Clause 60 — TV licensing: alternatives to criminal sanctions

Deregulation Bill (Programme) (No.3) – in the House of Commons at 1:46 pm on 10 March 2015.

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Photo of Dawn Primarolo Dawn Primarolo Deputy Speaker (Second Deputy Chairman of Ways and Means)

With this we may take Government amendments (a) and (b) in lieu.

Photo of Tom Brake Tom Brake Assistant Whip (HM Treasury), The Deputy Leader of the House of Commons

I want briefly to outline why the Government have introduced amendments in lieu of Lords amendment 38.

A television licence is required to watch all live or nearly-live broadcast television content on any device in the UK. People should not seek to evade this and there needs to be an effective enforcement regime for the failure to have a TV licence.

Clause 76 imposes a duty for the Secretary of State to ensure that a review of the TV licensing enforcement regime is carried out. This review will identify whether the current enforcement regime is appropriate and proportionate, and will ensure that there is a strong, evidence-based case for any potential changes to the TV licence enforcement regime. This matters a great deal to many people.

The Government are very clear that the review of the licensing enforcement regime is a high priority. The decision was taken to commence this review in advance of Royal Assent, while retaining the clause that commits the Government to carry out the review to ensure that this important piece of work is completed. The review is being led, independently, by David Perry QC. The findings of the review, which will complete by the end of June 2015, will be laid in both Houses of Parliament and be presented to the BBC Trust.

The proposed further amendment requires the Secretary of State within three months of the review reporting to set out whether the Government intend to decriminalise or not, and commits the Government to indicate clearly the timetable they plan to follow upon the completion of the Perry review. Our overriding aim is to ensure that the system is appropriate, proportionate, fair, and represents the best value.

This amendment places a firm commitment on the Government of the day to promptly and properly consider the report and set out their response and the timetable of steps to be taken, within three months of the report’s completion. Clause 77 confers a new power for the Secretary of State, via secondary legislation, to change the sanctions that apply to the failure to have a TV licence. We have always maintained that the report’s findings, and potential next steps, should be considered in the context of charter review. This position has not changed.

The BBC’s current charter expires on 31 December 2016. The Government will not begin charter review until after the election and there is no set process for how the review of the charter should be conducted, or when. It will be for the Government of the day to take forward any further actions as they see fit.

We must not make presumptions about the recommendations that Mr Perry will make, nor about how the Government will decide to take them forward, particularly as the public consultation element of this work is ongoing. Clearly, any changes will require serious consideration in the broader context of the charter review process, and it will be for the next Government to ensure that the right enforcement regime for licence fee payers, the courts and indeed the BBC itself is in place.

Our amendment ensures that the next Government will be ready and able to implement whatever recommendations David Perry, QC wishes to make, when the Secretary of State’s regulation-making power commences in April 2017. There was significant cross-party support for the TV licensing clauses during our earlier consideration of this Bill in this House. The firm commitments set out by the Government at that time must be honoured, particularly given that strong, cross-party support. Our amendment ensures that David Perry’s review will be promptly considered by the Government of the day, and that any potential changes are introduced to a clear timetable, leading up to 1 April 2017. For all the reasons I have outlined, I ask hon. Members to disagree with the Lords amendment and support our amendments in lieu.

Photo of Chris Bryant Chris Bryant Shadow Minister (Culture, Media and Sport)

Anybody would think, from the way the Minister just presented his case, that this has been a smooth path and everything the Government intended from the very beginning. But there was only an amendment relating to the licence fee at all because of a Government Back-Bencher, Andrew Bridgen—who may be able to catch your eye a little later, Madam Deputy Speaker—and we have a change only because in the Lords the Government’s position was overturned by three votes. I am, of course, proud that we now have a far more sensible set of propositions before us. I admit that the Liberal Democrat heart that is still beating within the Minister is probably on our side in this argument, but he might at least have shown that that heart still beats, rather than just deliver what his paymasters in the Conservative party have told him to deliver.

The truth is that Labour Members support the BBC licence fee for the foreseeable future, not out of ideological passion but simply because it has worked and because the vast majority of people in this country support it. Everybody comes up with other ideas; every Select Committee that has ever examined this issue has set out this, that and the other idea for us to consider, but at the end has said that the least worst option is the licence fee. Broadly speaking, that is what the Select Committee on Culture, Media and Sport decided in its report a couple of weeks ago.

