I thank my hon. Friend for her intervention. I therefore hope Members will accept that if every order under this Act were required by statute to be subject to a full public consultation, that would strike at the heart of the intention behind this Bill. The intention is to create a regulatory framework that can be flexible and adaptable within a defined area under this legislation. It may therefore not always be appropriate for every order made using this power to be preceded by a full public consultation. The Government do need to have the
flexibility to act quickly to correct deficiencies or make minor and technical changes without having to wait for the conclusion of a consultation—a consultation that could make very little sense to all but a very small number of those involved in the technical side of digital radio.
The technology is moving on significantly. Obviously, internet stations, which are not regulated at all, are able to broadcast with no licence as such, but, with technology moving on and new technologies developing, things can become even more simple, and it is right that the Government have the ability to reflect that, but more serious changes would need to be the subject of consultation. However, if statutorily we say that any order under this power needs to have a consultation, that could be inhibiting or, as I have touched on in previous debates in the House, could lead to consultations that very few people will wish to engage with, or feel there is anything meaningful to be said, as effectively they are about technical details.
My understanding is that once the initial consultation on the new regime is complete, the Government will set out the detailed licensing and regulatory arrangements in an order, which will in turn be subject to debate by both Houses of Parliament before coming into effect. There is also parallel work for the Government to do with Ofcom on other detailed arrangements relating to the functioning of the new licensing regime. I hope that gives my hon. Friend the explanation she needs as to what consultation will happen, and she will agree to withdraw her amendment.
Turning to my hon. Friend’s second amendment, I fully appreciate the sentiment behind it—touched on in the intervention by my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake)—particularly given the passion of my hon. Friend the Member for Aldridge-Brownhills for promoting legislation that benefits charities, although I hope that for the reasons I am about to set out she will also agree to withdraw this amendment.
Under the Bill, proposed new section 258A(4)(c) already enables the Secretary of State to
“require small-scale radio multiplex services to be provided on a non-commercial basis.”
This gives an opportunity for a requirement to be placed in a licence, where appropriate, that it must seek to provide a basic infrastructure to an area, rather than be done on a profit-making basis.
As I mentioned on Second Reading, we must be clear that a multiplex is about providing the infrastructure for small-scale DAB operations; it is not the individual services we would tune into, although of course inherently we need the infrastructure for those services to exist. This means that part of the objective behind the amendment is already provided for in the Bill. It would not be the right approach to definitively require through this Bill that small-scale multiplexes be provided on a non-commercial basis in every instance, because this issue will be subject to the consultation.
I believe there are likely to be opposing views in the future consultation as to whether services on the multiplex should include those being run on a commercial basis, and I would not want to prejudge the consultation by closing off this option in the Bill. I would also state that while it is not a specific aim of the Bill, any future move
to have a totally digital broadcast system for radio would require an option being provided to small-scale commercial stations to move on to DAB. The current system of national and local multiplexes does not do that, as evidenced by the lack of growth of genuinely local stations going on to existing multiplexes.
The evidence from the 10 trials indicates nearly 70 unique radio services being provided, and the breakdown of them by Niocast Digital—also quoted by my hon. Friend the Member for Bury St Edmunds—showed that 18.3% were existing community stations, 9.2% were existing commercial stations and 72.5% were new formats. I hope this will give significant comfort to my hon. Friend the Member for Aldridge-Brownhills that community stations are getting on to DAB when this kind of structure is in place, as we have seen with the trial schemes, and as I would envisage being the case under the Bill’s provisions. Again, as mentioned earlier, the detail of how the new licensing regime should operate will be subject to full consultation and the detailed arrangements will be set out in an order. In turn, that will be subject to debate in both Houses of Parliament, again providing an opportunity for Members to ensure that community radio objectives are included.
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The Government will need to receive views on commercial involvement in small-scale multiplexes, such as on the number of licences a person or organisation can hold, which was mentioned in amendment 4, tabled by my hon. Friend the Member for Thirsk and Malton but not selected. I recognise that these important issues were raised by the Community Media Association, and, to his credit, the hon. Member for Cardiff West (Kevin Brennan) gave voice to them during Committee, rightly seeking several reassurances. I accept all that, but it is right that the Government maintain an open mind and I urge Members to resist amendment 2. If we agree to amendments 1 and 2 now, there will be no opportunity to debate or change things at a later date. One reason why we are here discussing this Bill is that the previous legislation is now too inflexible for an era in which technology has moved on significantly.
I hope my hon. Friend the Member for Bury St Edmunds will consider withdrawing amendment 3. I totally appreciate the intention behind reserving space for community stations and, given her strong work in the Ministry of Defence, I suspect that that may be partly motivated by the superb work done by the British Forces Broadcasting Service in several bases around the UK. It would be natural for such stations to be able to migrate on to DAB if they choose. Indeed, I want to be clear that this is about choice. It will not be compulsory for anyone to use a small-scale DAB multiplex instead of a traditional community FM licence. However, if we were going for an all-digital solution, we would need to provide a practical opportunity for licensees to migrate. The problem with amendment 3 is that it would require the Government to adopt a policy position by statute and would effectively prejudge the consultation that will examine the necessity of reserving capacity for community stations. As the Member in charge of this Bill, I want it to allow maximum flexibility in creating the new regulatory regime that will follow.
Members must bear in mind that there are literally hundreds of potential locations for small-scale multiplexes, some of which may not be viable with specifically reserved
space. Alternatively, other operations may make reserved space unnecessary in the case of a particular multiplex. I want Ofcom to be able to license small-scale multiplexes to operate on conditions that are appropriate for the particular localities that they will cover. I also would not want a provision that creates a radio version of a parliamentary train service: a small bit of capacity kept just to meet a statutory requirement, not to deliver a real goal. Ultimately, that issue will be the subject of a full consultation that will follow this Bill becoming law, but we can see evidence from the 10 existing trials of what will happen when the suggested system in the Bill is set up and community stations start coming on. It is worth bearing in mind that the whole impetus behind the small-scale trial that the Department for Culture, Media and Sport initiated in December 2013 was about ensuring that small, community stations and commercial stations have a digital option. If the strong shift to digital radio continues, that option needs to be practical.
The biggest change in the past few years, and certainly since the previous legislation, has been the expansion of DAB into car radios. Not that long ago, few cars—perhaps only the most expensive vehicles—had a DAB radio installed, but quite a number of cars now have one. When drivers switch to digital radio, they will find a selection of stations, including the national radio stations and almost certainly the syndicated regional stations, but some commercial radio stations that are actually not that small, such as Breeze FM in my constituency, are not on DAB. That will lead to people either migrating to consolidated media services, reducing choice and diversity, or sticking with FM. I suspect, however, that there will be a move in the long run to want to consider when radio could be switched over.