Broadcasting
The next item of business is a statement on broadcasting by Fiona Hyslop. The minister will take questions at the end of her statement, so no interventions or interruptions should be made during it.
14:35
Just over two years ago, the Scottish Broadcasting Commission produced its final report. That still stands as a blueprint for how to improve broadcasting in Scotland, due to the diligence of the commission’s research, the quality of its analysis and the logic of its conclusions. In the chamber, a regular focus on broadcasting has been an important feature of the Parliament. It emphasises the significant role for Scottish institutions in examining broadcasting matters.
One form of progress in the past year has been the United Kingdom Government’s acceptance that the Scottish ministers should in the future appoint the BBC trust member for Scotland. In the short term, the appointment of Jeremy Peat’s successor is being undertaken as a joint process by the Scottish and United Kingdom Governments.
I will reflect on what we might achieve under existing powers. I will focus on three key themes of the Scottish Broadcasting Commission’s final report: its expectation that the BBC and Channel 4 should increase their commissioning from Scotland; its belief that public sector agencies should provide coherent support and leadership for the sector; and its aspiration for a Scottish digital network to provide sustainable competition for the BBC in Scottish public service broadcasting.
It is worth remembering that the core reason for the commission’s establishment was the release of figures that showed that Scotland’s share of UK network production fell from 6 per cent in 2004 to less than 3 per cent in 2006. Genuine progress has been made in the past year, although far more still needs to be done. Scotland’s share of network production increased from 2.5 per cent in 2008 to 3.6 per cent in 2009. That includes a significant increase from the BBC, where Scotland now accounts for 6.1 per cent of network commissions, which is up from 3.7 per cent in 2008. Incidentally, that increase alone represents an injection of an additional £19.5 million into the Scottish economy. I believe that the BBC should aim for Scotland to account for 8.6 per cent of network programming by 2012, rather than by its original target date of 2016. The rapid progress that it has made certainly suggests that the target could sustainably be met considerably earlier than 2016.
Progress by Channel 4 has been significantly slower. Scotland’s share of Channel 4 network production in 2009 increased from 1.4 per cent to 2.5 per cent and Channel 4 expects a further increase in 2010. Channel 4 contributes a considerable amount of work to the digital media and film industries in Scotland and I believe that the Office of Communications should account more for that. I saw evidence of the value of Channel 4’s work at first hand earlier this month when I visited Tag Games and Dynamo Games in Dundee, both of which have benefited from investment by Channel 4 and Creative Scotland.
We will continue to work constructively with Channel 4 to maximise the positive and welcome contribution that I fully acknowledge it makes to Scotland’s creative industries. However, for as long as Channel 4’s broadcasting expenditure—by far the largest part of its overall budget—is so low in Scotland, I will continue to press it to do more.
The increase in network production in Scotland provides an important opportunity for the independent production sector. On taking over as the Minister for Culture and External Affairs, one of my first steps was to hold a broadcasting conference in Glasgow and to chair a meeting between broadcasters, independent producers and public sector agencies at which we explored the issues that face the television production sector. I was left in no doubt about everyone’s commitment to working in partnership, or about the creativity and drive that exist in many parts of the independent sector.
As many members know, Scottish Enterprise and Creative Scotland recently published the report of the television broadcast and production working group that was established last year. Many of the recommendations in that report are being implemented. To follow up one recommendation, Scottish Enterprise is today publishing a report on production space in Scotland.
The key theme that runs through the working group’s report is partnership—how much stronger the production sector is when public agencies, broadcasters and independent producers work together for the sector’s benefit. I strongly encourage Creative Scotland to play a lead role in maintaining that partnership approach and I am pleased that it has already agreed partnerships with the BBC and STV.
There have been genuinely encouraging developments in relation to both network commissions and the development of the television production industry, but there has been less success so far in trying to implement the Broadcasting Commission’s proposal for a Scottish digital network. The case for a network has strengthened, not weakened, over the past two years.
Reports in 2009 by both Ofcom and the previous UK Government highlighted the dangers to public service broadcasting plurality in Scotland if major steps were not taken.
