HC Deb 31 January 1985 vol 72 cc397-8
1. Mr. Canavan

asked the Secretary of State for the Home Department what recent representations he has received about the television licence fee; and if he will make a statement.

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

Some 200 hon. Members and 900 members of the public have written during the current Session about the level of licence fees. In reaching my decision on the BBC's licence fee application I shall also take account of the review by independent consultants which the BBC has commissioned at my request.

Mr. Canavan

If the Government cannot see their way to abolish the licence fee completely and to fund the BBC from the Treasury, will the Home Secretary at least recognise that thousands of pensioners, who are dependent upon television as a source of information and entertainment, simply cannot afford the £65 fee being demanded by the BBC? Will the Government therefore consider the introduction of a concessionary rate or, better still, a completely free television licence for old age pensioners?

Mr. Brittan

The cost to the Exchequer of a free television licence for pensioners would be £250 million a year. I do not think that I can anticipate doing that. The cost of financing the BBC generally from the Exchequer would be over £700 million, and I do not fancy increasing taxation by that amount.

Mr. Mark Carlisle

Many Conservative Members believe that the BBC should continue to be funded by means of a licence fee rather than by advertising or any other method. However, we are concerned about some aspects of the areas now covered by the BBC. What consideration has been given to the possibility of holding a general inquiry into the role of the BBC in national and local television and radio, while accepting the need for an increase in the licence fee?

Mr. Brittan

I am sure that the debate about the financing of the BBC will continue, but I reaffirm that, as the Prime Minister has made clear, changes in the method of financing will not arise during consideration of the current licence fee.

On the question of inquiries, I should point out that the Annan inquiry took place comparatively recently. My right hon. and hon. Friends will understand that general inquiries into the role of the BBC or of broadcasting as a whole inevitably take a long time.

Mr. Madden

What would be the cost of giving free television licences to pensioner households? Does the Home Secretary agree that, unless there is a substantial reduction in the cost of television licences, especially to elderly people, many will be forced to stop watching television or, like one of my constituents, face a prison sentence for non-payment of the licence fee?

Mr. Brittan

It would cost £160 million to provide free television for households comprising only pensioners. I understand the difficulties facing many pensioners. That is why I should like, once again, to draw attention to licence savings stamps, which are a convenient way by which to pay. There is also a scheme which enables people to pay monthly cash instalments at post offices towards their next licence. That scheme has been introduced recently.

Mr. Yeo

Is my right hon. and learned Friend aware that most people are more anxious about the quality of the service provided by the BBC than about the price, although that is an important consideration? Does he agree that that policy might seriously be undermined if advertising were to be introduced?

Hon. Members

No.

Mr. Brittan

I suspect that people are anxious about quality and cost. As to the impact of advertising on quality, it appears from the response to my hon. Friend's question that opinions differ.

Mr. Kilroy-Silk

Cannot the Home Secretary for once show a little care and compassion for the more vulnerable and poor members of society? As the television licence fee represents such a high proportion of pensioners' income, and as so many pensioners are housebound, disabled or sick, can the Home Secretary not dredge up a particle of compassion from his cold soul and introduce free television licences for them?

Mr. Brittan

The hon. Gentleman should recognise that those who have the greatest compassion do not necessarily wear it on their sleeve.