Showing posts with label S4C. Show all posts
Showing posts with label S4C. Show all posts

S4C viewing figures ... in high definition

A few weeks ago, ITV Cymru produced an edition of Y Byd ar Bedwar which focused on the crisis S4C is currently facing, and included figures from a poll they commissioned from YouGov. The programme is still available here for those who want to see it again.

Some of the poll figures which struck me were that:

•  19% of Welsh speakers don't watch S4C at all

•  30% watched less TV than 5 years ago, but 39% watched less S4C

•  35% of Welsh speakers wanted S4C to remain wholly Welsh, but 36% of them thought that it should show English programmes too

•  Most people watched S4C for its sports coverage

It goes without saying that these were rather disappointing figures. So I asked YouGov for some additional information, particularly because one of the other polls they published based on the same data included a cross-break for fluency in Welsh. ITV have kindly given their permission for YouGov to publish this data and it is now available here.

YouGov in fact asked two separate questions on Welsh, in this order:

Can you understand, speak, read or write Welsh? Please tick all that apply.

•  Understand spoken Welsh
•  Speak Welsh
•  Read Welsh
•  Write Welsh
•  None of the above

How well, if at all, would you say you can speak Welsh?

•  Fluently
•  Fairly well
•  Not very well
•  Not at all

The first question was chosen because it is identical to the question asked in the census, and this was used to weight the raw data, but the second question gives a rather fuller picture of people's ability.

In answer to the first question, 222 out of 1206 or 18.4% said they could speak Welsh, which was then weighted to 16.8%. (If this seems low, it is probably because YouGov asked adults, but the census figures are for all people over 3 years old, and the highest percentage of Welsh speakers is for those at school.) But in answer to the second, the raw percentages for ability to speak Welsh were:

Fluently ... 6.7%
Fairly well ... 7.3%
Not very well ... 33.1%
Not at all ... 52.9%

What this shows is that there is quite a flexible "middle ground" in which people's views can be characterized as falling into one of two responses, either:

"I am a Welsh speaker, but I don't speak Welsh very well."

or

"I don't speak Welsh very well, therefore I can't really call myself a Welsh speaker."

The purpose of giving this explanation is in order to help us understand the more detailed information within the survey. The programme itself only made mention of the breakdown between Welsh speakers and non Welsh speakers based on the first question. In fact it is almost certain that the programme makers did not know what the cross-break (to use the jargon) for fluency in Welsh was, since that information has only been put together in response to my request.

For that reason, I want to stress that I am not accusing ITV of presenting misleading information. The figures they quoted are accurate ... but just not as helpful as they could have been. So with this in mind I now want to look again at what the more detailed information shows us.
 

How many Welsh speakers watch S4C?

      

So the headline figure that 19% of the Cymry Cymraeg don't watch S4C gets reduced to only 7% of those who speak the language fluently. 93% of fluent Welsh speakers watch S4C at least sometimes, and 71% watch S4C at least once a week.
 

Do we watch S4C more or less that we did 5 years ago?

      

The way the figures were presented on Y Byd ar Bedwar was that the fall in S4C viewers was worse that the general fall in television viewing. So these more detailed figures are quite startling. Yes, it is true that people generally watch less TV than we did five years ago, but the percentage of fluent Welsh speakers who watch S4C has actually gone up ... 36% watch S4C more than before, only 23% less.
 

What do we watch on S4C?

      

It is of course true that most people who watch S4C watch it for sport, but for those who are fluent in Welsh, sport is not the main type of programme watched. Drama, News and Current Affairs, and Entertainment programming are each higher up the list than sport.
 

Do Welsh speakers want English language programmes on S4C?

      

One of the major points made on the programme was that even Welsh speakers, even though only by 36% to 35%, wanted S4C to remain wholly Welsh. But the more detailed figures show that this was certainly not the opinion of those who speak Welsh fluently or even fairly well.

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I've highlighted these points because they go some way to explain the more surprising figures presented on the programme. S4C is a minority channel, primarily aimed at those who speak Welsh ... although of course open to anybody who wants to watch.

