Local Commercial Radio

HC Deb 22 July 2002 vol 389 cc654-6

6. Mr. Bob Blizzard (Waveney)

What his policy is on the regulation of local commercial radio. [68963]

The Minister for Tourism, Film and Broadcasting (Dr. Kim Howells)

We set out our policy for the future of radio regulation in the draft Communications Bill, which was published on 7 May. Our general approach to the radio industry and to the communications market in general is deregulatory. Format controls and ownership restrictions will both be relaxed. However, we recognise the importance of maintaining the distinctive local basis of commercial radio. We therefore propose to retain key local ownership rules and to give Ofcom a duty to protect and promote local character.

Mr. Blizzard

I thank my hon. Friend for that answer. My area is very well served by local commercial radio stations such as Beach Radio and the local GWR stations. Does he agree that radio with a truly local focus is becoming increasingly popular? Such companies have welcomed many of the proposals in the draft Bill hut, on the regulation of ownership, they ask why, if there is to be a requirement for at least three local cross-media owners, further specific ownership rules are needed for radio through the complex points system. Why are two layers of rules required for local radio?

Dr. Howells

I welcome my hon. Friend's support for our proposals in general, and assure him that we recognise the tremendous role that local radio plays in many respects. The three plus one formula to which he refers was adopted as a consequence of the commercial radio stations themselves saying a year ago that it was the best system. Now they are pushing the envelope and believe that it should be two plus one. We are in a consultation period, and if they come back to us with good arguments we will consider them carefully.

Nick Harvey (North Devon)

Does the hon. Gentleman think that it makes sense to relax the rules on newspaper and TV ownership while maintaining such strict controls on radio? Does he accept that plurality of ownership and diversity of choice and listening can sometimes run up against each other, and that the potential of digital radio might be better fulfilled by allowing one company to put out three different radio formats instead of insisting that three serve up the same sort of middle of the road diet? Given that we have cross-media rules, general competition rules and licences based on content format, does Ofcom really need the additional sledgehammer of such clumsy radio-specific rules?

Dr. Howells

As I said to my hon. Friend the Member for Waveney (Mr. Blizzard), we are in a period of consultation and these are precisely the kinds of debates that we should have. I should like to think that we have adopted a wholly deregulatory role on radio, but I can see the sense in some of the hon. Gentleman's points. We will look at all of these arguments during consultation, and I hope that we will be able to come up with a set of regulations that will make the radio sector feel that it has been liberated rather than further constrained. I hope that the hon. Gentleman will accept that I say that in good faith, because I want commercial radio to succeed. It is a great sector, and it has done some marvellous things for this country.

Mr. Derek Wyatt (Sittingbourne and Sheppey)

My hon. Friend the Member for Waveney (Mr. Blizzard) is lucky to have two commercial stations. My constituency is stuck between two different FMs, so we have neither a commercial nor a decent public sector radio station. What is my hon. Friend the Minister's thinking on community radio, and on how such radio is to be paid for? I suspect that many more people will listen to community radio than currently listen to the BBC's digital radio, yet that is funded through the licence fee. Is there any chance that community radio could also be funded in that way?

Dr. Howells

I agree with my hon. Friend. Community radio—or access radio, as it is sometimes called—can add a great deal to the radio service in this country. How it should be funded is, however, a matter that we have to look at very carefully. In my constituency, for example, it gets funding from lots of different places. The university of Glamorgan puts money into it, as do various community funds, and there is a real sense of ownership of access radio as a consequence. I would hate to see that disappear. This is the kind of radio whose raison d'?tre is to be part of the community, to grow from it, and to feel that it is serving it. The community should, therefore, have a sense of owning it, and that is rather an important consequence in terms of the way in which it raises its funding.

Mr. Tim Yeo (South Suffolk)

Is the Minister completely happy with a system of regulation that allows the chairman of the body that regulates the BBC to share a platform with its director general at the launch of the annual report, and to use that platform to support Mr. Dyke against criticisms from MPs, bearing in mind that, in future, the equivalent procedure would be for the chairman of Ofcom to share a platform with the chief executive of BSkyB and to support Mr. Ball against other criticisms?

Dr. Howells

The hon. Gentleman will be surprised to learn that I think it very important that there should be a difference between the executive of a broadcasting corporation and the regulator. I have always argued the case for a sense of independence for regulation, and for a separation of regulation. I am sure, however, that Mr. Greg Dyke needs nobody to defend him; he is perfectly capable of doing that himself.

Mr. Yeo

Does the Minister understand that he has just completely undermined the Government's position on the Ofcom Bill—

Mr. Speaker

Order. The hon. Gentleman is out of order.