HC Deb 31 October 1994 vol 248 cc1193-4
1. Mr. Rooker

To ask the Secretary of State for National Heritage when he will next meet the chairman of the Independent Television Commission to discuss television company mergers.

The Secretary of State for National Heritage (Mr. Stephen Dorrell)

I shall meet the chairman of the Independent Television Commission on 2 November. I expect to discuss a number of broadcasting issues, including ownership.

Mr. Rooker

It is clear that, following its purchase of Central Television, Carlton is asset-stripping it, with massive job losses and the abandonment of the commitment to keep two studios for regional programmes and news in Birmingham. When the Secretary of State meets the chairman, will he ask whether it was known when Central Television bid for the franchise that, with only £2,000 a year on offer and no competition, Carlton Television was waiting in the wings to buy it up and strip it?

Mr. Dorrell

With respect, the hon. Gentleman is concentrating on the wrong issue. What matters to residents of the midlands region is the quality of television output that is available to them. The ITC is there to monitor the standards set out in the Broadcasting Act 1990 and in the licence, and that is what it will do.

Mr. McLoughlin

When my hon. Friend meets the chairman, will he bear in mind the fact that BBC I and BBC2 can both provide nationwide services, as can Channel 4? Is it not about time that we had a radical review of the ownership of television companies, which are prevented from undertaking mergers at present?

Mr. Dorrell

As my hon. Friend will be aware, a review of the ownership provisions for Channel 3 television companies is being undertaken. When we have had an opportunity to assess our views, and the responses that we have received from others in the industry, we shall publish our conclusions.

Mr. Grocott

Cannot the Secretary of State appreciate that, six short years ago, there were four thriving studios at Central Television in Birmingham—three large ones and a news one—and a whole range of specialisms and professional groups covering the film industry? We now face the prospect of there being one small news studio, and there has been a haemorrhage of jobs. Surely it is common sense to review the decision that was made last year to allow the takeover of Central by Carlton. It is viewers and, indeed, people who work in the industry who matter, not those who seem to have been the only concern of the Government so far—the owners of the industry and a few people who have made a huge amount of money out of it.

Mr. Dorrell

The hon. Gentleman was right in at least one respect when he said that it is viewers who matter. The ITC is there to police standards set out in the Act and the licence, and to ensure that all Channel 3 licensees observe those standards. That is precisely what it is doing. Of course, companies are much better placed to be able to deliver those commitments if their finances are strong and they are looking forward to a secure commercial future.

Mr. Allen

I welcome the Secretary of State to his new duties. As I have been in my present position for all of four days, I shall ask what is perhaps a naive question—it may not happen again. When the right hon. Gentleman meets the chair of the ITC, will he discuss what seems to be an obvious trend towards coalitions of regional companies, perhaps resulting in one company only for independent television in this country? Is that something that the Secretary of State would facilitate, is it something that he would discourage or is it something that he feels should be left entirely to the free market?

Mr. Dorrell

As I said in my original answer, we shall certainly discuss a range of broadcasting issues, including ownership. As the hon. Gentleman will know, even after the changes that took place earlier this year, there are still substantial restrictions on a trend, which he may fear, towards a single Channel 3 broadcasting combine. That is certainly not the direction in which the Government expect broadcasting to go.