Select Committee on Culture, Media and Sport Second Report


5 Future

62. The Department states that 'delivery of key policy priorities and the best possible services to the public' is their focus for the future. The DAR also emphasises the need for the Department to strengthen internal workings and the management of NDPBs. This focus has been translated primarily into the 2003-06 Public Service Agreement between DCMS and the Treasury that includes three key objectives and four specific performance targets (outlined and scrutinised in more detail below). We feel that this focus, however, must also be applied to areas of the Department's work which are not covered by the 2003-06 PSA and/or where major developments within their remit are approaching.

The 2003-2006 Public Service Agreement

63. The DCMS' objectives and performance targets for 2003-06, as set out in the agreement between Department and HM Treasury, are as follows:[61]

Objective I: increase participation in culture and sport and develop sectors.

Strategic priorities within objective I: Enhance access to a fuller cultural and sporting life for children and young people, and give them the opportunity to develop their talents to the full; Open up institutions to the wider community, to promote lifelong learning and social cohesion.


Performance target 1: Enhance the take-up of sporting opportunities by 5-16 year olds by increasing the percentage of schoolchildren who spend a minimum of two hours each week on high quality PE and school sport within and beyond the curriculum from 25% in 2002 to 75% by 2006. Joint target with Department for Education and Skills.

Performance target 2: Increase significantly the take-up of cultural and sporting opportunities by new users aged 20 and above from priority groups.

Objective II: develop appropriate regulatory frameworks that protect consumers' interests and improve the productivity of our sectors.

Performance target 3: Improve the productivity of the tourism, creative and leisure industries.

Objective III: modernise delivery to the customer by ensuring that the Department and its sponsored bodies improve performance and pursue institutional excellence.

Performance target 4: Improve significantly the value for money of the Department's sponsored bodies measured by a matrix of NDPB indicators.

64. The Department provides more information about the delivery of the above objectives in the 2003-06 Service Delivery Agreement.[62] This includes information about the programmes that will be put in place and baselines against which success will be measured. We note that the National Audit Office has been asked to make an assessment of the systems that departments put in place to measure performance against their PSAs. We regard this is as a very worthwhile exercise.

65. We hope that scrutiny of these targets by the Committee and others will have a positive effect on their evolution as clear, reasonable and challenging, encouraging the Department to achieve greater success in performance but also to remain mindful of the need for rigorous reporting, to Parliament, public and other stakeholders, of both successes and areas where more needs to be done or a different approach needs to be taken.

Target One: To increase the percentage of school children who spend a minimum of 2 hours on high-quality PE and school sport within and beyond the curriculum from 25% in 2002 to 75% in 2006

66. The Department has set its new PSA target for 75% of all school children to receive at least two hours of "high-quality" PE a week by 2006 from a baseline of 25% in 2002. We were told by the Secretary of State that the Prime Minister's Delivery Unit had recently set a different baseline of 30%, which is the level which had been reached since 2002 "through the implementation of school/sport partnerships".[63] We have noted the Department's concern that the last target, of raising significantly average time spent on sport and physical activity for children aged five to 16, had been over-ambitious. However we were concerned that the new target represented an unacceptable reduction of the Secretary of State's aspirations. Tessa Jowell argued that the new target was an improvement:

"The new target, which is currently owned between my department and DfES, and monitored by the Prime Minister's Delivery Unit, has a major new structure underneath it through the creation of school sport partnerships. If I can focus on the new target rather than the old target, it is the new target which is now driving the joint work between my department and … [DfES]. We are now, as of this moment, at about the point where 30% of children in primary and secondary schools are spending at least two hours a week on quality sport or physical activity. 'Quality' because it is being delivered under the direction of somebody who is properly trained, a professional in physical education; properly delivered because, as our coach education programme comes on stream, coaches will be going into schools to work with young people. It is coherent because it works on a pyramidal structure where you have a specialist sports college which acts as the hub.'[64]

67. The ownership of the target by DCMS and DfES, and the monitoring by the Prime Minister's Delivery Unit, suggests to us that the Government place great importance on reaching the target and we hope this means that sufficient research has been done to ensure that the required level of performance for delivery is reasonable yet challenging. The Secretary of State, when questioned, was confident.

