§ The Question was as follows:
§ To ask Her Majesty's Government what is their estimate of the loss to public funds which will result from the financial support now being given to Channel 4 TV by the independent television companies.
§ The Parliamentary Under-Secretary of State, Home Office (Lord Elton)My Lords, during the passage of the Broadcasting Act 1980, which paved the way for the fourth channel, the Government estimated that the likely reduction in the yield of the ITV levy during the first three years of the new channel might amount in total to some £75 million in 1979 prices. It remains our view that that estimate is broadly correct.
Lord WinstanleyMy Lords, I thank the noble Lord for his Answer. May I ask him, however, to go a little further? Does he accept that in real terms the Exchequer has lost £100 million in levy from ITV between 1978 and 1983 and that the main factor has been the start-up of Channel 4? Does the noble Lord accept that this is likely to be an ongoing situation, whatever happens with regard to the Equity strike; that anxieties already have been expressed by the IBA and others about the reduction in programme output by the ITV companies; and that any attempt by the Government to recoup further finance from the 15 ITV companies could have a disastrous effect on programme standards? In other words, will the Government continue to bear their share of this very substantial burden?
§ Lord EltonMy Lords, a new television channel has been launched, financed entirely on a current account basis. It is only to be expected—indeed, it always was expected—that the profits of ITV companies would diminish sharply in the introductory years. The receipts from levy and corporation tax must also therefore go down until the new channel generates sufficient advertising revenue to be self-supporting. This we expect it to do.
§ Lord AylestoneMy Lords, while accepting that the Government, and public funds, have suffered a loss of £75 million, could the noble Lord say what the television companies have lost during the same time?
§ Lord EltonMy Lords, the fourth channel did not come on the air, I think I am right in saying, until some time in November of last year. It is impossible to predict the results of the profit and loss account so early in the financial year.
§ Lord Taylor of GryfeMy Lords, could the Minister say exactly what is the contribution of the independent television companies to the fourth channel for this year? Most of the companies have already published that amount.
§ Lord EltonMy Lords, I am not certain in what terms the noble Lord is asking his question, but I think the right answer is cultural diversity and the provision of material which minority groups would not otherwise have the opportunity to see.
§ Lord Taylor of GryfeMy Lords, I am merely asking what is the total contribution of the independent television companies, in financial terms, to the maintenance of the fourth channel.
§ Lord EltonMy Lords, the noble Lord will be able to deduce that from the text of my first and substantive Answer.
§ Baroness Burton of CoventryMy Lords, on a more cheerful note, not dealing with finance, is the noble Lord aware that many people greatly appreciate the in-depth news programme put out by Channel 4 each night at 7 o'clock? Would the noble Lord convey that appreciation to Channel 4, in view of the very difficult time that they are having?
§ Lord EltonMy Lords, if they know their business as well as I think they do, they will be aware of it in approximately 30 seconds.