" The Trades Union Congress (TUC) response
to the Communications Bill. The Trades Union Congress is the National Body
of all Trade Unions in the UK of which the Broadcasting Union "BECTU" is
a member. "
The Communications Bill Briefing for House of Lords Second Reading
25 March 2003
Introduction:
The media makes an overwhelming contribution
to our national culture and plays a major role in shaping the attitudes
and views of the general public. Newspapers, television and radio
are the main vehicle for the promotion of news in the UK. In addition
to news production, television and radio also offer a wide range of popular
programmes, including children’s TV, current affairs, documentaries, dramas
and all kinds of entertainment programmes. Given its pivotal role
in our national life, effective regulation to safeguard standards in relation
to diversity, accountability, plurality and public service is vital and
in the public interest.
The role of the communications industry in developing world-class systems
to support public services, business and culture is crucial to the UK’s
future.
The TUC welcomes the opportunity presented by the draft Communications
Bill for a radical review of current broadcasting arrangements and telecommunications
regulation. However, we are concerned that as currently drafted the
Bill could adversely affect the quality and range of programmes produced,
to the detriment of audiences and those who work in the industry.
Our main concerns are set out in this Briefing.
OFCOM – accountability and
remit:
The Bill gives a super regulator OFCOM
responsibility for the whole of the communications sector, replacing five
different regulators. Given the importance of this task, it is essential
that OFCOM is fully accountable for its performance and actions, and Bill’s
proposals on this should be strengthened.
OFCOM should be directly accountable to Parliament, with a specific Parliamentary
committee established to monitor its activities. Parliament should
set an annual policy framework though which OFCOM should operate, and OFCOM
should report annually to Parliament on its activities in relation to this
framework.
The matters to which OFCOM should have regard in performing its duties
include children, the disabled, the elderly, those on low incomes, those
living in rural and urban areas and people in different parts of the UK
– but not employees. This should be rectified.
OFCOM is, however, given a specific duty to promote equal opportunities
and training for employees in the broadcasting industry. Given that
OFCOM will regulate the communications industry as a whole, this duty should
be extended to include employees in the telecommunications sector.
There are huge benefits to be gained by the utilisation of broadband
technology, and the Government is committed to widespread broadband provision
by 2005. Given its regulatory role, it is essential that OFCOM’s
remit includes making universal and affordable access to broadband a priority
and that flexible regulation contributes to this aim.
CONTENTS REGULATION:
OFCOM – structure and powers
The draft Bill gives OFCOM overall responsibility for all aspects of
electronic media regulation. It is responsible for economic regulation
and promoting competition among media producers, as well as for safeguarding
contents standards. There is a danger in the current proposals that
OFCOM’s role in relation to contents standards will be compromised by its
remit to promote competition. It is essential that OFCOM has the right
structure and powers to act effectively to safeguard quality programming,
media plurality and public service broadcasting.
To protect its focus on standards, the Contents Board needs separate
personnel with relevant expertise and experience who are able to concentrate
solely on contents issues.
Under the current proposals, the Contents Board of OFCOM is only advisory,
unlike the Consumer Panel, which can require OFCOM to take action.
It is essential that the powers of the Contents Board are strengthened.
It should either be able to act autonomously or at least have powers to
require OFCOM to take action.
Public Service Broadcasting:
The Bill weakens existing public service
broadcasting requirements (PSB). The TUC believes that the ‘lighter-touch’
contents regulation that the Bill seeks to introduce risks jeopardising
the high programming standards which have rightly earned British television
and radio an enviable worldwide reputation. Without strong PSB requirements,
programmers may be encouraged to seek high ratings at low costs, rather
than investing in high-budget programmes that seek to challenge or really
engage their audience.
Self-regulation for tier three
issues:
The Bill proposes dividing PSB requirements
into tiers. Tier one would include fundamental obligations such as
not to screen inappropriate sex or violence and not inciting racial hatred,
and on these issues OFCOM would have reasonably strong powers of intervention.
