BBC Commissioning: Oversight

I beg to move,

That this House has considered the oversight of BBC commissioning.

It is a joy to serve under your chairmanship, Mr Robertson. I will start by using a number of quotes from the BBC that are directly relevant to the topic. On editorial integrity and independence, the BBC describes itself as

“independent of outside interests and arrangements that could undermine our editorial integrity. Our audiences should be confident that our decisions are not influenced by outside interests, political or commercial pressures, or any personal interests.”

On fairness, the BBC says:

“Our output will be based on fairness, openness, honesty and straight dealing.”

Finally, on transparency, the BBC says:

“We will be transparent about the nature and provenance of the content we offer online. Where appropriate, we will identify who has created it and will use labelling to help online users make informed decisions about the suitability of content for themselves and their children.”

Those principles have been burning issues at the heart of the BBC for several years. For example, the salaries of the BBC’s highly paid employees were a closely guarded secret for a long time. That was indefensible even if some of those employees were not questioning others who were also paid out of the public purse, but the double standards jumped out at the viewing and listening public when they regularly probed others yet hid behind BBC executive decisions when asked about their own salaries. That position was gradually worn down, and now there is an annual disclosure without the mass exodus of talent that the corporation had used as a defence when it resisted disclosure.

Now that one issue of transparency regarding directly paid salaries has been largely resolved, we have the overlapping issue of payments made by the corporation for the commissioning of contracts, particularly when contracts are awarded to private companies owned or partially owned by several BBC presenters.

There is one player on the Northern Ireland commissioning pitch whose commissions have been paid millions of pounds in revenue for years. It is now nearly 10 years since the company Third Street Studios first received commissions. Third Street Studios was owned entirely by a BBC presenter, Mr Stephen Nolan, until last year, when a leading bookmaker in Northern Ireland became a person with significant influence in the company. According to the Belfast Telegraph, Stephen Nolan

“transferred all shares in his production company to a firm solely controlled by bookmaker Paul McLean.”

The director general of the BBC has indicated that he is favour of all the outside interests of employees being made public. Why would money earned by an employee who also has his own company, which bids for and gets numerous commissions for programmes, not also be disclosed?

The issue of fairness is relevant here, as a number of companies from the independent sector make excellent and innovative programmes but find it difficult to compete when, as regularly happens, a highly paid BBC employee gets commissions and is then able to advertise them on their own BBC radio programmes. That obviously puts someone from the independent sector at a disadvantage when the next round of bidding for commissioned programmes begins. If the BBC insider, due to excessive advertising on their own behalf, can point to good audience figures and claim they are best positioned to get yet another contract, the independent sector is likely to lose out.

I commend my hon. Friend for securing this debate. In previous debates I have raised a number of issues that were slightly different but nonetheless important. Does my hon. Friend agree that although there seems to be an unending budget for investigatory programming, the programming for diversity—in the form of Ulster-Scots programming or Christian shows and episodes—has been cut back beyond recognition? A rebalance of interest needs to take place. Does my hon. Friend accept that point, to which I have brought his attention in the past?

Yes, indeed. There has to be diversity in the range of directions that the BBC gets involved in. It is equally important that when programmes of the type my hon. Friend mentioned are commissioned, there needs to be transparency in how they are contracted and shown.

I have raised these issues previously, in debates on transparency in 2017 and on commissioning in 2019. In between those debates, I met senior BBC executives in both Belfast and London. I also met senior executives from the Audit Office and Ofcom to try to ensure that matters would be thoroughly investigated. Movement either ground to a halt or went exceptionally slowly. I get the impression that, just like with the salaries escapade, the BBC feels that if it can grind the process down, the issue will eventually go away. It did not manage that with salaries, and I intend to ensure that it does not with the commissioning of contracts. It is important that licence fee payers can see how much has been earned, the process followed, and how it is discharged—with the responsibility of oversight being within the ambit of the BBC.

On transparency, I understand the arguments about the commercial sensitivity of contracts, but what can the commercial sensitivities possibly be many years after a commission is broadcast? Even the Government have moved from a 30-year rule to a 20-year rule on the publication of documentation, but the BBC still seems to live in an age in which it believes we should never know how much it costs the licence fee payer to fund such an outstanding series as “The Fall”, which was filmed in Belfast and funded in part by Invest NI and Northern Ireland Screen. Series three was commissioned by the controller of BBC 2.

“The Fall” was sold in over 200 countries: in the United States via Netflix; in Australia via BBC First; in Canada via Bravo; in Latin America via DirecTV; in Brazil; in the Republic via RTÉ; across Asia via Fox international channels; and with a multi-territory deal in Germany. It had all the hallmarks of a tremendously successful project funded by the licence fee payer and carried out by the BBC. Why, then, are the details not available, as they are for any other publicly funded project? The commission was broadcast seven years ago and we still do not know how it was done.