STV’s efforts to increase its domestic production are welcome. We support the contribution that STV can make to Scottish broadcasting and the creative economy, but opt-out programmes on channel 3 clearly have limits in providing secure and sustainable competition to the BBC over the full range of Scottish public service programming. Furthermore, the success of BBC Alba, as noted by the Parliament in February this year, gives some indication of the appetite in Scotland for more Scottish content. If the BBC trust were to place BBC Alba on Freeview, as the Scottish Government has repeatedly emphasised that it should, the appetite for doing that would be even clearer.
There is just now a window of opportunity. Jeremy Hunt, the Secretary of State for Culture, Olympics, Media and Sport, has spoken of the “chronic over-centralisation” of UK broadcasting. I think that every member of this Parliament would endorse that opinion. The UK Government wants to address that chronic overcentralisation. That is why it has established a panel that is chaired by Nicholas Shott to explore what needs to be done to make local television commercially viable. Nicholas Shott expects to conclude his report in late November, after which the UK Government will launch a consultation on local television in early January.
I have had very constructive meetings with Jeremy Hunt and Nicholas Shott over the past five weeks. Nicholas Shott’s initial views, which were published yesterday, state that he recognises that there are particular requirements in the nations of the UK and that his final report will include further analysis of these.
The Scottish Parliament is unanimously behind a digital network that, in the words of the Broadcasting Commission’s final report,
“could certainly accommodate opportunities for more locaIised broadcasting.”
It is clear that Nicholas Shott is investigating how local television can be supported by a host channel, although his initial thinking is that that could be provided by existing public service broadcasters. The views of this Parliament and the UK Government are very close in their common desire for more localised broadcasting. However, it is clear that much work is still needed to marry the UK Government’s ambitions and those of this Parliament.
The issue of funding will be particularly important. For that reason, two weeks ago, I established the Scottish digital network panel, chaired by Blair Jenkins, to assess how a Scottish digital network could be established and funded. I have already made it clear to the UK Government that I want the work of the Scottish panel to complement and not compete with the work that Nicholas Shott is undertaking. I very much hope that the Scottish digital network panel will form a constructive working relationship with Nicholas Shott’s team. By doing so, it can inform the consultation on local television that the UK Government plans to launch in January next year.
I want to work with other parties at Holyrood as far as is possible. The case for a digital network and for increased commissioning from Scotland has been significantly strengthened by the consensus that has surrounded broadcasting in Scotland since the Broadcasting Commission first reported. The quality of debate on broadcasting has been heightened by the constructive approach that Opposition spokespeople have shown in our debates and discussions on broadcasting thus far. I hope that we can continue to take forward the debate on broadcasting in Scotland as constructively as possible and that, where we differ, we respect one another’s different perspectives. The events of the past year have demonstrated that a partnership approach can yield results.
There is, of course, much more to do. However, I hope that the Scottish Government and this Parliament can make a real difference. By doing so, we will enhance broadcasting’s role in the democratic, economic and cultural life of the nation.
The minister will now take questions on the issues that have been raised in her statement. We have no more than 20 minutes for such questions, after which we must move to the next item of business.
Labour welcomes the work of the Broadcasting Commission and the impact that that has had on the industry in Scotland. However, we note that no progress has been made on the funding of a Scottish digital network, which remains a central priority for the Scottish Government.
In taking forward the Scottish digital network, does the minister recognise that Labour’s support for a digital channel is dependent on its being demonstrated that existing channels will be neither damaged nor undermined by it, and that quality must be at the heart of any new digital channel? Surely STV’s experiment with opting out has to be a central feature of Blair Jenkins’s work as he looks into the quality of any new network.
Funding must be a realistic prospect. Labour supports the growing amount of broadcasting industry work that the Scottish Government has been involved in to achieve a digital channel, but will the Government audit what has been done to bring skills to Scotland?
The £20 million of investment that the BBC has brought in by increasing network capacity is important, but will the minister ensure that an audit is also done for Channel 4 and Channel 5—which I do not think was mentioned in the statement—to match the commitment of BBC Scotland?
Critically, will the minister answer the following questions about the scope of the panel that Blair Jenkins will chair? First, will the Government support commercial options—will a commercial channel be a prospect under the new digital network or not? Will Blair Jenkins explore the BBC licence fee as a source of funding? Will he establish whether there is space on the digital spectrum as we move to digital switchover? The network is not a realistic prospect unless it is universal and available for all who wish to view it.
