Appendix 1: Government response
Letter from Ed Vaizey MP, Minister for Culture,
Communications and Creative Industries, dated 31 January 2011
I am writing to respond to the Committee's Annual
Report on Channel 4 published on 14 December 2010.
I am grateful for the Committee's report and thank
them for their recommendations. Most of these recommendations
are directed to Channel 4 for response, with only recommendation
5 and part 14 directed to Government.
RECOMMENDATION 5
The Government reviewed every statutory body as part
of its public bodies reform work. A number of changes arising
from this review require primary legislation and the Public Bodies
Bill was introduced to provide the legislative framework for these
reforms to take place. The Bill also includes a schedule ('Schedule
7') that lists all statutory bodies whose functions (either all
or part) may be subject to future reviews and may require primary
legislation to enact future recommendations arising from such
reviews. As a public corporation with statutory functions it is
right that Channel 4 should be listed alongside other bodies that
have undergone the recent review process. However, as stated by
Lord Taylor of Holbeach at the start of the Second Reading of
the Public Bodies Bill on 9 November, I can assure the Committee
that the Government has no desire to do anything to undermine
the vital organisational and editorial independence of Channel
4.
RECOMMENDATION 14
The current framework gives Ofcom the primary role
in the governance, licensing and regulation of Channel 4. The
independent Board of the Channel 4 Corporation (C4C) is responsible
for ensuring that Channel 4 meets its public service responsibilities.
We are satisfied that the Governance arrangements as strengthened
by the Digital Economy Act 2010 ensure that C4C is sufficiently
accountable to Government for its public service requirements.
The Digital Economy Act 2010 amended the Communications
Act 2003 to set out a new requirement for C4C to prepare an annual
statement of media content policy and to report on its performance.
In doing so they must have regard to Ofcom's guidance, which was
the subject of a consultation that ended on 19 January 2011.
I note that the Committee were concerned whether
C4C is sufficiently accountable for its output outside its core
channel, The Digital Economy Act 2010, set out new provisions
to introduce new accountability arrangements for C4C, that includes
a role for Ofcom. These new provisions recognised that the way
in which audiences consume audiovisual content and services has
been transformed by digital and online technologies. The Act amended
the role of C4C; they are now able to provide public service content
on all their channels and platforms rather than being restricted
to the traditional linear TV model. Decisions about the most appropriate
platform for specific content and services will be a matter for
C4C, subject to Ofcom's guidance. Ofcom will have backstop powers
to take action against C4C if they believe that the PSB requirements
are not being met. We are confident that Ofcom's guidance, when
published, will reinforce the clarity provided by the Digital
Economy Act as to C4C's role while providing C4C with sufficient
flexibility to manage its operations effectively.
Once again I thank the Committee for their helpful
recommendations. I will continue to monitor Channel 4's progress.
In particular, I will be watching closely how Ofcom implement
the new arrangements from the Digital Economy Act, and how C4C
adapts to the provision of public service content across all platforms
rather than just through C4.
January 2011
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