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Tag: 2022

  • Anne-Marie Trevelyan – 2022 Statement on the Singapore Digital Economy Agreement

    Anne-Marie Trevelyan – 2022 Statement on the Singapore Digital Economy Agreement

    The statement made by Anne Marie-Trevelyan, the Secretary of State for International Trade, in the House of Commons on 14 June 2022.

    Today, I am proud to announce that the UK-Singapore digital economy agreement (DEA) enters into force, following the completion of the necessary domestic procedures on both sides. This will allow UK businesses to start benefiting from the provisions contained within the agreement, helping them to trade and grow.

    This groundbreaking agreement is the world’s most innovative digital trade agreement, concluded as it was between two of the most advanced digital trade nations. The UK-Singapore digital economy agreement is deeper and wider than previous trade agreements covering the modern digital economy. Complementing and building on the G7 digital trade principles that we brokered under the UK’s G7 presidency, the Singapore digital economy agreement will serve as an ambitious model for modern trade agreements in future—cementing the UK’s place as a world leader in digital trade.

    By securing open digital markets, prompting the free flow of trusted data, and cutting red tape through overhauling outdated paper-based processes, businesses across the UK can expand into new markets and thrive.

    Now that this groundbreaking trade agreement has entered into force, businesses and consumers across the UK will start to benefit from:

    Support to UK businesses to access Singapore’s digital markets. Digitally delivered services make up around a third of UK services trade globally—this was worth over £361 billion in 2020, and this deal will help strengthen this further.

    Securing and locking-in trusted cross-border data flows, the foundation for today’s modern digital economy—representing up to 26.3% of UK GVA in 2019. This will enable businesses to trade more easily, cheaply, and more quickly, facilitating everything from more efficient manufacturing and supply chains to more reliable infrastructure.

    Cutting red tape by supporting the overhaul of outdated, paper-based trading systems. For example, the agreement contains specific commitments around maintaining legal frameworks that enable the digitisation of trade documents such as bills of lading.

    Keeping our country and citizens safe through deepening our partnership with Singapore in areas such as cyber-security, as well as legally binding commitments covering online consumer protection and personal data protection.

    Supporting our bid to join the comprehensive and progressive trans-Pacific partnership (CPTPP), alongside Singapore and 10 other vibrant trading nations. Membership would mean access to a £9 trillion free trade area with some of the biggest and fastest-growing markets in the world.

    With this agreement coming into force, our economy and brilliant businesses can build back better from the pandemic and start to benefit from easier, quicker, and more trusted access to the valuable Singapore market.

  • Wendy Morton – 2022 Speech on Portishead Railway

    Wendy Morton – 2022 Speech on Portishead Railway

    The speech made by Wendy Morton, the Minister of State at the Department for Transport, in the House of Commons on 14 June 2022.

    I congratulate my right hon. Friend the Member for North Somerset (Dr Fox) on securing this debate on the future of Portishead railway. He has been a passionate advocate of reopening the railway from Bristol to Portishead for many years—since long before I became the Rail Minister. I recognise that the project has strong support in his constituency and I am grateful to him for setting out its benefits this evening, as well as some of the challenges.

    John Penrose (Weston-super-Mare) (Con)

    The Minister is right to congratulate our right hon. Friend, my neighbour and co-MP for north Somerset, but it is not just his constituency that is affected. Right next door in my constituency, many people are in favour of the project, not only because of the reductions in the environmental impact of all those trips to and from Bristol, but because of the levelling-up impact, particularly on less well-off places such as Pill and others in our area.

    Wendy Morton

    I hear my hon. Friend’s comments and recognise that the project runs beyond the boundaries of the North Somerset constituency.

    The proposal is now part of MetroWest, a third-party metropolitan rail programme promoted by West of England Combined Authority and North Somerset Council. The Government have already committed funding support of £31.9 million to close the funding gap for the project to reopen the Portishead line to passengers, and a further request from the joint promoters for £15.6 million of additional funding was recently received. I assure my right hon. Friend the Member for North Somerset that the case is being carefully considered by the Government. The Department will continue to work closely with WECA, NSC and Network Rail counterparts on the approval process for the scheme’s full business case.

    I want it to be clear that I fully recognise that the scheme is of great importance to my right hon. Friend’s constituents and to the wider Greater Bristol area. The congestion on the A369 between Bristol and Portishead, with journey times of about an hour in peak periods, is a barrier to travel. Reintroducing a rail connection would bring the communities of Portishead and Bristol closer together, improving work opportunities for local residents and for leisure and tourism. It would also bring people closer to the rest of the country.

    The funding is subject to the granting of a development consent order, which is a statutory requirement, and a satisfactory full business case. The full business case will also need to progress through my Department’s rail network enhancement pipeline approval process, a framework by which all publicly funded rail enhancements are considered.

    My right hon. Friend will be aware that, with regard to the scheme’s development consent order, the Secretary of State issued a “minded to approve” decision on the 19 April. This sets out that the Secretary of State is minded to make the order, subject to receiving further information and evidence regarding the costs and funding of the project, with the reasons for that set out in the letter. The Secretary of State has requested that this information be provided by 30 November. To allow sufficient time for this information to be provided and for the Secretary of State to consider it, the Under-Secretary of State, my hon. Friend the Member for Witney (Robert Courts), issued a written ministerial statement on 19 April extending the deadline for the DCO application to 19 February 2023. Should satisfactory information be provided ahead of November, the Secretary of State will look to issue a final decision on the DCO application as soon as possible and ahead of the February 2023 deadline.

    It is important to note that I am not involved in the decision on this application, but I am sure my right hon. Friend will understand that this is still a live application under consideration in my Department. I am therefore unable to take part in any discussion on the pros and cons of the development consent order itself, to ensure that the process is correctly followed and remains fair to all parties.

    I must also stress that the development consent order process is a statutory requirement under the Planning Act 2008. The process for considering an application must follow the legislative requirements, and the Secretary of State can request any further information that he considers necessary to allow him to undertake this consideration and to fulfil his statutory duties.

    More broadly, with regard to the Government’s commitment to rail schemes, we have committed to levelling up the country, and reconnecting communities to the railway is central to that ambition.

