HL Deb 09 June 1994 vol 555 cc1317-9

3.17 p.m.

Lord Dormand of Easington asked Her Majesty's Government:

What discussions they have held with the Radio Authority concerning the awarding of national licences.

Baroness Trumpington

None, my Lords. Awarding radio licences is the responsibility of the authority, and the Government do not seek to influence its decisions.

Lord Dormand of Easington

My Lords, I thank the noble Baroness for that reply. Can she say whether or not it is government policy to award new wavelengths to the highest bidder and that that is the sole criterion on which awards are made? If so, is it not the worst possible way of maintaining broadcasting standards?

Baroness Trumpington

My Lords, the procedures were laid down in the Broadcasting Act of 1990 and we have no plans to change them. It is in the broadcasters' own interests to sustain the quality of their output to attract and keep listeners; and few would dispute the quality of "Classic FM" (INR1), for instance.

Lord Rippon of Hexham

My Lords, in order to improve broadcasting standards, will my noble friend encourage the most prolonged strike possible at the BBC?

Baroness Trumpington

My Lords, that is a little wide of the Question.

Lord Donoughue

My Lords, will the Minister tell the House on what occasions the Radio Authority publishes the reasons for awarding a wavelength to a station? Does she agree that the basic reason should be quality? I believe that the reasons are given only when the award does not go to the highest bidder. Does the Minister agree that it is most important that the reasons should be given as to why quality is not put above money when the award is made to the highest bidder?

Baroness Trumpington

My Lords, the highest bidder still has to satisfy the authority that the application meets the requirements of the Act. The authority is not obliged to offer reasons for its choice. However, the authority may award the licence to a different applicant if it considers that there are exceptional circumstances and then it would have to publish its reasons.

Lord Tordoff

My Lords, is the noble Baroness aware when she gives this commercial plug for Classic FM that it does not necessarily command wholehearted support? I have heard it described as the Reader's Digest of radio.

Baroness Trumpington

My Lords, you pays your money and you takes your choice.

Lord Dormand of Easington

My Lords, will the Minister be a little more specific? It is possible to say yes or no to the question as to whether the highest bidder gets the new franchise for the wavelength. The noble Baroness referred to other conditions. The only condition that I am aware of is that the authority has to be certain that all the money necessary will be raised. I repeat the question. Is the answer that it goes to the highest bidder?

Baroness Trumpington

Yes, my Lords.

Lord Dormand of Easington

My Lords, I am sorry to come back. Will she say whether the Radio Authority agrees with government policy on that?

Baroness Trumpington

My Lords, it is for the authority to make its decisions. It is not for Ministers to be a court of appeal.

Baroness Hamwee

My Lords, does the noble Baroness agree that, far from the listener paying his money and taking his choice, it is the would-be franchise holder who pays his money and imposes his choice?

Baroness Trumpington

My Lords, it is right that the taxpayer should secure some financial return for the use of a valuable national radio frequency. Applicants are expected to take account of the cost of a bid in their business plans for providing services attractive to both listeners and advertisers.

Lord Jenkins of Putney

My Lords, if the same principle were applied in respect of newspapers, would not the Government be giving the Sun newspaper a monopoly of all the press distribution in this country?

Baroness Trumpington

My Lords, it entirely depends on whether one reads page three.