Broadcasting in Wales and the National Assembly: BECTU evidence to the Welsh Affairs Committee

27 September 1998

Introduction

BECTU welcomes the opportunity to put forward evidence to the Welsh Affairs Committee. We believe the Inquiry is timely and that it will be vital, from the start, for the Assembly to have a clear view of its role in relation to broadcasting in Wales.
We attach a Report produced by BECTU earlier this year on The Assembly and its Implications for Broadcasting. This gives, in some detail, our views on issues relevant to this Inquiry. Our covering submission will therefore cross-refer to the earlier Report. We will seek to address the key issues indicated by the Committee, with an emphasis on the points of most importance to BECTU.
Role of the Assembly in relation to broadcasting in Wales
Of all the issues raised by the Inquiry the most significant, in our view, is that of accountability - and specifically the potential role of the Assembly in ensuring greater accountability of broadcasters in Wales to the people of Wales. We are fully aware of the continuing DCMS role in relation to broadcasting. Nonetheless the Assembly is entitled, and in our view obliged, to demand greater accountability in this area. Broadcasting is the primary medium of information on Welsh affairs (including those of the Assembly itself); it is also an industry with a particular focus and complexity in Wales. The Assembly can and should play a key role in leading and informing public debate on the operation and future development of the Welsh broadcasting sector - and in doing so will be following through the democratising mandate which has led to the establishment of the Assembly in the first place.
What mechanisms could be developed to allow the Assembly to take on such a role? We recommend the following:
- The establishment of a standing committee on broadcasting, film and other media issues. This should, in our view, be separate to any broader cultural and arts remit undertaken by the Assembly. We assume its proceedings would be public.
- Such a Committee should undertake inquiries; should receive reports at least annually from all the key players in Welsh broadcasting (including BBC Wales, ITC Wales, HTV, S4C, SDN and cable and satellite operators); should scrutinise key appointments; and should call industry representatives and other witnesses to present oral evidence and respond to questions.
- Specific proposals along these lines are set out in the attached Report (especially paragraphs 7B,12,23,25,28,30,31)
Some specific points for consideration are as follows:
- We would strongly oppose any break-up of the BBC as our leading public service broadcaster. Within a unitary BBC we believe it would be all the more important, however, for the Assembly to take on a role of seeking increased accountability within Wales.
- HTV, as the primary terrestrial commercial broadcaster, is now owned by a corporation based outside Wales. In this context, the Assembly could have a key role in seeking the retention of HTV's local franchise obligations.
- The Assembly should not, in our view, take-on grant-making powers in relation to S4C (for reasons indicated in paragraph 29 of our Report). The Assembly should, however, pay close attention to the future evolution of the company and should seek maximum transparency in the relationship of S4C to its proposed digital operations, including SDN (with, for example, the presentation of full financial accounts for the latter). Increased commercialisation of S4C at the expense of its public service remit is not a development we would welcome, and not a model we would wish to be followed by other broadcasters such as the BBC.
- The independent production sector in Wales is, despite current difficulties in some areas, a centre of talent and experience which has made an impact on the world market and which is a genuine alternative focus to London. The Assembly should build an awareness of and a concern for this sector as a future cultural and industrial asset for Wales.
The Assembly can play a key role in all these areas, while leaving editorial control of programming in the hands of the broadcasters themselves (subject, of course, to broadcasting legislation and regulations). If it does, it will become the only democratic and accountable public body taking an informed interest in all areas of Welsh broadcasting. Detailed regulation will remain the province of the various separate regulators; Parliament and the DCMS will have an ultimate regulatory role; but no other body will be better or more appropriately placed to ensure increased accountability for Welsh broadcasting as a whole
Implications of digital broadcasting
While welcoming any genuinely increased opportunities for programme-making opened up by the development of digital broadcasting in Wales, we have some real concerns about current and future activity in this area.
While digital technology opens up the possibility of extra broadcasting hours, there is, on all current forecasts, no corresponding increase in budgets or revenue to provide the necessary programming. We have a real fear that digital broadcasting will develop partly at the expense of investment in existing public service broadcasting - with all the implications this has both for programme quality and for the jobs, conditions and training and career opportunities of those who work on the sector.
In particular, we are unconvinced about the wisdom and merits of S4C's current digital policies, including its involvement in SDN (now jointly owned by S4C, NTL and - with potential conflicts of interest - United News and Media). S4C, which is, of course, a publisher-broadcaster, appears to have switched between a digital commissioning policy based on the use of a small number of independent companies on long (e.g. 2 year) contracts, to the use of a larger number (currently up to 40) separate commissioning contracts. The latter approach appears in our view to fail in the aim of achieving significant economies of scale, while still reducing the number of independent commissions currently available - leading to severe difficulties up to and including liquidation for some Welsh independents.
The Committee and in future the Assembly should, in our view, ask searching questions about the implications of the broadcasters' digital plans for original programming, programme budgets, industry training standards, and the potential undermining of public service broadcasting in Wales. Concentration of scare resources on investment in original programming of high quality is, we believe, a superior long term strategy to the spreading of programme budgets too thinly in any over-ambitious attempt to provide too many hours at minimum cost.