    Karin Smyth

    I have been a Member of Parliament for only seven years. I do not recall, off the top of my head, how many Ministers I and the right hon. Member for North Somerset (Dr Fox) have appeared before on this very issue. A range of reasons have always been given as to why this is not happening. Last year, we understood that there were some environmental questions to be answered. I gently say to the Minister and her officials that each time a new Conservative Minister comes to the House with a new range of hoops to jump through and a new range of excuses as to why our part of the country does not have this commitment, which we long believed we had, the worse it is for the Conservative party.

    Wendy Morton

    As I set out earlier, I can assure the hon. Lady and my right hon. Friend that the Department —this Government—will continue to work closely with the West of England Combined Authority, with North Somerset Council and with Network Rail counterparts on the approval process for the scheme’s full business case. I give that commitment this evening.

    Dr Fox

    As Secretary of State, I was rather too fond of saying to my officials that the difference between a doctor and a civil servant was that, for a doctor, a good outcome was that the patient got better, and for a civil servant, a good outcome was that the patient was treated for a very long time. It seems to me that we are in one of these examples where the process is almost becoming an end in itself. We actually need results. I entirely understand the point that my hon. Friend is making about the DCO and the fact that she cannot comment on it, but what we need is a decision to be brought to a conclusion as soon as possible. We need a real railway for real jobs and for real environmental benefits. I understand the financial constraints and would not be calling for greater overall spending, but within the budget that exists in the Department for Transport we must have movement, because the delay that we are facing is becoming intolerable.

    Wendy Morton

    I appreciate what my right hon. Friend is saying, but obviously there is a process that I and the Department must go through.

    When it comes to the Government’s commitment to rail, I gently remind colleagues in the Chamber that, as part of our levelling-up agenda, in January 2020 the Government pledged £500 million for the restoring your railway programme, to deliver on our manifesto commitment to start reopening lines and stations. That investment is about reconnecting communities across the country, regenerating local economies and improving access to jobs, homes and education.

    We reopened the Dartmoor line in November last year, restoring passenger services between Exeter and Okehampton for the first time in 50 years. That has been a great success, with passenger journeys double the anticipated level. In May this year the service frequency on the Dartmoor line was doubled so that passengers now have an hourly service. That followed further infrastructure work that has delivered an improved journey time of around 35 minutes between Okehampton and Exeter St David’s. The line opened two years ahead of schedule and significantly under its approved budget.

    The Government also announced, in January 2021, £34 million of funding to progress plans to reopen the Northumberland line to passenger services between Ashington and Newcastle, with six new stations and a service of two trains an hour by the end of 2023. I gently say to the hon. Member for Bristol South (Karin Smyth) that those are some strong examples of this Government’s commitment to investing in the railways.

    The Government also recognise the importance of the Greater Bristol area as one of the UK’s most productive and fastest growing city regions, which is why we continue to make significant investments there. For example, on Friday 10 June funding of £95 million for phase 1 of the Bristol Temple quarter regeneration programme was announced. That investment will transform access to Bristol Temple Meads station, delivering new and improved station entrances to the north, south and east, with related transport interchange and active travel provision. The new entrances will make it much easier to reach the station from the city centre and surrounding neighbourhoods, and the eastern entrance will connect to the Temple quarter—one of the largest urban regeneration sites in Europe and soon to be home to the University of Bristol’s enterprise campus.

    That project will complement wider investment in the regional and national rail network already being made, and the Temple Meads station upgrade will unlock transport to south Wales and the south-west of England, significantly increasing passenger capacity and improving connectivity between Bristol, Cardiff and London. This work is complemented by the recent refurbishment work at Bristol Temple Meads station, which will provide better passenger facilities and improved accessibility.

    The Government also invested £132 million in the remodelling of the railway in the Temple Meads area, which was the largest enhancement project on the Great Western route in 2021. That work will mean more regular and reliable trains with more seats coming through the station. The new railway layout is also a key enabler of the MetroWest scheme, which is allowing new local services that improve connectivity between Bristol and its neighbouring communities, enabling people across the south-west and south Wales to benefit. A new parkway station at Portway on the MetroWest line towards Severn Beach, which received £1.7 million of backing from my Department’s new stations fund, is also being built. The station will serve both the adjacent park-and-ride site and local residents, and is expected to open in December this year.

    To conclude, the Government are committed to improving rail in the wider Bristol area as part of the levelling up of the west of England. I listened carefully to what my right hon. Friend the Member for North Somerset set out this evening, and we will continue to support the West of England Combined Authority and North Somerset Council to develop their business case for the reopening of the railway between Bristol and Portishead. We fully acknowledge and appreciate the importance of this project to his constituency.

  • Liam Fox – 2022 Speech on Portishead Railway

    Liam Fox – 2022 Speech on Portishead Railway

    The speech made by Liam Fox, the Conservative MP for North Somerset, in the House of Commons on 14 June 2022.

    Here we go again. Portishead railway has become something of a perennial favourite of those Members who flock to the Chamber to hear these important issues debated, but I will recap for those who have not caught up on the politics of the saga.

    The story so far is that we had a Labour Government, for whom our project met all the criteria—environmental, transport and economic—yet no progress was made. We had a Conservative-Lib Dem coalition Government, for whom the project met all the criteria and very little progress was made. We now have a Conservative Government and more progress has been made, but much too slowly.

    Why do we need the Portishead rail link at all? Because congestion across the region costs £300 million a year and causes major delays every day, particularly at junction 19 of the M5. Traffic queueing times are increasing and are predicted to grow by 74% by 2036. The alternative to this programme would be a major new bridge, which would cost a minimum of £250 million —and we all know how these numbers get inflated—and would not be deliverable until 2030 at the earliest, for which we can read “not in our lifetime.” Alternatively, Portishead and its line would be open by 2025.

    The environmental cost of the increased traffic congestion is considerable, so improved rail transport will clearly have enormous benefits, but that is by no means all. When looking at the Government’s levelling-up agenda, we have to recognise that there are areas within affluent parts of our country that are themselves much poorer. North Somerset, as a constituency and as a district, is extremely affluent, but it is not uniformly affluent. Pill in my constituency has a high index of deprivation, and it will have a station on the new line.

    The question of growth and jobs is one of the main issues for the railway line. Portishead is a centre of innovation and creativity with numerous successful and burgeoning small businesses, but labour is at a premium in my constituency. Unemployment is at 1.6%, compared with the national average of 3.8%. The rate in neighbouring constituencies is: Bristol East, 4.4%; Bristol South, 4.3%; and Bristol West, 4%. They are all above the national average.