There were a number of very important questions there, and I will try to answer them all. If I do not, I hope that other members will come in on the same topics. There will be further opportunities to address some of those fundamental questions that Pauline McNeill has asked.
I thank Pauline McNeill for her support. She is correct to identify funding issues as being the main concern. The work of both the digital network panel and the Nicholas Shott review will be helpful in informing us on that subject.
I recognise Pauline McNeill’s concern about the impact of a digital network on existing channels. I would go further: it is important also to consider the potential impact on other media and other interests. The remit of the digital network panel therefore covers the potential market impact of any proposed funding on other Scottish media organisations. The issue has been addressed, and it will be addressed by the panel.
Pauline McNeill identified some more recent developments, including those involving STV. In the series of meetings that I have held with broadcasters, they were all open to participating and involving themselves in the digital network panel’s work. They are involved in the Nicholas Shott review, too.
Pauline McNeill also identified the issue of auditing skills and the extent to which the production that is taking place in Scotland is adding value to the local economy, to skills and to the development of local production and independent producers. We have been assured by the BBC that that is the case. However, Pauline McNeill correctly identified the need to continue to audit that in order to ensure that value is kept in and added to the Scottish perspective.
We should be realistic about the question of a commercial channel being involved. Our initial thinking was that the network would be public service broadcasting and would not necessarily be commercial in nature but, taking into account the reality of where the UK Government is going, we should be prepared to consider a combination of different models. That could mean certain elements—opt-out or otherwise—involving some commercial aspects. We have to wait and see what the UK Government comes up with. We need to be open minded in this regard, and people are conscious of that.
Funding from the licence fee, top-sliced or otherwise, was always an option or opportunity. The various different funding options will be considered by the digital network panel.
I hope that I have managed to cover that wide range of questions, but I am sure that we will return to the same points in subsequent questions.
I thank the minister for early sight of her statement.
The minister will recall that the BBC director general committed the corporation to achieving a minimum of 9 per cent network production from Scotland, in line with our population percentage. At 6 per cent, the BBC is still well short of achieving that figure, which Mark Thompson said was to be regarded as
“a floor rather than a ceiling.”
How satisfied is the minister that the network increase reflects genuine Scottish programmes, rather than established network shows being switched to Glasgow?
Secondly, the Government says that it hopes that the digital network, which was first proposed, of course, by the Scottish Conservatives, could become a reality as part of the Westminster Government’s plans to establish community-based stations across the UK. We have been told that a Scottish digital network panel has been set up to investigate funding models. Why has no one who has experience of local TV been included on the panel?
Given that the Government has set up a panel to consider ways of funding the proposed digital channel, I presume that the Scottish National Party has abandoned the Scottish Broadcasting Commission’s view that such a channel should be paid for by the taxpayer.
The member has raised a number of issues. I think that the BBC can reach the target before 2016 and I am urging it to do so. Progress has been made and, welcome though that is, I think that 2016 is too long a way off and that the momentum is such that the BBC can reach the target before 2016.
On community-based television, there can be a variety of models. At one point, the Conservatives were talking about having 80 local television stations. Ofcom’s submission to the Shott review is interesting in that regard, and Nicholas Shott indicated only yesterday in a letter that such local community-based television stations might not be sustainable through advertising revenue in the way that was first envisaged. Economies of scale might therefore be necessary.
We want the panel to report quickly and promptly, taking on board Nicholas Shott’s review, which we hope will be published before the end of the year. We want the panel to deliver in time to influence the consultation that the UK Government will put out next year. The membership of the panel is small and does not include a member with community-based television experience, but I expect the panel to consult such people as part of its deliberations. Blair Jenkins has indicated that he is open to engaging with all interests in taking the matter forward.
On whether a digital channel should be paid for through the licence fee, I suspect that that will depend on what happens with the licence fee. There are different models of funding, which is why I have asked the panel specifically to consider different models of funding. A variety of models exists across the regions and nations of the UK, and it is important that we are open minded, so I will not pass judgment until I have seen the results of the panel’s deliberations.