"The money is here. We have a delivery mechanism. This is working. It is already working in a third of the country and we intend with the resources available to us that this benefit will be extended to children in 75% of the country. That is our absolute intention. I am confident that we have the means, both in terms of organisational design, skill and money, to do that."[65]

68. In a supplementary memorandum, the Secretary of State outlined the overall strategy for delivery of the new target on which £1 billion will be spent by 2006 increasing participation in sport with the associated aim of tackling predicted increases in childhood obesity. However, we were very concerned that about 90% of this money does not yet seem to have been allocated for actual use since its announcements first in 2000. There is a general consensus that encouraging children to engage in sporting activities, and sustain that interest throughout school and beyond, will be a vital strand in the fight against childhood obesity with many estimated benefits for quality of life as well as the future workload of the NHS. Judging by the confidence of the Secretary of State, we expect that the Department will meet this important target for promoting sport amongst young people and we recommend close monitoring of progress over the next three years as success in this area is of very great importance to the health and well-being of the nation's children.

Target 2: To increase the take up of cultural and sporting opportunities by new users aged 20 and above from priority groups

69. The Committee are encouraged that the Department has set a target focused on the cultural and sporting activities of those over the age of 20 as this is an important area of the Department's remit and must not be neglected. It is a matter of consensus that there is a significant drop-off rate in both sporting and cultural activity once people have left full-time education and the opportunities more easily provided therein. We hope that the new target for 2003-06 and the redefining of Sport England's responsibilities will mean that they (along with the cultural bodies also involved) can focus on increasing participation within the specified age group especially from priority groups.[66]

70. The Committee are encouraged by the development of a sporting facilities database, as DCMS told us:

'The good news in this is that by June next year [2004] we will have for the first time ever a nearly comprehensive database of all facilities that we are funding Sport England at the moment to compile. It is extraordinary that it has not happened until now but it is now going to happen. We should have about 90% of the information available by June and the rest of it, the last 10%, will be available in the early part of 2005. What that will mean, and this is very important as part of the practical strategy to boost participation, is that you will be able to key in your postcode and find out where the gyms, the squash courts, the playing fields, the swimming pools, are near you, and in time (I do not think you will be able to do it immediately) you will be able to book on line and so forth. We will have for the first time ever a comprehensive database of sports facilities by a little later than this time next year.'[67]

This, along with the proposed creation of 3000 Community Coaches, will undoubtedly help to improve participation in sport because more help and information will be available to the public (as long as the schemes are properly promoted). The Department must also ensure that take-up of cultural opportunities by new users is tackled effectively and in a practical way. The Department proposes to meet this by enhancing the activities of a number of sponsored bodies including National Heritage, Arts Council England, Resource and CABE.[68]

Target 3: To improve productivity of tourism, creative and leisure industries

71. The Committee believes that PSA target three (2003-06) is vital to improving the work of the Department. The target itself focuses on a sector which is very important to the economy of the country and the largest industry under the remit of the Department. The Committee have had a number of concerns in the past about the dedication of the Department to improving and investing in the sector but feel that the inclusion of tourism and leisure within the PSA targets for 2003-06 in itself represents a very positive step in the right direction. In oral evidence the Secretary of State set out for the Committee the Departmental aims for tourism in more detail:

'the department's work in tourism is focused on four areas. The first is improving quality. We hope soon that there will be a licence issued for the Sector Skills Council. The second is improving the level of skill and therefore recruitment to the industry. The third is improving the quality of data for the industry and, fourthly, creating a single voice and a coherent function in relation to marketing. My department's role is in part instrumental in relation to data and making links to other government initiatives, particularly in relation to skills, but also catalytic in seeking to get more coherence across what is one of our most disparate industries.'[69]

72. In order to maximise the benefit for the sector through the target, we feel that it is critical that the target itself is appropriately worded and we have concerns about the use of the word 'productivity', the exact definition of it, and how it will be measured accurately to reflect actual improvements in the sector. When asked about how 'productivity' would be defined in relation to this target, we were told:

