S4C: S4C Authority Response to the Committee's Fifth Report of Session 2010–12

House of Commons Welsh Affairs Committee

S4C: S4C Authority response to the Committee's Fifth Report of Session 2010–12

Ninth Special Report of Session 2010–12

Ordered by the House of Commons to be printed date 13 July 2011

HC 1418 Published on 15 July 2011 by authority of the House of Commons London: The Stationery Office Limited £0.00 The Welsh Affairs Committee

The Welsh Affairs Committee is appointed by the House of Commons to examine the expenditure, administration, and policy of the Office of the Secretary of State for Wales (including relations with the National Assembly for Wales).

Current membership David T.C. Davies MP (Conservative, Monmouth) (Chair) Stuart Andrew MP (Conservative, Pudsey) Guto Bebb MP (Conservative, Aberconwy) Geraint Davies MP (Labour, Swansea West) Jonathan Edwards MP (Plaid Cymru, Carmarthen East and Dinefwr) Mrs Siân C. James MP (Labour, Swansea East) Susan Elan Jones MP (Labour, Clwyd South) Karen Lumley MP (Conservative, Redditch) Jessica Morden MP (Labour, Newport East) Owen Smith MP (Labour, Pontypridd) Robin Walker MP (Conservative, Worcester) Mr Mark Williams MP (Liberal Democrat, Ceredigion)

The following Members were members of the Committee during the Parliament:

Alun Cairns MP (Conservative, Vale of Glamorgan) Glyn Davies MP (Conservative, Montgomeryshire) Nia Griffith MP (Labour, Llanelli)

Powers The Committee is one of the departmental select committees, the powers of which are set out in House of Commons Standing Orders, principally in SO No 152. These are available on the internet via www.parliament.uk

Publications The Reports and evidence of the Committee are published by The Stationery Office by Order of the House. All publications of the Committee (including press notices) are on the internet at www.parliament.uk/welshcom

The Reports of the Committee, the formal minutes relating to that report, oral evidence taken and some or all written evidence are available in printed volumes.

Additional written evidence may be published on the internet only.

Committee staff The current staff of the Committee is Adrian Jenner (Clerk), Anwen Rees (Inquiry Manager), Jenny Nelson (Senior Committee Assistant), Dabinder Rai (Committee Assistant), Edward Bolton (Committee Support Assistant) and Jessica Bridges-Palmer (Media Officer).

Contacts All correspondence should be addressed to the Clerk of the Welsh Affairs Committee, House of Commons, 7 Millbank, London SW1P 3JA. The telephone number for general enquiries is 020 7219 3264; and the Committee’s email address is [email protected]

Ninth Special Report

The Committee published its Fifth Report of Session 2010–12, S4C on 11 May 2011. The S4C Authority’s response was received by the Committee on 5 July 2011 and is published as an Appendix to this Special Report. Appendix: S4C Authority Response

1. We welcome the significant contribution that S4C has made to the Welsh economy since 1982. S4C and the independent television sector, from which it commissions much of its output, contribute approximately £90 million per year to the Welsh economy and are responsible for employing over 2,000 people. This is a story of success for the Welsh economy and should be built on in the future. (Paragraph 25)

S4C welcomes the Committee’s recognition of the ‘significant contribution’ it makes to the Welsh economy. It is important that S4C continues to make a constructive contribution to the creative industries in Wales.

S4C is concerned that the cut of 24% to its budget announced in October 2010 will have an adverse effect on the creative industries in Wales. It is inevitable that as the commissioning budget and the in-house spend contracts, that there will be job losses and a lower level of investment in these industries. S4C has already announced 29 redundancies and foresees further job losses as it continues to streamline its operations.

2. We note concerns that too much of the economic benefit from S4C is gained by the region in and around Cardiff where S4C headquarters and most independent television producers in Wales are based. While we are not presently persuaded of the case for moving S4C from Cardiff in the current economic climate, we do, however, consider that it merits consideration at a future date. In the meantime, we urge the DCMS and S4C to make every effort to spread S4C’s activities beyond its established bases to all corners of Wales. (Paragraph 26)

S4C commissions the best ideas and programmes wherever they come from. It has not had a regional economic policy as such, but it is worth noting that there are vibrant creative sectors serving S4C and supporting jobs across Wales. S4C has invested considerably in places such as Llanelli, Swansea, Gwynedd and Anglesey.