Photo of Chris Bryant Chris Bryant Shadow Minister (Culture, Media and Sport)

Of course. I cannot think of anyone to whom I would want to give way more.

Photo of Mark Field Mark Field Conservative, Cities of London and Westminster

The lack of any other options on the Government Benches may have something to do with that. I hope that the hon. Gentleman does not mistake the broad support on the Government Benches for a different and less stringent sanctions regime for support for the TV licence. I very much support the idea of a TV licence, but we need somehow to rein back what has been allowed to happen with TV licence sanctions. That is what drives most of the support for this amendment.

Photo of Chris Bryant Chris Bryant Shadow Minister (Culture, Media and Sport)

I did not give way to the hon. Gentleman faute de mieux. He is right in what he says, and some Opposition Members are as passionate in their support for the licence fee as he is, as I am or as Tony Hall is but who want a change to the rules on how the licence fee is administered and on the penalties for those who do not pay. My noble Friend Baroness Corston put forward a cogent and moving argument, to which one would have to be hard-hearted not to listen, on the criminalisation aspects of the current situation. Our point, which won substantially in the House of Lords, was that we have a system that broadly works, and if we want to change it, it would be better to change it in the round, rather than simply changing the licence fee. Let me explain why.

The licence fee is not just about funding the BBC’s programming, although it is true that it provides £3.7 billion of investment in the arts, broadcasting and British culture through the BBC, which it is difficult to see how any other model would deliver to the same degree. In addition, it provides for a degree of competition for quality, as well as for audiences, with the other broadcasters. Thus, ITV wants to make high-quality drama and does so; many of the dramas people often associate with the BBC are actually made by ITV. Likewise, Channel 4 has a special role to play because of the original remit it was given to be edgy, alternative and sometimes naughty. It can perform that public service broadcasting role within the whole ecosystem only if the BBC licence fee also exists and if Channel 4 remains in public hands. I am sure that the Minister would agree with me on that one about Channel 4, even if some Conservative Members might not.

The Opposition believe that it is important that there is the licence fee, and that it is a massive investment in production and drama, not just the kind of long-form dramas that exist in American commercial broadcasting and are often very lucrative, but the short-form dramas, such as “The Casual Vacancy”, which has been on the BBC over the past few weeks. It was only three episodes long and it would be very difficult to make in any environment other than one where there is some form of subsidy. In news, current affairs, comedy and so many different areas, the BBC would not be able to perform the same function without the licence fee.

Labour Members have been critical of the difficult time the BBC has had. Of course it always has to strive better to make its resources stretch further, but since 2010 it has had not only a tough financial settlement, but top-slicing, with a significant amount of money—some hundreds of millions of pounds—going off to fund the roll-out of broadband around the country. In addition, S4C is, in the main, being paid for not by the Department for Culture, Media and Sport but out of the licence fee, and the World Service is being paid for not by the Foreign Office, but out of the licence fee.

Photo of Chris Bryant Chris Bryant Shadow Minister (Culture, Media and Sport)

I see that the hon. Gentleman is pregnant.

Photo of Andrew Bridgen Andrew Bridgen Conservative, North West Leicestershire

If the BBC has had such a tough financial settlement and it can no longer go on with a freeze on the licence fee, can the hon. Gentleman explain why the number of managers—not staff, but managers—who work for the BBC and are paid more than the Prime Minister has increased by 10% in the past 12 months?

Photo of Chris Bryant Chris Bryant Shadow Minister (Culture, Media and Sport)

Those are precisely the kinds of points the BBC has to address. It has to make sure that more and more of its money is spent on programming rather than on administration. That is why I congratulate the hon. Gentleman on one element of his campaign, which is that he has argued forcefully that the collection system that we must have for the licence fee costs some £100 million a year and he has asked whether there is a better way of doing that. That is a perfectly legitimate question to ask.

