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Chamber and committees

Plenary, 08 Oct 2008

Meeting date: Wednesday, October 8, 2008


Contents


Scottish Broadcasting Commission

The next item of business is a statement by the First Minister on the Scottish Broadcasting Commission. The First Minister will take questions at the end of his statement, so there should be no interventions or interruptions.

The First Minister (Alex Salmond):

In August 2007, the Government established the Scottish Broadcasting Commission to undertake an independent review of broadcasting in Scotland. The review is now complete, and the commission published its final report on 8 September. Today, I will set out how the Scottish Government plans to respond to the commission's recommendations.

The commission has set out a range of substantial recommendations to enhance the economic and cultural weight of the Scottish broadcasting sector, secure a better, fairer deal for the industry, and build a platform for long-term success. Those proposals would provide a vital economic boost to Scotland, amid challenging global conditions.

I put on record our appreciation of the work of Blair Jenkins and the commission. In particular, I welcome the constructive approach that the commission took over the past year, which was reciprocated, in the main, by this Parliament. Let us all acknowledge, in particular, the outstanding contribution of the late Ray Michie, both as a member of the commission and as a major figure in the democratic and cultural life of Scotland.

The commission has brought substantial expertise to a national debate. It sought views from across the political spectrum and engaged the broadcasting industry and the wider public. As a result, the commission's agenda offers a firm and common purpose for the future of Scottish broadcasting.

Even before the commission's inception, there was widespread acceptance that Scotland was underrepresented by the main television networks. Indeed, the 2006 report by the Office of Communications showed that Scotland's share of total United Kingdom production had declined from 6 per cent in 2004 to a measly 2.6 per cent in 2006. The commission responded swiftly to arrest that decline, and by framing its recommendations within the current constitutional settlement, it has enabled immediate action.

The commission's recommendations are far reaching. They propose nothing short of a blueprint for a revolution in Scottish broadcasting. The Scottish Government's response to the commission will focus on three central aspects: first, delivering a fair share of network production for Scotland; secondly, creating a new Scottish public service network as a focal point for the long-term development of Scottish broadcasting; and thirdly, strengthening accountability and diversity in broadcasting, to ensure that Scottish interests are properly and fully represented.

The commission recommends that Scotland should receive a fair share of network production. It sets out the expectation that, as public service broadcasters, the BBC and Channel 4 should be obliged to establish a substantial commissioning presence in Scotland, and that both networks should devote a minimum of 8.6 per cent of programme budgets to commissioning programmes from Scotland. That target matches our population share and thus has some objective basis.

Furthermore, Mark Thompson, director general of the BBC, said in September last year that he regarded the 8.6 per cent target

"as a floor rather than any kind of ceiling."

As someone who uttered the very same phrase a mere six weeks earlier, at the commission's launch, I fully agree with Mark Thompson's analysis. Where we differ is on the pace of change: the BBC wants eight years to make the change, whereas the commission argues strongly that it can be made in half that time.

Certainly, new network commissions for Scotland will bring tens of millions of pounds of new investment into Scottish broadcasting. The industry must be ready to take full advantage of those opportunities. For its part, the Government will do all that we can in support, so we will act on key recommendations of the commission.

By the end of this year, Scottish Enterprise will produce a strategy for the economic development of the broadcasting sector that builds on the commission's analysis and recommendations. Our skills delivery bodies will work in partnership with the industry and our further and higher education sector to meet the skills needs of Scottish broadcasting, now and over the longer term. From its inception, as part of its remit, creative Scotland will take on a leadership role in the sector, bringing together the key partners to move Scottish broadcasting forward.