What these figures seem to show is that S4C is actually doing a very good job of providing a range of Welsh language programmes for those who want drama, entertainment, news, current affairs in Welsh rather than in English. The percentage of those fluent in Welsh who watch S4C is very high indeed, and these people watch more S4C now than we used to five years ago. Surely that is a mark of success.

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S4C ... Management and Commissioning

In my post yesterday, I focused on the proposed new funding model for S4C, saying that I thought the principle of S4C receiving the bulk of its funding from the television licence fee was acceptable, subject to details about the actual sums of money involved and the need to establish this funding base in the long term. However I think it's worth repeating that I am talking about S4C receiving this money from the TV licence fee directly as a designated, ring-fenced sum. The principle of "top slicing" the licence fee has now been established for some years, and the way I read the DCMS/BBC agreement, it seems clear that this will continue.

He who pays the piper does call the tune. That is why it is important that we establish beyond any doubt that the sums designated to S4C from the licence fee are not the BBC's money, and that the BBC should have no control over how this money is spent. The way to ensure this is to write it into the new legislation rather than rely on the discretion of the parties concerned, and to set out a mechanism for determining what share of the licence fee should be given to S4C in the future.

One of the main reasons I think it's important to deal with funding separately is simple and pragmatic. In any negotiation "principles" and "money" are two terms which are notoriously difficult to separate. So if we can nail down the aspect of funding, it then makes it much easier to talk about the management and commissioning structure through which we get Welsh language television. It also makes sense from the perspective of what is happening politically, for it would be naïve for anyone to think that what has happened in the past few months, or indeed the last few days, has not been almost exclusively motivated by the desire to cut public spending. It is this that the government in Westminster has been primarily concerned about, not the quality or nature of Welsh language television.
 

The problems with the DCMS/BBC agreement

Management and commissioning are matters that certainly do need to be addressed, but the most important thing to note on this subject is that the agreement reached last week is between the DCMS and the BBC, with S4C having no place in the discussions. So even though I don't think it should particularly matter to S4C whether the bulk of its budget comes from government subvention or the television licence fee, I do think that any change to the management and commissioning structure of S4C cannot be decided without reference to them.

For that reason I fully support S4C's decision to seek a judicial review.

But we must be under no illusions about what we expect a judicial review to achieve. In all probability the most that will happen is that the DCMS will be told that it acted precipitously and that it should now undertake a proper consultation. But there will be nothing to stop the DCMS doing that, but then coming to exactly the same decision that it has already taken. The judiciary deals with whether something is lawful or unlawful, and whether the proper procedures have been followed in reaching decisions. We cannot expect any judge to make political decisions.

As I have said a number of times, the Westminster government can do whatever it likes providing it can get a majority to pass the necessary legislation through parliament. It can abolish S4C completely if it can get a bill to that effect through parliament. Therefore the primary focus of our opposition to the Westminster government's proposal must be political. We must persuade MPs that the independence of S4C is of such importance to us that it would be politically unwise of them to push these plans through. That involves protest and demonstrations.

So what arguments should we use? Let's start by looking at the relevant clauses of the DCMS/BBC agreement:

•  Having decided to reduce its own funding for S4C as part of the CSR, HMG holds that a new partnership model with the BBC is the best way of securing the long-term future of the service.

•  There would be a BBC and S4C partnership along similar principles to BBC Alba to begin by 2013/14, with S4C coming under a BBC Trust Service Licence or other operating agreement which would be jointly agreed with the S4C Authority and which would set out the strategic goals and broad editorial requirements of the service.

•  A combined Board of the Authority and Trust would oversee delivery of the Service Licence or operating agreement.

•  The S4C service will be operated by a joint management board with a majority of independent directors, appointed by the BBC Trust and the Authority. The management board will operate its own commissioning structure.

•  Further discussion will be required about the exact form of the partnership, and the Government will play its part in those discussions.

•  The total content commissioning budget will be for independent producers (outside of the BBC's ongoing statutory commitments)

As I read it, this seems to indicate that the DCMS are going to retain the S4C Authority as the body which would receive funds, and that these would come from the television licence fee, a continued but reduced government subvention, and commercial activities. This is reassuring. The changes that are proposed seem not to affect the S4C Authority, but the management of the channel.

