Why we need Ofcom

Without regulators, British TV would go the way of America's.

I grew up watching TV in the 70’s, when the choice where I lived was BBC or Granada. We had a Monday evening family viewing ritual: Opportunity Knocks (a game show hosted by Hughie Green) and World in Action. We children were expected to watch World in Action because it was "important". I had no idea then that it was a classic current affairs show which would go on to run for nearly 40 years, or even what ‘current affairs’ meant, but some of the episodes still stick in my mind to this day. World in Action had a knack of turning quite serious "issues" into watchable telly.

It was only much later, and a World in Action producer myself that I realised what a huge commitment having a year-round team dedicated to such work actually meant: in terms of costs, resources, reputational risk, opportunity costs and so forth. It didn't cross my mind to ponder if this was the right function for a commercial Public Service Broadcaster (PSB) to fulfil. A number of the ITV franchises had regular current affairs strands; the BBC had Panorama and Channel 4’s Dispatches had joined the party, all broadcasting in peak. At the time it felt like we were all competing to prove we were the best guardians of the public interest. It was just the way it was.

I was at Granada when the 1990 Broadcasting Act cleared the way for the ITV franchises to be sold off to the highest bidder. For many academics and media commentators, this signalled the death knell for the serious current affairs television in the UK; in order to recoup the money spent on winning the valuable licenses, commercial PSB’s would cut back on expensive, labour intensive, often low rating programmes such as current affairs, or so the theory went. Paul Jackson, the new director of programmes at Carlton (successful bidder for the Thames franchise) said at the time that it was not television’s job to get people out of prison (referring to World in Action’s miscarriage of justice programmes). It was their job to pursue high ratings, earn revenue and sustain a business.

And so developed the notion that commercial broadcasters must be allowed to dance to a different tune, that weighing them down by obligations to expensive, low rating, revenue-draining commitments smacked of a paternalism and protectionism from another era - and limited their growth and expansion too. It is a view of television as a medium whose success can be measured by ratings, plain and simple. Audiences will gravitate to programmes they like and it’s the job of those running TV to provide them with what they want.

But perhaps surprisingly (and thankfully), it's a narrow view of a powerful medium that's been resisted for over half a century. Television's history is intertwined with an acknowledgment of its power. From its very inception, broadcast was recognised as "having potential power over the public opinion and the life of the nation". So much so, control of the medium remained within the state. Early battles to establish a commercial rival to the BBC are riven with anxieties about standards, quality, impartiality – and a real fear that services run on purely commercial grounds would feel no compulsion to carry the difficult, challenging, expensive stuff. The result was regulated commercial television – the so-called "PSB compact". In return for privileges and discounted access to spectrum, ITV companies would carry public service programmes at the heart of their schedule. This principle has remained broadly intact – a baton passed on from the very first regulator to todays’ super regulator, Ofcom.

Ofcom has the power to insist that the PSB’s together provide "a comprehensive and authoritative coverage of news and current affairs", and that such programmes be of "high quality and deal with both national and international matters". Most content quotas have long been swept away, news and current affairs are the only ones to remain.

I have no doubt that this long standing statutory framework has laid the groundwork for a healthy, well respected, world class environment in which current affairs journalism can thrive. It is no surprise to me that viewers continue to say they value current affairs. Television has wide reach, its journalism is more trusted than other sources and the broadcasting of current affairs can, we presume, contribute to an informed society.

I have no doubt that if the forthcoming Communications Bill dilutes these commitments, or listens to the new breed of "content generators" arguing (like the commercial channels before them) that statutory obligations limit their wriggle room – television and society will be a poorer place. We only have to look to the US for a view of what a fully de-regulated TV market looks like.

Independent TV producers I interviewed for my forthcoming report (pdf) are united in the view that left to their own devices, broadcasters would marginalise current affairs, commercial channels would be less likely to do it at all, and if so, would focus on the softer, less challenging, UK based stories. They describe making current affairs - especially international stories and investigations - as already a struggle.

It’s hard not to conclude that without some level of continuing intervention, current affairs programming would diminish, plurality of supply be reduced and the public interest failed.

This is what happened to Ernie. Photograph: Getty Images

Jacquie Hughes is a journalist and lecturer at Brunel University, and former television producer and commissioning editor.

Show Hide image

The Autumn Statement proved it – we need a real alternative to austerity, now

Theresa May’s Tories have missed their chance to rescue the British economy.

