landowners are repeatedly unresponsive. These measures will help to resolve a subset of extreme cases, but if we are to meet the scale of the challenge of connecting everyone in MDUs, further support and reforms will be needed.
The draft statutory instrument before us today and the connected statutory instrument regarding conditions and time limits seek to strike a reasonable balance between operators and landowners, helping to connect some people in flats who might otherwise be left behind. As the Minister has outlined, where the required grantor refuses to respond to an operator time and time again, there will now be a new avenue through the courts for operators to deploy their services. For the reassurance of landowners, the SI also requires that operators adhere to certain standards while carrying out the work, a positive move that will improve trust in the industry as a whole.
Operators have raised some concerns that some of the terms are unnecessarily onerous. For example, they have questioned the need to send notice by recorded delivery when all previous attempts to make contact have been ignored or rejected, and when many contact addresses for grantors are simply overseas PO boxes. Others have said that they will find it hard to line up permissions, such as those needed from the local authority and those needed for preserving heritage, at the same time. How will the Department review whether the use of part 4A orders is working as intended—will it record how many are successfully issued and followed through, for example? Overall, however, we recognise the need for a reasonable amount of communication between parties, and for proper procedure to be followed. The Government did consult on the terms and have tried to strike a balance, and the result will allow for a small number of properties to be connected that otherwise would not be.
When looking at the bigger picture, however, this piece of delegated legislation addresses only a very narrow part of the problem with connecting flats. At present, operators are often forced to move build teams that are installing full fibre in a particular area onwards when they get to multiple-dwelling units, meaning that those flats are not connected. That is because in many cases, it is simply too difficult and costly for operators to come to an agreement with the required grantors in the timeframe during which they are in the area. Operators can theoretically go back and connect those flats at a later date, but that is much less efficient than doing so when they were already building there. That means that if the build team moves on, those living in the block will be left without a full fibre connection for years.
Today’s SI may provide a new legal route for accessing flats in some cases where landowners are being completely unresponsive, but showing a repeated lack of responsiveness itself takes time, meaning that build teams may still be moved on before they are actually able to use it. Furthermore, many landowners do communicate with operators, but in a manner or at a speed that delays the process to a point where, again, operators still need to move their teams on; in those cases, this legislation will not help at all. As a result, to ensure that people in flats are not left behind or connected inefficiently at a later date, we must look at reforms that target the broader issues behind MDUs—something that could and should have been done during the passage of the Product Security and Telecommunications Infrastructure Bill. I would be grateful to hear from the Minister what recent consideration has been given to the possibility of issuing full automatic upgrade rights to operators, while giving thought to their need for competition. It would also be an opportune time to provide an update on when requirements for new builds to be fitted with full fibre will finally be in force.
The Government have revised their broadband roll-out targets too many times. To prevent that from happening again, they must consider the broader concerns of those implementing the roll-out, and attempt to balance these with the needs of landowners and other interested parties. This SI is a step in the right direction, but further reforms will no doubt be necessary to ensure that tenants in flats do not unintentionally become a digitally excluded group. If we truly believe that broadband is an essential utility and not a luxury, this is something that Members across the House should be concerned about.
BBC Local Radio: Proposed Reduction in Provision
Stephanie Peacock Excerpts(3 years, 6 months ago)
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Stephanie Peacock (Barnsley East) (Lab)
I thank my hon. Friend the Member for Kingston upon Hull West and Hessle (Emma Hardy) for securing this important urgent question, and you for granting it, Mr Speaker.
The BBC is a great British institution and local radio is the cornerstone of it. It is what the BBC does best: whether it be local traffic updates, school closures, weather or other news events, BBC local radio keeps over 6 million people across the country connected to their communities. I know that my local BBC station, Radio Sheffield, keeps the people of Barnsley informed. During the pandemic, it served as a lifeline, providing tailored local updates on the latest case numbers and guidance. More recently, local radio has shown that it has the power to keep national politicians accountable to the people we represent. Of course the BBC needs to change with the times and adapt to a world where people consume their media online, but those adaptations need not be in competition with the services that make the BBC the excellent institution it is.
Under this Government, however, the BBC has been continually undermined. In an already challenging economic environment, the Government’s looming threat of scrapping the licence fee while providing no alternative model has done nothing but further destabilise the position of the BBC. The consequences of that instability are now showing. The journalists on the ground, doing their job, have had to find out through the media that their jobs are at risk of redundancy.
