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Digital Economy Bill [HL]

My Lords, when the noble Lord, Lord Carter of Barnes, introduced Digital Britain a little while ago we all recognised that things were beginning to happen and there were some very welcome realisations, for example, on the need to move forward with digital radio. Even if it is only a beginning, clearly this Bill is an important one, which will do much to update British communications structure and regulation content. Judging by the speed of change in the industry since the Communications Act 2003 was passed, I believe that it makes sense for the Bill to include powers for the Secretary of State to make regulatory changes through secondary legislation to deal with any potentially challenging new developments that still lie just over the horizon. Similarly sensible is the proposed duty on Ofcom to report to the Government every two years on any developments significantly affecting the UK’s communications infrastructure and Ofcom’s specific new duty to promote investment in public service media content. I shall concentrate most of my remarks on the protective measures proposed for creative industries—alas, like many other noble Lords—and on the amendments to the Video Recordings Act. I also want to welcome those parts of the Bill that will help to facilitate opportunities for a wider range of quality PSB content, enabling UK citizens access to these across the increasingly multiple platform that we have now within the communications market. It is realistic, too, that the Bill includes plans for ITV, which over recent months made its position very clear. The plans will enable ITV to relinquish its public service responsibilities unless they are funded from elsewhere. Equally, on the other side, it is certainly good news—interestingly, warmly welcomed by Channel 4 itself—that the Bill, as a result of the growth of digital media, proposes to update its activities, requiring Channel 4 to be involved with a wide range of quality programmes, including news and current affairs, for different delivery platforms and multiplexes. Channel 4 has made a considerable success of its public service channels, with news and older children's programmes and, especially, its huge contribution to British film. We shall all look forward to it playing an even more important role in public service broadcasting competition to the BBC and other commercial stations that want to go down that route. However, it remains unclear where the finance for this enhanced role is to come from, although the Minister, in replying, may put us fully in the picture. I welcome those parts of the Bill which incorporate the Digital Britain promise to speed up delivery of a fully operational DAB digital radio platform. I spend a lot of time in cars and have had hearing difficulties since the arrival of my first child, so it is a real pleasure to enjoy the quality and clarity of digital sound, especially when listening to music—whether it is Radio 3 or Classic FM, both of which are excellent stations. The plank for Ofcom to be able either to terminate analogue licences without consent, subject to a minimum two years’ notice, or where appropriate to extend analogue licences up to and beyond switchover, on condition that digital services are also provided, will no doubt help to build in the much-needed flexibility to enable radio switchover. I very much hope and have confidence in the plans that have been outlined that it will happen by 2015. It is important that it does. I turn to Part 3, which deals with creative industries—a key part, with exports worth £16 billion or 8 per cent of GDP, as the Creative Coalition Campaign tells us. Sadly, the industry is increasingly undermined by illegal file-sharing, or theft, to put it bluntly. There are also some 1.8 million UK jobs involving a wide range of skills which are endangered while this illegal trade, which is far more dangerous now it is digitally enabled, continues. While most people would be reluctant to limit anyone’s access to the internet—my imagination somewhat boggles at how this is to be achieved—and despite the briefings by Which? and other organisations, which I have certainly read and I think are concerning, my initial reaction is that the Bill’s clauses are both moderate and proportionate. It is good that the Bill will require ISPs and rights holders to work together on how the process to be followed is carried out. Obviously there will be a need for a closer look at the clauses in Committee, but on balance, this seems an acceptable, step-by-step approach to a difficult and—I hope, as we are told—relatively temporary problem, as the market produces a better business model that will make this form of activity less desirable. Finally, noble Lords will understand that with my background at the Broadcasting Standards Commission, my main concern with amendments to the Video Recordings Act 1984 is child protection. I of course welcome those parts of the Bill implementing Dr Tanya Byron’s recommendations in Safer Children in a Digital World, but I am concerned that this Bill represents a missed opportunity to update all the exemptions in Section 2 of the current Act. These exemptions relate not only to video games which the Bill does amend, but also to other video work such as music and sports videos. Such works can claim exemption from the VRA and be sold perfectly legally to children, even if they contain material which is clearly potentially harmful. I am not suggesting extending the VRA to all such exempted works, merely to those that contain content which is potentially harmful, such as graphic violence, sexual content falling short of actual sexual activity, and inimitable, dangerous behaviour and drug use. I have seen some of these works myself. Their content is by any standards, inappropriate for children. For example: "Motley Crue - Greatest Video Hits"—and these, I may say, are not on my usual viewing list—features topless lap-dancing. "Slipknot (10th Anniversary DVD)", features the sight of the band's name carved into girls' arms and torsos. These are works which parents could legitimately expect to be regulated. Yet under the current legislation they can be sold legally without any age restriction. The enforcement agencies have no ability to prosecute distributors for supplying such works unclassified. Will the Minister confirm that it is not the Government's intention to allow the new video games authority to classify film-type content, including full length feature films, in video games? This is important not to undermine a regulatory system for films and other non-game content that is tried and tested and has public support. I note that the Bill anticipates that certain classes of video games may be transferred to the BBFC from the video games authority, and I understand both from it and the Explanatory Notes, that this could include games which are supplied on the same disc as a film, where the film is the primary content, and hard-core sex games, which require specific expertise because of the extreme pornographic content. I would suggest—and perhaps we can look at this in Committee—that it might better reflect the Government’s intent if they were to state in the Bill that these allocations shall take place where the primary content on a disc is film-type material rather than a video game, or where the video game would require an R18 certificate for supply to a licensed sex shop. I hope that the Government are able to address these concerns and, indeed, the others that will clearly be arising in Committee and on Report, but I thoroughly support the main purpose of the Bill. I hope that it is going to be improved—I am sure that it will—by the debates that go on in your Lordships’ House, and that the result will be to more effectively future-proof the whole legislation, and to better achieve support for the creative industries and, above all, for public service broadcasting.