Of course there are those—I see Philip Davies has just entered the Chamber at precisely the right moment—who would dismantle the licence fee. He is the only member of the Select Committee who voted to get rid of the licence fee completely. Some people would want to change it, and that is a perfectly legitimate argument to have. My concern about how the Government behaved on this issue is that the version they sent through to the House of Lords would have meant that the Government could have instituted the decriminalisation of non-payment of the licence fee without consideration of that issue within the whole package of other issues relating to the BBC and charter renewal. In effect, that would have left the door open to dismantling the licence fee without even intending to do so. I am certain that, as right hon. and hon. Members said in the House of Lords, if the Government were to proceed too swiftly, we would simply see a significant fall in licence fee take-up almost immediately. We could be talking about something in the region of £200 million or £250 million, which is more than the cost of all children’s broadcasting.

We need to think carefully about the timing of how we proceed, which is why Labour supported in the House of Lords the amendment that the Government are objecting to today, but not really objecting to. They are doing an adroit about-turn, for which we are deeply grateful. I wish to praise my colleagues in the House of Lords, particularly Lord Stevenson of Balmacara and Baroness Hayter of Kentish Town, who made sure that the amendment was carried, with a lot of cross-Bench support and a significant amount of Liberal Democrat support.

I want to make it clear that our argument has always been that if we are going to decriminalise the licence fee, for which there are strong arguments, we need to do it as part of a debate in which we discuss the whole of charter renewal and the whole of the licence fee settlement for the next several years. Otherwise the danger is that if we proceed too fast with just one element, like pulling on a thread in a jumper, we will pull apart the whole jumper. We would have been perfectly happy with the original amendment. Although the Government would have the power to introduce regulations decriminalising the non-payment of the licence fee, they would not be able to do so until 1 April 2017 which, as the Minister pointed out, will be past the time when the new charter for the BBC will have been agreed and the licence fee will have been settled for a further period.

We would have been happy with that amendment, but the Government have introduced a face-saving amendment, which says:

“The Secretary of State must, before the end of the period of 3 months beginning with the date on which the review is completed, lay before both Houses of Parliament a report setting out the Secretary of State’s response to the review”.

We have no objection to the Government doing that. When we are the Government, we expect to do that. I note that the Minister expects that Mr Perry will have completed his review by June or perhaps July—sometimes these things slip. That means that by the end of this year, if the motion is agreed, a Labour Government will bring forward such a report.

The vast majority of hon. Members are not like the hon. Member for Shipley—an ideologue, passionate about destroying the BBC licence fee and, to my mind, destroying the BBC and surrendering our future to commercial broadcasting in its entirety. The vast majority of Members in this House, even Government Members, who have hearts beating as socialist hearts, even if they do not yet know it, believe in the licence fee. Although we all want to see an end to unnecessary criminalisation of non-payment, we want to make sure that the licence fee is considered in its entirety when that is done. Anything else—

Photo of Chris Bryant Chris Bryant Shadow Minister (Culture, Media and Sport)

I was on my very last sentence. Normally, hon. Members are clamouring for me to stop, but I see that the hon. and learned Member is clamouring for me to continue.

Photo of Oliver Heald Oliver Heald Conservative, North East Hertfordshire

Does the hon. Gentleman agree that in principle it is wrong for somebody to be sent to prison for not paying the licence fee?

Photo of Chris Bryant Chris Bryant Shadow Minister (Culture, Media and Sport)

I believe in the licence fee. I would like to see decriminalisation. If we can achieve decriminalisation of non-payment of the licence fee in a way that does not dismantle the rest of the licence fee, yes, I would agree with the hon. and learned Gentleman. However, in order to do that, one cannot simply send forward to Her Majesty legislation which suggests that the Government can introduce that decriminalisation in a few weeks’ time. We have to carry the amendment as tabled, substantially agreeing with the House of Lords, while pretending to disagree. I am grateful that the hon. and learned Gentleman passionately agrees with me. He still has a beating socialist heart and will support the licence fee, as we shall.

Photo of Andrew Bridgen Andrew Bridgen Conservative, North West Leicestershire

I start by expressing my deep disappointment that the amendment has been added to the Bill by the House of Lords, by a narrow majority of only three noble Members, in order to maintain the status quo and perpetuate criminalisation of non-payment of the TV licence for at least another two years—an eleventh-hour attempt to frustrate the clear will of this House and of the country.

