The Secretary of State for Culture, Media and Sport (Mr John Whittingdale): My right hon. Friend the Chancellor of the Exchequer will be making his Budget statement on Wednesday, but following news reports on Sunday, I would like to take the opportunity now to confirm details of the agreement that we have reached with the BBC. Under the agreement, the BBC will take on the cost of providing free television licences for those households with over-75s, and that will be phased in from 2018-19, with the BBC taking on the full costs from 2020-21. Having inherited a challenging fiscal position, the Government are pleased that the BBC has agreed to play its part in contributing to reductions in spending, like much of the rest of the public sector, while at the same time further reducing its overall reliance on taxpayers.

As part of these new arrangements, the Government will ensure that the BBC can adapt to a changing media landscape. The Government will therefore bring forward legislation in the next year to modernise the licence fee to cover public service broadcast catch-up TV. In addition, the Government will reduce the broadband ring fence to £80 million in 2017-18, to £20 million in 2018-19, to £10 million in 2019-20 and to zero in 2020-21. The Government will consider carefully the case for decriminalisation in the light of the Perry report and the need for the BBC to be funded appropriately. No decision will be taken in advance of charter renewal.

The Government anticipate that the licence fee will rise in line with the consumer prices index over the next charter review period, subject to the conclusions of the charter review on the purposes and scope of the BBC, and the BBC demonstrating that it is undertaking efficiency savings at least equivalent to those in other parts of the public sector. The commitment made in the Conservative manifesto that all households with an over-75-year-old will be eligible for a free TV licence will be honoured throughout the Parliament. As requested by the BBC, it will take responsibility for this policy from thereon.

Charter review will provide an opportunity to consider wider issues relating to the purposes and scope of the BBC. We look forward to using it to engage on the full range of issues with the public, industry and the House. I will be making an announcement about the process for the review in due course.

 

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Stephen Phillips (Sleaford and North Hykeham) (Con) (Urgent Question): To ask the Secretary of State for Culture, Media and Sport if he will make a statement as to the implications for the Football Association and the home nations of the indictment preferred against certain FIFA officials by the Department of Justice in the United States and the criminal proceedings opened by the Attorney General of Switzerland.

The Secretary of State for Culture, Media and Sport (Mr John Whittingdale): The arrests that took place in Zurich yesterday, along with the statements released by both the US Department of Justice and the Swiss Attorney General, were shocking in both scale and scope. However, they were also far from surprising. Anyone who has spent time looking at FIFA, as the Culture, Media and Sport Committee did during the previous Parliament, will know that this is merely the latest sorry episode to suggest that FIFA is a deeply flawed and corrupt organisation.

The revelations have shown how important it is for sports bodies to uphold the highest standards of governance, transparency and accountability. That is what we ask and expect of all our domestic sports bodies in the UK. International bodies should be no different. That is particularly true for an organisation such as FIFA, an organisation that should be the guardian of the world’s most popular sport, not one whose members seek to profit personally from the passion of the game’s fans.

I welcome the investigations now under way into the allegations of bribery and corruption, and I fully support the Football Association’s position that significant and wide-ranging reforms are urgently needed at the very top of FIFA, including a change of leadership. I also welcome the statement from UEFA, which has called for a postponement of the election, and the statement from Visa this morning. It is important that other sponsors reflect on their links to FIFA and consider following Visa’s lead. The Minister for sport, my hon. Friend the Member for Chatham and Aylesford (Tracey Crouch), will be writing to her European counterparts later today to set out our concerns and seek their support for change.

Finally, I would like to pay tribute to the insight team of The Sunday Times, without whose investigations many of these allegations may never have come to light. Football is the world’s game, and it is our national game. It is a fundamental part of British life and culture. Yet these revelations have dragged the game’s reputation into the mud. The time has clearly come for a change, and we will offer whatever support is necessary to the Football Association to see that change realised.

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Mr John Whittingdale (Maldon) (Con): Does my right hon. Friend agree that, while the immediate priority must be to try to stop the bloodshed in eastern Ukraine, if Ukraine is to have a future and avoid complete financial collapse it will require an international bail-out on a scale that is not yet under discussion, as well as very urgent political and economic reform to deal with the endemic corruption at every level throughout the country?

Mr Hammond: I am grateful to my hon. Friend and I thank him for the important work his all-party group on Ukraine does to maintain Anglo-Ukrainian relations. He is right that Ukraine is going to need massive international support, but it cannot be delivered unconditionally. We cannot pour the money of our taxpayers and our international financial institutions into the sink of corruption that is, frankly, the Ukrainian economy at the moment. Ukraine has to make progress on sorting out the endemic corruption if we are to be able to support it towards a better economic future.

Mr John Whittingdale (Maldon) (Con): Further to the reply that my hon. Friend the Minister for Culture and the Digital Economy gave a moment ago, can he confirm that the Government’s position remains as set out in the response to the consultation on the review of EU copyright law—that any changes should be based on hard evidence? Perhaps I might ask him a second time to be a little clearer—just so that we can be absolutely certain that everyone is aware—that the Government support the right of territorial licensing, as the Prime Minister’s special adviser set out to the creative industries yesterday.

The Minister for Culture and the Digital Economy (Mr Edward Vaizey): Yes, that is the case. I should make it absolutely clear that the non-paper that we have submitted to the European Commission represents a vision for the digital single market. It is our firm belief that consumers should be able to access content in a fair and reasonable way wherever they are, but we do support the right of industries with internet protocol to sell territorial licensing.

Mr John Whittingdale (Maldon) (Con): What the Government’s policy is on the creation of the digital single market; and if he will make a statement.

The Minister for Culture and the Digital Economy (Mr Edward Vaizey): In homage to the elaborate nomenclature of the Minister for Skills and Equalities, which you have revealed this morning, Mr Speaker, let me quote our greatest romantic poet:

“Nothing is so contagious as enthusiasm.”

I can tell you, Mr Speaker, that our non-paper on the digital single market, which contains an enthusiastic vision for a digital single market, has gone down an absolute storm in Europe, partly because it is online, with interactive graphics.

Mr Whittingdale: I welcome the progress we are making on creating a digital single market—and indeed the interactive graphics. Is the Minister aware that the business models of some of our most successful industries, particularly those in the audiovisual sector and sports rights, depend on territorial licensing. Will he confirm that the Government’s policy is to continue to support their right to do that?

Mr Vaizey: Let me say that

“common sense in an uncommon degree is what the world calls wisdom.”

That is Coleridge as well, but nobody understood. My hon. Friend has displayed immense common sense in pointing out that it is important that we stand up for the intellectual property rights of our very successful creative industries. It has to be said as well that we should be mindful of what the consumer now wants, which is to access content in a fair and reasonable way wherever they are based. So we need to work with industry and the consumer to achieve a happy result.