Margot James MP Minister for Digital and the Creative Industries 4th Floor 100 Parliament Street SW1A 2BQ

www.gov.uk/dcms [email protected]

David T C Davies MP Chair Welsh Affairs Committee House of Commons TO2018/10607/DC London 19 July 2018 SW1A 0AA

Dear David

Welsh Affairs Committee inquiry on independent review

Thank you for inviting me to give evidence at the Welsh Affairs Committee evidence session on the S4C independent review on 3 July, and for your letter on 11 July.

S4C public service remit

The government established the S4C independent review to safeguard the future of S4C as the Welsh language broadcaster. Ensuring that S4C’s public service remit is fit for the digital age is vital to this work and I am committed to delivering this alongside the other review recommendations for government.

As set out in review, there are two aspects of S4C’s public service remit that do not reflect current S4C activities or the changing broadcasting landscape:

1. Referencing only ‘television programme services’ does not take into account providing content through digital and online services. 2. Requiring S4C to provide programmes ‘for reception wholly or mainly by members of the public in Wales’ does not take into account Welsh speaking audiences outside Wales, or the fact that access to digital content cannot be restricted to Wales only.

Delivering the review’s recommendation to update S4C’s remit is therefore not a straightforward process as it will require a combination of primary and secondary legislation to add digital and online services and remove the geographical restrictions. This is a complex area: S4C’s remit is central to its role as a public service broadcaster and it is important that we get this right.

We are committed to taking this recommendation forward. My officials continue to explore options to deliver this recommendation in a timely way. As you know, parliamentary time is limited and the government cannot commit to a legislative timetable at this time. I will look for a suitable primary legislation opportunity in due course, and I would be happy to provide a further update to the Committee once we have more clarity on the timetable.

Department for Digital, Culture, Media & Sport

However I would like to be clear that S4C’s current public service remit has not prevented S4C from producing widely available digital content. S4C already has a growing online and digital presence and its content is already available outside Wales. S4C does not need to wait for a remit change to continue its focus on improving its existing digital and online services, and I have been very clear that I expect S4C to take forward this work as a priority.

S4C funding

I would also like to take the opportunity to clarify the government’s position in relation to S4C’s Exchequer funding.

S4C currently receives £6.762 million per year in Exchequer funding. Unlike the funding S4C receives from the licence fee, this funding is not channelled through the BBC but is a direct grant-in-aid from DCMS. We have guaranteed this level of Exchequer funding for the next two years until 2020 which will give S4C the funding certainty it needs to deliver the S4C Review reforms.

The government is currently not in a position to guarantee the level of S4C Exchequer funding beyond 2020. As with all Exchequer funding, this is a decision for the next Spending Review in 2019. Of course we will ensure that S4C receives sufficient funding between 2020 and 2022, but cannot guarantee the specific level of Exchequer funding at this time.

I hope the Committee finds this information helpful. My officials would be happy to assist you with any further questions in relation to S4C.

Yours ever

MARGOT JAMES MP Minister for Digital and the Creative Industries