Clause 147 - General functions of OFCOM in relation to radio spectrum
Communications Bill
9:30 am

Mr John Greenway (Ryedale, Conservative)
Following from the points that were made by the hon. Member for Milton Keynes, North-East (Brian White), it would be helpful if the Minister were to give some examples of the sort of grant that it is envisaged that Ofcom would make under subsection (6). Like the hon. Gentleman, I am at a loss to know whether Treasury approval for granting public money is a valuable safeguard, or an unnecessary interference with Ofcom's flexibility.
The notes on clauses are excellent, but the notes on clause 147 leave us none the wiser about what the grants are for, to whom they would be made, what their specific purpose is, and what would be the measurement of outcome. One presumes that public money would be involved, but equally one presumes that the clause contains that facility because the Government envisage Ofcom having a valuable role in ensuring that we get the maximum use from the available spectrum.
The hon. Gentleman anticipated my train of thought. If grant enables a speedier roll-out of digital delivery, it would be to the good, particularly if it were in respect of radio. As my hon. Friend the Member for Maldon and East Chelmsford said, there is concern that the timetable for analogue switch-off and the roll-out of digital television may be slipping. I think that an increasing number of people are getting enjoyment from radio—I certainly do, so it is a great sadness that progress towards a digital era in radio has barely started. If the making of grants were to encourage and facilitate a speedier roll-out of digital radio, that would be valuable.
Given that grants can be made to any person, including
''a person holding a wireless telegraphy licence'',
I presume that they could be made to the BBC. If that is the case, the Minister should tell us. He should also try to give us some idea of what the Treasury's role will be, not only in deciding whether the grant can be made, but—in the words of subsection (7)(b)—in the setting of
''the terms and conditions on which such a grant is made.''
That is particularly relevant because, as subsection (6)(b) makes clear, there is potential for the
requirement for the grant to be repaid ''in specified circumstances.'' Those terms are extremely vague, but they are also quite powerful, and we ought to be given some sort of explanation.
Turning to another interesting feature of the clause, subsections (8) and (9) give Ofcom charging powers separate and additional to the general powers in clause 25. It would be helpful to the Committee, and to those whose livelihoods depend on the outcome of our deliberations, if the Minister were to give us some idea of how high those charges might be and in what circumstances they might be levied. Perhaps he might also, in general terms, give us some examples.
This clause raises many issues and the Minister might be able to respond only to some of them today. If any of my more detailed questions are more appropriately answered at a later date, I am happy to accept that. The Committee has a responsibility to ask questions. Where the Bill has anything to do with money, we should pause and reflect on what that means and what the consequences are both for the public purse and the wider interests of consumers and the communications and broadcasting industry.
