Select Committee on Broadcasting Minutes of Evidence


Examination of Witnesses (Questions 147 - 159)

WEDNESDAY 14 JULY 1999

MR MARK DAMAZER AND MR NIGEL CHARTERS

Mr Gale

  147. Mr Charters and Mr Damazer, welcome. As you know, the Broadcasting Committee is conducting an inquiry entitled "The development of Parliamentary Broadcasting", which includes consideration of matters such as the implications for the House of the introduction of digital television. You have very kindly submitted a memorandum which we have had the opportunity to study and for which I thank you. Before I invite questions from the Committee, do you have any opening remarks, perhaps referring to any general developments which have taken place since you wrote it?

  (Mr Damazer) Thank you for your welcome; we are very pleased to be here. May I commence with a quick one or two minute skim through the paper we circulated, not word for word but highlighting one or two principal points and where appropriate supplementing information we provided. Our overall view of the performance of BBC Parliament within the BBC is that we are delighted that we have the channel and that we took it on. We think that we have made genuine editorial improvements, though we are aware of the fact that the way the Palace of Westminster itself works means that there are other opportunities to discuss other developments. We are running seven or eight select committees a week in addition to the gavel-to-gavel coverage of the House of Commons. I should say straightaway that we have no plans whatsoever to resile from the commitment we gave you and your Committee when we started up with BBC Parliament that gavel-to-gavel coverage of the House of Commons will continue. Should you wish to discuss in the next hour whether there are other ways in which the channel can be constructed or configured, we should be delighted to hear what you have to say. However, there is no dilution of our commitment that the full chamber of the House of Commons will be covered gavel-to-gavel. On the distribution of the channel, this week saw the launch of the first fully fledged digital cable system in the United Kingdom in the North West Region, in Manchester, and I am delighted to say that BBC Parliament is on that system. Our view from talks with the digital cable companies is that there will be no difficulty when the big switch occurs from analogue cable to digital cable in getting BBC Parliament accepted as part of the offering which the digital companies wish to provide. The distribution of BBC Parliament in the United Kingdom is now in 17 per cent of homes in the United Kingdom and that compares to 12 per cent a year ago; things are clearly moving in the right direction. You may wish to choose in the next hour to discuss listening figures and we shall try to give you our best information on that although I am afraid it is a very imprecise science. We shall try to explain why that is the case. Clearly we would wish to point out in the context of our respect for the institution in which we are currently sitting and indeed the total BBC offering that BBC Parliament is very important. It is a very valuable addition to the BBC's public service portfolio but in discussing the way we broadcast Parliament there is clearly a variety of other means which we use in our mainstream terrestrial output and we can discuss that and how it complements and supplements the way we choose to run BBC Parliament. In the document we submitted in advance we pointed out the fact that politics in the United Kingdom is going through a fascinating phase and the constitutional developments are things we need to take note of in the body of our coverage. And in the way we choose to develop BBC Parliament we need to be acutely aware of the way business is conducted here and to think very hard about the priorities we give to the limited amount of air time, money and spectrum space we have available. I ought to say here that although the money we are currently providing for BBC Parliament as a service is money which we think is very well spent, we clearly have to be aware of the fact that the BBC has a variety of obligations and that any money which we spend on one obligation always means, sadly, less money for another obligation. In deciding the development of the broadcasting of Parliament, we must always bear in mind the fact that we have to compete with various other priorities. That may be a theme we shall choose to develop during the course of the next hour. I have read through the evidence given by my colleagues Mr Price and Mr Morris last week to this Committee and second everything they say. The thrust of their evidence to you was that one way in which real development may occur in the course of the next one year, five years and ten years in different ways is via online. Mr Charters and I would be only too keen to discuss with you the way in which that technology could be harnessed to the benefit of the Houses of Parliament. Finally, we thought that it might be useful if during the course of the hour you could browse through a couple of the existing pages we have on BBC News Online site which are devoted to politics and which give you examples of where you can click and link into the coverage we already provide both for the channel BBC Parliament and in other programmes which feature activities in the Palace of Westminster available on BBC2, Radio 4, and so on. May I distribute these documents?