The intention to create two new funds, using S4C’s commercial monies, has been announced. The digital media and co-production funds could enable smaller scale operations to base themselves in any part of Wales.

S4C has not ruled out the possibility of looking at relocating its base from Cardiff at a future date. Its Viewers Hotline service is being taken in-house and the staff relocated to its Caernarfon office. The new Chair of S4C will be based in Caernarfon and S4C is also looking at how it can better use its North Wales base.

3. We welcome the key part that S4C has played in bolstering the everyday use of the Welsh language, which we consider to be a cultural asset not just of Wales but of the entire United Kingdom. Through a wide range of its broadcast output, S4C has brought the Welsh language into many homes where it may not have been heard previously. In addition, S4C has provided the opportunity for Welsh people to learn, through its education and children’s programmes, and hear their language spoken as a normal part of their daily lives. We also recognise, however, that while the cultural benefit provided by S4C is compelling, the channel’s prime purpose is to provide its viewing audience with popular, high quality television programmes which inform, educate and entertain. (Paragraph 32)

S4C has announced its intention to increase the emphasis on providing programmes specifically for Welsh learners in its schedule.

S4C partners with Welsh learners’ specialist company ACEN to produce a comprehensive website which helps learners at every level of proficiency to understand and enjoy its programmes. This provision is supported by regular visits to communities throughout Wales where S4C staff, producers and actors meet Welsh learners.

S4C is working with a range of partners, including daily papers, Tesco and adult education centres, on its 2011 ‘Welsh Learning Week’. The first programme in the popular ‘Cariad@Iaith—Love4Language’ series, where celebrities undergo a week-long Welsh language course, will be broadcast during this week.

The Beaufort Research omnibus survey (March 2011) found that the audience appreciates S4C’s contribution to language and culture. Of the 500 people questioned, 86% of Welsh speakers said S4C supports the Welsh language. 64% of less fluent Welsh speakers and 52% of Welsh speakers felt that S4C had improved their grip of the Welsh language.

The pre-school children’s service Cyw, introduced in 2008, has been very well received by children, parents and educationalists.

Performance of the Channel 4. We note the claims by a number of witnesses that the figures provided by BARB and used by S4C to judge its performance are not reliable, particularly because they take no account of the number of viewers under four years old. We regret the misleading use of these figures by some commentators and note that the BARB figures are regarded by the BBC, S4C and other commentators as the industry “gold standard”. We have not been presented with any compelling evidence to suggest that the figures produced by BARB are unreliable. (Paragraph 40)

Noted.

5. We recognise that S4C is operating in a competitive and fast-moving digital market where television viewers have a much wider choice of channels than ever before. In the light of this, it is a positive achievement that S4C’s share of the viewing audience during peak times in recent years has held up remarkably well. (Paragraph 46) 3

S4C’s Corporate Plan for 2011 includes a target to increase its weekly viewers reach across all Welsh language television services in comparison with the 2010 level. It also states the aim to “Increase our reach year on year by providing content on appropriate platforms, using recognised industry standard research measures”.

6. By presenting figures for those who watch S4C for just three minutes or more a week, S4C’s viewing figures appear more impressive than when using the comparative 15 minute metric reported by the BBC and Channel 4. (Paragraph 60)

S4C currently publishes 3 minute weekly reach figures, which is the BARB standard. If it were to adopt Channel 4’s 15 minute monthly reach figure, the figures would actually be higher than those given to the Committee during its inquiry.

S4C Weekly Monthly 3 min reach 445k 884k 15 min reach 298k 587k

• Apr–Dec 2010 (Figures are for Wales only) Care needs to be taken when comparing viewing figures between majority and minority language broadcasters. As the only Welsh language public service broadcaster S4C must try to serve many different audiences on a single channel. It also uses other measures, such as impact and audience appreciation to measure success.