    The line is not just about improving the convenience for people who live in Portishead and work in Bristol; it is also about giving people in those areas of higher unemployment access to areas where they can build businesses, provide new jobs and be hugely involved in the Government’s efforts to increase economic activity.

    Karin Smyth (Bristol South) (Lab)

    I am disappointed to be debating this subject again, but I am pleased to support the right hon. Gentleman. Reopening the passenger line both ways is important, as he says, but opening new stations near Parson Street and Bedminster in Bristol South is crucial to pursuing low-carbon forms of transport and to supporting the new housing that is coming forward. I am keen to work with him in the interests of the entire Bristol and North Somerset area, and I urge the Government to do more.

    Dr Fox

    I am extremely grateful to the hon. Lady, who makes a very good point, which augments what I was saying. Housing is being built in Bedminster, for example. Where are people going to go to work? We need high-income, good-quality jobs. The businesses we have in Portishead—the spin-offs from avionics, for example—provide those kinds of jobs. The problem is: how do we get people in those areas of high unemployment and where the new housing is going to be built to where the jobs are? The danger at the moment is that not only are we unable to do that, but companies are unable to grow because of the restrictions on labour availability, they move to somewhere else and we lose the wealth from our region.

    As ever, it all comes down to money. In 2017, the scheme budget was set at £116 million, assuming a line opening date of December 2021 and excluding a new requirement to fund operational costs. Following three separate Department for Transport-directed delays to the development consent order approval—one of which we debated here only last November—the pandemic, and unprecedented inflationary and market pressures, the revised forecast at completion was £210 million in December 2021. Following cost mitigations amounting to £47 million, the latest forecast sits at £163 million. After further increased regional budget contributions, that leaves a funding gap of £26.82 million, comprising £15.58 million in capital and £11.24 million in revenue, which we have requested the DFT to cover.

    Just in case anyone has forgotten our debate in November, I remind them that I said then:

    “A six-month delay, as suggested by the Secretary of State’s office, would have a potentially devastating impact. It is important that we understand whether this six-month figure was simply plucked out of the air and whether a shorter delay would deal with any reservations from the Department.”

    That mattered a great deal to us. I also said:

    “It has been assessed that the impact on cost beyond 14 January 2022 will be in the order of an additional £13 million at minimum”.—[Official Report, 26 November 2021; Vol. 704, c. 653.]

    I warned in November that the extra six-month delay for what I believe was an unjustified environmental assessment, or other similar delay, would put pressure on the partners in the project, who simply would not be able to find extra money of that order.

    What am I asking the Minister for tonight? First, I am seeking agreement to an additional £15.58 million—that is the capital funding provision. Secondly, I am asking for agreement to implement the previously proposed governance structure, with the DFT taking on the client role. If that is not agreeable, incidentally, the funding gap increases by another £14 million. Thirdly, I am asking for agreement to work with North Somerset Council and the West of England Combined Authority to find a solution to fund the forecast additional MetroWest 1 operating subsidy cost of £11.24 million, recognising that North Somerset Council, a small unitary authority, and WECA have no funding streams for additional revenue.

    The Minister recently indicated that there would be no more money in the Department, but the latest ministerial position ignores key cost drivers that have arisen in the interim period, since 2017, which are largely outside the control of the project team. Those include unbudgeted operational costs; requirements and inflationary costs, linked to associated programme delays, arising from the Department’s development consent order—that adds £28 million; DFT-led changes to the project procurement strategy, which add £6.1 million; market price increases, which are outside the control of the Government and add £39.5 million; and of course the pandemic, which adds an estimated £4.8 million.

    Those numbers are tiny when we are talking about projects such as HS2. Let me remind my hon. Friend the Minister about the benefits that the project will bring that fall within the full aims of Government policy. It will significantly reduce travel time from Bristol to Portishead to 23 minutes, compared with 60 minutes-plus—on a good day—by bus and an optimistic 50 minutes-plus by car, and greatly improve people’s access to employment and services, as I outlined. It will bring more than 50,000 people in Portishead and Pill into the direct catchment area of a railway station for the first time in more than 60 years.

    Regeneration of our railways has been a key aim of the Government. This project will deliver 1.2 million additional rail journeys and £7 million of revenue within 15 years of opening. It will produce benefits to the regional economy of £43 million gross value added per annum. It will remove 13 million car kilometres annually by 2041. It will bring new employment opportunities regionally and bring the benefits of economic growth to Portishead and wider North Somerset. There will be sustained environmental benefits, and the major improvement in travel to work times will bring associated personal quality of life and community benefits. What is not to like about this project?

    One more push from my hon. Friend the Minister and her colleagues and we can get this project across the line. What could give our region a better boost in this time of uncertainty than to put all the worries behind us, once and for all? I look to my hon. Friend for the push.

  • Ben Bradley – 2022 Speech on Channel 4 Privatisation

    Ben Bradley – 2022 Speech on Channel 4 Privatisation

    The speech made by Ben Bradley, the Conservative MP for Mansfield, in the House of Commons on 14 June 2022.

    It is a pleasure to take part in this debate on a topic I have not shied away from in the public discourse. In fact I found myself, not for the first time, in the middle of the usual Twitter storm when I tried to cut across the predictable hysteria about the announcement of this privatisation. There were accusations from the Opposition Benches that this decision was fascism in action, a ridiculous statement and nonsense—because, of course, the first thing every fascist dictator does is relinquish state control of the media. Once again the Twitter commentariat, wound up by certain Members on the Opposition Benches, proved that they are incapable of seeing any debate in sensible or nuanced terms and instead go for the clickbait headline. That is incredibly frustrating, so I am pleased to be able to debate this today.

    I agree with my hon. Friend the Member for Solihull (Julian Knight) that we should do more privatisation. There would perhaps be less ability to create such hysteria if there were a steady drumbeat of measures from the Government on privatisation, driving the private sector and innovation.

    Opposition Members have said that this is ideological. We have heard from Ministers and others on the Conservative Benches all the practical reasons why privatisation makes sense in many cases. I do not speak for the Government, but for me part of it is indeed ideological, however; I fundamentally believe the Government should not be involved in stuff they do not need to be involved in, and if the private sector can drive this kind of innovation, then it should. If the Government want to bring forward more measures to remove their hands from things they do not need to be involved in, I will welcome that. That is a challenge for the Minister, and perhaps she will take me up on it.