'We obviously work very closely with the Treasury in relation to this. The Treasury has a model which has established five key drivers of productivity across innovation, skill, competition, investment and flexibility. When we talk about improving the productivity of the tourism industry, we are looking at achieving value added, both in relation to the contribution of individual employees and as a result of new investment as, for instance, Visit England, the website that will for the first time bring together a wide range of tourism facilities and in time will enable booking on-line. These are the ways in which we will judge whether or not we have boosted productivity.'[70]

73. It seems to us that the measurement of "productivity" will be difficult and this may lead to problems in analysing and reporting on success against this target. We believe that it would be more appropriate for the target to tackle the volume or quality in the sector in order successfully to boost progress towards this DCMS objective. In our recent inquiry into the provision of support for the tourism sector, we heard that the key indicator was the tourism 'balance of payments': the difference between the amount that UK holidaymakers spend abroad and the amount that overseas visitors spend in this country. There is a long-standing deficit which is accelerating in the wrong direction as the table below shows.


Tourism balance of payments in the UK (£ million)
Overseas residents' spending in the UK UK residents' spending abroad Balance of payments

1995

11,763

15,386

-3,623

1996

12,290

16,223

-3,933

1997

12,244

16,931

-4,687

1998

12,671

19,489

-6,818

1999

12,498

22,020

-9,522

2000

12,805

24,251

-11,446

2001

11,306

25,332

-14,026

2002

11,737

26,962

-15,225

Official Report, 19 January 2004, Column 1002W

74. We understand that the rising amounts spent by UK residents on holidays abroad partly reflect rising living standards here. However, the worrying statistic is the record of visitor spending in this country which was lower in 2002 than in 1995. We believe that meaningful targets for the effectiveness of departmental support for tourism must include reference to this ratio. With regard to the existing PSA target for tourism, we recommend that the Department looks again, especially at the term "productivity" within it, to establish exactly how this will be measured and what baseline will be used.

Target 4: To improve significantly the value for money of the Department's sponsored bodies, measured by a matrix of NDPB indicators

75. The Committee is happy to see that the 2001-04 targets has been extended and that the focus has not been removed from improving the management of the relationship between the Department and its sponsored bodies (through which a very large part of the DCMS budget is spent). We believe it is vital that there is further development of the measurement techniques and we hope that the establishment of a matrix system of indicators will prove to be a good measure of performance and a catalyst to increase the value for money of the sponsored bodies. We recommend that the Secretary of State keeps a close eye on the reform of a number of large sponsored bodies that is being carried out now or in the near future and make sure that best practice is disseminated.

Major future developments

76. The 2003-06 PSA provides DCMS with specific objectives and performance targets to meet, encouraging better performance in these areas of the Department's work that it feels are in need of attention and improvement. We are concerned that DCMS should not focus solely on these priorities to the detriment of areas within their remit that are not covered by the Public Service Agreement. There are a number of major developments that fall within the remit of the Department which require DCMS staff and sponsored bodies to work hard and dedicate resources to, where success will not be measured against PSA targets. These include the following list:

Culture:

Media:

  • BBC Charter renewal;
  • analogue switch-off;
  • contribution to universal internet access and broadband roll out;
  • Ofcom implementation.

Sport:

  • Olympics
  • grassroots participation in sport.

General:

  • National Lottery reform

77. In relation to the above list, we were concerned that the 2003-06 PSA does not encourage enhanced performance in a number of areas. For example, heritage is included within PSA targets 1 and 2. However, within these targets the focus is on increasing public access/number of visits to heritage sites to increase the educational and cultural value for children and adults in target groups. The targets do not necessarily stimulate or 'turbo-charge' the management and protection of this country's heritage within the context of efficient and effective planning procedures.

78. The renewal of the BBC's Royal Charter, and associated Agreement with the Secretary of State, is a major project that the Department will have to administer over the next three years (with the current Charter due to expire on 31 December 2006). The renewal will involve much public consultation, already underway, and has the potential significantly to shape the future of public service broadcasting. The Committee feel that it is critical for DCMS to carry out this review to the best of its abilities and is concerned that the lack of a PSA (or one relating to broadcasting at all) could mean that resources and attention may be focused at those areas against which performance is officially measured and away from this and other topics not covered by the PSA. Much of the above also applies to the approach of digital switch-over where the target for analogue switch-off remains somewhere between 2006 and 2010. We note the Secretary of State's commitment to the necessary steps to ensure that the "challenging target" is met.[71] The DCMS must continue to prepare the ground for analogue switch-off and we are, again, concerned that the subject may be in danger of falling off the agenda - due to the lack of a PSA target - to re-emerge only when a crisis occurs. Informed public awareness (which is essential to the process) should not be allowed to diminish. We hope that this is not the case and urge the Department to ensure that the public are engaged with the implications of Government policy on this aspect of broadcasting - public service of the highest importance in many people's lives.

