HC Deb 09 July 1981 vol 8 cc563-4
3. Mr. Ioan Evans

Secretary of State for the Home Department when he expects to make a statement on the application to increase the television licence.

The Secretary of State for the Home Department (Mr. Whitelaw)

The BBC has not yet made an application to me for an increase in the licence fees. When I announced the last increase on 23 November 1979, I made it clear that the new fees would have to last for at least two years. I have no intention of increasing the fees before that two-year period has expired.

Mr. Evans

Does the Home Secretary agree that the BBC leads the world in the quality of its television and wireless broadcasting output, but that there is a need for additional financial support if the quality is to be maintained, and that it is wrong that the same licence fee should be charged to a millionaire as to a widowed mother or old-age pensioner? Will he consider the possibility of ensuring that, instead of or in addition to the licence, the BBC gets financial resources by some other method?

Mr. Whitelaw

I believe that the licence fee is the right method for raising finance for the BBC, and it has been widely supported throughout the House. A free television licence for all pensioner households would cost between £155 million and £170 million a year, and that would make considerable inroads on the money available to the BBC from licence fees.

Mr. Dormand

In coming to a conclusion on this matter, will the right hon. Gentleman bear in mind the need for some sort of levy when films are shown on television? Is there not the strongest moral and economic case for this, particularly as the Government have on several occasions said that the British film industry—which produces some of the best films in the world—warrants that kind of support?

Mr. Whitelaw

That matter can be considered, but I still maintain that the financing of the BBC should be done through the licence fee. These matters can come into those discussions.

Dr. Summerskill

I appreciate the serious financial difficulties of the BBC, but will the right hon. Gentleman bear in mind that the Opposition would be extremely reluctant to support an increase in the licence fee unless some help could be found for retirement pensioners who rely so heavily upon television and are the least able to pay for any increase?

Mr. Whitelaw

Yes; but the hon. Lady will also appreciate that the more help we gave at that end, the higher the licence fee would have to be for everybody else.