    Before I take a more critical viewpoint it is important to say that Channel 4 will continue to play an important role in British life, because it makes some cracking content. I am not as old as my hon. Friend the Member for Milton Keynes North (Ben Everitt), but I go back a bit as well, and I like Channel 4. I remember the time in the ’90s when “The Simpsons” was on at 6 o’clock on a Friday night; I used to sit down after my tea, and then there was “Malcolm in the Middle” and I would be allowed to stay up late until “Friends” had finished. That was my bedtime viewing on a Friday night. Those are all American programmes, actually, so they are probably not the best example. [Interruption.]

    Lucy Powell

    What about “The Word”?

    Ben Bradley

    Before my time, I’m afraid.

    Channel 4 has also recently won the rights to a number of England games, and it is only positive to have more football on free-to-air television. All that should be celebrated, but the decision to privatise Channel 4 comes with mutual benefits. I strongly believe there is more potential for Channel 4 to compete and to make tremendous progress in the private sector. State ownership is impractical in the long run. If the channel is to find investors to find the cash to grow and expand and do more, it needs private enterprise. We have heard from Conservative Members why it is struggling to do that, which I will come on to again shortly.

    Why do we continue to limit the growth and ability of a much-loved TV channel when we can easily sort it out? Questions need to be asked about why running media companies needs to be a role of Government. Government ownership has implications. Through being funded by advertising alone Channel 4 has a valuation of about 1% of that of Netflix, for example. Channel 4 clearly needs more funding if it is to compete in an ever-changing and growing market and if it is to expand. Where is that meant to come from? Its advertising funding is already falling, it cannot sell its content as other companies can, and its spending is declining. It is limited by Government ownership.

    Members have pointed to good things Channel 4 does, and Opposition Members have jumped to the worst possible conclusions about the risks to all those things, but there is no reason why those good things cannot continue. Words such as “abolish” have been used, but Channel 4 is not going anywhere. I do not believe that those terms reflect what is happening.

    To return to the money, if Channel 4 is to grow at scale and take full advantage of market growth and compete effectively, its only current option is to borrow, with that risk underwritten by the Government, and I do no not think that that is an option; nor should the taxpayer be asked to do that. That takes me back to my earlier point: do the Government need to do this, or could someone else do it? The answer is firmly that somebody else could.

    Sarah Owen (Luton North) (Lab)

    On money, Channel 4 has directly invested £12 billion in the independent production sector since its creation. How much do the Government estimate that a privatised Channel 4 will invest in our production sector? If they cannot say how much, why are we taking this risk?

    Ben Bradley

    I thank the hon. Member for that intervention. She will have to ask the Government—I am not in the Government—but Channel 5 is a privately owned public sector broadcaster that invests a higher proportion of its revenue in small broadcasting companies than Channel 4, so that is a model that works. The shadow Secretary of State said that she felt that privatisation would stifle growth and innovation in British jobs. As I have said, examples exist in this country of privately owned public sector broadcasters who invest in those businesses and support our wider media sector. There are systems here that can work.

    To me, this is fundamentally a much bigger debate: it is a question about the role of the state. If we want best value for taxpayers in not only financial value but freedom and choice, the state should not be in charge. If the state does not desperately need to run something and there is no practical reason why it should be the Government’s job, it should not do so. We should approach this issue and others by asking ourselves: do the Government specifically need to do this, or could the market do it? Could the private sector do it? Could the third sector do it? Could the community do it? In the case of the media, all of the above already do it.

    As a council leader, I have started by questioning whether we do things as we do because that is the best way or because we have always done it that way. It is often the latter, and I have found that much more can be achieved through change. The state should be prioritising its responsibilities to deliver public services, to create the environment needed for jobs and growth and to tackle the major geopolitical challenges in the world. It should not be running and working in the TV industry.

    Once upon a time, the state needed to do so to promote choice and sustain something very new—there was just a handful of channels and the industry needed that support—but now, that could not be further from the truth. Mrs Thatcher set up Channel 4 to promote competition and create content that would not otherwise exist. We now have content coming out of our ears—content galore. In fact, I have got content in my pocket right now. We have got content everywhere. We do not need to be putting the state’s energy into that—[Interruption.] Do not ask what kind of content. [Interruption.] Juicy. But there is no space any more where the Government needs to do that. It is brilliant to see a Conservative Government doing what I believe to be fundamentally Conservative things. I know that my right hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman) disagrees, but my version of this is that the sale underpins the conservativism that I believe in of a small-state, pro-enterprise, innovation-focused Government who are handing the reins over to the creatives and innovators in the industry instead of sticking with state control because that is what we have always done. That is a good thing, and, as my hon. Friend the Member for Solihull said, more of it, please, Minister. I will take much more of it.

    At a time when we want to be proud of our British institutions, let us have faith in Channel 4’s ability to compete. Let us release it from state ownership and allow it to do so.

  • Jesse Norman – 2022 Speech on Channel 4 Privatisation

    Jesse Norman – 2022 Speech on Channel 4 Privatisation

    The speech made by Jesse Norman, the Conservative MP for Hereford and South Herefordshire, in the House of Commons on 14 June 2022.

    It has been a good debate, but I must say that I am not persuaded by many of the arguments that have been put forward, even by my distinguished colleagues, the former Chairs of the Digital, Culture, Media and Sport Committee, my right hon. Friend the Member for Maldon (Mr Whittingdale) and my hon. Friend the Member for Folkestone and Hythe (Damian Collins). It is a pity that the consultation was carried out in the way that it was. For a subject as vexed and contentious as this, it would have been more appropriate for at least the individual and organisational contributions to have been if not published, then at least digested in more detail and reflected.

    If the Government are committed to exploring all the options, as has been recognised by many hon. Members on both sides of the House and as I think it is fair to say the Government have said, it is important that there should be an options paper to show which options have been considered. I was sad to see that the option of mutualisation has not been considered, because it has been effective in other areas. Welsh Water, which is in many ways the best of the water companies, is a mutual company limited by guarantee. I still hope that mutualisation will be considered.