  148. Please do. Thank you for that. (The witness distributed the documents)[1]. You touched on the matter of funding, which is of course all important. You will have noticed, having read the evidence we took last week, that the subject of the possibility of ring-fenced funding on the lines of that granted by the Foreign and Commonwealth Office to the World Service was raised. What is your view of that?

  (Mr Damazer) I believe that it would be a very, very significant move for the BBC to make to extend its funding arrangements outside the World Service to other activities. Let me explain why. The World Service is a fundamentally different proposition, not only because of the history of its funding, but also of course because of its audience. It is broadly accepted that where activities are for a United Kingdom audience, the licence fee is the best way of assuring the public that the BBC is independent. Although it could be argued that Parliament is a special case, we would be extremely nervous about the possibility of other people beginning to mount arguments that they too might be funded in a special way. They might be speciality or niche audiences of a particular kind, for the deaf or the blind. It may be that political parties feel that this is an appropriate way of covering conferences. It might be that the TUC thinks it an appropriate way of covering their activities. Each of these arguments could of course be addressed and I am not suggesting that at the moment one extends the principle the floodgates immediately burst. I do think that the need for the BBC's independence to be transparent to the licence payer is so great that to breach the existing way in which the BBC is funded would from our point of view be a risky and dangerous enterprise. In addition to that there is the whole line of accountability currently established by the licence fee and various reporting mechanisms which the BBC operates via the Board of Governors to ensure that there is a degree of accountability in the way the BBC is currently run which matches the standards that the House of Commons would wish to set. Again, if we went to a different method of funding it would clearly open the debate about the most appropriate accountability mechanisms, which might lead to a view that the BBC's independence was not being as firmly buttressed as is the case with the licence fee.

  149. At the moment that independence which you proudly proclaim is subject to internal pressures from within the BBC, from straightforward editorial demand. The News Editor says he would like a particular committee covered, so it is covered. The News Editor says he is not remotely interested in that committee, that committee is not covered. It is perhaps significant that the cameras are in this room when we are discussing the future of the broadcasting of Parliament, whereas most of us have sat in committees time after time after time where there are no cameras present. What we are seeking is a way forward to provide a broader C-SPAN style service which if it is to be achieved quite clearly has to be paid for as will the re-equipment of the old committee rooms, the equipment of the new committee rooms which are being built over the road, the coverage of the regional assemblies and the coverage of the second chamber, whatever that is going to be called. One way forward it seems to some of us is to have a ring-fenced grant. If that is not going to happen, unless there is going to be a burden on the licence payer and the licence fee, bearing in mind the priorities that you yourself described, how do you suggest we are going to pay for it?
  (Mr Damazer) We the BBC outlined in the evidence we gave last week the way in which a wider range of parliamentary activities can be made available to a wider public by using tremendous opportunities which arise out of digital technology. We could explore that later on. In the context of the BBC exercising editorial choices, yes, it is a world where we have to decide between editorial priorities. When those decisions are exercised by the BBC, the public can be reassured that they are being exercised by a body which is not the same as the Government or even the Palace of Westminster. Should the House of Parliament itself decide to change the way in which it operates so that it sets up, if I may give an example, its own website, taking the advantages that technology is going to offer and will continue to offer, then Parliament itself could choose, if it so wished, to become responsible for distributing more widely the workings of the Palace of Westminster. For the BBC to do that without being seen to exercise editorial control for itself is, I contend, something which breaches the way in which the BBC has operated and with all its imperfections has operated successfully, for a long enough period of time that we would worry about where it would lead to.

