Report
1. On 21 October 2008, the Culture, Media and
Sport Committee held the first of what is intended to become annual
oral evidence sessions with Channel 4 on its Annual Report and
Financial Statements.
2. Channel 4 is a unique broadcaster. It is a
statutory corporation, without shareholders, established and regulated
under successive Broadcasting and Communications Acts. It generates
all of its revenues in the commercial marketplace but is not for
profit, its principal focus being the fulfilment of its statutory
remit. It receives indirect state funding and other privileges
such as free analogue and digital spectrum, "must carry"
status[1] and due prominence
on electronic programme guides.
3. Channel 4 is required to lay before Parliament
an Annual Report of its financial accounts and performance. However,
concerns have been expressed that Channel 4 lacks accountability
and external scrutiny. The establishment by the Committee of a
Channel 4 Annual Report session is a response to this and is intended
to provide enhanced transparency and accountability for the report
and accounts, and a forum for the discussion of other issues relevant
to this publicly-owned organisation. This is all the more important
now that Channel 4 is pressing for either direct or indirect public
financial support to cover its projected deficit in future years.
4. During the inaugural Channel 4 Annual Report
session, the Committee questioned the broadcaster on a range of
matters relating to its 2007 Annual Report and Financial Statements,
its strategy, programming and efficiency, and other issues of
current interest including:
- Governance;
- Remit and core purposes;
- Channel 4 cost cutting measures;
- The kidnapping of documentary filmmaker, Sean
Langan;
- Digital radio;
- Initiatives/output in education and for younger
audiences;
- Independent and regional production;
- On demand services;
- Ofcom's Public Service Broadcasting Review, and
possible future funding models for Channel 4.
5. We considered that Channel 4 responded to
our questions directly and with sufficient information, and so
did not need to follow up the oral evidence session with further
written questions. Instead, we intend to invite Channel 4 to appear
before the Committee again, later this year, following the publication
of its 2008 Annual Report and Financial Statements.
6. Channel 4 did give a commitment during oral
evidence to submit written evidence to provide greater clarity
on a couple of issues which arose during the session, and this
written evidence is attached to our Report after the oral evidence.[2]
1 Designated channels which must be carried by UK cable
operators in their lowest cost package Back
2
Ev 18 Back
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