    The truth is that, notwithstanding some of the concerns that have been raised, Channel 4 is not a problem, and this measure comes at a time of severe and rising concern among people of this country about the cost of living, inflation and slow growth, and, in policy circles, about the loss of productivity. It is not just that Channel 4 is in rude health—although, as has been pointed out, revenues can go up and down over time—and has been sustained by its huge growth in digital advertising and its remarkable ability to reach interesting younger audiences; it is also that it is a highly dynamic organisation and a highly managerially innovative organisation. Therefore, for the Government to start to panic now about what its future advertising revenues may be is to rule out the possibility that diverse, interesting, engaging and innovative responses may be undertaken by this innovative team.

    It is also strange for a Conservative Government to wish to sell off a business in the face of competition, rather than embracing and welcoming that competition and expecting the business to fight its corner. Let me remind the House that the intellectual property does not go anywhere. The fact that it is not trapped in Channel 4 does not mean that it does not reside within independent production companies, and that creates the dynamic tension and energy that has always sustained the sector.

    I am afraid that I regard this as an unnecessary attempt to address a non-problem at a time of much wider concern. I refer hon. Members and the Government to the ancient Conservative principle: “If it ain’t broke, don’t fix it.”

    Kevin Brennan

    On the point about intellectual property, is it not interesting that the people behind some of the most successful productions in recent years, such as Michaela Coel, have refused to go to streamers such as Netflix because they insist on keeping the intellectual property, rather than letting it reside with the British small production companies, writers and creators who are responsible for it?

    Jesse Norman

    The hon. Member makes an interesting and fair point. Of course, if advertising revenue were so unattractive, the rest of the market would not be piling into it. At the same time, no matter who the owner of the enterprise will be, they will not be immune from wider inflation in programming costs. That is the nature of the business, and the question is what innovative and constructive responses will be undertaken by the management team to address that.

    The plan is also bad economics from a public standpoint. The House will know that I spent a couple of years as a Treasury Minister, including during the period the Secretary of State talked about when all the support was given to the cultural sector, and I think it is bad economics. Even if the constraints were relaxed in the way that has been described, the revenue to be derived would be only, on a net basis, in the order of £500 million to £1 billion. My successor, the present Chair of the Digital, Culture, Media and Sport Committee, my hon. Friend the Member for Solihull (Julian Knight), has pointed out that that is a drop in the ocean compared with the wider problem. At a 4% interest rate, £500 million amounts to £20 million a year. Are we really going to give up all the control, energy, drive and impetus that exists in Channel 4 now, and the £200 million of directed programming from independent production companies that comes from that, in return for the equivalent of a £20 million annuity? I do not think that makes any economic sense at all.

    Overall, this is not a Conservative proposal. What matters in this case is the quality of the ownership. Channel 4 has an independent ownership structure; it happens to be owned by the state, but its ownership structure has made it resilient to political pressure and able to commission highly innovative, risky and interesting forms of programming, for which we celebrate it.

    Robin Millar

    Will my right hon. Friend give way?

    Jesse Norman

    I cannot, as I do not have much time, but I may take my hon. Friend’s intervention later.

    It is not a Conservative proposal to sell Channel 4, and even if it was sold now does anyone really think the value generated would not itself be a reflection of the proposed doom scenario in advertising revenues because of the way in which future cash flow works? The key issue here is that we should support an enterprise that itself supports independent production companies, many of them in our nations and regions, that proactively supports disabled people, that supports the Union, and that supports levelling up. That is what Channel 4 does.

    I have no doubt that Channel 4 can be further improved and enhanced, and I see its next episode as a down payment on the next generation of its own thinking about how its module could be further leveraged and enhanced, but at the moment it is doing a superb job. We should not sell it; we should proceed and support it in any way we can in the future.

  • Rosie Duffield – 2022 Speech on Channel 4 Privatisation

    Rosie Duffield – 2022 Speech on Channel 4 Privatisation

    The speech made by Rosie Duffield, the Labour MP for Canterbury, in the House of Commons on 14 June 2022.

    Yesterday, Bectu, Equity, the National Union of Journalists, the Musicians’ Union and the Writers’ Guild wrote a joint letter to the Secretary of State urging her to reconsider the sale of Channel 4 and in doing so protect the jobs of thousands of freelancers and the livelihoods of at least 60 production companies. It is here I have to declare a significant personal interest, as my partner is a freelance documentary maker who, as well as working for the big streamers, such as Netflix, is currently directing a project for Channel 4. That gives me some insight into exactly what is at stake and the projects that might never have been made without the existence of this hugely important British institution.

    Like many others, I was addicted to “Brookside” when growing up, but I also learned so much more about the wider world and the plight and lives of those I did not encounter in my daily life. What we watch on television has the power to change and shape our lives and to teach us about places and people we do not know, from the very funny and sometimes jaw-dropping insights brought to us by “Come Dine With Me” to the 2018 episode of “Dispatches” made by Avanti that revealed the homeless shelter residents employed by upmarket London retailers, yet unable to afford to rent a home.

    As well as groundbreaking documentaries such as “For Sama” and truly global news that covers stories that others do not show us, Channel 4 and its filmmaking wing Film4 have made so many astonishing dramas and films that we all know and love. We will all have our favourites—the dramas and scripts that stay with us, whether that is “Slumdog Millionaire”, “The Favourite”, “It’s a Sin”, “White Teeth” or “Indian Summers”, and the stars whose names are now so familiar to us: Dev Patel, Olivia Colman, Sacha Baron Cohen, Jonathan Ross and Julian Clary, to name just a few.

    Then there is the comedy, which has just been mentioned. It has to be worth saving the home of “Father Ted”, “The IT Crowd”, “PhoneShop”, “Stath Lets Flats” and “Drop the Dead Donkey”. I realised as a younger woman that even women could get involved in comedy—who knew? “Absolutely”, “Smack the Pony”, Mel and Sue and “Derry Girls” are all now part of our cultural heritage, reflecting the best and often the most ridiculous and eccentric parts of British life. Channel 4 has always shown us our global connections, too, and not shied away from controversy or honesty about the less proud parts of our nation’s history.

    As an institution started by Mrs Thatcher, and an incredibly successful British business owned by its viewers, Channel 4 deserves our pride and our praise. As a pioneer of programming from previously overlooked or forgotten groups, whether that is bringing the Paralympics into every home, the pink triangle season or “The Undateables”, there truly is no comparable broadcaster.