Tier two covers issues such as coverage of news and current affairs and
regional production, which need to be strengthened (see below). And
then there are tier three issues, which would cover programme codes and
standards for the BBC as well as for commercial channels. The Bill
proposes that tier three issues would be dealt with by self-regulation, making
the monitored responsible for their own monitoring. This would appear
to be a case not so much of poacher turned gamekeeper, but poacher being
made gamekeeper at the same time. This is at best an ill thought through
proposal, and tier three issues should be subject to regulation by the Contents
Board in the same way as other PSB issues.
Regional and local television
production:
The ITV network has always consisted
of separate regional licenses, intended to maintain regional identities
and secure television production nation-wide, bringing significant benefits
to regions and local communities:
· Audience figures demonstrate the popularity
of programmes covering local or regional issues
· Regional economies have benefited from the
demand for skilled jobs in television production and the supporting infrastructure
(as shown by numerous business studies and summarised in the ITC’s ‘Television
in the Nations and Regions’).
National audiences have also benefited from high quality regionally produced
programmes shown across the national ITV network.
Regional production and regional coverage are both under threat in the
Bill’s proposals. Requirements for regional production and programming
are left to OFCOM to set at what it considers to be ‘appropriate’ and ‘suitable’
levels. This is inadequate. Regional production is likely to
come under particular pressure, given the growing concentration of ITV ownership,
the possibility of foreign ownership (see below) and the continuing depression
in ITV advertising revenue. The Bill retains the separate ITV licenses,
but this is rendered pointless by the possibility of one company holding
them all. The current proposals, far from protecting regional production,
would allow the possibility of regional programming consisting entirely
of programmes made in London or Manchester.
The Bill must recognise the inherent link between regional production
and regional coverage, and act to safeguard both in the Bill. This
could be done by stipulating that levels of regional coverage and production
should be substantial and significant (rather than ‘appropriate’, ‘sufficient’
and ‘suitable’), and by requiring that regional production requirements
apply to a ‘wide’ rather than just ‘suitable’ range of programmes. The Bill
should also limit concentration of ITV ownership and make production within
each region the licence refers to a condition of the licence.
Requirements for regional production should also apply to national programming.
This will be especially important if ITV evolves further towards a single
ITV company or even a single ITV licence.
Original production:
Like regional production, original production
is given insufficient protection in the Bill. Taken together with
the proposals on media ownership (see below), there is a real danger of
British channels becoming outlets for repeats of US productions, rather
than promoting high-quality, original, indigenous production. It is
worth noting that the UK already has a serious balance of payments deficit
with the US on television programmes. Again, in the Bill original
production requirements are delegated to OFCOM to set at what they consider
to be an appropriate level, and again, this could be strengthened simply
by changing ‘appropriate’ to ‘substantial’.
Drama:
There are no requirements for original
drama production in the proposed PSB requirements, and the TUC is very
concerned at the threat this poses to high-quality, original drama production
in the UK. The PSB requirements must be amended to include both single
programme and series original drama productions.
There is also nothing in the Bill to encourage investment in UK drama.
High quality drama requires significant long-term financial investment,
and a commitment to this should be included in PSB requirements in the Bill.
MEDIA OWNERSHIP:
The Bill proposes the removal of many
of the current restrictions on media ownership, including long-cherished
principles limiting cross-media ownership and foreign media ownership.
A free and independent media is a vital part of a healthy democratic society,
and having a range of media outlets and voices is essential for genuine
democratic debate. Plurality of media ownership acts to safeguard
independence and diversity in the media, ensuring that no one proprietor
has untrammelled control and influence over outlets. The TUC is very
concerned about the implications of the proposed changes for media plurality
and diversity.
Non-EU/EEA ownership:
The Bill proposes, in clause 335, to
remove the current bar on non-EU/EEA ownership of ITV and Channel 5.
This would be an entirely one-way arrangement, as there is no opportunity
for UK companies to take ownership stakes in US or other European broadcasting
companies. The justification given by the Government for this unpopular
proposal is that it would bring investment into the sector. But there
is no evidence that it would do this; indeed, an obvious motivation for
a US company taking an ownership stake in a UK channel would be the opportunity
to export its own back programmes.