7. While 3 minute reach may be a useful metric to assess the commercial impact of a channel that carries advertising, S4C, as a public service broadcaster, should be assessed on a range of measures, including the number and proportion of those who watch the channel for at least fifteen consecutive minutes a week, a standard figure published by the BBC—including for its smaller, niche audience channels. We recommend that S4C include 15-minute reach measures in its future reporting. (Paragraph 61)

See above.

3 minute reach is a standard industry measure which is used by ITV and other commercial channels. Like them, S4C programmes carries advertisements so a natural break in programmes occurs at 12 to 13 minutes. This will affect the measurement of continuous viewing at 15 minutes durations. There is also an argument that 10 minute reach is a more appropriate measure.

The S4C Authority will consider carefully which metrics are the most appropriate measures of the performance of S4C’s services, including television and online usage.

8. Assuming the number of Welsh speakers is approximately 600,000 people, the viewing performance of some S4C broadcasts including the Welsh language fictional drama Pobol y Cwm, and Pawb a’i Farn compare favourably with equivalent BBC productions such as Eastenders and Question Time. (Paragraph 62)

Noted.

9. It appears that the majority of Welsh speakers do not watch S4C for three consecutive minutes a week. Approximately 155,000 Welsh speakers watch S4C for at least 15 consecutive minutes a week. This is a figure on which S4C itself acknowledges that it must improve. (Paragraph 63)

This is obviously a concern for S4C, and it is working hard to re-engage with viewers. S4C staff have been discussing the matter in earnest with the production sector over the last two months and will make recommendations to the Authority.

10. We recognise that S4C could perform better and therefore recognise the case for creating a new S4C: a multi-platform, multi-media broadcaster/publisher, which is answerable to Welsh audiences, and commissions and broadcasts Welsh language content only. (Paragraph 64)

S4C agrees that it needs to redefine itself and its services in a multi platform media world. Its ‘2012’ review of the programme strategy has been presented to independent producers and has also been made available for public consultation. S4C officials have also met all the production companies face to face to explain the thinking behind the options described in the ‘2012’ document.

S4C sees itself as a multi-platform content provider. This was made clear in the document presented to the DCMS in September 2010 and is reiterated in the thinking behind its ‘2012’ strategy.

The intention to create a £1m Digital Fund has been announced and a New Media Forum which engages with digital practitioners has been established to advise the Authority. S4C programmes are available to view online (dependent on rights) for 35 days after transmission.

S4C has launched an iPhone app that gives users live viewing access and a 35 day catch up service for its programmes. Neither ITV nor the BBC has this facility. This follows the successful launch of an app for the Cyw service and two apps for the Stwnsh service for 7 to 12 year olds.

11. The BBC states that the output it provides S4C is highly valued by S4C’s audience, accounting for about one fifth of S4C’s total output yet attracting around two fifths of the channel’s viewing. Our findings confirm this. (Paragraph 68)

The hours provided by the BBC under the provisions of the Strategic Partnership Agreement are a valuable contribution to the S4C service. News, sport and a daily soap opera are important genres for all broadcasters and are central to any mixed channel schedule.

12. We recognise the high quality of some of S4C’s output, such as its children’s programming and drama. It is also the case that S4C has reached and continues to reach significant audiences with particular programmes and coverage of events. (Paragraph 74)

Audience research shows that S4C is seen clearly as the ‘Channel for Wales’ with strengths over and above other channels in the following categories: Events from around Wales, Sport, Music and Documentaries relevant to the people of Wales. 1.4 million viewers 5

watched programmes from S4C’s Summer Events season, an increase of 47% on the previous year.

13. The DCMS should ensure that greater information about S4C’s audiences and performance should be available to policy makers and the public. Although we welcome S4C’s joint study with the Welsh Language Board on audience perceptions of S4C, we are surprised that it has taken the S4C Authority until now to address this shortcoming. (Paragraph 75)

S4C commissions a lot of research, quantitative and qualitative, in terms of audience viewing figures and of audience appreciation and has published a wide range of this research information in annual reports over the years. Beyond this, it may not have succeeded in sharing all this information as widely as possible.