    The Government have looked at this idea before and changed their mind, and there is absolutely no shame in doing so again if the Secretary of State listens to the voices of creatives, content makers, advertisers, unions and the British public, who overwhelmingly say that they do not want this. This is a successful and popular business currently costing the taxpayer nothing at all, but bringing enjoyment, enrichment and employment to so many, so let us think again. We should be proud that when other companies such as Netflix are under huge financial pressure, Channel 4 is thriving. It should be preserved as something unique and influential—a showcase for Britain’s creative best.

  • Ben Everitt – 2022 Speech on Channel 4 Privatisation

    Ben Everitt – 2022 Speech on Channel 4 Privatisation

    The speech made by Ben Everitt, the Conservative MP for Milton Keynes North, in the House of Commons on 14 June 2022.

    I am sure we can all agree that the diversity and range of broadcasting here in the UK is a hallmark of a free and democratic society. Indeed, television is one of our most popular exports, and a huge source of soft power. We project Britain, and our ideals, through billions of TV screens around the world. I am a ’70s baby, early ’80s child. I was about eight when my parents first got a television, and I was absolutely glued to it, so Channel 4 really has been part of my life growing up. Indeed, people remember the excitement of acquiring the fifth channel.

    Channel 4 is a modern, forward-thinking broadcaster providing millions of customers with unique content while, as we have heard, supporting and promoting the independent production sector. I reflected this morning on what Channel 4 shows I have enjoyed watching. I realised that aside from “Humans”, all the others are from about 20 years ago—“Brass Eye”, “Spaced”, “The IT Crowd”, “Father Ted” and so on. Plenty of shows produced by Channel 4 subsequently have pushed the boundaries of broadcasting, even if I have not watched them. I am told that one of them is called “Naked Attraction”. These shows, and many more, illustrate the vast range and depth of the creative talent at Channel 4. Importantly, the Government are keen to maintain and foster that in future, which is why they are taking action.

    The media and television landscape has changed dramatically over the past decade, with the rise of subscription streaming services such as Netflix, Disney+ and Prime Video, all of which have been mentioned. They demonstrate the shift in the landscape. We can now access content through a range of devices at any time, wherever we are. We need to adapt. The world is changing and there is a new landscape, so public service providers must evolve. We have an increasingly competitive market. No Government can fully give powers to any company to adapt to this. Government ownership, in the context of that competitive market shift, is holding Channel 4 back from being able to adapt to the new state of play. Adapting, in the case of Channel 4, means diversifying and broadening revenue streams. It means having unrestricted freedom to create and produce its own content, fully utilising the creative talent that it is known for across the country.

    These significant structural changes require investment —lots of it—and speed of delivery. That scale of change is best achieved through private ownership. During these testing times for many throughout this nation, it is not fair to ask the taxpayer to bear the burden of any resulting risks. More broadly, these challenges are linked to the Government’s levelling-up strategy. We want to empower the UK’s creative industries, wherever they are across our nation, by investing in independent production and creative skills, creating more jobs and opportunities for everyone. I welcome the fact that the Government seek to use the proceeds from the sale of Channel 4 to enable that investment.

    The media Bill will empower Channel 4 by enabling it to pursue and track its own creative direction, bolstering the UK’s public service broadcasting sector. If we increase competitiveness, we drive growth and prosperity across our nation—something I am sure we can all agree, across this House, is a desirable outcome. Clearly—this will not be a shock—I am not on the side of the doom-mongers and the pessimists, or, as others call them, the Opposition. We heard a blast from the past earlier with all the stuff about big American companies coming over to take our assets. It is Corbynism again—Corbynism in an Islington lawyer suit. Channel 4 has a bright future. It has the capacity and the tools to succeed without the constraints of public ownership.

    Sir Peter Bottomley

    I have been listening to my hon. Friend with interest. How is Channel 4’s future brighter when it stands by itself if it is sold to a competitor? What is the gain?

    Ben Everitt

    I welcome the intervention. The gain is that the risk is not with the taxpayer; Channel 4 would be unburdening the taxpayer from the risk of future borrowing.

    Channel 4 does have a bright future. It is a successful broadcaster in its own right, and it can stand on its own feet, but the risk of borrowing against the taxpayer is not something that the Government want to get into. Ultimately, for Channel 4 to flourish, the Government must step out of the way.

  • Charlotte Nichols – 2022 Speech on Channel 4 Privatisation

    Charlotte Nichols – 2022 Speech on Channel 4 Privatisation

    The speech made by Charlotte Nichols, the Labour MP for Warrington North, in the House of Commons on 14 June 2022.

    That we are having this debate at all shows the widespread failure of this Government. They are bereft of ideas and sinking in the polls at a time when the public are being hammered by soaring costs and squeezed incomes. Any sensible, competent Government would be laser-focused on addressing that, fixing the economy and giving people the support and security that they deserve.

    But this is not a competent Government, and they are incapable of even basic administration or delivery, as we have just heard in the debate on their crisis at the Passport Office, which still fills my inbox. Instead they repeatedly try to distract and hoodwink us with unnecessary fights and outrageous announcements, diverting us all with culture war headlines rather than doing their jobs.

    This culture war is an act of cultural vandalism. Channel 4 is a great British success story. It is publicly owned but privately funded, and is a major employer in our news and entertainment sectors, essential for small independent production companies, and the biggest single investor in the British film industry. Its remit has developed programmes that give opportunities to alternative and marginalised groups and made both a commercial and cultural success of their perspectives.

    Not least among those are the opportunities and representation that Channel 4 has consistently championed for LGBT people since its launch in the 1980s, when previous Conservative Governments condemned our identities. That in itself shows that Channel 4 has never been constrained by its public broadcaster status. It nurtures skills and talent and extends our reach and cultural influence around the world; it would take an extremely strong reason for anyone to want to threaten that success, especially since the Government have no mandate or support from the public to do so.

    The Government have not come forward with any coherent case for their proposal. Channel 4 thrived financially last year, with record revenue and surplus. It is already a major investor in our creative industries and is able to take wholly independent commercial and editorial decisions without answering to either Government or shareholders. In comparison with the now flagging Netflix, All 4 is the UK’s biggest free streaming service, generating 1.25 billion views in 2021, and 80% of UK 16 to 34-year-olds are registered.

