My Lords, this group of amendments is of great importance to the independent television production sector in Wales. Amendments 16 and 17 relate to how much commissioning is done outside of London by channels 3, 4 and 5. Amendment 54 relates to the issue of brass plating. I thank the noble Baroness, Lady Fraser of Craigmaddie, and the noble Lord, Lord Wigley, for tabling these amendments. I have added my name to Amendment 54 and support all three amendments, as do my colleagues on these Benches.
Teledwyr Annibynnol Cymru represents the independent sector of Wales and is made up of some 50 companies of varying sizes. They produce content for BBC, ITV, Channel 4, Channel 5 and Sky. They also produce almost all the original television and online media content for S4C. Their continued success helps the Welsh and UK economies. They do, however, rely on the continued support of our UK public service broadcasters, including Channel 4, which has brought greater resource to working with TV production companies throughout the UK in recent years. Over the last five years, the resource from Channel 4 has never fallen below 54% in the commissioning of out of London hours, and never below 45% in spend. Channel 4 has committed to a future level of 50% of spend and hours outside of London against the 35% requirement in its licence, and has created hubs throughout the UK to enable this. There is nothing to indicate that it will deviate from this commitment.
I can understand the disappointment felt by many in the sector who have learned that Ofcom has not opted to raise the out-of-London quota from its present level of 35% in its proposed new licence for Channel 4. It appears that Ofcom perhaps does not recognise that Channel 4 has changed its commissioning structure and approach. This failure to recognise the reality of Channel 4’s current out-of-London commissioning commitments leaves the independent television production sector in Wales in a quandary. It believes that the 35% quota level set by Ofcom is not fit for purpose.
The reality is that Channel 4 has, over the last five years, achieved a level of out-of-London hours commissioned of between 54% and 66%. To retain the 35% level within the new licence is very much in direct contrast to the current reality. Amendments 16 and 17 would put a commitment in the Bill to the 50% figure for hours and spend by Channel 4.
Amendment 54, in the name of the noble Lord, Lord Wigley, deals with brass plating and calls for a new clause to be inserted after Clause 36. This new clause would protect Wales’s production companies. These companies are set up by local production and business talent, have their headquarters in Wales, employ locally and spend in their communities. However, the present situation allows a TV company from outside Wales, or any of the devolved nations, to establish a small satellite presence in the nation in order to win a network PSB commission and qualify for the out-of-London commissioning quota. This, of course, is what is referred to as brass plating.
Welsh independent production companies acknowledge that the aim of the present system is to grow production services around the UK and that, in so doing, it seeks to ensure that a wide range of voices, stories, talent and perspective is delivered to UK audiences. But there are concerns within the sector in Wales that brass-plating has a number of downsides, which have already been referred to by the noble Lord, Lord Wigley. First, the profits from the production flow back out of Wales, leading to less investment in the sector in Wales. Secondly, talent ends up being recruited from outside Wales, limiting the opportunities for Welsh production talent to work on UK-wide and international shows. Thirdly, in some cases, the programme will have less of a Welsh identity or even make factual errors.
Amendment 54 ensures that there are clearer guidelines as to what constitutes a substantive base in a devolved nation, that there is a commitment by a production company to remain in the nation for a specified amount of time and whether a production company has had a presence in the nation for at least 36 months. The independent television production sector in Wales is clear that these amendments are not a deterrent to inward investment. That inward investment is welcome, but on its present basis it encourages a hit-and-run approach by companies from outside Wales and puts Welsh independent production at a disadvantage.
Taken together, these amendments seek to regularise how much commissioning is done outside London and seek to create a more level playing field for those independent production companies operating in the devolved nations.