After six wasted years of failed Conservative austerity measures, Philip Hammond had the opportunity last month in the Autumn Statement to change course and put in place the economic policies that would deliver greater prosperity, and make sure it was fairly shared.

Instead, he chose to continue with cuts to public services and in-work benefits while failing to deliver the scale of investment needed to secure future prosperity. The sense of betrayal is palpable.

The headline figures are grim. An analysis by the Institute for Fiscal Studies shows that real wages will not recover their 2008 levels even after 2020. The Tories are overseeing a lost decade in earnings that is, in the words Paul Johnson, the director of the IFS, “dreadful” and unprecedented in modern British history.

Meanwhile, the Treasury’s own analysis shows the cuts falling hardest on the poorest 30 per cent of the population. The Office for Budget Responsibility has reported that it expects a £122bn worsening in the public finances over the next five years. Of this, less than half – £59bn – is due to the Tories’ shambolic handling of Brexit. Most of the rest is thanks to their mishandling of the domestic economy.

 

Time to invest

The Tories may think that those people who are “just about managing” are an electoral demographic, but for Labour they are our friends, neighbours and the people we represent. People in all walks of life needed something better from this government, but the Autumn Statement was a betrayal of the hopes that they tried to raise beforehand.

Because the Tories cut when they should have invested, we now have a fundamentally weak economy that is unprepared for the challenges of Brexit. Low investment has meant that instead of installing new machinery, or building the new infrastructure that would support productive high-wage jobs, we have an economy that is more and more dependent on low-productivity, low-paid work. Every hour worked in the US, Germany or France produces on average a third more than an hour of work here.

Labour has different priorities. We will deliver the necessary investment in infrastructure and research funding, and back it up with an industrial strategy that can sustain well-paid, secure jobs in the industries of the future such as renewables. We will fight for Britain’s continued tariff-free access to the single market. We will reverse the tax giveaways to the mega-rich and the giant companies, instead using the money to make sure the NHS and our education system are properly funded. In 2020 we will introduce a real living wage, expected to be £10 an hour, to make sure every job pays a wage you can actually live on. And we will rebuild and transform our economy so no one and no community is left behind.

 

May’s missing alternative

This week, the Bank of England governor, Mark Carney, gave an important speech in which he hit the proverbial nail on the head. He was completely right to point out that societies need to redistribute the gains from trade and technology, and to educate and empower their citizens. We are going through a lost decade of earnings growth, as Carney highlights, and the crisis of productivity will not be solved without major government investment, backed up by an industrial strategy that can deliver growth.

Labour in government is committed to tackling the challenges of rising inequality, low wage growth, and driving up Britain’s productivity growth. But it is becoming clearer each day since Theresa May became Prime Minister that she, like her predecessor, has no credible solutions to the challenges our economy faces.

 

Crisis in Italy

The Italian people have decisively rejected the changes to their constitution proposed by Prime Minister Matteo Renzi, with nearly 60 per cent voting No. The Italian economy has not grown for close to two decades. A succession of governments has attempted to introduce free-market policies, including slashing pensions and undermining rights at work, but these have had little impact.

Renzi wanted extra powers to push through more free-market reforms, but he has now resigned after encountering opposition from across the Italian political spectrum. The absence of growth has left Italian banks with €360bn of loans that are not being repaid. Usually, these debts would be written off, but Italian banks lack the reserves to be able to absorb the losses. They need outside assistance to survive.

 

Bail in or bail out

The oldest bank in the world, Monte dei Paschi di Siena, needs €5bn before the end of the year if it is to avoid collapse. Renzi had arranged a financing deal but this is now under threat. Under new EU rules, governments are not allowed to bail out banks, like in the 2008 crisis. This is intended to protect taxpayers. Instead, bank investors are supposed to take a loss through a “bail-in”.

Unusually, however, Italian bank investors are not only big financial institutions such as insurance companies, but ordinary households. One-third of all Italian bank bonds are held by households, so a bail-in would hit them hard. And should Italy’s banks fail, the danger is that investors will pull money out of banks across Europe, causing further failures. British banks have been reducing their investments in Italy, but concerned UK regulators have asked recently for details of their exposure.

John McDonnell is the shadow chancellor


John McDonnell is Labour MP for Hayes and Harlington and has been shadow chancellor since September 2015. 

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump