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Future of the BBC

My Lords, I shall not be the first today to thank the noble Lord, Lord Fowler, for this opportunity to discuss the future of the BBC, but I do so very warmly. Your Lordships’ House is lucky to have had him, with his distinguished media as well as parliamentary career, as chairman of its Select Committee on Communications, since this was first established after a little battle with the powers that be earlier this century. It has been a great privilege to be part of his team. I am glad to say that research shows clearly the importance and value of the BBC to this country. Eighty-five per cent of UK citizens would miss it if it were not there, and the level of trust in all that it does continues to grow. Above all, our citizens want a strong, confident and high-quality BBC. Its "jewel in the crown" image is as accurate today as when that phrase was first coined. It is also agreed that there needs to be a competitive range of public service broadcasting programmes from the commercial media, particularly to provide independent, high-quality, impartial news of the kind currently provided by ITN and Channel 4. This House, as we know from yesterday, will shortly have an opportunity to discuss in detail the Government’s DE Bill’s proposals about how this might be provided in future, but it must be said that there are doubts about what is proposed. As your Lordships know, debate continues about the BBC’s governance, the licence fee arrangements and even whether in today’s multimedia/internet world such a privileged organisation should continue to exist. The BBC’s current governance has been criticised in our Select Committee reports. It is said that the Communications Act 2003’s two-tiered self-regulatory structure, with the BBC Trust at arm’s length from the day-to-day responsibilities of the main board, does not really work. Ofcom has some regulatory responsibilities for the BBC, but a consensus is said to be developing that an altogether different structure is needed. However, if change is needed, there is a different danger to be avoided. We should certainly ensure a greater degree of transparency about how the licence fee settlement is reached between government and BBC through proper parliamentary scrutiny, as our Select Committee has suggested. Equally, the independence of the BBC from undue parliamentary as well as government influence must be maintained once a settlement has been reached. It is well known that every Government have tried to put pressure on the BBC at some stage in their relationship. The very existence of the royal charter, despite these kinds of pressures, allows the BBC to continue asking the right questions at the right time—and, thankfully, it still does. For that reason alone, it is also reassuring to learn that a recent press report that the Conservatives might be planning to get rid of the BBC charter altogether was denied. There are increasingly difficult challenges for the media as a whole. Digital switchover is well under way; there has been a huge increase in the number of internationally accessible competing worldwide channels and multiplexes; and a growing internet attraction for the advertising industry has led to a rapid decline in TV advertising. Hence, ITV’s decision that it can broadcast public service programmes in future only if they are fully funded from elsewhere. Likewise, Channel 4’s situation, as it, too, has been funded previously out of advertising revenue, is equally problematic. On top of that sits the appalling economic situation, together with uncertainty about when the recession will end. It is therefore entirely right that the BBC look for economies within its own situation, as well as ways of supporting other PSB initiatives. It looks, and we look to it, to do so. We need to put into perspective the normal situation that existed in this country about salaries and bonuses before the crash. High salaries, based on what the market showed one had to pay to attract or retain the best people, were the norm for remuneration, as were bonuses. I can remember thinking that the proposed salaries for Ofcom’s top management were very high indeed when it was set up, but I was told that that was the media market price. It is hardly surprising, if we take that into account, that BBC top salaries and talent costs are high. Therefore, it is commendable that the director-general, Mark Thompson, has decided to publish a range of salaries paid to top BBC personnel together with plans to contain them in future. Equally important is the recent insight to which he referred, when addressing the Voice of the Listener & Viewer conference a week ago, on how the commitment is progressing that was given five years ago to see that the BBC should be as small as its mission allows. Considerable progress has been made with thousands of jobs gone, including whole divisions—but the clear impression also given is that the BBC’s view for the post-2012 switchover is both imaginative and radical but will inevitably mean some pretty uncomfortable choices. Although continuing to resist every form of top-slicing, I am certainly heartened that as well as the best journalism, high-quality arts and drama, particular priority will be given to high-quality programmes and services for children—that is crucially important—and that there will be a greater proportion of original British content. To end on two points, the majority of BBC radio channels, especially Radio 4, are quite outstanding, and, I hope we are going to see the plans for digital radio fully in place by 2015, as I said yesterday. But I also want to commend the BBC World Service, as the noble Lord, Lord Fowler, did, on its reach, with 238 million listeners for its weekly international news alone, and its reputation for objectivity and relevance. It is funded mostly via the FCO and includes some TV and online content. Since the launch of BBC Arabic Television two years ago, this has become the most widely respected, comprehensive news and information multimedia service in the area. Finally, looking back over the many years and enjoyable hours that I have spent listening to the BBC, I think one memory reigns supreme. It must have been at least 30 years ago that that incredible series, "Life on Earth", was made by David Attenborough. I still have all the programmes on video and they remain amazing to watch. Now, as I watch the latest, equally amazing and beautiful Attenborough programmes on insect community life, I think that heritage is yet another example of exactly what the BBC is all about. I know just how lucky I am to have been around for all but the first 10 years of its quite remarkable life.