Sir Jon Shortridge’s review of corporate governance made recommendations about the dissemination of research. The appropriate committees of the S4C Authority are considering how to implement those recommendations.

The audience appreciation scores (which compare S4C with BBC1, BBC2 and ITV1 in Wales) show S4C scoring higher in terms of appreciation of these channels.

14. Spending per head on broadcasting output in Wales is the highest of any of the four UK nations, driven particularly by public funding of S4C. While we received no hard evidence that S4C was operated inefficiently, the fact that S4C intends to reduce 40 administrative staff within the next year indicates there have been opportunities to make savings without necessarily affecting the quality of the channel’s broadcast output. (Paragraph 86)

All public bodies are having to make cuts to their budgets. S4C is taking the budget cuts made during the Government’s Comprehensive Spending Review as an opportunity to review all aspects of its business.

29 members of staff have applied for voluntary redundancy and there may be further job losses at S4C. It is expected that the redundancy programme will enable S4C to save 25% of its staff costs by the end of 2011. This is part of a wider efficiency programme being undertaken by S4C looking at all aspects of its operations.

15. We are concerned that S4C has for many years received substantial sums of public money without sufficient internal or external evaluation of its efficiency and the value for money of its service. The DCMS, over a number of years, has failed to provide this assurance. This is unacceptable and we recommend that the DCMS take immediate steps to redress the gap in S4C’s financial accountability by subjecting S4C to regular audits by the National Audit Office. (Paragraph 87)

S4C would welcome a relationship with the NAO and is happy to discuss providing further financial reporting with the NAO and DCMS.

This year S4C will be providing a regularity report (for the 2010) financial year to the NAO/DCMS Audit committee. This is the first time S4C has provided such reports.

In his review of corporate governance Sir Jon Shortridge recommended that the Authority’s Risk Management Committee look at Value For Money. The Authority’s Audit Committee’s terms of reference have also been amended in line with Sir Jon’s report.

16. We are surprised that the BBC uses licence fee money to purchase private health care. We are also concerned that S4C has over a number of years provided private health care insurance for more than 100 employees. Although in May 2009 this benefit was not offered to new employees, it was not closed to existing staff. This has clearly been an inappropriate use of taxpayers’ money, even more so at a time when the public sector, including S4C, is charged with making sometimes painful efficiency savings. S4C should set an example to other publicly funded broadcasters and end immediately this taxpayer-funded perk for all employees. (Paragraph 88)

S4C does not pay for private health care. S4C and some individual members of staff contribute towards private healthcare insurance. This has been part of the remuneration package of some hundred staff over the years. No new members of staff have been offered this taxable allowance since May 2009.

Unlike many other public organisations S4C does not offer final salary pensions to its staff. It is worth considering the totality of remuneration provision across public sector organisations before singling out one particular benefit.

Mark Thompson, the director general of the BBC, told the Committee that such allowances were still common at the BBC and Channel 4.

The S4C Authority will be considering staff benefits, including healthcare insurance, as part of its wider review of S4C’s activities.

17. We conclude that, although there is scope for making efficiencies in its operations, in terms of providing Welsh language broadcasting, S4C provides value for money. (Paragraph 89)

S4C welcomes the Committee’s finding.

The Government’s proposed changes to S4C 18. The Government proposes to significantly reduce public spending over the course of this Parliament. In the light of this, it would be difficult to justify the ring-fencing of S4C’s funding. Any reduction in S4C’s funding should be comparable to other public service broadcasters. We call on the DCMS to ensure that this is the case. (Paragraph 98)

S4C welcomes the recommendation that any reduction in the funding of S4C should be comparable and no greater than that of other public service broadcasters. S4C called for this in its submission to the DCMS in 2010.

S4C would welcome certainty of funding beyond 2014–2015 and has asked the DCMS to consider a long term funding formula.