79. The Department's contribution to universal internet access and broadband roll-out was an area covered by the 2001-04 PSA targets and we believe that this was instrumental in bringing about success in the installation of internet access in 99% of public libraries. As stated earlier in this Report, we feel it is vital that the Department does not lose momentum in this area and we hope that access to the internet and especially broadband will be made available publicly to those who do not have/cannot gain private access. We have also discussed the importance of the successful implementation of the Communications Act 2003 and the establishment of Ofcom as an effective regulator earlier in this Report.

80. Within the sporting remit of DCMS, we agree that it is very important for the Department to focus attention and resources on increasing participation in school sports and take-up by the 20+ age group as identified in the PSA targets. We also feel that it is essential for the Department to allocate time and resources to increasing participation in grass-roots sports of all types. We recognise that this is done to a certain extent through the "sporting ladder" and through the introduction of Community Coaches but we think that more needs to be done to increase participation at grass-roots levels in many sports, most importantly tackling the drop-out rate after school age. This is important for the health and well-being of children and adults but also links into the need to develop talent in all sports to achieve success at major sporting events such as the Olympics.

81. The possibility that London wins the bid for the 2012 Olympic and Paralympic Games may become a reality in July 2005. The Department has already committed significant funding to the bid and, of course, the available plans for funding the Games if the bid is won set out large sums from a variety of sources. It is essential that DCMS learn lessons from the planning for other major events (World Cup and World Championships) and especially the Manchester Commonwealth Games and the problems at Picketts Lock. The staging of the largest international event of any kind has the potential to yield great benefits to London and the UK, but leadership, careful planning and good management are essential from the outset. The Secretary of State must be ready to ensure that this is undertaken, leading and coordinating across all Government departments and in efficient and effective partnership with the GLA, LDA, BOA, a national organising committee and other stakeholders.

82. The Department is currently undertaking a reform of National Lottery licensing and distribution. The National Lottery generated £1,591,781,000 for good causes in 2003.[72] This significant amount of money is allocated to good causes through 16 National Lottery distributors who are DCMS-sponsored bodies. The National Lottery Commission, responsible for awarding the National Lottery licence and for the regulation of the operator, is also a DCMS-sponsored body. The outcome of reform in this area is critical to the amount raised for good causes and the effective distribution of that money. We therefore hope that the Department dedicates appropriate resources and focus these to ensure the best possible outcome for good causes.

83. Coordinated planning across a number of these areas will be vital as the Olympics, grass roots sporting participation and the National Lottery, for example, are all linked in terms of opportunities for cross-fertilisation between objectives and resources. We will shortly be reporting specifically on the Government's proposals for reforming the Lottery and the implications of plans for the Olympic Games.


61   http://www.hm-treasury.gov.uk/performance/DCMS.cfm Back

62   http://www.culture.gov.uk/NR/rdonlyres/evpow7odpu62yhpygc4alpc2rhttoief52ykjexhyhsg625 5hsv2wxkfxps224byuzek5mejo5glires6kiny3yv7od/dcmsSDA200306.pdf Back

63   Q 33 Back

64   Q 31 Back

65   Q 36 Back

66   Q 52 Back

67   Q 53 Back

68   2003-06 Service Delivery Agreement Back

69   Q 7 Back

70   Q 8 Back

71   DCMS press release 41/03 4 April 2003. A joint ITC/BBC report set out a number of policy interventions for Government if digital take-up slowed: announcement of a firm switchover date; mandating of digital decoders in new televisions; a co-ordinated public information campaign; commitment to certain high levels of DTT coverage after switchover; growth of a "free" satellite market as a result of public service channels broadcasting in the clear on digital satellite.  Back

72   £1,591,781,000 was the income into the National Lottery Distribution Fund in 2003. Back


 
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