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Channel 4
09 January 2023
Lead MP
Michelle Donelan
Debate Type
Ministerial Statement
Tags
TaxationEmploymentCulture, Media & Sport
Other Contributors: 30
At a Glance
Michelle Donelan raised concerns about channel 4 in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
Channel 4, a significant success story in British broadcasting, faces challenges due to technological advancements and the emergence of new streaming platforms. However, selling Channel 4 was deemed inappropriate by Michelle Donelan after reviewing the business case for its privatisation. Instead, she announced an ambitious package to boost the broadcaster's sustainability, including doubling job creation outside London and investment in training programmes for young people through the 4Skills initiative. The government will introduce new commercial flexibilities, such as potentially relaxing the publisher-broadcaster model, increasing independent production quotas, and providing a £75 million credit facility. Additionally, statutory duties and updated governance structures are being developed to support Channel 4's long-term sustainability.
Lucy Powell
Lab Co-op
Manchester Central
Question
Powell congratulated Michelle Donelan, thanked Mr Speaker for granting an urgent question, and welcomed the decision against privatising Channel 4. She questioned the financial impact of pursuing this policy, called for guarantees that privatisation is off the agenda, and urged for prompt introduction of reforms to modernise broadcasting regulations.
Minister reply
Donelan defended the investment in examining Channel 4's sustainability, highlighting new commitments like doubling job creation outside London and training programme investments. She emphasised safeguarding small, innovative independents while working towards securing Channel 4’s future.
Question
Bottomley congratulated Channel 4 on its success under the current arrangement and suggested maintaining the publisher-producer split to preserve independent producers. He expressed hope for no further proposals regarding Channel 4's ownership.
Minister reply
Donelan agreed with preserving the role of independent producers, confirming plans to increase content from the independent sector and providing tools for long-term viability without forcing specific actions on Channel 4.
John Nicolson
SNP
Nairn, Cromarty and Dingwall
Question
Congratulates the Secretary of State but expresses disappointment that this is not a new Government but a continuation of the current one. Asks how much public money went into the aborted privatisation attempt.
Minister reply
States that £2 million was spent on the privatisation work, including general sustainability initiatives.
Damian Green
Con
Ashford
Question
Praises the Secretary of State for her decision and asks about protecting and enhancing the independent sector.
Minister reply
Assures that close collaboration with the independent sector will occur to ensure its protection and enhancement.
Kevin Brennan
Lab
Cardiff West
Question
Asks when the media Bill will be introduced, which is vital for public service broadcasters' sustainability in the digital age.
Minister reply
Commits to bringing forward the media Bill shortly.
Simon Jupp
Con
St Ives
Question
Inquires about safeguarding the independent production sector and ensuring Channel 4 remains sustainable.
Minister reply
Confirms that the move will give Channel 4 tools to be sustainable in a changing media landscape.
Julie Elliott
Lab
Sunderland Central
Question
Asks about steps being taken to ensure digital rights for listed sporting events are implemented quickly.
Minister reply
States that the House will be updated on this matter shortly.
Karen Bradley
Con
Staffordshire Moorlands
Question
Asks about benefits for small creative companies in north Staffordshire from the announcement.
Minister reply
Commits to working closely with independent producers and providing specific safeguards, especially for innovative ones.
Valerie Vaz
Lab
Walsall North
Question
Asks why Members only heard about the U-turn on “Channel 4 News” and why a written ministerial statement is being laid.
Minister reply
Confirms that a written ministerial statement will be laid.
Jeremy Wright
Con
Kenilworth and Southam
Question
Asks if the measures proposed today enhance Channel 4’s distinctive niche in broadcasting compared to privatisation.
Minister reply
Explains that the goal is to ensure long-term sustainability, thriving, and flourishing of Channel 4.
Jamie Stone
Lib Dem
Caithness, Sutherland and Easter Ross
Question
Asks about special efforts for production companies in provinces outside England.
Minister reply
Commits to protecting job creation across the UK.
Gosport
Question
Inquires about Channel 4’s ability to nurture a skilled workforce of the future and respond to media changes.
Minister reply
Announces that Channel 4 will double its investment in skills for young people around the UK, from £5 million to £10 million.
Barry Sheerman
Lab
Huddersfield
Question
Expresses delight with the Government’s change of course and asks about benefits for Yorkshire and other parts of the north.
