Thank you, Madam Deputy Speaker, for calling me to speak on this important occasion. I congratulate my hon. Friend the Member for Torbay (Kevin Foster)—this is the first opportunity I have had to do so—on getting this Bill through to Third Reading. He has done an extremely detailed and thorough job on it, and it is a great credit to him that it looks as though it is going to pass into law—without taking anything for granted in the other place, of course.
The Government support this Bill because it will enable the creation of an appropriate and low-cost licensing regime for the transmission of digital radio on a small scale. It will give small commercial and community stations a platform to broadcast on digital, which is currently beyond their reach due to the costs and constraints of the existing statutory regime. The detail of how the new licensing regime should operate will obviously be subject to full consultation, as we have heard.
I thank my hon. Friends, and all hon. Members, for their very thoughtful contributions to this debate and the previous debates—in particular, my hon. Friends the Members for Aldridge-Brownhills (Wendy Morton), for Bury St Edmunds (Jo Churchill), for Thirsk and Malton (Kevin Hollinrake), for Calder Valley (Craig Whittaker), and for Halesowen and Rowley Regis (James Morris).
I will quickly try to deal with some of the issues that have been raised. My hon. Friend the Member for Bury St Edmunds asked about access for small community radio stations. I assure her that the aim is to provide a means for all small stations, especially community stations, to go digital. The Bill allows us to put in a protection to reserve capacity and exclude large operators. However this is done, it needs a very flexible approach.
My hon. Friend the Member for Thirsk and Malton asked a similar question. I can confirm that the Bill already gives Ofcom the power to exclude holders of existing local and national multiplex licence holders from taking licences in small-scale digital radio multiplexes. This will prevent large groups, particularly large media organisations that operate digital radio multiplexes on a larger scale, from holding small radio multiplexes. That will have the benefit of keeping down the cost of carriage on small-scale multiplexes because they will not be open to existing large-scale commercial radio multiplex operators.
The hon. Member for Cardiff West (Kevin Brennan) asked why this measure is not in the Digital Economy Bill.
That has been dealt with before by my right hon. Friend the Minister for Digital and Culture, who said that the DCMS needed to see the conclusions of the Ofcom trials before we moved to legislation. Ofcom did not publish that evaluation until September 2016, which was several months after the introduction of the Digital Economy Bill. I think the hon. Gentleman knew that anyway, but we will leave it at that.
Listeners have repeatedly said how important local radio is to them. Research commissioned by Ofcom in 2015 indicates that 45% of listeners to local commercial radio value the local news it provides, and 35% value it for local travel and weather information. It is clear that radio remains a very popular medium, with industry figures indicating that 90% of the adult population listens to the radio each week and that overall listening to radio remains strong, with more than 1 billion hours being consumed by adults in the UK each week.
Although the popularity of radio as measured by its reach and audience hours has been stable over recent years, radio is changing. Listening on analogue is falling back, while DAB listening on digital platforms continues to grow steadily. Digital radio’s share of listening is 45.5%, as I think my hon. Friend the Member for Torbay said, and almost 60% of households own a DAB radio.
The radio industry expects that long-term shift in listening habits to continue, which means that digital will overtake analogue as the default listening mode in the near future. One of the drivers—almost literally— of the change is new cars. According to the Society of Motor Manufacturers & Traders, around 85% of new cars sold have DAB radios installed as standard. According to Digital Radio UK, a quarter of all in-car listening is digital, and it is growing at 39% a year.
I endorse what my hon. Friends have said about the important role played by local radio stations. Small commercial and community radio stations continue to provide an important means of informing and engaging with communities, as well as providing entertaining, popular and lively programming. The Government recognise the importance of smaller stations to their local communities, and we have been aware for some time of the desire for small commercial and community radio stations to have a route to broadcast on a digital platform that meets their needs. The objective behind the Bill is to give smaller stations the ability to broadcast on digital.
A key success of the small-scale multiplex trial set up by Ofcom has been the strong support from smaller stations, including community radio, and the way in which they have all worked together. The majority of trial small-scale multiplexes are full or nearly full. The development of a layer of small-scale multiplexes will provide the answer, in most cases, to the question of how to provide the 400 small commercial and community radio stations that are transmitting to their local areas on FM or medium wave with the opportunity to broadcast cost-effectively on a digital platform. The development of a tier of small-scale DAB networks across the country could also attract new entrants to launch radio services, some of which have successful programme formats from prior experience of broadcasting via the internet.
Overall, we think that the development is likely to result in a wider selection of stations and programme content for listeners. I think we all agree that that can only be a really positive thing. It will create new audiences for advertisers and sponsors, facilitating growth in the sector. The Government welcome the Bill and support it as it moves to the other place. The Bill has had a strong airing in this place and we hope that the other place will give it a fair wind, given its limited but extremely targeted scope, the cross-party support—including all hon. Members here today—and the reassurances that have been given by me and my hon. Friend the Member for Torbay today.
1.58 pm