The commission's central proposal is for a new Scottish digital television channel, which will form part of a wider media network of Scottish content and be complemented by an online platform. The Scottish independent production sector will be able to provide the bulk of programme content. Scotland has never had its own universally available television channel—it is high time that it did. Culturally, economically and democratically, Scotland deserves its own Scottish network. Such a network will be an important complement to the newly launched Gaelic language channel BBC Alba. Moreover, a Scottish network will strengthen our creative economy. It will help us to ensure that the best of our talent—whether writers, directors, producers or actors—can achieve real success here in Scotland. The new network will act as a global shop window, showcasing our country and our creativity to our friends abroad, not least the Scottish diaspora, which is estimated to be some 50 million strong.

The commission argues that a Scottish network is the missing piece in the United Kingdom's jigsaw of public service broadcasting. The Government agrees. Linda Fabiani has already written to the Secretary of State for Culture, Media and Sport, Andy Burnham, to make direct representations in support of the commission's proposals, in particular for the creation of a Scottish network channel. Shortly, I will meet Ed Richards, the chief executive of Ofcom, to pursue that case further. In January 2009, the UK's culture secretary will outline important decisions on the future of public service broadcasting. We are determined that Scotland's interests will be fully and fairly represented.

As for the funding of the new Scottish network, responsibility for public service broadcasting remains—currently—a reserved matter. We therefore fully support the commission's recommendation that the budget for the new Scottish digital network—estimated at between £50 million and £75 million—should be fully funded, whether directly or indirectly, under the remit of public service broadcasting. That is entirely just, as the UK Government already provides around £95 million annually to the comparable Welsh language channel S4C.

Broadcasting is vital to the cultural and democratic life of Scotland. Securing these positive changes will bring significant economic dividends for Scottish broadcasting. The immediate benefits may amount to an estimated £65 million in production activity by the major networks—BBC and Channel 4—and an additional £50 million to £75 million for the new Scottish digital network. In other words, there will be the potential to double production and create a truly sustainable, highly creative cluster in Scotland.

The Scottish Broadcasting Commission has recognised that a stronger accountability framework will be necessary in order to deliver change. If broadcasting is to be a window on the world, it must be a world that we recognise, portraying Scotland's identity and cultural diversity, and portraying the new confidence and ambition of our people.

The independent commission was asked to make its recommendations in light of the existing balance of constitutional powers. On that basis, it has recommended that arrangements should be set in place to ensure that Scotland has greater influence over the broadcasting that specifically affects Scotland, such as BBC Alba and the proposed new network.

We welcome the proposal that Parliament should take an active role in considering Scottish broadcasting and the services that audiences receive. We support the recommendation that the Scottish ministers should assume greater responsibility for functions that directly affect Scotland—specifically, for the appointment of Scotland's representation on UK broadcasting organisations and for the executive functions relating to MG Alba and the future Scottish network.

The commission proposes that Scotland should have an increased influence on broadcasting policy, which should fully reflect the diversity of the nations of the United Kingdom. The Government agrees, which is why we are pursuing Scottish representation on the Ofcom board: Linda Fabiani has already written to Ofcom in those terms. The Welsh Government has indicated its aim to seek similar representation.

News services have a vital role in Scottish broadcasting and in informing public debate in this country. The Government was concerned by the conclusions of Professor Anthony King's recent report to the BBC trust, which highlighted that

"BBC network news and current affairs programmes taken as a whole are not reporting the changing UK with the range and precision that might reasonably be expected".

That is an important finding and it needs to be addressed. The BBC is taking some action, and I welcome yesterday's announcement of changes that are designed to enhance the role and representation of the UK nations within the corporation. However, the issue is broad and perennial, so the Scottish Government will continue to press all the UK networks to ensure that news output meets the needs of Scottish audiences.

In conclusion, the commission's recommendations have set a clear and positive agenda for the future of Scottish broadcasting. The Scottish Government will respond to the recommendations where it has the power to do so, and will report annually to Parliament on progress, starting in September next year. Delivering the broad agenda will require firm commitment from all partners—the UK Government, the regulator, the broadcasting industry and others. Each will have to step up to the plate and exercise responsibility.