I thank the minister for the advance copy of her statement, which contained little with which members could disagree. We all welcome the progress that is being made by the BBC and, to a lesser extent, by Channel 4, towards having more programming from Scotland, but we acknowledge that more needs to be done. We also welcome STV’s efforts to provide more original programming for Scotland.
Scotland’s distinctive needs must be recognised as the BBC tightens its belt to cope with the licence fee freeze and as the future shape of channel 3 and the options for localised TV are determined. I welcome the setting up of the Scottish digital network panel and I look forward to meeting Blair Jenkins shortly to discuss his work.
Although a Scottish digital network remains an aspiration, does the minister agree that the priority must be investment to ensure that Scotland is not left on the hard shoulder of the digital superhighway? Does she agree that the Government’s efforts should be concentrated on delivery of high-speed broadband throughout Scotland, to support our communities and sustainable economic growth?
On the licence fee freeze, the member’s colleagues at Westminster and in the UK Government will want to consider issues in that regard.
On digital roll-out, I assure the member that my colleague Jim Mather has written to Jeremy Hunt to urge him to ensure that one of the pilot areas for superhighway activity is a rural area in Scotland, because unless we serve the periphery of Scotland first we will repeat the mistakes of the past, when the central belt had a fast service long before remoter parts of Scotland did. I agree with the member’s emphasis in that regard. We should collectively support that drive, to ensure that we are at the forefront of development. There will eventually be developments in internet television: proposals must not only meet the needs of today and tomorrow but anticipate how Scotland can be ahead of the game in broadcasting in several years.
That is why I have emphasised to Jeremy Hunt and Nicholas Shott that there is an appetite in Scotland to grasp the issue and that Scotland should be at the forefront of decisions, in particular if resources are available. Scotland has an appetite and offers an opportunity, and these are the right circumstances in which to ensure that we can drive forward the digital network, which could operate as a spine from which local opt-outs could come.
On the figures, the second annual progress report, which was published today and issued to all MSPs, contains more detail about the progress over the past year, which has been considerable.
The minister will be aware that the UK Government has raised the prospect of changing the ownership rules for media to allow an increase in cross-ownership, which could allow for the rise of monopolies. Does she agree that, although we should support the idea for more opportunities for localised broadcasting, as Ted Brocklebank mentioned, that should not be at the expense of having a broad range of media operators, and that we must ensure that no monopolies emerge that impact negatively on impartial coverage?
I very much agree with that sentiment. Indeed, the risk to plurality from monopolies of any form—whether public service broadcasting monopolies or monopolies of commercial interests—is obviously of concern because of the importance of broadcasting within a democracy. When I met Colette Bowe from Ofcom recently, I made the point that Jamie Hepburn has raised because it refers to an important feature of Scottish broadcasting and must be addressed.
The statement runs to seven pages and took the minister 10 minutes to read, but I see no mention of skills or skills training in it. Will she detail what is being done to provide a workforce that has the skills that are necessary to man the commercial stations about which she is talking? Will such an initiative be included in the third refresh of the skills strategy, which we expect to see next week?
I am disappointed that David Whitton is so grudging. I talked about Creative Scotland’s partnership with the BBC and STV, which is specifically about skills.
I also talked about the industry advisory group’s recommendations. The actions from those are already being taken and the recommendations that I referred to that are being implemented include training provision, particularly in drama. There is some very exciting work on that. Skills Development Scotland is investing in drama training. The big weakness in commissioning that was recognised is not necessarily in factual or news programming but in drama. We can make a big difference and achieve a huge amount in that. That is why Scottish Enterprise has today produced a report that gives different options on production capacity that would help to support that.
I reassure David Whitton that there has been progress in the past year but, even before that, with my previous responsibilities, we ensured that there was skills development for networks and drama in particular because they were identified as being weak in that respect. I am pleased to assure him that Skills Development Scotland is on the case. More important is that the Scottish Broadcasting Commission recommended that there be a partnership between the public sector and the individual broadcasting companies. Skills are clearly an area for that partnership and I am pleased that Creative Scotland has moved swiftly to reinforce that agenda.
