Clause 2 - Initial function of OFCOM
Office of Communications Bill [Lords]
9:45 am
Mrs Anne McIntosh (Vale of York, Conservative)
That is a gross misreading of the amendment. Perhaps the hon. Gentleman can help, but my understanding is that we can talk only about the organisation and structure of Ofcom. We cannot talk about cost savings through the delivery of policy, because that will be considered under the main Bill. I think that you would rule me out of order, Mr. Stevenson, were I to go down that path. I would tread it with trepidation.
Paragraph 27 of the explanatory notes supports the contention in our amendment, stating:
The current cost of regulating the communications sector is in the region of £118 million.
I have not had time to analyse that against the figure that the Minister last gave us, but I find it quite shocking. That cost is currently borne by the industry because the regulators charge and those being regulated reimburse that charge. We have learned that, if I understand the Minister correctly, although the Government are prepared to pay half the setting-up costs in the transitional period, half will be recovered as an extra charge on the industry. The industry will face a double whammy, which is unacceptable at a time when independent broadcasters have lost huge amounts of advertising revenue.