Commons Sense

House of Commons · Westminster Hall

Channel 4: Privatisation

21 July 2021 · 12 other contributors · 13,384 words

Opened by Angela Eagle Lab Wallasey

Responding minister: Chris Matheson

Summarised by AI from the official record, so it can contain mistakes.

At a glance

Angela Eagle raised concerns about channel 4: privatisation in Westminster Hall. A government minister responded.

Key points

  • Concerns raised about the potential privatisation of Channel 4, which has been a successful broadcaster for 39 years, producing numerous awards and supporting jobs in the industry.
  • The speaker asks the Government to conduct an impact assessment of the privatisation plans to protect Channel 4's role in fostering creative content and nurturing talent.
  • The Minister responds that the Government is reviewing Channel 4's ownership model to ensure its viability in light of competition from streaming services and declining advertising revenue.

Key requests to Government

I ask the Government to step back from privatising Channel 4, which would cause irreversible damage to a unique model that has proven successful in fostering creative content and nurturing talent. I also request that the Minister for Media and Data prepares an impact assessment of their privatisation plans and explains how they will protect innovative programming and the independent production sector.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Angela Eagle Lab Wallasey

I am concerned about the Government's plan to privatise Channel 4, which has been established for 39 years as a successful and innovative broadcasting entity. It is described as a precious public asset that has produced 37 Oscars and 84 BAFTAs, nurtured talent in the UK's independent production sector, supported over 10,000 jobs, and offered diverse programming. The privatisation threatens to dismantle these achievements and could lead to a loss of cultural diversity and independence.

Other contributors (12)
  • Alex Sobel Lab Co-op Leeds Central and Headingley

    Mr Sobel highlighted the joy in Yorkshire when Channel 4 announced Leeds as its new home, expressing concern about potential privatisation. He noted that since 2009, £843 million has been invested in production in the north of England and stressed the importance of public service broadcasting model for independent producers. He also pointed out the corporation's resilience during the pandemic while other media organisations faced drastic measures.

  • Alison Thewliss SNP Glasgow Central

    Alison Thewliss highlighted Channel 4's impact on Scottish productions, noting £200 million spent since 2007 and the channel's commitment to increase spend in Scotland. She praised its efforts to bring under-represented talent into the industry and mentioned the importance of independent production companies supported by Channel 4 through various funds. Thewliss cited Blazing Griffin as an example, a company with 60 full-time employees that benefits from the terms of trade allowing ownership of intellectual property. She warned against privatisation, which could destroy a successful industry and its international trade contributions.

  • Andrew Mitchell Con Sutton Coldfield

    Andrew Mitchell stated that the proposals for Channel 4 privatisation are Government proposals and many Conservatives, like other MPs, are questioning them. He urged not to characterise this debate as a 'Tories versus Channel 4' debate. He emphasized the importance of independent media in safeguarding human rights and civil liberties. Channel 4, he argued, is unique due to its minority tastes catering, inclusivity, and trusted news coverage compared to BBC's more establishment nature. He questioned the evidence for privatisation benefits and called for an impact assessment before a decision. Mr Mitchell asked Mr Nicolson if his opposition to the privatisation of Channel 4 was based solely on ideological grounds or whether he would support it under certain conditions that could benefit public service broadcasting objectives.

  • Andy Carter Con Wolverhampton South East

    Mr Carter praised Channel 4's role in fostering creativity and new talent, stressing the importance of its unique publisher-broadcaster model. He highlighted concerns about privatisation potentially damaging content diversity and investment in British film.

  • Brendan O'Hara SNP Argyll, Bute and South Lochaber

    The UK Government's plan to privatise Channel 4 is unjustified, politically motivated, and vindictive. It undermines independent scrutiny and the success of public service delivery by a publicly owned organisation. Despite its record £74 million pre-tax surplus and contributions to regional development, the privatisation remains incomprehensible.

  • Damian Green Con Ashford

    The Government want to ensure Channel 4 has a viable future in light of changing television landscapes and increasing competition from streaming services. He argues that while Channel 4 currently relies heavily on advertising, changes in the industry may pressure this model.

  • Jamie Stone Lib Dem Caithness, Sutherland and Easter Ross

    Mr Stone emphasised Channel 4's role in cultural exports and public service broadcasting. He praised its financial performance during the pandemic and stressed the importance of reinvesting profits into content production.

  • Jim Shannon DUP Strangford

    Jim Shannon appreciated the opportunity to discuss Channel 4's privatisation, highlighting its importance during the pandemic. He noted that 16% to 17% of viewers are aged 16 to 34 and that it has a reach of 51.1 million viewers. Shannon praised Channel 4 for its charity work but expressed concerns about programme quality and accessibility if privatised.

  • John Martin McDonnell Lab Hayes and Harlington

    The privatisation of Channel 4 is an irrational obsession with no economic justification. The organisation has a record £74 million pre-tax surplus, supports jobs across the UK, and aligns with the Government's levelling-up strategy by investing in regional offices.

  • John Nicolson SNP Nairn, Cromarty and Dingwall

    Mr Nicolson expressed concern about the potential privatisation of Channel 4, arguing that it would undermine its not-for-profit model and commitment to diversity in programming and staffing. He highlighted Channel 4's success in employing women, people with disabilities, and black, Asian and minority ethnic staff as well as promoting LGBT programming.

  • He criticised the Government's push for Channel 4 privatisation as ideologically motivated, not financially driven. He highlighted that despite challenges from streaming giants, Channel 4 continues to thrive commercially and critically. Viewing figures have increased and he accused the Minister of fabricating a crisis to justify privatisation.

  • Peter Bottomley Con Worthing West

    Endorses the hon. Member for Wallasey's concerns about privatising Channel 4 and recalls his involvement in early broadcasting debates. Criticises previous attempts to privatise Channel 4 under various governments, emphasising that it is a matter of right or wrong rather than monetary value. Highlights the importance of preserving Channel 4 from foreign ownership, citing Canadian broadcasting history. Emphasises the value of distinctive programming and its impact on national discourse. Mr Bottomley noted that Members had read the consultation document and understood the Government's argument for change but challenged the necessity of a new owner to achieve these changes, citing examples like Royal Mail from 2013. Asked for clarification on the Treasury's role and highlighted the need for executives of Channel 4 to express their stance on ownership changes.

Government Response

Chris Matheson

The Government are reviewing Channel 4's ownership model to ensure its viability for the future. The consultation seeks to determine whether changes in public service broadcasting require adjustments to Channel 4's current structure, which has been challenged by increasing competition from streaming services and declining advertising revenue. While Channel 4's remit will be maintained or potentially strengthened, no decisions have been made yet, and an impact assessment will follow the consultation outcomes.

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