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Tag: Speeches

  • 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.

  • Ben Lake – 2022 Speech on Channel 4 Privatisation

    Ben Lake – 2022 Speech on Channel 4 Privatisation

    The speech made by Ben Lake, the Plaid Cymru MP for Ceredigion, in the House of Commons on 14 June 2022.

    It is a pleasure to follow the right hon. Member for Maldon (Mr Whittingdale), and I agree with much of what was said by the Father of the House and the hon. Member for Cardiff West (Kevin Brennan). I do not feel that the case for privatisation has been made.

    As the hon. Member for Cardiff West so eloquently conveyed in his imagined conversation between the Secretary of State and the permanent secretary, Channel 4 is in rude financial health and there is a danger that many of its commercial competitors look on with envy at its digital innovation, so I do not think the case has been made for privatisation in the interest of preserving the future of Channel 4.

    I have previously raised concerns that privatisation would jeopardise Channel 4’s valuable investment and contribution in communities across the UK as part of its public service remit, and particularly its contribution to production companies and content producers in the nations and regions of the UK thanks to the quotas set by the Government as part of its remit and the voluntary quotas it has decided to exceed.

    When I asked the Secretary of State and the Department how the Government would ensure that such a valuable contribution continues following privatisation, I was told to wait for the White Paper for further details. I have waited, but I am afraid the White Paper offers little by way of reassurance.

    The Government made a commitment in the White Paper to maintaining Channel 4’s mandatory obligations on regional production and commissioning outside England, which at first glance is very welcome but is by no means an improvement on the status quo. In fact, it risks falling below the current level because Channel 4, as I mentioned, exceeds its mandatory requirements.

    Channel 4’s mandatory quota for content produced outside London is currently 35%. That is much lower than its voluntary quota, which exceeds 50%. If a private owner aligned spending in the nations and regions with the mandatory quota alone, Channel 4’s contribution to gross value added through its supply chains in the nations and regions would reduce by some 43%, or £1.2 billion, over 10 years.

    The independent report by Ernst and Young suggests that the creative industries in Wales will be disproportionately hit, noting that a private owner would likely choose to shift commissioning spend to London’s more concentrated production market. Perhaps in response to the inflationary pressures in the sector, a private owner might want to consolidate and concentrate its operations to save on costs, which would have a very serious impact on jobs in Wales and in the other nations and regions of the UK.

    The jobs supported by Channel 4 in the nations and regions each year, both directly and through its supply chain, would reduce by some 60%. Channel 4’s investment in Wales has amounted to more than £77 million in the past 10 years, supporting more than 200 jobs in 2019 alone. The White Paper, I am afraid to say, fails to offer the reassurance I was hoping for that such a contribution would continue under privatisation, let alone explain how it might increase due to the supposed benefits of privatisation.

    In evidence to the House of Lords Communications and Digital Committee, Teledwyr Annibynnol Cymru, the Welsh independent producers group, said it

    “cannot see any benefits of privatising Channel 4.”

    Indeed, TAC expressed a fear that privatisation will have a negative impact on the Welsh production sector, and it detailed concerns about the future of Channel 4’s training programmes, including its flagship production training scheme, which is completely focused on the nations and regions and has already placed trainees with Welsh companies such as Bad Wolf, Yeti and Chwarel, and with the Welsh factual fast-track scheme that addresses skills gaps in developing executive producers in the factual sector.

    Reduced spending on such schemes will not only affect current jobs but undermine the long-term development of the creative producers and journalists of the future. It is patently obvious that the Government’s proposals to remove Channel 4’s publisher-broadcaster model, which ensures that the vast majority of its content spend goes on original UK programming, will only damage the sector in Wales. Rather than delivering a public service remit, Channel 4 would instead have to act solely with a direct profit motive. That would mean that future investment will be ever more driven by market forces. Let us consider for a moment that the Netflix production hub is in Surrey’s Shepperton studios and that Disney has a long-term lease for Pinewood studios. If the Government wish Channel 4 to follow in the footsteps of those companies, we will almost certainly see production concentrate and consolidate in the south-east of England, contrary to the Government’s levelling-up agenda. The White Paper and the proposals for Channel 4 have failed to reassure me that the privatisation will deliver any other outcome. They are then failing not only the future of the cultural sector in Wales and other parts of the UK, but the Government’s own levelling-up objectives.

