§ 10. Mr. WhittingdaleTo ask the Secretary of State for National Heritage what is her policy for the future funding of Channel 4; and if she will make a statement. [2843]
§ Mr. SproatThe Government's policy on Channel 4 funding remains as set out during the passage of the Broadcasting Act 1996—to remove mandatory payments to the reserve immediately and to reduce the liability for payments to channel 3 in two stages in 1998 and 1999.
§ Mr. WhittingdaleWill my hon. Friend congratulate Channel 4 on its success in avoiding recourse to the safety net and on making a profit last year of £128 million? Does that not demonstrate that it is possible for Channel 4 to meet its remit and to operate commercially? Will he therefore consider its privatisation at the first opportunity?
§ Mr. SproatMy hon. Friend makes a good point about the profits of Channel 4, on which I congratulate the company. I well remember his brief, yet powerful, speech on 18 June in favour of the privatisation of Channel 4. The Government have made no decision about privatising the channel, but we keep all options under review.
§ Mr. Chris DaviesWill the Minister go further and rule out any prospect of privatising Channel 4? Does he accept that the quality and diversity of broadcasting offered by the 35 television channels in New York compare poorly with that offered by the four channels here? The public service obligation is an important principle and it should be maintained.
§ Mr. SproatI have no doubt that the Government will take full account of what happens in New York and in Channel 4 when considering all the options.
§ Dr. MoonieA suspicious man might consider that there was some significance in the fact that the hon. Member for Colchester, South and Maldon (Mr. Whittingdale), who asked the main question, and the Minister are wearing the same old school tie; fortunately, the Minister did not see his way to going quite as far as 688 some of us might have feared. We join him in welcoming the increased funds available to Channel 4, which will immediately be channelled into programming. What discussions has he had with Channel 4 about the routes through which the funding will go? Will he state his support for the principle of Channel 4 as it was set up—as a publicly funded and operated channel, catering for minority tastes and interests?
§ Mr. SproatWe have had discussions with Channel 4 about rejigging the funding formula, and will have further discussions as seem appropriate. As far as privatisation is concerned, I will support the Government line.