Public Service Broadcasting

HC Deb 14 March 1985 vol 75 cc429-30

Q1. Mr. Key

asked the Prime Minister if she is satisfied with the arrangements for financing of public service broadcasting; and if she will make a statement.

The Prime Minister (Mrs. Margaret Thatcher)

The current BBC licence fee application will be settled on the basis of the present arrangements. As far as the longer term is concerned, I have made it absolutely clear that we do not rule out the possibility of changes.

Mr. Key

While thanking my right hon. Friend for her answer, may I ask whether she agrees that it is important to bear in mind that there are already a large number of pensioners and low income households which find it hard to pay the existing fee? Will she also resist calls to fund the BBC out of general taxation, which would remove its independence and tend to put it in the hands of the Government of the day?

The Prime Minister

I understand my hon. Friend's anxiety about increases in the licence fee. He will be aware of the recent Peat Marwick Mitchell report, which suggested a number of improvements in efficiency, which my right hon. and learned Friend will be taking into account before he makes his decision. I have no intention of putting the BBC's licence fee, or any part of it, on to the general body of taxpayers.

Mr. Fauld

Is not the flaw in the right hon. Lady's policies that she knows the price of everything but is unaware of the value of anything?

The Prime Minister

The hon. Gentleman should address his remarks to the BBC.

Mr. Brinton

Does my right hon. Friend agree that the main problem which the BBC and the Government face with the BBC's request for an increase, which many of us regard as excessive, is that the BBC has failed tc address itself to the question—let alone attempted the answer—as to what the licence payer should be expected to pay for in 1985 in these days of multi-choice broadcasting? Will she consider a wide-ranging inquiry into the whole future of public service broadcasting?

The Prime Minister

I understand my hon. Friend's anxiety. The BBC's licence fee is in the nature of a compulsory levy on people who have television sets. I have taken note of his other suggestions.