    Channel 4 already spends more with production companies in the nations and regions than any other public service broadcaster. More than half of its commissioning budget is spent outside London, going directly to small independent production companies, and it has major offices in the north, including one in Manchester.

    In a first for terrestrial TV, this year, rugby league has been available for the first time on Channel 4, something that is huge for the sport. Some 750,000 people tuned in to watch Leeds Rhinos versus Warrington Wolves, and throughout the season we have had increased audiences getting to watch rugby league, perhaps for the first time—something that is important not only for Channel 4, but for a sport that rarely gets the exposure and audience share it deserves, despite its importance to communities such as mine and across the north of England.

    This is a dud of a proposal, which would rightly be rejected by commissioning editors as a clear flop. Beyond just the creative sector, the plans are opposed by 91% of the consulted public. The Incorporated Society of British Advertisers tells us that advertisers “overwhelmingly oppose the privatisation” and the Federation of Entertainment Unions and the Bectu trade union warn that, according to Ernst and Young,

    “the creative industries could be £2 billion worse off under privatisation, as well as 2,400 jobs in the creative industries being at risk and at least 60 production companies at risk of closure.”

    Far from being strong reasons to privatise, they are clear warnings that the Government’s plans could be an unwelcome body blow to a flagship British industry.

    Rather than this reckless vandalism, Labour offers support to our great British success stories. I am glad to hear that those on the Front Bench will be taking every measure to oppose this, here and in the Lords. We are proud of our creative industries; we should be boosting them, not flogging them off.

  • Robin Millar – 2022 Speech on Channel 4 Privatisation

    Robin Millar – 2022 Speech on Channel 4 Privatisation

    The speech made by Robin Millar, the Conservative MP for Aberconwy, in the House of Commons on 14 June 2022.

    As so many on these Benches have said, Channel 4 has marked the landscape of our lives. Loved or loathed, the landmarks are all there to see across the broadcasting landscape. For me as a youngster, it was the NFL coverage of Super Bowl on Sunday nights that sticks in my memory. More recently, as an engineer, I enjoyed the prominence and accomplishments of the characters on “The Big Bang Theory”, and there are others that have taken our attention as a nation. Who could forget the cultural contributions of the likes of Homer Simpson, particularly his contribution to the English language of “Doh”? Perhaps I am the first Member in this House to mention that in this place. For the benefit of the hon. Member for Ochil and South Perthshire (John Nicolson), that was a cultural reference.

    The motion moved by the Labour party opens with the words:

    “That this House supports the UK’s much loved cultural institutions, which are celebrated around the world while creating jobs and growth across the country”.

    I am sure that those words are unanimously supported by Members across the House. I am proud of this Government’s support for, and recognition of, the immense value of our cultural institutions. After all, it was this Government who opened the £1.6 billion cultural recovery fund, which protected museums, galleries and other cultural treasures from the existential threat that the pandemic presented to much of the UK’s cultural landscape. It was a Conservative Government who saved it.

    Let me be clear that I believe the right sale of Channel 4 will help it to thrive in the modern era. Other hon. Members have made that point, so I will not dwell on it. I also believe that a change of ownership can give it access to funds, as other hon. Members have pointed out.

    My main point, in answer to several hon. Members who have raised this, is about why a sale is necessary. This is an important point to make because it speaks to how we manage public assets—the buying, holding and exiting of those assets. The word “ideology” has been used several times by Opposition Members. Perhaps this is a gross characterisation—hon. Members will forgive me—but often the Opposition are characterised as being ideologically driven and those of us on the Government side are characterised, or criticised even, as being over-pragmatic. It is interesting to see our actions and words here viewed through an ideological lens. Actually, we are making a pragmatic response.

    As a state, we have a poor track record—across all parties and all Governments. We are very good at spotting problems, designing a response and delivering a solution, but then we tend just to hold on. We think that is virtuous, but in fact we risk creating self-perpetuating institutions that become an echo of the past. The real question is not whether this is an ideologically driven or pragmatic response; it is which is the better driver for creativity. I am mindful of bodies such as NatWest, because until two months ago the Government were still the majority shareholder.

    What happens when we hold an institution—this has been shown time and again—is that institutional calcification occurs. Inevitably, funds are diverted, with more and more resource going into self-preservation. But the right sale, well managed, would break that up.

    Jesse Norman

    I am enormously grateful to my hon. Friend for his comments, but does he have any evidence that the calcification he talks of is actually happening to Channel 4? There is obviously inflation in the sector. Does he think that Channel 4 is markedly less innovative than other players in the sector? Could he say a bit more about why he thinks privatisation would make a positive difference, given that Channel 4 has managed to flourish over 40 years of state ownership? There are other state organisations, such as the Bank of England, that we would not consider privatising because they have shown their value over many years.

    Robin Millar

    I thank my right hon. Friend, who pre-empts my next comments. Indeed, I will come on to why flourishing is not just measured in finance. For every supply chain that might be disrupted by a sale, a new opportunity for entrants to the sector is created. We have already heard one such example in the intervention from my hon. Friend the Member for Lichfield (Michael Fabricant). Some of the production companies that started with Channel 4 in the early days were cutting-edge start-ups, but now they are becoming institutions in their own right, and we have seen the same pattern—to answer my right hon. Friend’s question —in silicon valley. For agrarians and those who enjoy gardening, sometimes we prune a successful fruit tree in order to encourage further flourishing and production.

    After all, Channel 4 has achieved its objective, and this is the point. It was set up by a Conservative Government, under Margaret Thatcher, to create competition in our now thriving independent production sector. Now, having fulfilled this purpose, we are supporting our public service broadcasters to continue to grow, export British content and compete globally. To sell is a responsible question to ask.

    By way of further example, about a year ago I spoke to the former chief executive of S4C—Sianel Pedwar Cymru, as we say over the border. It was clear then that S4C was being drawn away from the traditional broadcaster role into more of a media company role, but the funding arrangements in place were hindering that. I see a parallel with the situation facing Channel 4. To be clear, and in response to the hon. Member for Cardiff West (Kevin Brennan), success is not shameful and a sale is not punishment.

    In conclusion, the Opposition should not fear change, nor should they resist the responsible management of public assets. It is the responsible thing and it is the right time now to ask the question: what next for Channel 4?