The Minister must take some responsibility and answer the following questions. She said that there was no discussion between the Government and the BBC prior to the decision. What steps will she now take? May I press her again to say when we will finally see the long-awaited media Bill? How will Ministers ensure that people are still able to get high-quality local news and media that keep them connected, especially as local radio stations are often the last local newsroom standing in many areas? Does the Minister acknowledge that threatening the future of the BBC as a whole is already causing it great harm?
Julia Lopez
It is important to ask ourselves what “local” means in this context. If several counties or regions are stitched together, the service ceases to be local and relevant to local people, which we have concerns about. We recognise that the BBC is under pressure, as are many other media organisations, which is why we have a series of reforms that we hope to put through in the media Bill to help it with some of those pressures. However, I say to the hon. Lady that the BBC has a £3.8 billion annual income from the licence fee, and it has that income guaranteed for the next five years. Any media organisation would be grateful to have such stability in its funding settlement. I do not see that as destabilising. It is absolutely right that the Government ask some fundamental questions about the licence fee model in the years ahead. This is a rapidly changing media landscape and it is important that we get these decisions right.
On the next steps, as I mentioned to the House, I am seeing the director-general next week. We also have the mid-term review, where we will be examining some of the very matters being raised in this urgent question.
Product Security and Telecommunications Infrastructure Bill
Stephanie Peacock ExcerptsMonday 31st October 2022
(3 years, 6 months ago)
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Julia Lopez
I agree and I thank my hon. Friend for making the point. It seems sensible and benign, but it would significantly delay roll-out and create a great deal of uncertainty.
I understand why Members in the other place tabled this amendment. Its aims are noble, but it is impractical and unnecessary and would have a disastrous effect on investment in telecoms infrastructure, leading to a slow-down in getting great connectivity to the places that most need it, particularly rural constituencies. The Government and Ofcom already produce regular reports on coverage targets and competition, and to that extent the amendment is unnecessary and would duplicate effort.
On the subject of coverage and targets, we are making great progress. We have listened at length to the concerns in both Houses and among stakeholders, and we of course understand that there are tensions between landowners and operators that must be resolved, albeit a lot of progress has been made since 2017. This Bill tries to resolve some of the challenges, particularly by introducing more collaborative negotiations and a greater use of alternative dispute resolutions.
The prospect of another full-scale review of the code framework would have the opposite effect, exacerbating existing tensions by prolonging that debate about valuation. The result would be a cooling effect on the market, with landowners and operators reluctant to conclude agreements until the review was completed. That would seriously delay the delivery of digital services, including gigabit-capable connections and 5G coverage, which so many of our constituents tell us they need and which hon. Members hold me to account for every day because those things are important to economic growth and social wellbeing in their constituencies, particularly rural ones. I urge hon. Members not to stitch further delays into the process through the uncertainty created by a review. For these reasons, although amendment 17 is well-intentioned, it is disproportionate and unhelpful, and I hope the House will disagree to it.
I am nearly at the end of my speech, but I want to thank all Members who have contributed to debates on this Bill, especially the hon. Member for Barnsley East (Stephanie Peacock) and her predecessor the hon. Member for Ogmore (Chris Elmore). Parliamentary scrutiny here and in the other place has provided the Government with much food for thought, allowing us to refine and improve the legislation, and I am pleased that Members on both sides of the House support the objectives of this much-needed Bill in recognition of the importance of digital connectivity to the people and communities we serve and the security of the products that will be increasingly present in their lives.
Stephanie Peacock (Barnsley East) (Lab)
Labour has always broadly welcomed the principles of this Bill and has supported amendments, whether Government or Opposition-led, that strike a sensible balance. That remains the case today, and as such I welcome the Government amendments before us. I will instead focus my remarks on amendment 17 on a review of the electronic communications code.
Labour stands firmly behind the aim of improving roll-out. Digital connectivity is a necessity, not a luxury in this day and age. In order to participate in society—from banking to shopping, to education and using public services—access to the digital world is crucial for people of all ages and in every corner of the country. As such, it is vital that we facilitate the building, maintaining and upgrading of digital infrastructure that allows for this connectivity.
The last Labour Government delivered on this belief, ensuring the creation of infrastructure that brought first-generation broadband to around 13 million households by 2009, but unfortunately over the last 12 years roll-out simply has not gone as far or as fast as we would like. Both broadband and 5G roll-out have been woefully slow, and the Government have repeatedly reduced their targets. We therefore support the aim of part 2 of this Bill, to speed up roll-out to the levels needed. The amendment that calls for a review of the electronic communication code is proposed with the firm intention of boosting rather than jeopardising roll-out. It would ensure that a balanced evidence base is built surrounding the changes made to regulation in the last five years so that concerns held by both landowners and operators can be addressed objectively and in the public interest.