  • John Whittingdale – 2022 Speech on Channel 4 Privatisation

    John Whittingdale – 2022 Speech on Channel 4 Privatisation

    The speech made by John Whittingdale, the Conservative MP for Maldon, in the House of Commons on 14 June 2022.

    There is a lot in the Opposition motion with which I agree, particularly its drawing attention to the success of our creative industries and our broadcasting sector and to the benefits that Channel 4 has brought, but it is because I want to see the continuation of Channel 4’s contribution to the creative sector that I believe the Government’s policy is right and will ensure that Channel 4 can continue to thrive.

    As has been pointed out, Channel 4 was created by Margaret Thatcher’s Government. There were two principal objectives. The first was to cater for minority audiences that were not being properly provided for at that time. The second was to act as a catalyst to what was then a barely visible independent production sector. Since that time, the landscape has changed dramatically. If we look at the range of choice now available to viewers, we see huge numbers of channels providing a wide and diverse range of content. We also see the spend by those channels. A lot of them are not British, but they are spending money in Britain. Just to give one example, Apple TV recently came to my constituency of Maldon to make “The Essex Serpent”, which I thoroughly recommend to those who have not yet seen it. Minority audiences are now being catered for, but of course Channel 4 should continue with that remit and continue to meet it.

    The independent sector has absolutely taken off since Channel 4 was created and is now making programmes that are enjoyed right across the world. However, it is true, as one or two hon. Members have pointed out, that the spend of Channel 4 has declined. I want to cite quickly the latest Oliver & Ohlbaum UK TV production survey for PACT—the Producers Alliance for Cinema and Television—which is the independent production sector. In 2020, spending on independent producers was £508 million by the BBC, £356 million by ITV, £210 million by Channel 4 and £223 million by the others, including Sky and some of the streamers.

    Just in case people say, “Ah, but Channel 4 continues to support the small indies”, I point out that 40% of the BBC’s spend is on independent production companies with a turnover of less £10 million, compared with 27% of ITV’s, 11% of Channel 5’s and just 10% of Channel 4’s. Yes, Channel 4 does make a contribution, but the independent production sector is actually now so successful that it no longer necessarily needs the support it was previously given. Indeed, I think there is a case for tweaking the remit so that Channel 4 is perhaps returned to its original purpose of focusing on growing companies, not just on commissioning from production companies that are already hugely successful.

    The reason why it is right to look at the future of Channel 4 now is that the original model set up, as a commissioner and publisher-broadcaster wholly dependent on advertising, is going to come under increasing strain. Yes, Channel 4 did well last year in that it survived the pandemic. It did so because it cut the programme budget by £140 million and its drop in revenue was not quite as big. As a result, it made a larger profit, but it did so only by slashing the programme budget. That was a sensible thing to do, but it should not be interpreted as Channel 4 thriving and not being under huge pressure.

    We know that that pressure is going to increase. Advertising is steadily migrating online. Digital advertising is becoming overwhelmingly the major spend by the advertising industry. As the Secretary of State pointed out, those that want to spend on TV advertising have ITV, Channel 4, Channel 5 and Sky to go to at the moment, but the streaming services are also going to open up to advertising. Netflix is talking about taking advertising and Disney is talking about taking advertising, so the competition for advertising is going to get ever greater and the diversion of revenue to digital media is also going to continue.

    Channel 4’s revenues are going to come under increasing strain at the same time as the cost of production is rising steadily and there is a shortage of skills. As has been pointed out, there are potential benefits from privatisation, and the hon. Member for Cardiff West (Kevin Brennan) referred to the difficulties that might be encountered in the House of Lords. To quote the last House of Lords report on Channel 4:

    “The potential benefits of privatisation to C4C’s sustainability are increased access to investment in programming, content partnerships and technology through access to capital. This would enable C4C to diversify its revenues, enhance its sustainability and be more ambitious internationally.”