This marks the start of a sustained effort to deliver high-quality broadcasting that speaks for the people of Scotland and benefits them economically and culturally. The support and engagement of colleagues across this chamber have helped to bolster the case for change, and will continue to be an important source of strength. I reaffirm this Government's commitment to work with all partners, openly and constructively, to deliver the changes that we need for broadcasting and for Scotland.

The First Minister will now take questions on the issues raised in his statement. I intend to allow 20 minutes for questions, after which I will move to the next item of business.

Iain Gray (East Lothian) (Lab):

I thank the First Minister for his statement and for allowing me early sight of it. I associate the Labour side of the chamber with his comments on the work of the commission, and especially those on the life and work of Ray Michie.

When the commission reported a month or so ago, the Scottish Labour Party welcomed its conclusions. We are not surprised that the commission says that Scotland has undoubtedly benefited from being part of the overall broadcasting ecology of the United Kingdom. We also agree with the commission that broadcasting should not be used as a surrogate for the constitutional debate. The proposal for a new Scottish channel and the recommendation that the BBC and Channel 4 should increase commissioning from Scotland are particularly welcome.

By their nature, many of the commission's recommendations are not for the Scottish ministers, but three important ones are: the requirements for Scottish Enterprise to produce an action plan; for Skills Development Scotland to realign its activities; and for creative Scotland to ensure a thriving creative content sector. In his statement, the First Minister committed to all of those. I ask him now to provide more detail of how he plans to do that, what specific requirements he will place on those bodies and what new financial capacity he will provide to allow them to meet the requirements without deprioritising their other responsibilities. In particular, what funding does he expect Scottish Enterprise to have to establish support for the broadcasting sector, as the commission recommends?

The First Minister:

I thank Iain Gray for his remarks, especially those on Ray Michie. He rightly says that I addressed in my statement all the points about the obligations that are being placed on Skills Development Scotland, Scottish Enterprise and creative Scotland.

I am interested in Iain Gray's question on deprioritisation. He will acknowledge that, within a fixed budget for the Scottish Government, that is exactly the process that must be gone through throughout the Scottish budget. As he recommends—I presume in good faith—increased expenditure in one area, no doubt he will tell the chamber in which other areas he thinks that expenditure should be reduced.

I welcome very much Iain Gray's congratulations on the tone and content of the Scottish Broadcasting Commission's report. That is a huge step forward. In the dark days before he took control of the Labour Party in the Parliament, it made a submission to the commission that said:

"The Scottish Labour Party is … concerned that this submission should not be used by anyone to portray support for or endorsement of the conclusions of this body, given our overriding concern that the commission's independence is compromised by the tone and content of the comments from the First Minister."

I am glad indeed that we now agree that it was a cross-party, independent commission. That point was recognised by Pauline McNeill in episode 1 of her article that appeared in The Scotsman today, when she wrote:

"The commission has lived up to its reputation for independence."

Unfortunately, by the later editions, that statement had disappeared—I hope not under the influence of any of Iain Gray's spin doctors.

Let us recognise that the commission has established its reputation for independence and has made recommendations on which we can all agree, and let us move forward on that basis.

Annabel Goldie (West of Scotland) (Con):

The Scottish Conservatives welcome the First Minister's statement on the Scottish Broadcasting Commission. I also endorse his comments in relation to Mr Blair Jenkins, the work of the commission and the late Ray Michie.

It was the Scottish Conservatives who first promoted the idea of a Scottish digital channel. That was at the heart of our submission to the Scottish Broadcasting Commission. The decision of the independent commission to recommend the creation of a digital channel is, therefore, welcome. In a spirit of conciliation, I congratulate the First Minister on his co-operation—yet again—in delivering another Conservative policy.

However, the fundamental issue of funding for the new digital channel remains, the cost of which is estimated to be about £75 million. There must be concern about who will be responsible for providing that funding. Does the First Minister agree that it would be unfair to burden taxpayers with another significant financial commitment, particularly in the context of the current global financial crisis? Does he accept that it would be sensible to fund the channel commercially, either wholly or partially, through advertising or sponsorship? The commercial sector has expressed that it is willing and able to become involved in both funding and operating the new channel.