Broadcasting of the Assembly
As a trade union, we have a very particular interest in the future arrangements for television and radio coverage of the Assembly.
Our strong preference, in relation to any contract for coverage of the Assembly, is for:
- a Welsh company, with a bilingual requirement for all key staff
- trade union recognition (surely appropriate in a company wholly geared to coverage of a democratic body such as the Assembly)
- fair terms and conditions for the workforce arrived at through collective bargaining.
We believe that trade union recognition, far from a 'burden', can be a strong asset to any such company. BECTU and other trade unions in the sector have detailed expertise in the area of training and skill development, and close links with a variety of training bodies. Coverage of the Assembly is likely to require to some degree a different and multiskilled approach to the general run of broadcasting. Trade union expertise in this area can make a vital contribution.
On the scope of television coverage of the Assembly, we believe that an approach based on maximum accessibility (e.g. regular highlight coverage available on free-to-air analogue television and radio) would be preferable to (perhaps more extensive) coverage available only on digital outlets.

Television reception of Assembly broadcasts
Reception of Assembly coverage should surely, if the Assembly's credentials as a democratic body are to be meaningful, be available to all of the people of Wales.
Implicit in the Committee's questions on this issue is the recognition that significant pockets of the Welsh population (e.g. in NE Wales and in SE Wales) cannot currently receive Welsh broadcasting output. A variety of technical solutions may be possible - including filler transmission stations and cable. The mere introduction of digital broadcasting, nor the use of satellite do not, however, resolve the technical problems.
Whatever the potential technical solutions, there is certainly a financial cost attached. We believe this should be born by the broadcasters (possibly through a consortium - as in the televising of Parliament, and with rights to use material in news and current affairs coverage). It would be entirely inappropriate for viewers to have to pay (through subscription or purchase of equipment) for access to coverage of their Assembly.

Conclusion
We have attempted to address all of the issues raised by the Committee, but inevitably with a particular focus on our areas of priority. If there is a single point of emphasis we wish to make, we restate our prime concern to see the Assembly taking on a role of ensuring accountability by broadcasters in Wales to the people of Wales. In keeping with current political trends towards devolution and closer democratic accountability and away from a discredited quango-culture, we believe the Assembly now has the opportunity to lead and inform public debate in Wales on the nation's broadcasting sector.