I refer the minister to the expression “democratic deficit” in her statement. Nowhere is that better exemplified than in the Scottish Borders, where the STV franchise does not run, so my constituents receive ITV Borders, which is located in Gateshead, and do not get Scottish news or Scottish football. I hear what she says about local opt-outs. Will the Scottish digital network panel specifically consider the difficulties in the Scottish Borders?
I am sure that the panel will look throughout Scotland to find out what possibilities exist. I have already said that Scotland has particular relevance, reference and importance as part of the UK consideration. Within Scotland, the Borders have a particular issue that must be addressed—the region is badly served by existing broadcasting arrangements. We have repeatedly said that it is absurd that 250,000 people in Scotland receive their channel 3 regional news bulletin from studios in Gateshead and we will continue to press the UK Government on that.
The south of Scotland alliance and other groups are considering how community television stations could work. I encourage them to engage with the digital network panel and the Nicholas Shott review. However, at the end of the day, the decision remains a matter for the UK Government until such time as broadcasting responsibilities are transferred to the Scottish Parliament.
It has taken us an inordinate amount of time to get to the point at which we are to have a panel chaired by Nicholas Shott to explore what needs to be done to make local television commercially viable. We are aware of the need to conserve public money and we already know what we need to make commercial television viable: we need advertising and, for about the next decade, we ain’t gonna get advertising that would allow us to launch a new television system.
Will the minister look seriously at the other proposal by the new UK Government to allow the ownership of local newspapers and local television and radio? As someone who worked in local radio and then worked in local television to see whether it was possible to replicate the success of local radio in television, I do not believe that it is.
I must hurry you.
The minister could save a bit of money by tackling the issue the other way and starting from newspapers instead of television.
One of the members of the digital network panel is Charles McGhee, and the panel’s remit includes examining impacts on other media. I have met the consortium that put together the bid for independently funded news consortia, which was not signed by the incoming United Kingdom Government. Some of the potential opportunities might be reflected in the proposals that Margo MacDonald makes. Everyone is open to consideration of all of the options. Indeed, Nicholas Shott has already met people from the organisations that might be able to provide the solution that she is talking about. I do not think that it is fair to prejudge that work, which will be informed by the additional network panel and Nicholas Shott.
At this point in time, we have to keep our options open. The solution might end up being a combination of a variety of suggestions that have been put forward by this Parliament. I simply ask members to be open minded and to consider the practical realities, particularly given the economic constraints that we face.
The minister highlighted the UK Government’s establishment of a panel to explore what needs to be done to make local television commercially viable. What discussions has the minister had with Nicholas Shott and his team to impress on them the importance of any consultation process being genuinely public and of the need to ensure that consultation events take place in a variety of places in Scotland, which will allow a range of opinions to be heard from across Scotland and will, more importantly, ensure that the consultation does not have a remote and centralised appearance?
I know that Nicholas Shott is conducting an extensive series of meetings with particular interest groups. The consultation about the future of local television will take place next spring and will be driven by the Department for Culture, Media and Sport in Whitehall. I am more than happy to relay to the UK Government Stuart McMillan’s request that there be an open consultation process that has meetings in Scotland.
Nicholas Shott has published a letter that he wrote to Jeremy Hunt to outline his initial thoughts. If it is helpful to Parliament, I will ask for that to be put in the Scottish Parliament information centre.
On funding for the new digital network, has the Government ruled out any direct funding of its own? Has that option been considered by Blair Jenkins?
We have ruled nothing in or out in that regard. Clearly, Government investment in television is possible. We already contribute a significant amount to BBC Alba, which has proved its success. I know that the UK Government has some reluctance in relation to public money being invested as a subsidy, but it might find that the report of Nicholas Shott recommends that there needs to be some such investment. Obviously, the Scottish Government would consider what would be possible within our budget, if that were necessary.
Some of the investment that we can make could involve skills and similar areas—that goes back to David Whitton’s question. Working with Scottish Enterprise and Creative Scotland, we will consider whether a critical mass of investment can be made. If the investment can come from advertising or from within the licence fee, that would be, in a sense, a cleaner solution. Obviously, however, we will look to our responsibilities, depending on the outcome of the reports.