The First Minister:

I am delighted to have Annabel Goldie's support, yet again, for a joint initiative. I assure her that, when the station broadcasts, it will not have Leeds as its final destination, unlike the train network that is being proposed by the Conservative party. Nonetheless, I acknowledge that she recognised from an early stage that the commission was independent and that its recommendations were based on the evidence that it received.

As she knows, the commission did not agree with the idea that the station should be commercially funded. It put forward two points of view on the funding, pointing out that the licence fee that is raised in Scotland amounts to something like £300 million at present and that direct expenditure by BBC Scotland is £140 million. Interestingly, the commission also pointed not only to the existing Welsh example but to the funds that will be available as a result of digital switchover, particularly from freeing up the analogue spectrum. Those funds run to many times the funding that would have to be committed to a public service broadcaster.

The commission was particularly swayed by arguments about competition, which is why it looked to public service broadcasting as the funding model, as opposed to the model that the Conservative party suggested.

Iain Smith (North East Fife) (LD):

I thank the First Minister for the advance copy of his statement and for his kind remarks about my colleague Ray Michie.

There is much in the First Minister's statement and the commission's report with which the Liberal Democrats agree. We hope that the First Minister will continue with the constructive and consensual approach of the commission by working with all parties in this Parliament to deliver the key recommendations.

The First Minister's statement recognised that much of what the commission recommends has to be delivered by others, but it contained little—just three paragraphs—on the areas that are under the direct control of his Government: economic development, skills development and leadership. Can the First Minister give us more detail about how he intends to address the serious deficiencies that the commission has identified and tell us who is responsible for providing leadership to ensure that the present and future skills needs of the sector are identified and addressed and that the full economic potential of the broadcasting sector can be delivered?

The First Minister:

I thank Iain Smith for his support. I should have noted that I understand that Blair Jenkins is in the gallery, watching over us.

The answers to Iain Smith's questions are contained in the commission's report and in the Government's response. The report argues strongly that there is some confusion about who is responsible for the aspects that he mentions—small though they might be in the overall ambit of broadcasting—in terms of the response of Scottish policy and the Scottish Government. The report argues that the roles of Scottish Enterprise and Skills Development Scotland should be clearly identified, and that creative Scotland should take on a leadership role in terms of the whole industry's approach.

The commission made another recommendation that I am sure we will want to take forward. It said that the Scottish Parliament should have a role not in directing the content of individual programmes but in debating the future of broadcasting, and should act as a forum for that debate. This Parliament clearly has a substantial responsibility to carry forward the commission's excellent work.

Jamie Hepburn (Central Scotland) (SNP):

The First Minister mentioned that the Minister for Europe, External Affairs and Culture had written to the UK culture minister in support of the commission's recommendations, particularly on the creation of a Scottish network channel, and had written to Ofcom to seek independent Scottish representation. Are there any early indications of whether those proposals will fall on sympathetic or deaf ears?

The First Minister:

There are no indications as yet, but I do not see that we have any reason to be pessimistic. In response to the commission's recommendations, there has already been substantial movement by the BBC and, to some extent, Channel 4. In addition, structural changes in the BBC have been announced—I think this very day—in relation to the representation of the controller in Scotland, and his equivalents in Wales and Northern Ireland, in the decision-making bodies of the BBC, which is a recognition of the multinational status of the UK.

The broadcasters themselves—not wholly, but substantially—are starting to respond. I do not see why we should be negative about the response that we will get from Ofcom and the UK culture secretary, particularly in light of the fact that—as I said in my statement—public service broadcasting is undergoing a general review at present, with a report to be made early next year. This is exactly the right time for us to have the most substantial influence in those deliberations and discussions.

