Clause 2 - Initial function of OFCOM
Office of Communications Bill [Lords]
3:15 pm
Mr Michael Fabricant (Lichfield, Conservative)
I take your direction, Mr. Gale. My point is that this is a difficult time for broadcasters. Of course, Ofcom's role will not be that of an advertising sales house, but it is important to recognise that economic pressures will tempt broadcasters to centralise.
In a previous sitting the hon. Member for Milton Keynes, North-East (Brian White) pointed out that the ownership of independent television is unimportant as far as the provision of its contract is concerned. What is important is its current contract, which is with the ITC. Although in recent years we have seen consolidation in ownership in independent television, we have also seen a broadening of independent television's regional presence. There are now 48 regional news broadcasts going out simultaneously from the ITV network throughout the United Kingdom, which is a major expansion.
You will know, Mr. Gale, that thanks to changes in technology such as the introduction of electronic newsgathering, large numbers of staff are no longer necessary. Nevertheless, the Bill will have an economic impact on independent television companies at, as my hon. Friend the Member for Vale of York pointed out, a financially stressful time for independent television.
Although the ITC can be commended on ensuring that independent television, and the other organisations to which it applies, maintain their regional structures, that may not be the case with Ofcom—all bets are off. The Minister has said that he wants to see a light regulatory touch, for which I applaud him, but how light will that touch be? Will we see the end of regional broadcasting in the United Kingdom?