    I could not have put it better myself.

    I want to counter those who suggest that this somehow a vendetta against Channel 4 because some people may not like some programmes. I completely reject that. I remain a fan of Channel 4 News, even though it annoys me intensely on occasions. It is important that we have plurality in our news provision, and Channel 4 News is a professional news provider. This is not just about raising money for the Treasury. The reason behind privatisation is that the Conservative Government whose predecessor created Channel 4 want Channel 4 to go on succeeding, but under the present change in the landscape, it needs a different funding model and the access to capital that the private sector can provide.

  • Rachel Hopkins – 2022 Speech on Channel 4 Privatisation

    Rachel Hopkins – 2022 Speech on Channel 4 Privatisation

    The speech made by Rachel Hopkins, the Labour MP for Luton South, in the House of Commons on 14 June 2022.

    It is a pleasure to follow the hon. Member for Solihull (Julian Knight).

    “Channel 4’s public service model and remit, which are so vital to the continued strength of the UK’s broadcasting ecology, would not be best served by privatisation”.

    Those are not my words, but those of the then Conservative Secretary of State for Digital, Culture, Media and Sport only five years ago. They still represent a wide consensus among the public: when the Government’s consultation last year essentially asked respondents whether they thought Channel 4 should be privatised, 91% said no and only 2% said yes.

    The case for the continued public ownership of Channel 4 is overwhelming. It does not cost the taxpayer a single penny. It invests 100% of its revenue back into the channel to provide entertainment for the public, good jobs in communities and opportunities for the UK’s fast-growing creative industries. Its unique remit has allowed it to directly invest more than £1 billion into the UK’s independent production sector and work with 300 smaller production companies every year. Channel 4’s commissioning has boosted local economies across the country; it spends more with production companies in the nations and regions than any other public service broadcaster, and more than 50% of its commissioning budget is allocated to production companies outside London.

    I remember Channel 4 first coming to our screens in 1982. It was an exciting prospect. It was fitting that its first show was produced by a regional production company, Yorkshire Television—it was none other than teatime favourite “Countdown”. Over nearly 40 years, Channel 4 has pioneered representation and diversity and showcased them to audiences across the UK and the world. Its focus on alternative voices and cutting-edge storytelling has created TV firsts such as the first female same-sex kiss aired before 9 pm, which was on “Brookside” in 1994. Recently, we have seen “It’s a Sin”, “Derry Girls” and a favourite of mine, “The Lateish Show with Mo Gilligan”, all brilliant examples of what a publicly owned Channel 4 can still create.

    Maintaining our world-class reputation in TV production and film-making is critical to our global Britain ambitions, but let us be frank about what the Conservative Government’s decision tells us: they are not serious about distributing economic growth, supporting small and medium-sized businesses or backing the UK creative industries on the global stage. As the National Union of Journalists has put it:

    “It’s hard to see any justification for privatising Channel Four other than ideology. Channel 4 has achieved what it was asked to do and has proved a hit with viewers.”

    The Government’s hollow justification for a change in ownership does not stand up to scrutiny. Channel 4 is thriving. It is the UK’s largest streaming service—nearly a third more than Netflix in 2020—while Netflix’s share prices have plummeted.

    The benefits of a publicly owned Channel 4 are clear and obvious for all to see, and selling it off is an ideological act of vandalism. This ideologically driven attack on the future of our creative industries and on the principle of having public service broadcasters will create a Channel 4 that is focused merely on delivering profits to shareholders and not on creating diverse and distinctive content for the public. Privatisation would end the unique rights model that supports independent companies to grow. It would also threaten the future of Film4, which spends more on British film than any other UK broadcaster, investing £25 million annually in feature films that nurture diverse and new talent. This has created films such as “Trainspotting”, “Slumdog Millionaire” and “12 Years a Slave” and has collectively to date won 37 Academy Awards and 84 BAFTAs.