It should be noted that five of the votes in favour in the other place came from the ex-BBC chairman, Lord Grade, in whose name the amendment stood; the ex-BBC “Play School” presenter, Baroness Benjamin; an ex-BBC governor, Baroness Deech; the ex-BBC “EastEnders” actor, Lord Cashman; and BBC producer Viscount Colville. They all spoke in the debate and voted in favour of the amendment.

Photo of Chris Bryant Chris Bryant Shadow Minister (Culture, Media and Sport)

In referring to all those Members, the hon. Gentleman might also point out their slightly wider career paths. For example, Lord Grade was head of ITV and spent most of his career in broadcasting in the commercial sector, so it is fascinating that the commercial sector and the public sector agree.

Photo of Dawn Primarolo Dawn Primarolo Deputy Speaker (Second Deputy Chairman of Ways and Means)

Order. I do not think it is fascinating; we are not here to debate Members of the other place. We are here to debate the Lords amendments so, Mr Bridgen, I require you to desist from reminding us what happened in the other place, because we can read it, and to direct your comments to the amendments before us.

Photo of Andrew Bridgen Andrew Bridgen Conservative, North West Leicestershire

Thank you for that guidance, Madam Deputy Speaker. I much appreciate it. However, I point out to the House that those five noble Members represent more than the majority by which the amendment was carried in the other place.

Having read the Hansard record of the various speeches on the amendment in the upper House, as I am sure all hon. Members have, I found myself with a strong sense of déjà vu. There they were, all the same lines from the multimillion-pound BBC spin machine that we heard when I first proposed the amendment—horror stories about huge changes to the BBC if decriminalisation came in; losses of £200 million of revenue; the emotive closure of all local radio stations and TV stations; and so on. We have heard it all before. I remind hon. Members that there was support for my amendment from across the entire political spectrum in this House. It was signed by 149 right hon. and hon. Members and had the support of many in the Government who were unable to sign.

I draw the attention of the House to the comments of Baroness Corston, who was mentioned by the shadow Minister. She recognised the impact of delays to the implementation of the decriminalisation of non-payment of the TV licence. The longer that takes, the more people will go to prison and the more people will be criminalised. Every year of delay means that another 160,000 of our fellow citizens will be dragged up on criminal charges for non-payment of a £145.50 licence—in effect, a poll tax.

Baroness Corston said:

“I once met a woman who had been imprisoned for three months for failing to pay the £145.50 television licence fee and a £200 fine. If she could not afford the licence fee, surely she was not going to be able to afford a £200 fine as well. During those three months in prison she lost her tenancy and was unable to look after her children, who were taken into care. When she came out of prison, she was told that she could not have local authority accommodation for a family because she did not have her children with her, and when she went to social services she was told that she could not have her children back because she did not have family accommodation.”—[

Official Report, House of Lords,

5 February 2014; Vol. 759, c. 800.]

That is truly shocking.

As I have previously stated in the House, around 50 people a year go to prison as a result of the legislation, a disproportionate number of whom are women—50%, whereas women make up only 4% of the prison population. However, speaker after speaker in the upper House, while noting the comments of Baroness Corston, decided that the spurious claims about a shortfall in BBC funding took precedence.

It is unfortunate that TV licensing enforcement in Scotland was not brought up in the debate in the other place. I would like to correct that and remind the House that the Criminal Proceedings etc. (Reform) (Scotland) Act 2007 introduced a regime whereby an emphasis was placed on alternatives to prosecution, such as fiscal fines. The result was a fall in prosecutions from nearly 2,000 in 2006-07 to just 34 in 2012-13—a 98% reduction. If the BBC PR machine is to be believed, one would think that that would result in a significant fall in compliance with the licence fee. However, as Fergus Reid, the spokesperson for TV Licensing in Scotland, said in 2013:

“the average evasion rate remains at a low of just over five per cent, meaning almost 95 per cent of homes are correctly licensed.”

Photo of Oliver Heald Oliver Heald Conservative, North East Hertfordshire

Does my hon. Friend consider it disproportionate to imprison somebody for non-payment of a relatively small debt? Does he agree that this needs to be corrected, much as some of us love the licence fee?