The TUC welcomes the amendments to the Bill introduced by the Government
which would would, in the event of a change of control of Channel 5, oblige
OFCOM to review the effects on regional production, original production
and news. However, our concerns about the lifting of the cross-media
ownership restrictions extend beyond these areas, and we remain opposed
to the move.
The Joint Committee chaired by Lord Puttnam recommended that there should
be no lifting of the restrictions on non-EU/EEA ownership until the proposal
had been reviewed and recommended by OFCOM. The TUC supports dropping the
proposal altogether, but making it subject to a review by OFCOM would be
a considerable improvement on the current proposals.
Cross-media ownership:
The Bill proposes lifting the current
restrictions on ownership between national newspapers and Channel 5.
The TUC believes that this would allow an undesirable degree of concentration
in the media and would severely damage media plurality and independence.
This proposal should be dropped.
We support the proposal made by the Puttman Committee that a specific
plurality test should be introduced into the rules governing media mergers.
Trades Union Congress (TUC)
Congress House, Great Russell
Street, London WC1B 3LS t: 020 7636 4030 f: 020 7636 0632 web:
www.tuc.org.uk Parliamentary
Officer: Isobel Larkin t: 020 7467 1288 pager: 07699
787505 email: ilarkin@tuc.org.uk General Secretary: John Monks
Politicians have also reacted angrily to the announcement,
fearing that the sacking of the two last remaining staff in Producer/Director
posts will prevent Grampian from fulfilling its licence obligation
to make quality programmes in the North of Scotland.
Aberdeen-based Grampian is owned by Scottish Media
Group (SMG), which also owns Scottish TV, and the union believes that the
two redundancies breach promises made by SMG when they took over the company.
BECTU officials were hoping to meet company managers
in Glasgow early in week beginning February 21. The dispute comes
soon after a separate row over redundancies at Scottish TV.
Parliament's Culture Committee has supported safeguards
on ITV programming.
In their response to the Government's White Paper on
Communications, the Select Committee on Culture, Media, and Sport,
recommended that separate licences should be retained for ITV regional
companies, regardless of any changes that may occur in ownership of
the network
The committee also advised that the proposed single
regulator for telecoms and broadcasting, OFCOM, should set up regional
offices which would measure whether or not broadcasters generally fulfilled
their obligations to provide local programming.
In its evidence to the Committee, BECTU had argued that
the wave of takeovers in ITV had led to cutbacks in local programmes, particularly
news, and in the number of regionally-produced shows that were aired nationally.
Prior to the White Paper's publication, the union pursued
a successful complaint against Grampian TV, which was accused of delivering
fewer local programmes that the company's licence required.
The Culture Committee, chaired by Labour MP Gerald Kaufman,
also took account of the union's concerns about training in the broadcasting
industry. Noting that the industry was increasingly staffed by freelancers,
which makes it "less possible to rely on in-house training", the report came
out in favour of OFCOM "promoting training activites...proportionate...to
the service obligations and privileges of particular licenced broadcasters".
However, the Committee stopped short of full support
for training plans to be a condition of broadcasters' licences - a
measure suggested by the White Paper which was welcomed by BECTU and
Skillset, the industry training body.
A call from BECTU for the new regulatory body OFCOM
to have a separate section dealing with content issues, was partially
supported by the Committee. The report recognised the difference between
economic decisions and content regulation matters that would apply within
OFCOM, and called for the new regulator's structure to be debated by
Parliament, with a recommendation that there should be "greater lay
involvement in content regulation".
BECTU's views on control of media ownership found less
favour with Kaufman's Committee. The report rejects the union's view
that the government should keep cross-media ownership rules which limit
newspaper holdings in TV companies, and BECTU was said to be simply
supporting the status quo.
Government regulation of the Internet was also dismissed
by the Committee, who welcomed a statement from Minister Chris Smith
that there would be no new proposals for censorship or regulation.
Plans to exclude the BBC from the new regulatory framework,
supported by BECTU, were questioned by the Committee, who described
as "absurd" the argument that Parliamentary scrutiny of the Corporation
would be diminished if it were overseen by OFCOM.