    As well as the likelihood of losing the alternative, gritty, brave content we all love, the economic damage across the country would be substantial. As we have heard, EY analysis has found that £2 billion-worth of Channel 4’s contribution to the creative economy in the regions would be lost if the channel were privatised, and there would be a 40% decline in the regional supply chain contribution and a 35% decline in jobs supported in the nations and regions.

    I also want to make the point that the timing of the announcement is curious. As has been mentioned, this proposal was not in the Government’s manifesto. The Government have prioritised selling off a proud British institution over tackling the cost of living crisis that is ravaging communities across the country. I look forward to the Minister telling the House in her wind-up speech why the Government are prioritising selling off Channel 4 over bringing down food, energy and fuel bills. How will selling off Channel 4 help my constituents to pay their bills? Or is this really a petty vendetta against a broadcaster whose news content the Conservatives do not like?

    Unlike the Conservative party, Labour is proud of our great British broadcasters. We recognise the power of projecting British culture, values and creative excellence across the world in helping our country to prosper. If it were not for Channel 4, my younger self would not have discovered great new music by watching “The Tube”, discovered brilliant comedy such as “Father Ted” or felt represented by working-class drama such as “This is England”. Now, my middle-aged self would not be enjoying some of the best political commentary from the good people of “Gogglebox” or “The Last Leg”. Pushing forward with privatisation represents a complete disregard for the concerns of the creative industries and the public. Channel 4 ain’t broke.

  • Kevin Brennan – 2022 Speech on Channel 4 Privatisation

    Kevin Brennan – 2022 Speech on Channel 4 Privatisation

    The speech made by Kevin Brennan, the Labour MP for Cardiff West, in the House of Commons on 14 June 2022.

    I endorse what the Father of the House just said. That is not to say that I do not have sympathy with Ministers. I was a Minister in the last Labour Government and I understand that Ministers face very difficult decisions. It is not always a decision between simply what is right and what is wrong. Sometimes, it is not a decision between good and evil. Sometimes, it is a decision between the unacceptable and the unpalatable. So I have sympathy with Ministers when they are considering policy.

    However, I have been trying to imagine the meeting that the Secretary of State and her Ministers must have had to discuss this topic. Presumably, the permanent secretary came along and said, “Secretary of State, I’m afraid that I’ve got some bad news for you: we haven’t got a problem.” The Secretary of State said, “Really? That’s worrying. What haven’t we got a problem with?” The permanent secretary said, “I’m afraid we haven’t got a problem with Channel 4.” The Secretary of State said, “Why? What has it been doing?” The permanent secretary said, “I’m afraid to tell you that it hasn’t been costing the taxpayer a penny while it has been operating as a public service broadcaster. It gets worse. Last year, it brought in £1.2 billion in revenue and a record financial surplus of £100 million. If that is not enough, it does not even need to borrow any money to finance its operations. I’m afraid to tell you, Secretary of State, that there is much more of this. It has also been rapidly growing its digital advertising revenue, moving into the advertising market that is the future in a way that is far outstripping all of its commercial competitors. Worse still, its digital strategy is way ahead of all its commercial competitors. It has been, annoyingly, fulfilling its remit to appeal to young people. It is the most successful broadcaster of any commercial broadcaster in reaching 16 to 34-year-olds and hugely diverse audiences.

    On top of that, I’m afraid to tell you, Secretary of State, it has been commissioning content from independent producers all over the country—”

    Madam Deputy Speaker (Dame Eleanor Laing)

    Order. The hon. Gentleman is doing it, too. You cannot say, “I want to tell you, Secretary of State.” You have to say, “Madam Deputy Speaker, I want to tell the Secretary of State.”

    Kevin Brennan

    I apologise, Madam Deputy Speaker, but I was quoting, in an imagined scenario, the permanent secretary. I was not referring to you, Madam Deputy Speaker. This is a creative debate about the creative industries. I was creating an imagined conversation, so I do apologise if—

    Madam Deputy Speaker

    Order. I apologise to the hon. Gentleman. I had not quite picked up on the context. He is probably allowed to make an imaginary quotation, saying, “You, Secretary of State.” Fine—proceed!