  150. You have not answered the question. What I said was that if we are not going to go down ring-fenced funding then where is the money going to come from? It is all very well saying we are going to take advantage of new technology. We are all in favour of that; every single person sitting round this table, probably everybody in the room, is aware of the exciting potential but somebody has to pay for it. Surely you are not suggesting that the integrity of the World Service has ever been compromised by its direct funding from the Foreign and Commonwealth Office. I have never heard anybody complain that the FCO leans on the World Service.
  (Mr Damazer) No, but there is a different historical arrangement and a different audience. Although the arrangement has worked perfectly successfully, as I am sure you, Mr Chairman and members of the Committee, will know, when it comes to choosing which languages and the number of hours in which those languages are transmitted in the World Service, that is something which has to be worked out with the World Service and the Foreign Office. That has not compromised the final product, I would agree. By the same token, if one were to extend that into the domestic sphere, it would be a breach of the way in which the BBC has operated which we would instinctively feel anxious and uncomfortable about and would certainly want to have a very, very close look regarding its consequences and its operation to ensure that the BBC was not in a position where the licence payer felt that its independence had been breached in the United Kingdom.

  151. I ask the same question once more and then move on because others wish to question you. You still have not answered. The fundamental question is: where is the money going to come from? Are we satisfied that those currently contributing to the Parliamentary Broadcasting Unit are going to go on paying larger sums to achieve what we want to achieve?
  (Mr Damazer) That ought to be a question for PARBUL itself and although the BBC is a significant contributor and participant in PARBUL's activities, I do not feel that I am qualified to answer that. In terms of the BBC's own effort, there is no change I can see to indicate that the BBC will diminish its current commitment to the reporting of Parliament across the range of the BBC services. Our only plans are to think very hard about how best to increase it, using the digital technology which is available and with a particular emphasis on what we might do to encourage growth on the net and to make sure that people know the BBC is providing that service at a far lower cost than if we were to establish other television channels to do so. In one attempt I hope to allay your anxieties. If we come to the conclusion that the web has the capacity to take more of the activities of this House and the House of Lords, it may well be that the amount of money that is needed to do that is not so large that the BBC will not be able to find it or that the House itself may feel that it can find a way of funding it and putting it out under its own site, under its own rubric, under its own terms.

Mrs Gordon

  152. You are saying you have a commitment to gavel-to-gavel coverage. In your memorandum you say, "The House could agree that live coverage of the Floor could be broken to allow other coverage to take precedence". Could you tell me a bit more about how you foresee that might happen and who in fact would make the editorial decisions about when to leave the live coverage and who decide what actually takes precedence?
  (Mr Damazer) My colleague Jenny Abramsky, who at that time was in charge of the service setting up BBC Parliament within BBC News, made the commitment when she was here over a year ago that the BBC would run the BBC Parliament channel and would guarantee that there would be gavel-to-gavel coverage of the House of Commons. Should there be a desire within the House for the BBC to exercise editorial discretion and break away from the activity in the chamber to a particularly important Select Committee or indeed another activity going on inside the Palace, then the BBC would feel that it had the editorial ability and the editorial experience to do that, though of course there will always be room for debate about whether the decision was correct or not and that discretion could be had after the event. By the same token I must emphasise that I have not come to the Committee today asking the Committee at this particular juncture to say that is what they wish the BBC to do. Given the importance of other activities in the House other than the full chamber, it may be that one way in which the channel could change over a period of time is precisely for that editorial discretion to be exercised by the people running that channel. Forgive me if I am saying this slightly later than I should have. I am substituting today for the BBC Editorial Manager, who is responsible for the channel, Mr Roger Mosey, who is currently out of the country. He and his team and Mr Charters are intimately involved with the running of the channel, I am sure have the editorial wisdom to do it, but we absolute concede the point that at this juncture, this is nothing we would wish to do without full consideration having been given by this Committee as to its desirability.

