HC Deb 19 February 1973 vol 851 cc15-7
18. Mr. Gorst

asked the Minister of Posts and Telecommunications whether the British Broadcasting Corporation has informed him that it will be in deficit by 1975; and what action he proposes to take to deal with the situation.

Sir J. Eden

The BBC estimates that, on a cautious assessment of future revenue, it will have accumulated a deficit of about £15 million by 1975. I am satisfied that no action is called for at the present time.

Mr. Gorst

Will my right hon. Friend bear in mind that the caution of his reply is really astonishing? Would not he agree that there are three choices open—first, to cut back the services of the BBC, secondly, to increase the licence fee, and, thirdly, to do nothing? Is my right hon. Friend aware that the last of these choices is the least favoured of any?

Sir J. Eden

I note what my hon. Friend has said, but the fact remains that the BBC's own forecast is based on the view that the growth rate of colour television licence revenue will not continue. If that were to happen, the BBC would be in deficit unless it could find savings on its expenditure. The House will realise that the amount is pretty marginal against expenditure of well over £400 million over three years.

Mr. Mayhew

Does not this Question and the answer show again that the present system of financing the BBC makes the corporation dangerously dependent on the Government's goodwill? As the present licence fee inflicts considerable hardship on people with low incomes—not only retirement pensioners—and bearing in mind the cost of collection and the money lost through evasion, will not the right hon. Gentleman seriously consider abolishing the licence fee altogether?

Sir J. Eden

It is conceivable—I put it no higher than that—that any system alternative to the present one would make the BBC more rather than less dependent on the Government.

Mr. Ewing

Will the right hon. Gentleman discourage any possibility of further cutbacks in services? Is he aware that over the weekend the BBC in Scotland submitted the people of Scotland to a grave injustice, inasmuch that no Scottish football match was televised on Saturday evening, on the rather lame excuse that the game in Edinburgh was doubtful up to the last minute, although it was known on Wednesday that the Edinburgh match would be off, whereas the East Fife v. Celtic match was known last Wednesday to be on, and could have been televised?

Sir J. Eden

I am sure that the House will have been interested to hear the hon. Gentleman's views describing the difficulties of conditions in some parts of Scotland—[Interruption.]—a reminder that there are problems in many parts of the United Kingdom.

Mr. John Grant

Leaving aside the views of the Scots on the Floor of the House and the Welsh in the Strangers Gallery, does the right hon. Gentleman agree that this whole series of Questions and answers underlines once again the urgent need for a full-scale inquiry into broadcasting—an inquiry which he seems so reluctant to set up?

Sir J. Eden

The hon. Gentleman had his go on that subject on earlier Questions.

Mr. Gorst

On a point of order, Mr. Speaker. In view of the unsatisfactory nature of the reply, and the interruptions, I beg to give notice that I shall seek to raise the matter on the Adjournment.