HC Deb 07 December 1992 vol 215 cc576-7
2. Mr. Mandelson

To ask the Secretary of State for National Heritage if he will make a statement on the future funding of the BBC.

The Secretary of State for National Heritage (Mr. Peter Brooke)

This is one of the issues to be considered in the debate about the future of the BBC.

Mr. Mandelson

Will the Secretary of State comment on the strong opposition to his idea for a public service broadcasting council? Will he acknowledge that not only the BBC but the ITV companies and Channel 4 believe that syphoning off money from the BBC in that way would undermine programme quality in the long term and that the only support for the idea—apart from that of Mr. Melvyn Bragg—comes from elements within the Murdoch empire, No. 10's policy unit and the Tory Members of Parliament who want to do in the BBC?

Mr. Brooke

We have launched a consultation period which will last five months and have just completed the first week. I have already received a significant number of comments and I shall analyse the reactions given in answer to the question about that subject. It is good that the question has been asked and that we are getting answers.

Mr. Simon Coombs

Will my right hon. Friend give due cognisance to the view that no matter how the BBC is to be funded in the future, it makes very little sense for the resources that are available to it to be used to fuel a bidding war for feature films when they are available through so many other sources?

Mr. Brooke

The content of BBC broadcasts is one of the matters about which we have asked in the consultation document, but the decisions are essentially for the BBC itself to take.

Mr. Maginnis

Does the Secretary agree that the use of public funding demands an obligation to the public? Will he therefore review and enhance the present ineffective measures to preclude from the airways Sinn Fein and other aplogists for terrorism? Does the right hon. Gentleman agree also that the use of actors' voices or the interviewing of a person such as Sinn Fein Councillor Joe Austin on the pretext that he is bystander contravenes the spirit of the legislation and is offensive to the public? Will the right hon. Gentleman ensure that the legislation is tightened?

Mr. Brooke

The interpretation of the notices, of which the hon. Gentleman is aware, is a matter for the broadcasters themselves. They must decide whether a person is speaking on behalf of an organisation named in the notices or is speaking in a different capacity. The notices are kept under general review. I currently have no plans to make any changes to them, although I receive representations that I should consider relaxing them.

Mr. John Marshall

Will my right hon. Friend consider widening the BBC's sources or revenue? Would he be willing to consider advertising as a source of revenue, as it has managed to give us a thriving independent television service?

Mr. Brooke

That is just one of the questions that were raised in the Green Paper last week and to which we are already receiving replies.

Mrs. Clwyd

Why is it that the BBC can be riddled with accountants yet allow an overspend of £58 million? Why was such a huge overspend, involving millions of taxpayers' money, not made clear in the BBC's report presented to Parliament? Where is the Coopers and Lybrand report—why has it not been published? Why have the BBC's board of governors and board of management failed to ensure that financial management systems are in place?

Mr. Brooke

In the BBC's last accounting year, it balanced its books in terms of its expenditure.

With regard to the most recent revelation, the hon. Lady and the House will be aware that the audit committee of the BBC has published its view and that corrective action is being taken. The BBC recognised that there were faults in its systems and has moved to correct them as quickly as possible.

Sir Geoffrey Johnson Smith

When the great debate is over and a plan of what the BBC should or should not be doing in the future has been suggested for serious consideration by the House, will my right hon. Friend ensure there there is a proper, independent financial appraisal of the consequences of what is proposed?

Mr. Brooke

The consultation period on the Green Paper will be concluded on 30 April next year. After that, the Government will of course be engaged in reviewing the responses that have been received and will no doubt consider them from different perspectives.