Broadcasting — House of Commons, 2016-10-18
Topic: Technology
Huw William Merriman (Conservative, Centre-right): It is an absolute pleasure to follow my hon. Friend the Member for Spelthorne (Kwasi Kwarteng). He is rarely off the TV, and he is a fine contributor to the BBC. Whenever I turn on the TV, he seems to be there making his contribution. I hope that, notwithstanding some of the criticism, his chair on "Newsnight" will not be replaced by the one that Graham Norton uses when he ejects an unfortunate audience member I should like to declare an interest, in that I am the chair of the all-party parliamentary group on the BBC. I am very proud to hold that position. I welcome the new BBC charter and the compromises made by the Government and the BBC to ensure its delivery. I particularly welcome the charter’s 11-year duration, which should, provided that fixed Parliaments survive, take the next renewal out of the election cycle. I have long found it unfortunate that the BBC gets accused of bias from all sides during elections or referendums. While pressure coming from both sides must demonstrate that the BBC is balanced, calmer mid-term waters will be a better starting point for the next charter renewal. I find politicians’ accusations of bias tiresome and that is followed in my list of moans by demands that the BBC find its own voice, with the proviso that the lyrics and music are written by interested Members of this House— I ask the SNP to take note I am pleased that the licence fee is guaranteed for the next 11 years, rising in line with inflation each year, that the Government have legislated to close the iPlayer loophole and that they will phase out the ring-fencing of £150 million a year for broadband roll-out The BBC took a big hit when it was determined that it should be responsible for free TV licences for the over-75s. The BBC is much loved and cherished by the nation, but its reputation is only as good as the output that it can deliver. The licence fee and the BBC’s commercial enterprises provide the BBC with 25% of the UK’s TV revenues, but it accounts for 45% of investment into original British programmes. I hope that the Government’s additional funding commitments will help the BBC to deliver more excellence to its viewers and listeners I have three particular issues on which I hope the Government will focus their efforts following publication of the charter. The first relates to listed sporting events. By closing the iPlayer loophole, which previously allowed viewers to watch content without having to buy a TV licence, the Government have demonstrated that existing legislation has to change in order to capture the original intention in a fast-moving digital age. I ask the Government to consider making the same change to preserve the status of listed sporting events The BBC currently interprets a listed sporting event as one that is available only to a broadcaster that will air free of charge and that can be delivered via TV to 95% of the population. With more consumers opting to watch programmes on tablets and other devices, soon no terrestrial broadcaster will be able to reach that figure. I believe that the intention is merely that the output should be free and that the nation can access it. As I understand it, the Government have no plans to change the sporting listed status regime, but I have invited the Secretary of State to meet me to discuss how the legislation can be updated to account for the technology of our age. I was incredibly grateful to have shared a few words with the Secretary of State this afternoon and it appears that her view is that the rules do not restrict the BBC in the way that it thinks they do. Equally, the Department’s view is that if it turns out that the drafting does restrict the BBC, it is open to considering a change. I am grateful to the ministerial team for being so open —I am sure the BBC will think the same My second point relates to the National Audit Office. Paragraph 55 of the draft agreement provides that the Comptroller and Auditor General can scrutinise the BBC. I welcome that, but there are two minor areas that may need further consideration. The first relates to which aspects of the BBC can be examined by the NAO. Paragraph 55(1) states that the BBC is to be examined. However, paragraph 55(2) specifies that the BBC’s subsidiaries must also engage with the NAO to that end. I assume that means that the NAO will be examining the BBC’s commercial activities. The NAO is supposed to scrutinise whether bodies have used public money efficiently, but the BBC’s commercial subsidiaries do not, and legally cannot under the charter, use licence fee revenue. It therefore seems unusual to extend the NAO’s remit and I would be grateful for an explanation as to why that may be the case My second point on the NAO relates to its questioning as to the merits of any editorial or creative judgment. The charter makes it clear that the NAO cannot stray into this area, but it also specifies that it is for the Comptroller and Auditor General to determine whether such activity is within the confines of that which it is not permitted to determine. Although the NAO must "consult" the BBC when making this determination, I agree with the hon. Member for West Bromwich East (Mr Watson) that there is no dispute mechanism in place should the BBC wish to contest the NAO’s determination. Again, I ask the Government to seek to rectify that should disagreements occur between the two bodies The third area on which I hope the Government will focus relates to distinctive output, which is now written into the charter, with the requirement for Ofcom to hold the BBC to account for its delivery on distinctiveness. My concern is that there appears to be the utilisation of quotas from the outset. Lord Grade has said that "quotas and prescription are the enemies of innovation and distinctiveness. The BBC must be…free to experiment and to take the risks and meet the challenges that free-to-air private sector broadcasters cannot afford to."—[Official Report, House of Lords, 12 October 2016; Vol. 774, c. 1986.] May I ask that Ofcom be given the discretion to determine whether quotas are the best way for the BBC to deliver distinctive output? A broadcaster that bravely decides to put ballroom dancing and baking competitions on prime-time TV is doing pretty well in this space already, so I do not believe the Government have or should have concerns as to the distinctiveness of the BBC During the debate about this charter renewal, those supporting the BBC wanted to ensure that the licence fee would be preserved and would rise by inflation; that the next licence fee renewal would be taken out of the electoral cycle; and that the Government appointments to the new board would not outweigh the BBC appointments. The Government have listened to these concerns, in addition to many others, and have given the BBC even more independence and support than existed previously. I am grateful to the Government for continuing to support this amazing and unique institution, which is the envy of the world. It is true that if we were inventing the BBC for the first time in 2016, it would not be organised or funded as it now is. At a cost of only 40p per day, thank goodness we have it, and long may it remain.