I rise to support the Bill on Third Reading and to congratulate my hon. Friend the Member for Torbay
(Kevin Foster) on introducing it. It seems to be very much on the cusp of important new developments in the world of digital radio in helping to open up the market to community radio stations that want to broadcast on DAB.
I particularly want to refer to a community radio station that broadcasts to my constituency—Black Country Radio—because, as my hon. Friend may know, it is one of the smaller radio stations that has been taking part in the local DAB trial. It speaks very positively of the trial’s benefits and tells me that broadcasting over DAB before the trial would have cost it thousands of pounds and been unaffordable. Black Country Radio is beginning to position itself as a vital source of local community news for the Black country, by covering local politics and community events. I am hopeful that when the Bill gets its Third Reading today and has passed through the other place, the trial will be extended, allowing Black Country Radio to continue to extend its reach as an effective local community radio station. I think that my hon. Friend’s Bill will be a major contributory factor in enhancing Black Country Radio’s offer.
As my hon. Friend said, digital radio is a large growth market, and local radio stations that want to tap into that market have proliferated. The Bill will be an effective mechanism to stimulate that market. In the second quarter of 2016, we saw a large set of digital stations posting results for the first time that show that digital radio listening had reached a new high of 45.3%. We have seen considerable annual growth in the audiences for digital radio. We have seen growth of about 5.4% over the past year.
The Bill will allow smaller radio stations to take full advantage of the growth in the sector. I have already cited the example of Black Country Radio. It will bring growth and prosperity to small radio stations, and that will in turn benefit local communities.
The aim of the Bill, as ably articulated by my hon. Friend the Member for Torbay, is to create a system of radio multiplexes: national multiplexes for UK-wide transmission; local radio multiplexes for county level transmission; and small-scale radio multiplexes for sub-county level transmission. This three-tier system with a lighter touch regulatory framework will open up the market and bring the benefits to which I alluded earlier regarding the deregulation of the industry.
The Bill includes a provision that excludes larger radio stations, such as the BBC, that have existing licences in national or local radio multiplex services from holding a small-scale multiplex licence, helping to ensure that the new multiplex sites will not be abused by larger radio stations and that they can be used for the purpose for which they were intended—to let smaller radio stations benefit from using the DAB format.
Again, I congratulate my hon. Friend on steering the Bill through to Third Reading. It is an important modernisation of the existing licensing regime that will take into account the different needs of local radio stations, facilitating the creation of a richer market and providing the consumer with a better broadcasting experience. I think we would all agree that the Broadcasting Act 1996 has failed to keep pace with recent technological developments and market changes. The Bill is an important contribution to the modernisation of digital radio, and I very much support it.
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