  153. It actually sounds like an argument for having a second channel, does it not really?
  (Mr Charters) From my perspective, I think that is an obvious conclusion. What worries me is that, taking the evidence of Mr Price and Mr Morris at the last sitting of this Committee, we get into the problems of not being able to offer universal coverage and therefore with the growth in web penetration, we would come back to the point that rather than a second traditional broadcast channel, we believe a very fruitful way forward would be to investigate other means of disseminating the coverage of committees, Westminster Hall, whatever it ends up being called, rather than a mainstream traditional television channel, the costs of which, because of the scarcity of spectrum, would rise disproportionately compared to BBC Parliament at present.

Mr Lepper

  154. Is built into your answer the argument that it is cheaper to develop the internet service? Could you give us some idea of the scale of difference in costings?
  (Mr Charters) A very broad difference. I cannot dot "i"s and cross "t"s, but our experience has been that setting up web casting, which we do quite considerably on the BBC Online site—and I must say this is a guestimate, but I have been a little bit involved with it—it is possibly one twentieth ballpark figure of the cost. There are constraints of course and one of the things one must remember with traditional even digital channels is that there is a very high upfront cost, that is you must get the satellite or you must lay the cables or you must get the DTT transmitters. Before you have an audience of one the cost is the same as for an audience of one million. Whereas we perceive the great advantage in the expansion of web casting is that actually one can grow the technology and the size of the operation on demand. This is very much the future. One can increase gently as opposed to the step changes implicit in traditional broadcast channels.

Mr Gale

  155. I do not know whether you can help us with this further, but we seem to be between a rock and a hard place. We were told last week that spectrum, even digital spectrum, is going to be scarce.
  (Mr Charters) With respect, I think you mean DTT.

  156. I am sorry, yes, digital terrestrial spectrum is going to be scarce. There does not seem to be much room for manoeuvre. Colleagues have indicated that the solution really is not to diminish the parliamentary coverage of the chamber but to have a second channel, as indeed C-SPAN has a second channel, to come back to that example.
  (Mr Charters) Cable only, with respect, as well.

  157. Yes, that is absolutely true but of course the United States is far more heavily cabled than the United Kingdom is. What you may be able to help us with is some indication as to what you think can be done to develop the coverage while we work out technologically the wider delivery of that enhanced coverage. At the moment we are getting the worst of all worlds. We are getting narrow coverage—that is no criticism of the unit; you are doing what you are required to do—and not many people can see it.
  (Mr Charters) The first thing I would say to that is while the audience base is low it is growing now we have moved to digital satellite and to a certain extent to DTT. The second thing is that although this would need to be investigated, and has not been investigated within the BBC, there is a possibility that we are not using the full 24 hours. One of the developments which we will see quite soon in our shops will be televisions which are semi-intelligent and will within themselves effectively be able to store material for later reclamation like a solid-state video recorder. One of the possibilities is that we could expand our coverage slightly by running the channel 24 hours. I have anecdotal evidence from people who ask why we do not. The sort of people who are interested in the coverage we provide are the sort of people who will record something, stay up, etcetera. We believe there are limited opportunities for exploring.

Mrs Gordon

  158. What additional cost would that entail? I think it is quite a good idea to cover 24 hours. Having heard from people who saw my adjournment debate at half past midnight, there were obviously people watching it through the night. What would be the additional costs of that?
  (Mr Charters) We have put a figure on it in here of about £500,000. It would mostly be staffing costs. The problem with this is that our staffing costs are not just putting on extra technical staff to transmit the material, but the more labour intensive job of captioning, because it would all be on tape. I believe most of you came and visited our operation when you saw people researching each individual committee, captioning it and actually laying those captions on the tape. While it seems quite a lot, the effort involved is exponential. It is not just an extra engineer overnight to press the buttons, there is quite a bit more preparation.

  159. If Parliament is not sitting, will those extra hours not just be showing committee work and material you already have stored?
  (Mr Charters) Yes. I must admit that my view on this would be that extra hours should not be for repeats. If—and I stress it is "if" and is not anywhere near a certainty and we have not done investigations to any level—then the use of that would be for material which is not seen currently: more select committees, perhaps an attempt to look at covering standing committees.


1   Not reported. Back


 
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