Appendix
The Welsh Assembly and its implications for broadcasting

(March 1998)

Introduction

The establishment of the Welsh Assembly is a measure supported without qualification by BECTU. The specific implications of the Assembly for broadcasting are as yet less clear but are already the subject of an emerging debate within our sector. It is an appropriate time for the union to take at least an initial view on some of the relevant issues - with the immediate qualification that we are currently at the start rather than the end of what will be an unfolding debate. This position paper looks first at the specific role of the Assembly itself and then at the development of the major broadcasting organisations in Wales. Any policy positions we take now should be subject to continuing scrutiny and review.
Role of the Assembly in relation to broadcasting
The Welsh Assembly (National Assembly for Wales) will be fully functioning following the first Assembly elections in May 1999. It will be able to pass secondary but not primary legislation. It will have no separate fund-raising powers, but will control a government bloc grant of approximately £7b.
Under the current proposals, broadcasting remains a reserved subject i.e. a sector which will remain under direct control by central government (via the Department of Culture, Media and Sport - DCMS). Of those areas in which the Assembly will have a specific remit, the one closest to but not encompassing broadcasting is that of the arts, culture and the Welsh language.
A recent announcement has made it clear that the Assembly will operate through a 'cabinet-style' administration i.e. departments headed by elected Assembly members who would collectively form an executive council. It had earlier been thought that the model would be closer to that of local authorities, with departments governed by committees of elected members rather than individual 'cabinet-members'.
It is still anticipated that the Assembly will have committee or working groups monitoring particular areas. However, there are apparently no current plans for a specific broadcasting committee, and it is possible that the sector would be included within the scope of a committee with a broader remit for culture and the arts.
The only formal role currently anticipated for the Assembly in relation to broadcasting is to replace the Welsh Office/DCMS roles in the appointment of the BBC National Governor for Wales and S4C Board members i.e. the Assembly would be consulted and in effect would be able to nominate new appointees.
What view should BECTU take on the Assembly's role in relation to broadcasting? This cannot be discussed in isolation from specific organisational questions (e.g. whether to preserve a unitary BBC), and these are addressed below. However, it is possible to adopt some broad principles in relation to the Assembly:
1. Realistically it is not within our power to influence or amend the basic constitutional framework (e.g. no power of primary legislation). We should therefore accept this for at least the short and medium term.
2. Within this framework, and subject to our policy stand in relevant areas (e.g. no break-up of the BBC), we should press for the fullest possible strategic consideration of broadcasting by the Assembly through:
  - a standing committee or working group with a specific remit to consider broadcasting and media issues. When official proposals emerge for the structure and remit of Assembly committees, we should seek to argue for a sufficient priority for media issues (specifically including broadcasting and film) within any given remit (and if necessary a break-up and rearrangement of that remit).
  - the right of industry organisations such as BECTU and the FEU (Federation of Entertainment Unions) to suggest subject areas for inquiry by the relevant Assembly committee; to given written and verbal evidence to such inquiries; to suggest expert co-optees or advisers where appropriate for such inquiries.
  - the right of the Assembly to nominate for and/or scrutinise key broadcasting appointments in Wales.
  - the right of the Assembly to receive reports from all key broadcasting bodies (certainly BBC Wales, ITC Wales, S4C) on at least an annual basis; to debate such reports; and to question representatives of those bodies on their reports.
In parallel to whatever activity the Assembly eventually undertakes (or fails to undertake) in relation to our sector, it will be useful if BECTU and/or the FEU gives systematic consideration to such developments through periodic and scheduled reports and discussions. Our effectiveness will be maximised not by forming initial views in the abstract and sticking to them blindly but by an informed and evolving process of policy development which matches the development of the Assembly itself.
BBC
The BBC has a Broadcasting Council for Wales (BCW), whose Chair, as the National Governor for Wales, sits on the BBC Board of Governors. However, all major policy decisions and key appointments (e.g. Controller of BBC Wales and Welsh Board of Management) are taken corporately through the Governors (overseeing the corporate Board of Management), reporting to Parliament and Government. There is no separate structure of policy making and accountability in Wales.