Photo of Andrew Bridgen Andrew Bridgen Conservative, North West Leicestershire

Not only do the majority of Members of this House think that the measure is disproportionate; I honestly believe that the majority of people in the country think that it is disproportionate. When I first proposed my amendment and canvassed support for it across the House, it was clear that a large number of Members did not initially think that it was a criminal offence not to pay the TV licence fee. It is within our power to correct this. In England and Wales, more people are imprisoned each year for the non-payment of fines associated with TV licensing than are prosecuted for evasion in Scotland, with little, if any, difference in the evasion rate.

Photo of Karl Turner Karl Turner Opposition Assistant Whip (Commons), Shadow Solicitor General

To be absolutely clear, people are not going to prison for refusing to pay the TV licence fee. The reality is that people are sent to prison for refusing to pay the penalty for not paying the fee in the first place. The former Solicitor-General has intervened a couple of times to suggest the opposite to that.

Photo of Andrew Bridgen Andrew Bridgen Conservative, North West Leicestershire

The hon. Gentleman is absolutely right. People go to prison not for not paying the licence fee, but for not paying the fines. However, if someone has hit hard times and has no money and cannot afford a £145.50 licence fee, they are unlikely, as in the example cited by Baroness Corston, to be able to pay a £200 fine, which could result in a mother going to prison and her children being taken into care, with the consequent results for her family on release.

The avoidance rate for payment of the TV licence fee in Scotland is hardly different from that in England, despite the fact that we criminalise 160,000 to 180,000 of our citizens a year and imprison between 30 and 50, whereas Scotland prosecutes only some 30 people a year. Given the sparsity of population in Scotland and human behaviour being what it is, one might consider that there would be a greater chance of evading prosecution in a remote part of Scotland than anywhere in England. I would suggest that there was possibly a higher evasion rate of the TV licence fee in Scotland prior to the decriminalisation anyway.

Unfortunately, the BBC public relations machine seems to have won the day in the upper House, so I now come to amendment (a) in lieu, tabled in the name of the Minister for Government Policy and Chancellor of the Duchy of Lancaster, my right hon. Friend Mr Letwin. As he says, there is no doubting the significant cross-party support for the clauses relating to TV licensing during the earlier stages of the Bill, and the firm commitments set out by the Government must be honoured. I therefore support the amendment to ensure that the review of David Perry QC, due in June 2015, to which I had the pleasure of giving evidence only last week, is promptly considered by the Government of the day, and that the changes that I very much hope come about are introduced with a clear timetable.

Whatever future funding mechanism for the BBC is decided at the next charter review, I hope that criminalising more than 160,000 of our fellow citizens each year, an estimated 75% of whom are women, will no longer be part of it. I therefore urge the House to join me in opposing the Lords amendment and supporting the Government’s amendments in lieu.

Photo of Tom Brake Tom Brake Assistant Whip (HM Treasury), The Deputy Leader of the House of Commons

I will make a few short comments in relation to the points that have been made in the debate. It is impossible to win with Chris Bryant. If we do not make any changes to the Bill, we are being dictatorial and steamrollering things through. If we do make changes in response to the debate, we are being spineless. As a Minister, I am always in favour of listening, and if there are ways of improving a Bill, that is what I like to do—and that is what we are doing today.

Photo of Andrew Bridgen Andrew Bridgen Conservative, North West Leicestershire 2:15, 10 March 2015

Does my right hon. Friend agree that Chris Bryant is the ideal Opposition spokesman? I hope he stays in opposition for a long time.

Photo of Tom Brake Tom Brake Assistant Whip (HM Treasury), The Deputy Leader of the House of Commons

I certainly agree with my hon. Friend on that, and I am confident that the hon. Gentleman will stay on the Opposition Benches for a long time. However, I thank the hon. Gentleman for expressing his support in a roundabout way, and in a lengthier contribution than mine on this measure.

I thank my hon. Friend Andrew Bridgen for providing us with the opportunity to debate TV licensing and enforcement today, a debate he initiated many months ago. I hear the unhappiness that he has expressed, but I also heard him comment positively on the fact that there is a clear commitment from any future Government, providing the Bill is passed, to come forward within three months of the publication of the Perry review with an action plan setting out the steps that they will take if they are in favour of decriminalisation.

Lords amendment 38 disagreed to.

Amendments (a) and (b) made to Lords amendment 38.