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Now, although we do not know the precise reasons why Iona Jones left as chief executive of the channel, we do know that the S4C Authority made an announcement the very next day saying that it intended to get rid of the "arm's length" separation between the Authority and the channel's management team. This is what it said:

The S4C Authority has announced a change in S4C’s management structure that will lead to a closer working relationship between the Authority and the management team.

S4C Authority Chairman John Walter Jones said that the S4C Authority, the regulatory body that oversees S4C’s performance, would work closer with a leaner management team.

[He] said: “In order to ensure that the Channel’s future remains secure and that the organisation is run efficiently, the most fundamental change is that the concept of due separation between the S4C Authority and the management team will now cease. S4C is a unitary body and this unitary organisation should manage and safeguard the interests of S4C viewers and the Channel’s suppliers in the future.

S4C Authority Press Release, 29 July 2010

It is hard to escape the conclusion that Iona Jones left because she was not prepared to see the erosion of this due separation. It is also hard to escape the conclusion that the DCMS was none too pleased with this ... although that view might be heavily influenced by the BBC who, unlike the DCMS, would have a more informed understanding of the way the industry works. This was an unsavoury episode, made worse by S4C's complete disregard for transparency and the need for a public body to give some sort of public explanation of what was going on behind closed doors.

I don't want to take sides in that dispute, not least because I don't know enough to know what side to take. But it is clear that the Authority felt the need to step in and do the job it had previously entrusted to an arm's length management team. Therefore, if management and commissioning is seen to be a problem, it should come as no big surprise that the DCMS/BBC agreement should address that issue and propose what they think is a better arrangement. Nor should it be surprising that their preferred solution should be one that gives the BBC more control. The BBC are hardly disinterested observers ... they want what suits them. Who wouldn't?
 

The BBC's track record

But we need to be under no illusions that the BBC can be particularly ruthless in pursuit of its own ends, especially when its own back is against the wall. The unilateral announcement that it would cut spending on the Welsh language programmes it provides to S4C from £23.5m to £19.5m is an example of this. It is all the more remarkable because it was made on 8 October ... nearly a fortnight before any decision on the BBC's own funding been reached. It would perhaps be understandable to make such an announcement in response to a decision on BBC funding, but to make such a decision at a time when the BBC's income from the TV licence fee had merely been frozen, not cut, is surely proof enough that Welsh language programming is quite low on the BBC's list of internal priorities.

But if anyone is still not convinced of that, another way of illustrating the same point is to look at what has happened to the BBC's Welsh language output over the last 25 years. As I said last month in this post, when S4C was first set up in 1982 there were only three other free-to-air channels available (BBC1, BBC2 and ITV) plus non-peak Channel 4 programming. In 1982, the BBC broadcast could not have broadcast more than about 36 hours; but now, on one typical day, the BBC broadcasts 139 hours of programming to Wales, i.e. about four times as much as it broadcast in 1982. Although when repeats are taken into account, it might be a little less.

But what has the BBC done to increase its Welsh language output to match its increase in English language output? Well, hardly anything. It has voluntarily increased the programming it provides from 10 to 12 hours a week ... a 20% increase in contrast to its 400% increase in English language programmes. So it is very clear that the BBC doesn't regard itself as being under any sense of moral obligation to treat Welsh and English in the same way.

The lesson to be learned from this is that we cannot entrust the future of Welsh language broadcasting to the BBC. I am sure that there are many individuals within the BBC (and particularly in BBC Wales/Cymru) who do care passionately about it, but this does not extend to the corporation as a whole ... or at least the ranks of its most senior decision makers. Though equally it must be said that the BBC still has major problems coming to terms with adequately reflecting the current political landscape in the UK after more than ten years of devolution.
 

Conclusion

So in conclusion, although there are undoubtedly changes that need to be made to the way that S4C manages the channel and commissions the programmes shown on it, a forced marriage between S4C and the BBC resulting in a joint management and commissioning team is not the right way to go about it.

The principle at stake is plurality. If the editorial choices for all Welsh language broadcasting are made by one "joint management board" operating under one "service licence or operating agreement" then we will only be presented with one view of the world. It won't matter if the joint management board is made up of representatives from S4C, the BBC and a good number of independents. Nor is it a matter of one view being intrinsically better or worse than another ... even the best, most informed view is still only one view.