The BCW is itself currently selected from among 'the great and the good' by a selecting panel of the BBC's General Advisory Council and is ultimately subject to the Board of Governors approval.
BBC Wales is of considerable significance for the Welsh economy. A recent report by the Welsh Economy Research Unit of Cardiff Business School indicated a direct impact of approximately £70m turnover and 1000 jobs and a total direct and indirect economic impact (i.e. accounting for commissions and outside spending) of £140m turnover and 2,500 jobs. Not all of this would fall within BECTU's area of interest and we might debate specific figures but this places the BBC within Wales's top 40 businesses. There is therefore every reason for the Assembly to take a specific interest and to require greater and more direct accountability for the activities of BBC Wales.
Devolution And Greater Accountability
Some specific devolutionary policy options are listed below. These are close to those initially developed in the BECTU Research report to the NEC on the Scottish Parliament (subsequently reproduced, with additional material, in Stage, Screen and Radio, and applied to Wales in the 'Media Working Party - Internal Discussion Document')
- A strengthened BCW (or an equivalent new body) with delegated powers on BBC Wales policy matters/BBC strategy in Wales and a direct dialogue with the BBC corporately on the resources needed to implement this (including the issue of whether the BBC's Welsh language commitments mean that other programming will suffer without additional resources).
- The BCW to report to the Assembly (or the relevant Committee of the Assembly).
- Appointments (either the entire BCW or the post of Chair) to be subject to nomination and/or scrutiny by the Assembly.
- The key executive post of Controller to be subject to scrutiny by the Assembly.
- The composition of the BCW to be structured - formally or informally - on a representative basis taking account, for example, of political parties, key interest groups (including trade unions), gender, race, language groups.
- Greater news and current affairs coverage of Welsh affairs (including the Assembly) by BBC Wales.
Separation
An alternative to these devolutionary options is that of the full-scale separation of the BBC's operations in Wales and the establishment of a Welsh Broadcasting Corporation funded by Welsh licence fee revenue (possibly with a proportion of other income e.g. from BBC Worldwide).
BECTU has been and remains wholly opposed to any measures contributing to the break up of the BBC as a unitary public service organisation. Unless this policy is changed, we would be as opposed to a separate Welsh Broadcasting Corporation as we are to a hived off or privatised BBC Resources Ltd.
The difficult questions which proponents of separation would have to answer include:
- Would a 'WBC' be forced to duplicate current BBC operations, with a loss of economies of scale on both sides?
- Would a WBC be forced to buy in programming (from the BBC) and transmission services (from CTI on a separate basis to any current BBC deal) on a basis which would endanger its viability? Proponents of separation would need to provide comprehensive and accessible cost/benefit figures which have not so far been forthcoming.
- What would the impact be on the remaining BBC organisation - both in terms of jobs and in the BBC's current role as a major force for public service broadcasting?
There seems no reason to alter BECTU's current policy position of root and branch opposition to the break-up of the BBC.
Commercial broadcasting
Current Regulatory Structure
Commercial broadcasting in Wales i.e. analogue and digital terrestrial, satellite and cable is - with the exception of S4C - regulated by the ITC (and, of course, the Radio Authority). The ITC is accountable to the DCMS, with no separate accountability in Wales. Commission members are appointed by DCMS and all senior staff are appointed by the ITC corporately.
A previous anomaly has been corrected in that there is now a Director of the Regions and Public Affairs with a seat on the ITC Management Board. However, this post covers not just Wales but Scotland, Northern Ireland and the English regions. There is no direct representation of ITC Wales on the Management Board.
ITC Wales has no separate policy making powers. It selects members of the Viewers Consultative Council, which acts as a sounding board on programming issues.
Devolved Or Separate Regulation?
One option would be to devolve more power within a still unitary ITC structure. This could include direct representation for Wales on the ITC Board of Management and more influence in local licensing and monitoring.
