Television Franchises (Hansard, 13 December 1993)

§ 17. Mr. Gunnell
To ask the Secretary of State for National Heritage what arrangements are in place to ensure that companies taking over regional television franchises fulfil the under takings in respect of meeting local and regional needs given by their predecessor.

§ Mr. Brooke
The Independent Television Commission is responsible for enforcing the requirements on every regional licence holder to provide regional programmes. Those licence conditions apply regardless of changes of ownership.

§ Mr. Gunnell
The Secretary of State will be well aware that many of the bids by companies that subsequently won franchises promised regional programmes and the creation of jobs within the regions in which those companies would operate. If Yorkshire Television's franchise, for example, were taken over by another company, that would obviously have a significant effect on the jobs in Yorkshire promised by that company when it originally sought its franchise. What will be done to ensure that regional employment is not lost as a result of the decision to allow the acquisition of franchises?

§ Mr. Brooke
The licence holder remains the licence holder even if another company controls the licence following a takeover. In the case cited by the hon. Gentleman in the Tyne Tees area, the licence holder would continue to be answerable to the ITC for discharging the licence that it was granted.

§ Mr. Lidington
Did not we hear the same scare stories from the Opposition when the present ITC regime was introduced by the Broadcasting Act 1990? Does my right hon. Friend agree that the commission has proved effective in making sure that companies observe their obligations and that there is no need to doubt that it will prove effective in future?

§ Mr. Brooke
I am grateful for my hon. Friend's comments. The ITC said that the transition to the new arrangements was undertaken more smoothly and with greater stability than previous transitions.

§ Mr. Mandelson
In the light of the move by London Weekend Television to fend off Granada's predatory bid by jumping into bed with Yorkshire Television, is not the Secretary of State the least bit concerned that Tyne Tees Television could be a casualty in these shenanigans? Will he assure television viewers in the north-east that Tyne Tees Television's commercial viability and regional programme output will be entirely secure, whatever change in ownership takes place?

§ Mr. Brooke
As to the regional discharge of licences, I gave the answer to the hon. Member for Morley and Leeds, South (Mr. Gunnell) earlier. As we discussed in the House last week, the fact that Yorkshire Television controls Tyne Tees, and the consequences that that has in terms of a takeover, are factors which would weigh in the mind of anybody considering such a takeover.