The BBC makes its own programmes in Welsh. The executive decisions and editorial standpoint of those programmes are for the BBC to decide, subject to its own internal guidelines and procedures. Some will be programmes produced in-house, others will be commissioned from independent producers. This is a good thing. S4C is slightly different in that it commissions all its programmes from independent producers. This is good too. Taken together, we have a model that delivers plurality. So why get rid of it in favour of a new model that by definition cannot and will not be able to deliver plurality?

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The basic point of principle we must fight for is that the executive decision making and commissioning of programmes in both S4C and the BBC are kept independent of each other, as is currently the case. Of course this does not mean that they can't work together, for the two organizations already have a strategic partnership agreement. Also, there is nothing to stop the two organizations working together in other ways if it is of mutual benefit to them both. If sharing back office functions saves money then of course they should look at ways of doing it. But this is completely different from being forced to work together because it is dictated by badly thought through legislation.

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S4C ... The Management and Commissioning Structure

In my post yesterday, I focused on the proposed new funding model for S4C, saying that I thought the principle of S4C receiving the bulk of its funding from the television licence fee was acceptable, subject to details about the actual sums of money involved and the need to establish this funding base in the long term. However I think it's worth repeating that I am talking about S4C receiving this money from the TV licence fee directly as a designated, ring-fenced sum. The principle of "top slicing" the licence fee has now been established for some years, and the way I read the DCMS/BBC agreement, it seems clear that this will continue.

He who pays the piper does call the tune. That is why it is important that we establish beyond any doubt that the sums designated to S4C from the licence fee are not the BBC's money, and that the BBC should have no control over how this money is spent. The way to ensure this is to write it into the new legislation rather than rely on the discretion of the parties concerned, and to set out a mechanism for determining what share of the licence fee should be given to S4C in the future.

One of the main reasons I think it's important to deal with funding separately is simple and pragmatic. In any negotiation "principles" and "money" are two terms which are notoriously difficult to separate. So if we can nail down the aspect of funding, it then makes it much easier to talk about the management and commissioning structure through which we get Welsh language television. It also makes sense from the perspective of what is happening politically, for it would be naïve for anyone to think that what has happened in the past few months, or indeed the last few days, has not been almost exclusively motivated by the desire to cut public spending. It is this that the government in Westminster has been primarily concerned about, not the quality or nature of Welsh language television.
 

The problems with the DCMS/BBC agreement

Management and commissioning are matters that certainly do need to be addressed, but the most important thing to note on this subject is that the agreement reached last week is between the DCMS and the BBC, with S4C having no place in the discussions. So even though I don't think it should particularly matter to S4C whether the bulk of its budget comes from government subvention or the television licence fee (although the amount and the ability to budget for a number of years ahead does matter) I do think that any change to the management and commissioning structure of S4C does matter to S4C and cannot be decided without reference to them.

For that reason I fully support S4C's decision to seek a judicial review. But we must be under no illusions about what we expect a judicial review to achieve. In all probability all that will happen is that the DCMS will be told that it acted precipitously and that it should undertake a proper consultation ... but there will be nothing to stop the DCMS doing that, and then coming to exactly the same conclusion as it has already done. The judiciary deals with whether something is lawful or unlawful, and whether the proper procedures have been followed in reaching decisions. But we cannot expect any judge to make political decisions.

As I have said a number of times, the Westminster government can do whatever it likes providing it can get a majority to pass the necessary legislation through parliament. It can abolish S4C completely if it can get a bill to that effect through parliament. Therefore the primary focus of our opposition to the Westminster government's proposal must be political. We must persuade MPs that the independence of S4C is of such importance to us that it would be politically unwise of them to push these plans through.

So what arguments should we use? Let's start by looking at the relevant clauses of the DCMS/BBC agreement:

•  Having decided to reduce its own funding for S4C as part of the CSR, HMG holds that a new partnership model with the BBC is the best way of securing the long-term future of the service.