Pauline McNeill (Glasgow Kelvin) (Lab):

Does the First Minister agree that regional news in Scotland is highly popular throughout Scottish communities and should be protected, particularly as it faces challenges from the new developments in the industry, which might dilute public service broadcasting? I presume that the First Minister has given some thought to this topical issue. What steps will the Scottish Government take to secure vital news services for the future?

The First Minister:

We have made clear our disappointment with Ofcom's relaxation in relation to local news. There is an example of that in the Borders, where it appears that the new news programme will be restricted to a mere six minutes, which seems inadequate. We understand, of course, the argument that the independent network puts forward that it no longer has the advantage because the terrestrial platform is being removed to digital. However, I do not think that many people in the south of Scotland will consider six minutes of news on what has been their favourite television station at all adequate to serve their needs. We must put those important arguments forward.

I say to Pauline McNeill that I preferred the first version of her article in the first edition of The Scotsman today, rather than the second version.

Ted Brocklebank (Mid Scotland and Fife) (Con):

Can the First Minister explain why he equates the UK Government's annual investment of around £95 million in the Welsh language channel with funding for the proposed new Scottish channel? Surely a more accurate comparison would be between the Welsh language channel and BBC Alba, the Scottish Gaelic language channel.

As the First Minister is aware, the new Gaelic channel already receives more than £20 million of public support, and given that there are around 60,000 Gaelic speakers in Scotland and half a million Welsh speakers, the public sums that are invested in those channels seem comparable on a population basis. Why should the taxpayer be asked to pick up the full cost of the new Scottish digital channel when commercial operators are keen to be involved?

The First Minister:

Ted Brocklebank well knows that BBC Alba is financed partly from the Scottish budget. The commission makes the helpful recommendation that, given that that is the case, the line of accountability in relation to appointments and other matters should lie with this Parliament, where it can be properly questioned.

The commission makes two broader points: first, on the context of what is actually spent in Scotland, in terms of the network share and the general budget of BBC Scotland compared with what is raised through the licence fee; and secondly, on the key issue of the opportunity that is afforded by selling off the terrestrial platform. Those funds will have to be allocated, presumably to public service broadcasting, so there appears to be an opportunity to secure them.

I know that Ted Brocklebank has taken a very constructive view, and that he put forward strong and positive evidence to the commission. His evidence was successful in a number of areas, but on the argument about whether it was a public service broadcasting commission, the commission—which included a member of the Conservative party—came to the unanimous conclusion that it was not unreasonable for Scotland to expect a public service obligation and funding. I know that Ted Brocklebank is big enough to get over that slight disappointment and rally behind the commission's report.

Christina McKelvie (Central Scotland) (SNP):

When Blair Jenkins gave evidence to the Education, Lifelong Learning and Culture Committee, he made it clear that there was a pressing need for the provision of news broadcasting in Scotland to be reviewed, with a view to ensuring that quality broadcast news reflects Scotland as she stands now and views the world through Scottish eyes. Does the First Minister agree with Blair Jenkins that parallel programming is a step in the right direction—albeit just a small step—for news broadcasting? Can he tell us how the Scottish Government intends to help Scotland's broadcasters continue to improve news broadcasting in Scotland?

The First Minister:

The publication of Anthony King's report by the BBC trust represents a sea change in the recognition—certainly by the BBC—of how inadequately network news has reflected the diversity of the countries of the United Kingdom. If I had been told some years ago that a BBC organisation would commission a report that admitted substantial culpability in that regard, I would have been surprised. We should acknowledge the BBC's open-mindedness about the integration of broadcasting and the service that network news can provide.

A new Scottish channel would make it possible for us to have what many of us have wanted for a huge number of years—broadcasting in Scotland that looks at the world through Scottish eyes and looks at Scotland through the world's eyes; a broadcasting platform that provides local news, Scottish news, UK news, international news and the world's news from a Scottish perspective; and a definite window on the world. The commission's report, in endorsing that idea and considering how it can be deployed within the proposed new Scottish network, gives us valuable insights and the inspiration to take forward that campaign.