A further step would be the separation of ITC Wales from the ITC in order to operate on a parallel basis, but within the overall framework set by primary legislation (i.e. the Broadcasting Act etc.). This would not have the same serious implications as the break-up of the BBC, since the ITC remains purely and simply a regulator rather than a broadcaster. Nonetheless, there would be inevitable difficulties in respect of duplication of duties and the financing of the operation. Creating a wholly separate Welsh ITC could increase the cost of regulation in Wales and could therefore potentially increase the fees charged to Welsh licence holders. As with the BBC, the cost/benefit figures on, for example, HTV's financial relationship to the ITV Network simply do not as yet exist in comprehensive and publicly accessible form.
A more fruitful approach might be to focus on the role of the Assembly as a focus for accountability. From this viewpoint, if the Assembly worked effectively in this area, it could remove any need for a wholly separate ITC Wales.
The role of the Assembly in relation to the ITC could encompass:
- Receiving an annual report - both written and verbal - on ITC activities in Wales.
- Scrutinising the appointment of a Commissioner for Wales and of key executives posts in ITC Wales.
- The right to initiate independent inquiries and take evidence on issues within the ITC's area of operation.
HTV
A striking difference within ITV is that whereas the franchise holders in Scotland are (with the exception of Border) owned and controlled from within Scotland, this is clearly not the case in Wales, where we have a very well-established single franchise-holder that is now owned and controlled by a conglomerate (United News and Media) based outside Wales.
The Assembly has no powers to alter commercial ownership patterns. With sufficient focus on broadcasting issues it could, however, play a role in holding HTV to as devolved a Welsh identity and programme-making remit as possible:
- by taking evidence directly from HTV on its activities in Wales;
- by publicly examining any proposals for a weakening of local franchise obligations;
- by encouraging (through ITC Wales and HTV directly) increased local news and current affairs coverage, not least of the activities of the Assembly itself.
S4C/Independent Production
S4C is a broadcaster in its own right and falls outside the regulatory scope of the ITC - with the Chair and Board members appointed directly by DCMS. Funding is by central government grant in aid based on 3.2% of net TV advertising revenue (£75m for 1998), supplemented by S4C's own advertising and other commercial activity. Channel 4 is, of course, not available on an analogue basis in Wales (outside of transmission overlap areas), although C4 programming is provided by S4C outside of peak hours.
Through its wholly owned subsidiary S4C Digital Networks (SDN), S4C has won a licence to operate one of the new multiplexes for digital terrestrial broadcasting (to be shared with C5). While the company's enterprise is forging a role for itself in the future technology for terrestrial broadcasting is to be welcomed, there are serious concerns that without additional funding, the proposed additional digital hours will place undue strain on S4C's ability to continue undertaking its existing PSB responsibilities i.e. will future digital expansion be at the expense of the existing jobs base (in the independent sector servicing S4C) and existing programme range and quality? Despite wide agreement on the nature of the problem, there is as yet - despite the floating of proposals such as a levy for Welsh PSB - no broad consensus on a solution.
As with the other major broadcasters/regulators in Wales, the Assembly could take on a role of requiring local accountability and focusing debate through:
- Receiving an annual report, written and verbal, on S4C activities.
- Nominating and/or scrutinising the appointment of the S4C Chair and Board members.
- Initiating independent inquiries and taking evidence on relevant issues.
However, devolving grant-making powers in relation to S4C from central government to the Assembly would not necessarily be helpful - even if it were constitutionally feasible. Unless this was ring-fenced there would be a real danger of competing demands from other, perhaps socially more pressing areas such as education, housing and health. If it were ring-fenced, then in the absence of additional tax raising powers (not available in the foreseeable future), the Assembly would seem to be left as a funding channel, but with no meaningful additional power.
The Assembly should be encouraged to build an awareness of and a concern for the independent production sector in Wales, and obviously not just in relation to S4C.
We could therefore argue for the Assembly, through the relevant Committee, to hear representations from representative bodies within the sector and to initiate inquiries and take evidence on relevant issues.
Conclusion
The above discussion encompasses some of the main issues arising from the establishment of the Welsh Assembly and suggest some initial views which BECTU might take on the role of the Assembly and on the development of the principle Welsh broadcasting organisations. We should regard this as a starting position which is itself open to review and reconsideration as the debate unfolds and as the Assembly actually develops.

Last updated 28 October 1998

Broadcasting in Wales and the National Assembly: BECTU evidence to the Welsh Affairs Committee

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