Public Bodies Bill [HL]

My Lords, I thank the noble Lord, Lord Whitty, for tabling these amendments and for giving the Government the opportunity to state clearly to your Lordships' House how they intend to use the powers in Clauses 4 and 5 to reform Ofcom. The noble Lord asked why Ofcom is included in Schedules 4 and 5 to the Bill. This is so that we can bring forward several small changes to some of its duties that will make certain that it will be able to fulfil its statutory duties as efficiently and effectively as possible. The communications landscape has changed significantly over the past decade, since Ofcom was established by the Office of Communications Act 2002. It is sensible and timely that we now use this opportunity to make some changes. At a time when the public sector must become more efficient, it is right to amend or remove some of Ofcom's duties, which will result in a small reduction in its cost to the public purse. I confirm that Ofcom is comfortable with the proposed changes to its duties. In answer to the concerns raised by the noble Lord, Lord Hunt, in our last debate on these amendments, I can reassure him that the overarching responsibilities of Ofcom will not change, and that its independence will remain a fundamental principle of regulating the communications sector. I note, too, that the noble Lord is concerned that the Government may look to introducing additional changes in years to come using the Public Bodies Bill. I can reassure him that we have no plans to make any additional changes to Ofcom’s duties other than the nine small changes that we propose to bring forward by order after the Public Bodies Bill receives Royal Assent. Once those changes are complete, the Government will use powers set out in Amendment 60 to remove Ofcom from Schedules 4 and 5, thereby repealing the power of Ministers to make changes to Ofcom via secondary legislation. I can tell the noble Lord, Lord Whitty, that that makes certain that Ofcom will not be subject to the powers in the Bill in perpetuity. Like all bodies named in the Bill, Ofcom is included for a specific purpose. Once that purpose has been met, it will be removed from the relevant schedules. Amendment 39 would prevent the Government making the proposed change to Ofcom’s financial arrangements. Currently, satellite filings are paid from Ofcom’s grant-in-aid to manage the radio spectrum in the UK. Allowing this change would bring the UK into line with many other countries which charge for this work and save taxpayers in the region of £400,000 per annum. That is not a huge sum, but it is a saving that can and will be delivered. I can answer my noble friend Lord Fowler, after my water refreshment, that Ofcom’s inclusion in Schedule 4 is for this purpose and not about funding levels. Amendment 54 would prevent changes being made to Ofcom’s governance arrangements which are part of our commitment to deregulation. Our proposed changes will cut duplication, reduce the need to undertake unnecessary reviews, and allow Ofcom to make cost savings. They include the removal of the requirement for Ofcom to undertake reviews of media ownership and public service broadcasting arrangements every three and five years respectively. Instead they will be done at the request of the Secretary of State. That is more efficient and will ensure that the review process is dictated by a need, not an inflexible statutory timetable. Another proposed change will remove Ofcom’s duty to promote development opportunities for training and equality of opportunity. That should not be mistaken for the Government turning their back on the issue of diversity. It would simply bring Ofcom into line with regulators of other industries who do not generally have such requirements. This decision was made on the basis that the media sector is fortunate to have Skillset already to promote training issues. The removal of this duty on Ofcom will allow Skillset to continue to develop its work in this field. In light of those details and the assurances about the limits of the Government’s plan for the reform of Ofcom, I hope that the noble Lord will feel able to withdraw his amendment.