Malcolm Chisholm (Edinburgh North and Leith) (Lab):

I welcome the report of the always independent Scottish Broadcasting Commission and the proposal for a new Scottish network. Does the First Minister believe that local television services should be linked to the Scottish network proposal, as the report suggests in paragraph 3.5.5? Will he argue strongly to Ofcom that spectrum must be made available for local services? Does he support the idea of a network of local channels that would provide a local dimension to the new Scottish network?

The First Minister:

The commission's report contains excellent comment on the local and national opportunities that newly available spectrum will open up, so the general answer to Malcolm Chisholm's question is yes. I am sure that I would be just as fulsome if he was speaking from the front bench. His contribution was an entirely constructive one.

Jeremy Purvis (Tweeddale, Ettrick and Lauderdale) (LD):

Some 53 per cent of viewers in the Borders region will receive digital services through relay transmitters and will receive only half the digital services that will be available from the main transmitters, but that has not been mentioned by the Scottish Broadcasting Commission and there has been no statement on it from the Scottish Government. The Scottish Government's late submission to the public service broadcasting review also made no reference to the matter. What is the Scottish Government's position? It argues for a Scottish digital channel, but if that channel was on a network that is not provided under Freeview lite, as it is known, more than half my constituents would be excluded.

The First Minister:

As Jeremy Purvis knows, there was a members' business debate on that subject recently. It is an important subject, but it would be unreasonable to expect the Scottish Broadcasting Commission to identify every single aspect of Scottish broadcasting that needs change. We would be better to take its report as a platform on which to build and from which to move forward. That does not preclude further improvements, including the one that Jeremy Purvis has identified.

Aileen Campbell (South of Scotland) (SNP):

The First Minister will be aware of the London-centric nature of broadcasting. Can he reassure Parliament that, in implementing the Scottish Broadcasting Commission's recommendations, lessons will be learned so that that centralisation is not replicated in Scotland and broadcasting and production reflect the whole country rather than being concentrated in one area?

The First Minister:

Yes. We already recognise that solid and important point, particularly in relation to the way in which Scottish Television arranges its news broadcasts at present. The opening up of new spectrum will offer far more opportunities. This Parliament, in arranging its business, recognises that it is a Parliament for the whole country: any broadcasting organisation for which we are accountable must recognise that it, too, exists for the whole country. The point is well made.

Robin Harper (Lothians) (Green):

I congratulate the First Minister on his robust and constructive statement.

The commission has argued that a new network would enable media to be

"made available under a Creative Commons type of licence".

Such a move would be of great value in giving children and young people in schools, colleges and universities many creative downloading and broadcasting opportunities. If a new network is established, what will the First Minister do to ensure that all educational institutions are able to download, remix and re-edit material for their own use?

The First Minister:

The commission and Robin Harper are right to focus on the opportunities that are presented by this important issue, on which progress has been made. It certainly provides another illustration of how the new arrangements, better access and more space could not only have a pretty obvious impact on Scottish cultural and economic life, but ensure that Scotland's great services, including education, have the maximum number of opportunities.

For example, BBC Alba has certainly had a direct impact in Gaelic areas and elsewhere in Scotland. However, nowhere has its impact been felt more than in Sabhal Mòr Ostaig. The facilities in that college in Skye are not hugely extensive, but I am told that the technology that is in use there is a match for anything that is available elsewhere in the world.

Will the First Minister ask—nicely, of course—the Minister for Europe, External Affairs and Culture to write to her opposite number in Westminster, suggesting that it is about time that BBC Alba was available on Freeview?

The First Minister:

The minister is actively pursuing that matter. I have not managed to find out whether she is doing so politely or impolitely, but I am sure that, no matter which course she has taken, the suggestion is being made in extremely strong terms.

We are all united in wishing BBC Alba maximum success. However—as we know—that success will be either maximised or constrained by the viewing platform on which it is available.

I say to Margo MacDonald and the First Minister that I have not written to anyone on this subject. I think, however, that Linda Fabiani has.