  • Damian Collins – 2022 Speech on Channel 4 Privatisation

    Damian Collins – 2022 Speech on Channel 4 Privatisation

    The speech made by Damian Collins, the Conservative MP for Folkestone and Hythe, in the House of Commons on 14 June 2022.

    Before I start, I would like to do as the shadow Secretary of State did and declare my entry in the Register of Members’ Financial Interests. I, too, was a guest of Channel 4 at the BAFTA ceremony. I would also declare, as other Members from across the House have done, that I am a fan of “Derry Girls”, as, I am sure, as part of his cross-community work, is the hon. Member for North Antrim (Ian Paisley). This is a channel that makes great programmes that are part of our national psyche and it is an important part of our broadcasting landscape.

    However, I say to Opposition Members and some on our side that I have an honest disagreement with Channel 4 and with people who are opposing privatisation; the company, although well run, is running into such strong industry headwinds that this cannot be taken off the table and it has to considered seriously. As Channel 4 said in its own “The Next Episode” response to the Government’s White Paper, all options have to be considered. That has to include the option of privatisation.

    The challenges to the sector are very real. A lot has been made of the fact that the last financial year was a successful one for Channel 4 and for the UK advertising industry. There was a major spike in advertising revenues. That is partly to do with a major surge in advertising spend coming out of the pandemic, which saw a big increase in revenues for all broadcasters. The pandemic also meant the delay to the European championships and the Olympics, and such major international tournaments traditionally have a considerable inflationary impact on the advertising market. So we have to look at this in a wider context: the increases in ad revenues seen in 2021 may not be repeated; and the diversion away from linear television advertising—traditional spot advertising—to digital media is a continuing trend. Channel 4 may be the leading UK broadcaster in that respect, but currently only 16% of its revenues come from digital advertising. Although it wants to move that target to 30% by 2025, that may still be a significant challenge.

    If there is a major challenge to the TV industry, to the advertising industry, and if there were a recession—TV advertising is traditionally one of the earliest and worst-hit sectors—Channel 4 would be much more vulnerable to the economic shocks that would come, because it does not have other revenue sources. These trends may be familiar across PSBs, which have seen long-term declines in revenue if they are commercial, and in audience numbers, including at peak time. However, the BBC can make money from making programmes. ITV can make money from making programmes, for itself and for other people. Channel 4 does not have that option.

    Let us look at the period before the pandemic. In trying to observe a trend, that is probably the fairest thing to do, because we do not yet quite know what impact the pandemic has had, in terms of lockdown in 2020 and recovery in 2021. What does the picture look like? I think everyone here would agree that when Channel 4 was set up its purpose was to invest its money in UK original productions made by independent production companies. It was set up at a time when the BBC and the ITV companies largely made most of their stuff in house, so it was a necessary vehicle to get financial investment into the independent production sector. This was a sector where Sky, Amazon and Netflix did not exist, and it was far more reliant on that funding.

    If we look at what has happened to Channel 4, and this is true for other PSBs as well, we see that in 2006 it spent £516 million in first-run original content. In 2019, the year before the pandemic, the figure was £436 million, so we have seen a 15% decline. That declining revenue also bought a lot less as well, because inflation in the TV production market is making it more and more expensive to make programmes. So in 2006 Channel 4 broadcast 3,388 hours of first-run original content, whereas in 2019 it broadcast 2,473 hours, which represents a decline of 27%. This trend away from traditional broadcasters towards digital markets, with the pressure that has on their budgets and the declining amount of money they can afford to spend on new programming, has been a trend for a number of years now. The concern we must have is that if there was a shock in the digital ad market and if Channel 4 cannot hit its targets of allowing digital revenues to grow as broadcast revenues decline, it is much more vulnerable. It does not have the reserves and it does not have the ability to make money elsewhere. That is why even Channel 4 is proposing significant changes to its remit.

    Kevin Brennan

    The hon. Gentleman says that Channel 4 is proposing this, but that proposal was a direct response to a request from the Secretary of State to propose alternative sources of revenue. It was not initiated by Channel 4 because of its concerns about its finances.

    Damian Collins

    As I pointed out earlier in the debate, in that document Channel 4 itself says that it requires a radical reset of its role. If it is to take the opportunity of the changing digital landscape in the future, it needs to be in a position to invest more money. That extra investment will not come from advertising revenues. Channel 4 has been the most successful traditional UK broadcaster in switching to digital, but even there the best one can say about the last few years is that the increase in digital revenues has just about kept pace with the decline in broadcasting revenues. Digital is not raising more money incrementally for Channel 4 to invest in programming at a time when new entrants to the market are increasing their spend significantly—by hundreds of millions of pounds. The danger is that Channel 4, with its unique voice, will be less able to compete, less able to commission, and will run less new programming than it could in the past and that other broadcasters will do. That has to be addressed.

    Channel 4 has said that its role needs to be radically reset. It is calling for its digital streaming service, All 4, to be global—to reach a global audience—to increase ad revenues. That is a sensible idea, but the independent production companies that make programmes for Channel 4 would have to give their consent to being unable to sell their programming internationally on their own, as they would in other territories. It calls for the creation of a joint venture in which Channel 4 holds a minority stake that would raise £1 billion to invest in new programming over the next five years. That would be a sensible measure to bring in a significant extra boost in revenue, although it would only bring Channel 4 back to where it was in 2006. As part of that joint venture, Channel 4 would have the intellectual property rights for programming and make money from selling those programmes. Channel 4 believes that may be within its current remit, although it would significantly change the spirit of the remit. The independent production companies might have concerns about that extension, but it is probably necessary.

    The idea that the status quo can continue is wrong. It would be wrong of us to assume that it can continue and to say that we will deal with this problem, if it comes, in the future, and in the meantime see Channel 4 gradually wither on the vine, with declining revenues, declining investment in programming, unable to compete, until the point where it cannot go on and requires a bail-out from the Government or the other PSBs. That is the risk we are taking.

    The Government’s “Up Next” White Paper is not an ideological tract; it is a sensible and serious at look at real issues in the TV sector. We may have different views on what the right format would be; Channel 4 has put forward its ideas and other bidders will do the same. I think the bidders will be more than the traditional players; others will bid as well and we should look at those options, but they will all be options for change, suggesting a way that Channel 4 can raise more money to invest in what we want it to do—making great programmes.