•  There would be a BBC and S4C partnership along similar principles to BBC Alba to begin by 2013/14, with S4C coming under a BBC Trust Service Licence or other operating agreement which would be jointly agreed with the S4C Authority and which would set out the strategic goals and broad editorial requirements of the service.

•  A combined Board of the Authority and Trust would oversee delivery of the Service Licence or operating agreement.

•  The S4C service will be operated by a joint management board with a majority of independent directors, appointed by the BBC Trust and the Authority. The management board will operate its own commissioning structure.

•  Further discussion will be required about the exact form of the partnership, and the Government will play its part in those discussions.

•  The total content commissioning budget will be for independent producers (outside of the BBC's ongoing statutory commitments)

As I read it, this seems to indicate that the DCMS are going to retain the S4C Authority as the body which would receive funds from the television licence fee, a continued but reduced government subvention and commercial activities. This is reassuring. The change that is proposed does not affect the S4C Authority, but the management of the channel. Now, although we do not know the precise reasons why Iona Jones left as chief executive of the channel, we do know that the S4C Authority made an announcement the very next day saying that it intended to get rid of the "arm's length" separation between the Authority and the channels management team:

The S4C Authority has announced a change in S4C’s management structure that will lead to a closer working relationship between the Authority and the management team.

S4C Authority Chairman John Walter Jones said that the S4C Authority, the regulatory body that oversees S4C’s performance, would work closer with a leaner management team.

[He] said: “In order to ensure that the Channel’s future remains secure and that the organisation is run efficiently, the most fundamental change is that the concept of due separation between the S4C Authority and the management team will now cease. S4C is a unitary body and this unitary organisation should manage and safeguard the interests of S4C viewers and the Channel’s suppliers in the future.

S4C Authority Press Release, 29 July 2010

It is hard to escape the conclusion that Iona Jones left because she was not prepared to see the erosion of this due separation. It is also hard to escape the conclusion that the DCMS was none too pleased with this ... although that view might be heavily influenced by the BBC who, unlike the DCMS, would have a more informed understanding of the way the industry works. This was an unsavoury episode, made worse by S4C's complete disregard for transparency and the need for a public body to give some sort of public explanation of what was going on behind closed doors.

I don't want to take sides in that dispute, not least because I don't know enough to know what side to take. But it is clear that the Authority felt the need to step in and do the job it had previously entrusted to an arm's length management team. Therefore, if management and commissioning is seen to be a problem, it should come as no big surprise that the DCMS/BBC agreement should address that issue and propose what they think is a better arrangement. Nor should it be surprising that their preferred solution should be one that gives the BBC more control. The BBC are hardly disinterested observers ... they want what suits them. Who wouldn't?
 

The BBC's track record

We need to be under no illusions that the BBC can be particularly ruthless in pursuit of its own ends, especially when its own back is against the wall. The unilateral announcement that it would cut spending on the Welsh language programmes it provides to S4C from £23.5m to £19.5m is an example of this. It is all the more remarkable because it was made on 8 October ... nearly a fortnight before any decision on the BBC's own funding been reached. It would perhaps be understandable to make such an announcement in response to a decision on BBC funding, but to make such a decision at a time when the BBC's income from the TV licence fee had merely been frozen, not cut, is surely all the proof we need that Welsh language programming is quite low on the BBC's list of internal priorities.

But if anyone is still not convinced of that, another way of illustrating the same point is to look at what has happened to the BBC's Welsh language output over the last 25 years. As I said last month in this post, when S4C was first set up in 1982 there were only three other free-to-air channels available (BBC1, BBC2 and ITV) plus non-peak Channel 4 programming. In 1982, the BBC broadcast could not have broadcast more than about 36 hours; but now, on one typical day, the BBC broadcasts 139 hours of programming to Wales, i.e. about four times as much as it broadcast in 1982. Although when repeats are taken into account, it might be a little less.

But what has the BBC done about its Welsh language output? Well, hardly anything. It has voluntarily increased its output from 10 to 12 hours a week ... a 20% increase in contrast to its 400% increase in English language programmes. So it is very clear that the BBC doesn't regard itself as being under any sense of moral obligation to treat Welsh and English in the same way.

