The Licence Fee Freeze

3. Topical Questions – in the Senedd on 19 January 2022.

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Photo of Heledd Fychan Heledd Fychan Plaid Cymru

(Translated)

1. What assessment has the Welsh Government made of the impact of the licence fee freeze on Welsh broadcasting? TQ592

Photo of Dawn Bowden Dawn Bowden Labour 3:09, 19 January 2022

Can I thank Heledd Fychan for that question? I met with the BBC yesterday, and we are working with them to understand the impact of the deeply concerning UK Government licence fee announcement and what it means for services and the media sector in Wales.

Photo of Heledd Fychan Heledd Fychan Plaid Cymru 3:10, 19 January 2022

(Translated)

Thank you, Deputy Minister. The UK Government announcement on the licence fee on Monday is further proof that Wales's needs with regard to media will never be met while Westminster remains in control of them, and marks the beginning of the end for the whole concept of public broadcasting in the UK. Freezing the licence fee for two years will lead to major uncertainty for the future of the media in Wales, especially for our national channel, S4C, and Radio Cymru, which will be funded entirely from the licence fee. Nadine Dorries confirmed that the licence fee will be frozen for two years, which represents a significant real-terms cut in the corporation's budget.

Many on the Conservative benches in Westminster have noted the importance of Welsh-medium broadcasting and the additional funding for S4C. However, do they acknowledge that a real-terms cut to the BBC settlement will inevitably have an impact on Welsh language provision, bearing in mind that the BBC provides around £20 million-worth of S4C programming every year? An increase in funding for S4C's digital output cannot compensate for that cut, not to mention Radio Cymru. It is clearer than ever that we need a healthier media landscape in Wales. The UK Government is increasingly hostile to the BBC, while, at the same time, local news output is declining. This is pushing Wales into a corner in terms of a media deficit in Welsh and English, which is damaging our democracy.

With further talk of abolishing the licence fee entirely after 2027, I welcome more than ever the intention to call for the devolution of broadcasting that has been included in the co-operation agreement. Would the Deputy Minister agree that recent developments underline the importance of the Welsh Government's commitment to support the devolution of communication and broadcasting to Wales, so that we are not trapped in a race to the bottom where profit trumps quality provision?

Photo of Dawn Bowden Dawn Bowden Labour 3:12, 19 January 2022

Can I thank Heledd Fychan for those further comments? I largely agree with everything that she has said. Public service broadcasters play an incredibly important role in Wales's cultural and economic life, and we're deeply concerned at the reckless UK Government announcement made concerning both their immediate and long-term future. The people of Wales expect and deserve public service broadcasting that reflects Welsh life, supports our diverse creative expressions and promotes the Welsh language. The confirmed real-terms funding cut announced in recent days could threaten all those key elements of existing services, as well as the development of the media industry in Wales. It's simply not credible to believe that the UK Government has prepared longer term plans to take account of these issues.

The manner of these announcements clearly demonstrates that the opposite is true. Although we had an announcement from Nadine Dorries about the abolition of the licence fee, it does appear that Rishi Sunak has rolled back on that somewhat over the last couple of days, when they've seen the backlash from the public on that particular announcement. Because that announcement clearly wasn't credible insofar as any kind of comprehensive plan that was ready to be announced so soon after No. 10 had found itself yet again mired in another political crisis of its own making. What I would say is that the expansion of the BBC operation in Wales has been integral to the remarkable success of the tv and film industry in Wales over recent years, and any threat to this progress would be a visible demonstration of this Government's intent to level down and hold back the Welsh economy.

In relation to the devolution of broadcasting, as Heledd Fychan knows, there is a commitment in the co-operation agreement, which is to jointly explore the creation of a shadow broadcasting and communications authority for Wales, providing additional investment to develop enterprises to improve Welsh-based media and journalism. We're working on plans to pursue the case for devolution of broadcasting and communication powers in readiness for the devolution of those powers to Wales. I think it's true to say that there is a broad consensus that the current broadcasting and communications framework is inadequate. It's hampering the democratic life of our country, it's not serving the needs or the ambitions of the Welsh language, and its latest attack on public service broadcasting is the latest proof that this current system will not deliver that.

I'll just finish by repeating what the First Minister said yesterday, and that is that there is now an urgent need for a coalition of support to defend public funding for public service broadcasting in the UK.

Photo of Samuel Kurtz Samuel Kurtz Conservative 3:15, 19 January 2022

Deputy Minister, I wish to welcome the commitment to Welsh language broadcasting that has been realised with the significant extra funding for S4C. Our party established the channel over 40 years ago, and we will always secure its role in Welsh life, regardless of how the BBC is funded and frivolous claims from opposition parties. I joined my colleague Tom Giffard in writing to the then Secretary of State for Digital, Culture, Media and Sport calling for an increased funding settlement for S4C last year, and I'm glad that our calls were heeded. Indeed, I was pleased to see that S4C's senior leadership have also welcomed the extra funding, with S4C's new chief executive Siân Doyle saying

'This is great news for S4C's audience in Wales and beyond'.

And S4C's chair, Rhodri Williams, saying

'This settlement reflects the faith of the DCMS, and the Secretary of State Nadine Dorries, in S4C's vision for the next five years.'

During the meeting I had with the new chief executive last week, the passion for bringing the channel into the digital age was evident. The additional funding of £7.5 million per annum to support digital services is an acknowledgment that online streaming services now play a huge role in our consumption of television shows. Putting S4C up there with the streaming giants such as Netflix and Amazon Prime will bring a new and growing audience to Welsh language content. Will you join not only me but also the senior leadership team of S4C in welcoming this additional funding announcement to support Welsh language broadcasting here in Wales?

Photo of Dawn Bowden Dawn Bowden Labour 3:17, 19 January 2022

Well, can I thank Samuel Kurtz for that further question? He is absolutely right, S4C did have a more favourable settlement than the BBC, and the work that S4C are undertaking in terms of developing Welsh language programming is to be welcomed and I am absolutely happy to do that. However, this question was about funding of the BBC, and the BBC and its wider role in terms of supporting public service broadcasting, not just in Wales but in the UK and across the world. We shouldn't forget the role that the BBC plays in developing and supporting the Welsh language in Wales with BBC Radio Cymru et cetera, and some of the programming that they do for S4C as well. So, whilst I absolutely do welcome the far better settlement that S4C had compared to the BBC, I am not suggesting for one moment that what we have seen here in the announcement on BBC funding is anywhere near adequate, and does present an absolute threat to the future of public service broadcasting unless this is addressed as a matter of urgency.

Photo of Elin Jones Elin Jones Plaid Cymru 3:18, 19 January 2022

(Translated)

I thank the Deputy Minister.