    Kevin Brennan

    I know that satire and irony does not translate very well into Hansard, Madam Deputy Speaker. Perhaps it could be put into italics, so that everybody can realise.

    Jesse Norman

    I just wondered, in the spirit of chivalry, whether I might be able to give the hon. Gentleman an extra minute by making an intervention.

    Kevin Brennan

    I have a feeling that that might not be in order, Madam Deputy Speaker.

    Madam Deputy Speaker

    Order. I would just point out to the right hon. Member for Hereford and South Herefordshire (Jesse Norman) that he might find he is disappointed at the end of the debate when he himself loses a minute.

    Kevin Brennan

    I am very grateful to the right hon. Gentleman for his motives. I hope he achieves his objective, but I am not sure whether I will get that extra minute.

    In the imaginary conversation, the permanent secretary might have gone on to say, “On top of that, Channel 4 works with 300 production companies a year. It spends more on external production in the nations and regions than any other commercially funded broadcaster, dedicating over half its total content spend to content produced there. I’m afraid to tell you, Secretary of State, that, in addition, Channel 4 has created hundreds of high value jobs in the nations and regions, including by moving a large part of its operations out to Leeds”—I am afraid it was not Cardiff; I wish it had been Cardiff, but it has moved an important HQ out to Leeds—“and announcing plans to significantly increase its investment in skills.”

    The permanent secretary might have continued, “On top of that, I am afraid it has been taking decisions with the public interest at heart. I’m afraid to report, Secretary of State, that it has been taking those sorts of decisions, including broadcasting the Paralympics, which otherwise would not have been exposed, and giving a whole hour every night in prime time to news. The news, which counters the misinformation that is such a blight of our age because of the internet, is subcontracted to a production company”—as ever, to ITN—“and subject to Ofcom’s rules of impartiality. And it has been absolutely integral to the success of our film industry.”

    “In other words, Secretary of State,” the permanent secretary must have said, “it is a shameful litany of success from Channel 4, and we really ought to do something about it.” Presumably, the Secretary of State would have said in response, “Well, quite clearly, we cannot allow things to go on as they are, because we are going to risk the Government’s reputation for incompetence if this carries on. We have to protect it, and, after all, we were absolutely silent in our manifesto on the issue of privatising Channel 4. Therefore, it is absolutely imperative that we should definitely do it. We did not seek a mandate from the electorate to privatise this successful, publicly owned, public service broadcaster, so we absolutely ought to do it.”

    I say to the Minister for Media, Data and Digital Infrastructure, the hon. Member for Hornchurch and Upminster (Julia Lopez)—a very thoughtful Minister, who I am sure will make the best fist of this whole thing both here and eventually in Committee, if this lamentable proposal ever gets that far—that that is where we are at the moment: caught up in an episode of “Parliamentary Pointless”, with a policy that nobody promised in search of a problem that nobody perceives.

    Lord Parkinson, the Arts Minister, appeared before the Digital, Culture, Media and Sport Committee this morning, and told us he has six Bills coming down the track in the House of Lords. I would have thought he had enough on his plate, without a pointless proposal of this kind. If colleagues in this place do not prevent this daft proposal from going any further, and the idea ends up down in the House of Lords, I am telling you—you, Madam Deputy Speaker, and the House—that it has no chance of making swift progress in the House of Lords, because it was not in the manifesto. As a result, as Lord Parkinson accepted this morning, the Salisbury convention will apply, and their lordships will feel as free as ever to delay the proposal and if necessary, as they are constitutionally entitled to do, invoke the Parliament Act. The proposal is pointless and should be abandoned.

  • Peter Bottomley – 2022 Speech on Channel 4 Privatisation

    Peter Bottomley – 2022 Speech on Channel 4 Privatisation

    The speech made by Peter Bottomley, the Conservative MP for Worthing West, in the House of Commons on 14 June 2022.