The lesson to be learned from this is that we cannot entrust the future of Welsh language broadcasting to the BBC. I am sure that there are many individuals within the BBC (and particularly in BBC Wales/Cymru) who do care passionately about it, but this does not extend to the corporation as a whole ... or at least the ranks of its most senior decision makers. Though equally it must be said that the BBC still has major problems coming to terms with adequately reflecting the current political landscape in the UK after more than ten years of devolution.
 

Conclusion

So in conclusion, although there are undoubtedly changes that need to be made to the way that S4C manages the channel and commissions the programmes shown on it, a forced marriage between S4C and the BBC resulting in a joint management and commissioning team is not the right way to go about it.

The principle at stake is plurality. If the editorial choices for all Welsh language broadcasting are made by one "joint management board" operating under one "service licence or operating agreement" then we will only be presented with one view of the world. It won't matter if the joint management board is made up of representatives from S4C, the BBC and a good number of independents. Nor is it a matter of one view being better or worse than another ... even the best, most informed view is still only one view.

The BBC makes its own programmes in Welsh. The executive decisions and editorial standpoint of those programmes are for the BBC to decide, subject to its own internal guidelines and procedures. Some will be programmes produced in-house, others will be commissioned from independent producers. This is a good thing. S4C is slightly different in that it commissions all its programmes from independent producers. This is good too. Taken together, we have a model that delivers plurality. So why get rid of it in favour of a new model that by definition cannot and will not be able to deliver plurality?

-

The basic point of principle we must fight for is that the executive decision making and commissioning of programmes in both S4C and the BBC are kept independent of each other, as is currently the case. Of course this does not mean that they can't work together, for the two organizations already have a strategic partnership agreement. Also, there is nothing to stop the two organizations working together in other ways if it is of mutual benefit to them both. If sharing back office functions saves money then of course they should look at ways of doing it. But this is completely different from being forced to work together because it is dictated by this proposed new legislation.

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S4C ... The Proposed Funding Model

It's taken me a few days to consider all that has happened in the last week regarding S4C. We now have a proposal on the table which we know has been agreed between the DCMS and the BBC, and we know that the Westminster government is minded to impose this proposal on S4C irrespective of what S4C themselves or the Welsh government think of it. This is hardly a satisfactory situation for anyone. All the ingredients are there for a fight, and plenty of people in Wales are up for that fight.

In such a situation, we need to be able to strip away the inessential from the essential, and we need to know what we can reasonably expect and realistically hope to achieve. So I want to set out what I think is reasonable and realistic.

In this post I want to concentrate on the proposed funding model for S4C, and I will address other issues such as its management structure and independence later.
 

The Principle

Whatever the causes of the economic mess we are in, we have to accept that public spending cuts are the primary way in which the elected Westminster government has decided to deal with the UK's deficit; therefore it is pointless to argue that any public service should be immune from spending constraints, and that includes S4C. I think nearly everyone realizes that the funding model, and in particular the link between S4C's grant and inflation, needs to be revisited. The question is how to do it fairly.

My concern is that S4C is not singled out for unfair treatment. It is a public service broadcaster which receives the main bulk of its operating income from public funds, and I have therefore argued that the measure of how fairly it is treated should be to compare it with the BBC, which is in exactly the same position of receiving the main bulk of its income from the licence fee.

So in principle, I positively welcome the proposal to fund S4C from the television licence fee. It is a good idea, because in the long term it ensures parity of treatment between these two public service broadcasters. Provided that S4C's income is linked to the licence fee, it means that S4C cannot be unfairly treated in the money it receives relative to the BBC.

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But a few things about the TV licence need to be clearly defined. The main thing to be clear about is that it is not the BBC's money. Although the BBC fought for complete control of the money raised from it, their fight against "top slicing" the licence fee was lost some years ago when a proportion of it was set aside for the digital switchover. I'm sure the BBC hoped this might prove to be only a temporary arrangement. But we just need to look in detail at some of the points in the agreement just reached between the BBC and the DCMS.

•  The current ring-fence of approximately £133m per annum will be raised to, and capped at, £150m per annum from 2013/4 to 2016/17 but re-purposed for broadband, consistent with the BBC’s public purposes.