Minister reply
Announces that jobs outside London will be doubled, including in Glasgow and Bristol.
Damian Collins
Con
Witham
Question
Asks whether Channel 4 can have additional investment to go into programme making as requested.
Minister reply
Commits to enabling easier access for Channel 4 to draw down on its existing allowance, but new borrowing will be case-by-case.
Alex Sobel
Lab Co-op
Leeds North East and Headingley
Question
Asks about additional benefits from the announcements today for Leeds and Yorkshire.
Minister reply
Confirms jobs outside London will be doubled, including in Leeds.
Lichfield
Question
Inquires about risks of Channel 4 sinking under debt if it uses borrowing for survival.
Minister reply
Explains that the amount Channel 4 can borrow will not be increased, but tools will enable commercial freedoms and relaxation of publisher-broadcaster remit.
Chris Bryant
Lab
Rhondda and Ogmore
Question
Would it not be nice if a Government Minister apologised when their predecessor's policy was flawed, rather than leaking information to the Prime Minister?
Minister reply
The topic has been under review for some time. The leak was not a Government leak, and an investigation is ongoing.
Question
How much revenue does Michelle Donelan expect Channel 4 to generate from non-linear TV advertising in future?
Minister reply
Channel 4 will decide based on the tools provided by the Government to ensure sustainability in a changing media landscape.
Question
Does Michelle Donelan agree that giving Channel 4 more freedom is essential for its sustainability?
Minister reply
Yes, it is essential and ignoring the problem would be in denial of the media's changing landscape.
Toby Perkins
Lab
Chesterfield
Question
How will the relaxation of publisher-broadcaster restrictions work in practice?
Minister reply
Details will be provided through a media Bill, and close collaboration with Channel 4 and the independent production sector is planned.
Question
Is Michelle Donelan's announcement good news for Yorkshire?
Minister reply
Yes, it is good news for Yorkshire and beneficial to taxpayers who own Channel 4.
Andrew Gwynne
Ind
Gorton and Denton
Question
Can Michelle Donelan provide more detail on how the Department will consult to determine how publisher-broadcaster restrictions will be relaxed?
Minister reply
Close collaboration with Channel 4, independent producers, and public service broadcasters is planned. Details will follow in a media Bill.
Question
How might the portion of content from independent producers increase to 25%?
Minister reply
Measures are being considered to support small and innovative independent producers, building on current commitments such as Channel 4's existing spend supporting supply chain jobs.
Question
What assurances can be given that DCMS will work with the Welsh Government to develop the relationship between Channel 4 and the Welsh independent production sector?
Minister reply
Upcoming meetings are planned, including one with the Welsh counterpart, to discuss this and other important agendas.
Question
Is Channel 4 a levelling-up company that supports jobs and production companies across the four nations?
Minister reply
Yes, it is essential for Channel 4's sustainability to support its levelling-up agenda, including doubling investment in skills and jobs outside London.
Question
How many jobs will Channel 4 create in Glasgow as part of their expansion?
Minister reply
Channel 4 has committed to creating new jobs in several locations, including Glasgow. The exact numbers will be determined by Channel 4.
Question
Can Michelle Donelan meet with the MP to discuss expanding opportunities for Doncaster's creative businesses?
Minister reply
Channel 4's sustainability and support of the independent production sector offer opportunities that may be beneficial for Doncaster.
Jim Shannon
DUP
Strangford
Question
What discussions has Michelle Donelan had with Channel 4 to ensure Northern Ireland remains a crucial part of TV production in the UK?
Minister reply
Channel 4's sentiment is about the importance of the UK, including Northern Ireland. Meetings can be arranged for detailed discussion.
Question
How will changes to Channel 4's annual report affect its cultural bias?
Minister reply
While impartiality was not a primary focus, a new section in the annual report will detail reviews of editorial content and impartiality from the previous year.
Shadow Comment
Lucy Powell
Shadow Comment
Lucy Powell welcomed the decision against privatising Channel 4 but criticised the Government for wasting time and money on a flawed policy, which cost at least £2 million. She questioned how much this initiative has impacted taxpayers and public sector broadcasters in terms of lost opportunities and called for guarantees that privatisation is off the agenda permanently. Powell also expressed concerns about ensuring financial sustainability without harming the independent sector and urged for prompt introduction of reforms to modernise broadcasting regulations.
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