19. While S4C must, like other public sector organisations, share its burden of cuts to its funding, we recognise the risk that this will come at a cost to the quality and volume of S4C’s output. The DCMS, S4C and the BBC must work together to identify potential 7

synergies and to eliminate wasteful duplications so that the impact of cuts to S4C’s funding is minimised. (Paragraph 99)

S4C has been discussing synergies with the BBC since before the changes to its funding and the new partnership with the BBC was decided upon by the DCMS.

Three work streams have been set in train to seek out synergies and discussions have been held between S4C and BBC Wales staff. The three areas being considered are transmission, back office functions and co-productions.

It is important that S4C is able to independently decide whether any saving or synergy identified is indeed beneficial to both broadcasters. Any such saving must accrue equally to both broadcasters.

20. We recommend that the Government confirms the funding of S4C beyond 2014–15 as soon as possible. Without this certainty, S4C will not reasonably be able to develop its future strategy. Therefore, we believe that it is essential that there is a long term funding formula enacted in primary legislation. (Paragraph 100)

S4C would welcome certainty of funding beyond 2014–2015 and has asked the DCMS to consider a long term funding formula.

It is important that S4C’s status as an independent public service broadcaster which serves Welsh viewers is enshrined in primary legislation. The S4C Authority believes that it should be answerable for the totality of its service to parliament and that the Channel continues to be subject to parliamentary scrutiny.

21. We recommend that the DCMS work with the BBC and S4C to determine how S4C’s funding can be guaranteed. We further recommend that S4C receive in full a portion of the Licence Fee which is at least equal to the amount set out by the DCMS in S4C’s funding review settlement. (Paragraph 105)

S4C welcomes this recommendation.

22. The proposal that most of S4C’s funding should in future be provided through the licence fee is a significant development. We welcome the Government’s and the BBC’s commitment that the S4C programme budget will continue to be spent on commissions from independent producers in Wales and call on the Government to ensure that this commitment is included in the documentation outlining the arrangement between S4C and the BBC. (Paragraph 107)

As a commissioner broadcaster S4C has always sourced its programmes from independent producers. It has undertaken to continue to commission 100% of its programmes from the independents when the new arrangement with the BBC comes into effect. The BBC has also given this assurance to partners in the sector.

It is important that S4C’s operational as well as editorial independence and any agreement on governance and management as agreed between S4C, the BBC and the DCMS, is enshrined in primary legislation to enable S4C to continue to commission 100% of its programmes from independent producers.

23. During 2010, the S4C Authority Chairman, the Chief Executive and the Head of Commissioning, left their positions in S4C, within six months of each other. These events gave the impression that S4C was more concerned with its internal differences than with its primary responsibility: the sound stewardship of a cherished institution. (Paragraph 128)

Noted.

24. We conclude that, whatever the deficiencies of Arwahanrwydd, its failure was primarily due to the failure of individuals in S4C to make the arrangement work, rather than any critical fault with its structure. The situation was compounded by the absence of any official or public explanation by the Board about the reasons for their departures. We are concerned by S4C’s admission that its website did not include the minutes of any meetings of the Authority since December 2009. (Paragraph 129)

In his review of S4C’s corporate governance Sir Jon Shortridge was critical of the system of ‘Arwahanrwydd,’ the flow of information from the executive to the Authority and, as a result, the Authority’s capacity to take decisions and adequately perform its scrutiny role.

There are legal reasons why S4C cannot comment on matters relating to individual members of staff.

The minutes of S4C Authority meetings are now available on the website. The Authority is considering additional, alternative means of communicating with viewers.

25. The failings of the Authority to provide effective leadership for S4C during 2010 was particularly regrettable as it came at a time when the funding and governance of the organisation were in doubt. For a time, instead of being known for broadcasting drama, S4C became a drama of its own. S4C must never allow such a sorry situation to occur again. (Paragraph 130)

In 2006 the S4C Authority put in place a system of corporate governance known as “Arwahanrwydd” (‘Separation’). This system was intended to clarify the distinct roles of the Authority and S4C’s officials. However, it became apparent over time that this system was unsuitable for a single corporate body such as S4C.