•  The BBC will play an active role in supporting new local television services through a partnership fund providing capital costs of up to a total of £25m in 2013/14 for up to twenty local TV services, subject to any necessary regulatory approval. The BBC will also commit to ongoing funding of up to £5m per annum from 2014/15 to acquire content for use on its own services from these new services. Should capital costs be required earlier then this will be facilitated by access to the existing digital switchover underspend by mutual agreement.

So money from the licence fee is going to continue to be given directly to non-BBC organizations. In other words the principle of top slicing the TV licence fee is now firmly established.

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When it comes to funding S4C, there are several sections of the agreement which provide an equal guarantee of this ring-fencing:

•  In 2013/14 and 2014/15, the BBC will contribute £76.3m and £76m respectively in cash in addition to its statutory commitments [i.e. the 10 hours per week of original programming]

•  In the event that a new partnership model does not prove viable for any reason, the Government will not take licence fee money itself for this purpose. But in this situation the Trust will propose a one-off reduction in the level of the licence fee which would be equivalent to the contribution that the BBC would otherwise have made to S4C.

Contrary to what some others have said, I think this last point is enlightening and reassuring. It sets out the principle that S4C's part of the licence fee does not belong to the BBC, and will not revert to the BBC if this proposed funding model breaks down. Elsewhere, the agreement says this:

•  Under the partnership, funding for S4C in future will come from three sources: the licence fee, a continued but reduced subvention from the Government, and commercial income

So it seems quite clear that S4C will continue to exist as an entity in its own right; but that, after a transition period, it will receive the bulk of its income from the licence fee (note that the agreement does not say "from the BBC") and will continue to receive a much smaller sum from the government, as well as its commercial income. Therefore, so far as the principle of the proposal to revise S4C's sources of funding is concerned, I don't have a problem with it. There are other things to fight about, but in my opinion we should not fight about this.
 

The Detail

However there are two points of detail about funding that should cause us considerable concern.

The first is about the the actual sums of money involved. It is not reasonable to expect S4C to be treated in a worse fashion than the BBC. So we should fight to make sure that it is not, and fully expect to win that fight.

The situation is not helped by a certain lack of objectivity, optimism, or simple spin coming from some quarters. In the video of the Westminster hall debate on Wednesday, Alun Cairns had the audacity to call this proposed funding settlement "generous" to S4C. And in this post on his blog, Glyn Davies said that the only organization "with a genuine grouse that has real credibility" is the BBC. I'm sorry to say that neither of these assertions stands up to scrutiny.

As the BBC/DCMS agreement makes clear, the additional responsibilities that the BBC have agreed to take on are equivalent to a reduction in income of 16%. However the cuts proposed for S4C result in a loss of DCMS funding of 24%. I think we have a good case to fight for the reduction of funding form the DCMS to be 16% rather than 24%.

Now there are a number of ways of doing the maths, particularly when commercial activities are taken into account. But the difference is likely to be less than £10m. In terms of the DCMS budget of over £2bn and the BBC's budget of maybe £3.5bn this is peanuts, but £10m is a much more significant amount for S4C.

The second detail yet to be worked out is how to safeguard S4C's funding in future years, as this Comprehensive Spending Review only covers four years, and the TV licence fee is only set for six. In my view, the most equitable way of solving the problem is for S4C to receive a fixed proportion of the TV licence fee each time it is renegotiated. If it goes up, so will S4C's income from this source; if it goes down, so will S4C's income ... but it will mean that these two public service broadcasters are treated equally. The bottom line is that each round of licence fee negotiations in future must clearly define the sum that is to be paid to S4C. We must ensure that this is built into the new legislation now.

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In discussing funding, my basic premise has been that it really doesn't matter to S4C whether it gets the bulk of its income by direct subvention from government or from the TV licence fee. Money is just money. We should accept that there needs to be a cut because everything else is being cut, but we should not expect S4C to suffer more of a cut than the BBC. A small adjustment of less than £10m per year should ensure this.

But the management of S4C is another matter entirely.

S4C needs to remain as an independent entity, and we must fight tooth and nail to make sure that its management structure and editorial independence is not subsumed into the BBC. This post is long enough, so I'll say more on that subject in the next.

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