HC Deb 19 January 1970 vol 794 cc21-3
25. Mr. Ron Lewis

asked the Minister of Posts and Telecommunications if he will now reduce the levy on television companies, in view of the difficulties which will face broadcasting developments in certain areas.

32. Mr. Stratton Mills

asked the Minister of Posts and Telecommunications if he will reduce the levy on independent television companies; and if he will make a statement.

Mr. Stonehouse

I have just received the Independent Television Authority's detailed assessment of the effect of the levy on independent television. I am studying its case but I am not yet able to say what the outcome will be.

Mr. Lewis

Is my right hon. Friend aware that some of the smaller television companies, like Border, which operates most efficiently in my constituency, will not be able to go in for full colour programmes unless the levy is halved or taken off? That would deprive my constituents and those in the Border area of an efficient, up-to-date television service. Will my right hon. Friend speed matters up in the interests of the smaller companies?

Mr. Stonehouse

I am dealing with the question as quickly as I can. I received the report on Friday and spent the weekend with it. I am conscious that the smaller companies are adversely affected, but they are also adversely affected by increasing costs and the fact that the income from advertising has not been as great as was expected.

Mr. Ian Gilmour

In view of the right hon. Gentleman's extreme dilatoriness over this matter, which has been becoming increasingly evident over the past few months, will he undertake both to publish the Cooper Brothers' report when he receives it and to act upon it immediately?

Mr. Stonehouse

I cannot understand what the hon. Gentleman means by that supplementary question. I was told by the I.T.A. that it would give me the report as soon as it could. As a result of the very full investigations made by the accountants advising the I.T.A., this took longer than expected. I received the report on Friday afternoon last and spent the weekend reading every word of it. It is a very long report, and it is not yet possible for me, with my advisers, to reach any conclusions about it. The suggestion that there is any delay on my part or in my Ministry is absolutely unjustified. The report is confidential and I could not undertake to release the whole of it.

Mr. Mayhew

Is my right hon. Friend aware that some television companies are a great deal less poverty-stricken than others? This crisis will not be solved simply by cutting the levy. Can we be assured that we shall have full information about the finances of these companies, and that this will be followed by a searching examination of the structure of I.T.V. as a whole?

Mr. Stonehouse

It is true that some companies are not as badly off as some of those worst affected by the factors which I described in answer to another supplementary question. I shall see what information I can provide to the House before we move further on decisions that should be made.

Mr. Mawby

Is the Minister aware that it would be satisfactory to everybody if a searching inquiry could be made into the relationship of different companies and their general profitability? Does lie realise that the extra levy has a tremendous effect on companies such as the one operating in the West Country, and that the only result can be a lowering of standards or a reduction in staff, both of which would be very bad for television?

Mr. Stonehouse

I am concerned that whatever comes out of this examination will allow independent T.V. to keep the programme standards which it has established, and to improve them where it can.

Mr. Ellis

Does my right hon. Friend accept that, while many of us believe that it is right to clobber the profits, some of the miserable people running television companies are now lowering the standards on the production side, starving their producers so that they cannot put on decent productions? Will he make arrangements to attack the profits but to allow the companies the money for the productions?

Mr. Stonehouse

As I said in answer to another supplementary question, I am anxious that programme standards should be maintained, but I am not aware that there has been any reduction in them as a result of the Chancellor's action last year. Programme standards are being maintained, and I have had assurances from the companies that they will continue to maintain them.

Mr. Bryan

The dangers were pointed out to the Minister from this side of the House over six months ago, and he is only just coming round to making decisions on them. May I have assurances from him that even if the report cannot be published in detail in its original form we shall receive a great deal of the information, because it is clearly the most up-to-date and important information that there is?

Mr. Stonehouse

I shall see that as much of the information as possible is released, but a great deal of it is confidential to the programme companies, and it would be unfair to release the information that they have provided for the inquiry without their agreement.