The report urged that the right to approve new BBC digital
channels should be transferred from the Department of Culture, Media, and
Sport, citing Chris Smith's decision to delay a review of BBC News 24 until
after the general election as an example of political interference. Ever
since the BBC's continuous news channel began broadcasting, it has been a
favourite kicking stool for members of the Committee.
Public service broadcasting was given qualified support
by the Committee, but the report throws out BECTU's view that any
relaxation of quality and diversity obligations would lead to poorer
programming.
Instead, the report lays out three principles for PSB
- firstly, public service is not provided only by the recognised terrestrial
broadcasters, and equally, not all the output of BBC, ITV, Channel
4, and Channel 5 qualifies for the description. Secondly, the costs
of providing public service should be transparently measured, and compared
against "other means of achieving the desired ends".
Thirdly, and the most alarming for current PSB broadcasters,
is the principle that provision of public service content from "whatever
source" is more important than protecting the "privileges of certain
broadcasters".
An indication of the Committee's thinking could be evident
in a recommendation that an "access fund" should be established to encourage
new projects in the Community Radio sector. While this would be generally
welcomed if it were funded by new money, the model of public service content
being centrally funded, and sourced from a wide variety of bidders, could
be devastating if it were scaled up to embrace the entire public broadcasting
sector.
Whoever ends up making the programmes, viewers and listeners
are increasingly likely to be receiving them on digital equipment, and the
Committee's report exhorts the government to speed up the process of educating
the public about the new technology, and planning for a switchover of TV
and radio transmitters from analogue to digital.
OFCOM, said the Committee, should be responsible for
an annual audit of progress towards analogue switchoff, and a leaflet
on digital TV should be distributed to every household, followed by
a public information campaign on free-to-air channels.
The Select Committee report will now be considered by
Ministers at the DTI and DCMS, along with hundreds of submissions on the White
Paper from organisations including BECTU.
A new Communications Bill is likely to feature in the
legislative programme of the next government if Labour are re-elected,
and the proposed changes could become law within the next year.
End of the line for
ITV Digital
More than 900 staff at ITV Digital are set to lose their jobs
as the channel shuts down its pay-TV service. Another 400 jobs are threatened
in Plymouth.
And now the ITC has revoked the channel's licences after Deloitte
& Touche adminstrators failed to find a buyer. Now the firm will
look to sell off the 1.2m subscriber base.
The BBC, Channel 4, Microsoft and French broadcaster canal+
are believed to be in the bidding for the various assets of the channel.
The threatened job cuts come at a call centre in Pembroke Dock,
west Wales, and in the channel's pay-TV centre in Plymouth. Another
250 have been given their notice at the channel's Chelsea HQ.
Some of the football clubs hoping for payment of the outstanding
£178.5m from the broadcaster are now considering filing for
bankruptcy en masse. This would provide them with sufficient grounds
to cut the spiralling player wages that have added to the affair, reports
suggest.
ITV Digital owners Carlton and Granada issued the following
statement: '"The Administrators of ITV Digital have today confirmed
that they will be closing the Pay Television operation of the Company
from this evening [Tues 30 April]. Insufficient interest has been shown
from prospective purchasers to justify a continuation of the operation.
The free to air channels will continue in the short term whilst
the Administrators pursue the best realisation for the value of the
assets.
The Administrators advised "It is with regret that we take
this course of action. We have made strenuous efforts initially to
restructure the cost base and latterly to sell the business and assets
but unfortunately there is no appetite in the market for a preservation
of the business as a going concern.
"Arrangements have been made for the surrender of the multiplex
licences to the ITC. We understand the ITC will issue invitations to
re-tender those licences on a more flexible basis tomorrow, Wednesday,
May 1."
They added: "We will be contacting subscribers, employees and
creditors as we move to close the administration."'
Tuesday 30th April 2002 --
by Richard Easson
ITV Digital will shut down
operations at midnight tonight, with the closure of most pay TV channels
following at 7am on Wednesday, it has been confirmed.
Administrators Deloitte and Touche will pull the plug on the
channels - including Sky One, Paramount and UK Gold - having informed
the broadcasters that it can no longer continue without a buyer.
Barring an eleventh-hour lifeline, hundreds of thousands of
subscribers will now be left with just the free-to-air channels offered
by the likes of the BBC and ITV in the short term.