    It is interesting to follow the hon. Member for Ochil and South Perthshire (John Nicolson). I do not think he needed to bring in party politics in the way that he did. I do not think that will help Channel 4, and I do not think it will help him either. What I do think is that, if the arguments put forward for the privatisation of Channel 4 were any good, they would have been put forward by Channel 4. If I were Secretary of State, I would say, “Ask Channel 4 to ask for privatisation as and when they think it will help them as a public service broadcaster.” It has not.

    I ask the Government: when was the last time Channel 4 used public money for programmes? When did it last ask to have its borrowing limit lifted? It has not. I ask the Secretary of State whether she could have put in what she said. How much has Channel 4’s income from digital advertising increased in the last year and how much does Channel 4 expect it to rise in the next four years? We know that subscription on demand has grown and that broadcasting on demand has grown, mainly through Channel 4, but others can do the same, and we expect growth in advertising on video on demand. What we do not need to do is to throw away one of our best linear broadcasters which is also good at digital transformation.

    Nothing has been said by Government, or even Government supporters, that suggests that Channel 4 would do better in other hands. The only conceivable ownership that would keep it going the way it is now is if it were given to the independent production companies to own as a mutual, and kept the broadcaster role and the rights on secondary broadcasting. That is a zero-sum game. Either the income stays with the producers or it goes to the broadcaster—it cannot go to both. If the Government think it would help the producers to take away that secondary income, they are just saying, “We are going to take it from one pocket and put it in another.” No argument has been put forward for that.

    Have the advertisers said that they want this for Channel 4? No. The Incorporated Society of British Advertisers has said very clearly that it does not want that. There is also no evidence from polls or the Government survey and consultation that the viewers want its ownership or remit changed. The Government say that they are going to keep the whole public service remit, but they are not.

    Channel 4 has been going—successfully—for 40 years. It has its ups and downs, but generally it is on the way up. The transformation in the way it produces and presents its products has gone on improving choices for people.

    We have more than three different types of public service broadcasters. The Government are proposing to abolish one of them. That is not conservative; it is destructive. I do not blame the Secretary of State for thinking up the idea; it was there before she took on her responsibilities. But she could have done what other Secretaries of State have done and stood up to those who want to privatise Channel 4. My wife did. She was in a small minority in the Cabinet. She stood up against it. Her arguments were right. When the Chancellor said, “We want to get some money in, because we are short of money,” she explained that it was not a question of how much; it was just wrong. In the years since the mid-1990s—that is about 27 years—Channel 4 has gone from strength to strength.

    I say to the Government: do not go on with this, although not because I do not like privatisation—I do. The privatisation of the National Freight Corporation—incidentally, that was the only bit of privatisation in the 1979 manifesto on which Margaret Thatcher and I got elected—was to hand the National Freight Corporation to its employees and that worked really well, but that is not the proposal here.

    Government speakers say that the proposal will give Channel 4 more money to put into training people. We do not need to privatise an organisation to do that. They say that it will provide more money for commissioning programmes. Maybe it would in the short term, but not in the long term. What is the medium-term and long-term gain? The answer has not been put forward.

    I do not seriously believe that the Secretary of State or her colleagues mind being criticised by Channel 4 News—by criticism, I mean being asked to answer questions. That is the sort of thing that happens in the House of Commons and they do not try to abolish the House of Commons because we ask awkward questions. But as I have said, it is far better to be in government and to have to answer awkward questions than to be in opposition and cheer when the interviewer puts the awkward questions to the Labour party or whatever else might be the alternative Government.

    I ask the Secretary of State and the Government to think again, to leave the proposals for Channel 4 to rest and to say to Channel 4’s viewers, management and board, “If and when you believe that we can do better under a different kind of ownership, come forward and say so.” One of the many groups that have not done that is those involved in Channel 4.

    Those who are concerned more for the producers of programmes than for the viewers put the arguments well around the nations of this country. I do so on behalf of the public interest. If the choice is between the state owning Channel 4 and the United States owning Channel 4, it is better to have it as a state corporation, independent of Government. I wish Government would stop messing it around.