It is a pleasure to serve under your chairmanship, Mr Robertson. I congratulate the hon. Member for East Londonderry (Mr Campbell) on securing the debate and on raising what are important matters. I know that he has campaigned on this issue for many years. I have read his previous debates and parliamentary questions on the subject, and he has been assiduous. In a number of areas, I have considerable sympathy with him. I have been overseeing the BBC for a very long time in one capacity or another, and a number of the issues he raised are ones on which I, too, campaigned.

There are three issues on which we have made great progress, and for which I would like to take some credit, but I absolutely recognise the hon. Gentleman’s role. All the issues relate to the area of commissioning. The first is the National Audit Office’s access to the BBC. The extent to which the NAO was able to examine the BBC’s financial accounts was limited for quite a long time. As he knows, the BBC argued strongly that the NAO should not be given full access, with a succession of what I regarded as somewhat spurious excuses, such as that it would somehow interfere with the BBC’s independence from the Government. Well, the BBC is independent of the Government, but that does not mean that the BBC should not be held to account for the fact that it spends a very large amount of public money in the form of the licence fee. I am glad that, in the charter, we ensured that the NAO had full access to the BBC accounts.

The second matter is on the commissioning of programming. Previously, the BBC produced 50% of its content in-house. It was subject to a quota for indie productions of 25%, and then there was something known in the trade as the window of creative competition, or WoCC, which was the remaining 25% that could be opened up to either BBC in-house production or the independent sector. We reached the agreement that the BBC should move towards opening up the entirety of its schedule to competition from BBC production and independent production. The BBC is on track to achieve 100%, I think by 2027, which has provided a huge boost to the independent production sector. It was very strongly welcomed at the time by the Producers Alliance for Cinema and Television, the body representing independent producers. Opening this up does mean that the BBC’s public money, through the licence fee, is being used to commission programmes from private companies. That obviously needs to be done in a transparent and accountable fashion, which is one of the requirements of the charter, as the hon. Member for East Londonderry quoted.

I am grateful for the Minister’s attendance and for what he has just shared. A perception arising from some issues that my hon. Friend the Member for East Londonderry (Mr Campbell) raised is that some people in the BBC are too popular to be criticised, too successful to be touched, and too important in the ratings game to have issues raised about their conduct. Some of the points that my hon. Friend made touch on questionable, if not corruptible, practices around commissioning and around individuals and their behaviour. The Minister is right that Ofcom is there for when the BBC has completed its investigations, but Ofcom looks very particularly at regulatory matters. He mentioned the ongoing review, but can he give us any assurance that there will be a level of stringent and independent oversight in the BBC and through its management structure, so that when such issues are raised, which touch on malpractice or questionable practice around the allocation of financing and the commissioning of resources, the public and we all know there is integrity in the process of investigating them?

I am grateful to the hon. Gentleman, and I agree that nobody who is in receipt of public money or who holds a senior position in a publicly owned and publicly funded organisation should be exempt from scrutiny to make sure that they are carrying out their functions properly, and that any concerns around that need to be investigated.

As for whether anybody is too popular or too senior to be examined or held to account, the hon. Gentleman will be aware that the highest-paid BBC employee is Gary Lineker, and there has been quite a lot of controversy over some of his remarks. That is absolutely right and, as a consequence, the BBC has recently carried out a further consideration of their social media guidelines for highly paid staff and has brought those into play, partially as a result of some of those controversies. That matter is very different from the kind of issues that the hon. Gentleman raised. They relate to allegations that have been received about possible corrupt behaviour, and, obviously, that would also need to be investigated. The particular show that he referred to is presented by the fourth highest-paid person at the BBC. That, again, is another reason why a large amount of public money is spent, and we need to be satisfied.

As I said, this is not a matter that the Government can or should investigate, but there are independent bodies that do so. The first port of call I suggest the Gentleman might talk to is the BBC board member for Northern Ireland, Mr Michael Smyth. He was recently appointed and has taken up his post. Part of his role is to oversee the BBC’s activities in Northern Ireland, as well as to act as a member of the board as a whole. I am sure the hon. Gentleman will draw his concerns to Mr Smyth’s attention, and also take advantage of the BBC first complaints process.

I hear what the hon. Gentleman says about the individual who runs the editorial standards and guidelines committee, but there are also independent board members who sit on that committee. He could certainly draw his concerns to their attention. Ultimately, as we have discussed, the NAO has full access under the charter. If there are concerns about the way in which public money has been spent, that, too, is a matter that the NAO could investigate.