Selaine Saxby
Will the hon. Member explain why the entire industry has asked me to speak this evening to say that the amendment would slow down the roll-out and do literally nothing to speed it up?
Stephanie Peacock
I understand that there are concerns in the industry, but there are also concerns on the other side of the argument among landowners. Indeed, in the consultation for the legislation, the most contentious parts of the 2017 regulations were considered, and that is why we are considering the amendment.
Indeed, the electronic communications code, as hon. Members will be aware, is the legislation that underpins the use of land for mobile telecommunications infrastructure. It was reformed in 2017 and further changes are being made to it through the Bill. After a period of initial adjustment, many operators now cite the 2017 ECC reform as a welcome set of changes that has in time helped them to act quicker and invest more in the roll-out.
Those who host masts, however, have seen their rents decrease by 63% on average as a result of those same changes and report that they have only caused them further problems, reducing their agency and disincentivising their involvement in facilitating the roll-out. That is a particular concern for smaller landowners—the likes of churches, sports clubs and community groups—whose rental income has been cut at a time when they are already suffering as a result of the cost of living, but whose land and involvement is vital for connecting hard-to-reach areas, some of which do not have 3G yet, let alone 5G.
Ultimately, roll-out is dependent both on those who build and operate masts and on the willingness of site owners to host them. Where we rely on both to succeed, the needs of both must be taken into account, striking the right balance so that roll-out is not impeded at either end. At the moment, however, the objective information on whether the ECC strikes the right balance is simply not available. Will the Minister share any objective evidence held by the Department on the impact that changes to the ECC have had and will have on roll-out, particularly as its consultation, as I mentioned, did not include the most controversial elements of the code. A review would help fill the evidence gap. Put simply, it would seek to measure in a balanced way whether the ECC is increasing roll-out as it was intended to.
To be clear, the amendment would not prevent the measures in the Bill from coming into force. It is designed to ensure that all the provisions that we hope make improvements to roll-out can still be enacted as soon as the Bill receives Royal Assent. Compliance would still be expected from both providers and landowners. The amendment has no agenda for reversing any hard-fought changes in particular. It is a neutral amendment that seeks to put an end to years of constant disputes between providers and landowners and bring focus back to roll-out. The review would make recommendations only in areas that show clear evidential need for change and are currently stopping targets for connectivity from being met. If instead we choose to ignore the ways in which the ECC has been controversial, such disputes will only continue.
I take this opportunity to put on record Labour’s thanks to all those who host digital infrastructure on their land or buildings and are helping to connect their neighbours and communities to our modern world. It is clear that hosting masts can be difficult at times, but we must remember how vital it is for our country’s future that we get the widest possible connectivity. We want more groups to step forward to host infrastructure, not less.
Ultimately, Labour wants to see a fair settlement that supports small landowners in hosting digital infrastructure but allows providers to maximise roll-out. The amendment, which received cross-party support in the other place, provides an opportunity to ensure that the ECC is compatible with those aims and is supported by balanced evidence. All sides should be able to get behind that. We must be united behind the goal of boosting connectivity for those who need it so that our country can get on with harnessing the power of technology for good.
John Nicolson (Ochil and South Perthshire) (SNP)
Witnesses at the Digital, Culture, Media and Sport Committee have offered me, a history graduate and not the most technical of parliamentarians, a window into the world and advantages of connected tech. It is sometimes referred to as the “internet of things”: a world of possibilities and advantages for companies and consumers. The possibilities are wide-reaching and seemingly never-ending, but it is a brave new world that is already introducing us in Parliament, as well as those in the police service, healthcare and many workplaces, to new and unforeseen issues around our security.
The Bill does much good work in improving the culture of security from the inception of the product right from the design stage. Improved security will be integral, and as customers we will have the benefit of security information provided at the point of sale. All of that, surely, is advantageous. We on these crowded SNP Benches behind me recognise the value of the Bill. It is, however, well past time for speedier legislative progress. The world of connected tech is already well developed and established in healthcare, courier services and a multiplicity of industries around the world. We should have had legislation in place long before now.
As long ago as 2016 we saw a weaponised interconnection of connected tech devices used in a botnet to take down online titans such as Netflix, Amazon and others—2016. Countless Tory Prime Ministers and Chancellors have come and gone and, in one case, almost come again since then. Yet the Bill only hurtles into view as 2022 winds to a close. In that time, we have seen attacks on connected tech devices rising by hundreds of per cent. year on year.