Pre-empting the news earlier this afternoon, it emerged 900
workers are to lose there jobs at the operator's Pembroke-based call
centre.
In a statement from Deloitte and Touche confirming the closure
at midnight and the job losses at Pembroke, it has also been confirmed
that 400 jobs at the Plymouth call centre will also go.
"The Administrators of ITV Digital have today confirmed that
they will be closing the Pay Television operation of the Company from
this evening," it said. "Insufficient interest has been shown from prospective
purchasers to justify a continuation of the operation. The free to air
channels will continue in the short term whilst the Administrators pursue
the best realisation for the value of the assets."
Carlton Sacks Workers
Carlton Television was today accused of 'sucking jobs
out of the Midlands' as it axed staff at its Birmingham studios.
The broadcasting company admitted it was eliminating six full-time
posts in its presentation and scheduling operations in Birmingham and
giving the work to London. But one disillusioned worker said the new
cut was the latest in a series of blows since Carlton took over Central
about five years ago.
'The feeling is that they are sucking as much from Birmingham
as they are allowed to do and give lip service to their responsibilities
for the region.' 'Scores of jobs have gone since Carlton took Central
and they have now even taken away the branding. All they are leaving
is a vestigial remnant of what it used to be.'
A Carlton spokesman said the jobs concerned the making
of on-air announcements between programmes and adverts and broadcasting
scheduling. He said consultations were now taking place with staff
and added 'The present structure has a lot of duplication of roles,
functions and responsibilities.'
Investors Pull plug on Carlton
!
In recent months, investors have been deserting Carlton
Communications in droves. So far this year, the media group's shares
have underperformed the FTSE 100 index by 25 per cent.
Compared with other media stocks in both the UK and
continental Europe, its performance is even poorer - it is now among the
most lowly-rated media stocks in Europe.
...On the face of it, the slide is easy to explain,
so we are told ! Investors are frustrated with the fragmented ownership
of ITV, in which Carlton holds three regional franchises.
Ballot rules agreed with BSkyB
A vote on union recognition
at a BSkyB call centre is likely to start in
January.
BECTU and BSkyB management have
agreed to ground rules for the ballot, which identify the staff at the
Livingston call centre who will vote, and lay out a procedure for union
and employer to put their respective points of view to the workforce.
The secret ballot will be conducted
among BSkyB staff working in Livingston's sales department, where BECTU
has demonstrated sufficient membership to trigger a union recognition ballot.
Although BSkyB declined an invitation
to recognise BECTU voluntarily, the union and management have mutually
agreed to the ballot procedure without having to refer back to the government-appointed
Central Arbitration Council (CAC), which oversees cases where employers
contest claims for union recognition.
If no agreement had been reached
on the range of staff to be balloted - the "bargaining unit" in industrial
relations language - then the CAC would have adjudicated after hearing
arguments from union and management.
Instead, BSkyB and BECTU have
agreed that Livingston sales staff represent a bargaining unit, and, once
the date for a secret ballot has been fixed, there will be a formula for
union and management to have access to the staff involved in the vote.
Under the terms of the voluntary
agreement struck between BECTU and BSkyB, both parties have promised to
avoid negative campaigning against each other, and any hostile comments
made during the earlier recognition campaign will be withdrawn.
The agreement has led to BECTU
editing a number of items on this website.
BECTU is hoping that the secret
ballot on union recognition will begin before the end of January 2003.
Scottish Media heads for strike
Union stewards at Scottish Media Group are due
to announce dates for industrial action.
No progress has been made towards resolving a dispute
over pay and redundancies since BECTU members at Scottish
and Grampian TV voted for strike action.
In a postal ballot last month 83% of Glasgow-based
SMG members voted for industrial action, which was also supported
by 81% of BECTU members at Grampian.
Turnout in Glasgow was 69%, while a record
89% of Grampian members took part in the ballot.
The dispute began with SMG's decision to impose a 2%
pay increase without agreement in January this year, a figure well
below inflation.
Discussions with SMG failed to resolve the dispute,
and feelings were inflamed by the subsequent announcement of redundancies
at Grampian.