During the summer of 2010 the Authority commissioned Sir Jon Shortridge to review its corporate governance. His report was published in full and his recommendations are being implemented.

Sir Jon agreed with the Authority that the system of Arwahanrwydd was not appropriate for S4C, and was critical of the flow of information from the executive to the Authority and, as a result, the Authority’s capacity to take decisions and adequately perform its scrutiny role.

The Authority’s concern and subsequent review of these matters was intended to ensure that S4C’s corporate governance would enable it to provide effective leadership for S4C.

26. On the evidence we received, it is apparent that the decision to fund S4C via the licence fee from 2013 onwards was made in haste. In a matter of hours a deal was struck 9

between BBC executives and Ministers in London, without sufficient consultation with relevant parties. This is regrettable. (Paragraph 131)

S4C agrees that the haste with which decisions with fundamental implications for the Channel were made and the lack of consultation on those proposals was regrettable. It is worth noting that there was cross party agreement on this point in the House of Commons Culture, Media and Sport Committee report on the BBC Licence Fee Settlement and Annual Report (19 May 2011).

27. We welcome the commitment made by the DCMS and the BBC that S4C’s editorial and operational independence will be maintained under any new partnership arrangement between the organisations. However, we have concerns about how this will work in practice. We call on the Government to spell out exactly how this independence will be guaranteed under the new arrangements. (Paragraph 138)

S4C welcomes this finding.

S4C believes it is important that its editorial and operational independence is maintained so that S4C can best serve Welsh language audiences. S4C, the BBC and the DCMS are currently working on the detail of the proposed operating agreement between S4C and the BBC.

28. We are concerned that the BBC, a national broadcaster and much larger organisation than S4C, will not necessarily have the particular interests of Welsh language programming as its primary focus. We note the possibility that under any new structure, S4C’s distinctive voice will go unheard. We call on the Government and BBC to guarantee publicly that S4C remain solely a Welsh language broadcaster. (Paragraph 139)

The S4C Authority welcomes the Committee’s call for the ‘distinctive voice’ of S4C to continue to be heard and has stated that S4C will remain a Welsh language only service.

It is important for viewers in Wales that there is competition to the BBC and ITV and that there is a plurality of voices in broadcasting. That is why maintaining S4C’s independence of operation as well as its editorial independence to make decisions in the best interests of Welsh language viewers is so important.

29. We recommend that under any partnership made between the BBC and S4C, careful thought needs to be applied to any role played by the BBC Trust, to ensure that S4C’s editorial and managerial independence is not compromised. We call on the Government to consider the appointment to the S4C Authority of individuals of sufficient independence and stature. Under any future management structure that is put in place, the management team responsible for the day to day operation of the channel, should comprise only S4C personnel. (Paragraph 140)

S4C, the BBC and the DCMS are currently working on the detail of a new operating agreement between S4C and the BBC. S4C believes that operational as well as editorial independence is important for it to be able to fulfil its role of serving Welsh language audiences. S4C believes that BBC representation on the S4C Management Team would be incompatible with the concept of S4C as an independent body.

S4C welcomes the Committee’s recommendation and notes the cross party agreement in the House of Commons Culture, Media and Sport Committee report on the BBC Licence Fee Settlement and Annual Report (19 May 2011): “We remain unclear as to how S4C can retain its independence if the BBC Trust is involved at a strategic level. While there may be benefits to both parties from the partnership, there can be no doubt that substantial public funding otherwise available for other BBC content and services will be diverted to S4C. The shotgun marriage of S4C and the BBC is an awkward match, and we shall monitor developments closely to see whether this aspect of the settlement really does represent best value to the licence fee payer.” (Paragraph 62)

The future accountability of S4C 30. We were pleased that the Government listened to concerns about S4C’s inclusion in Schedule 7 of the Public Bodies Bill and by its subsequent decision to remove it from that part of the Bill. (Paragraph 144)

S4C believes that any changes to its constitutional and funding arrangements should be made in primary legislation so that its independence is guaranteed in statute and any proposed changes can be properly discussed by parliamentarians.

31. We note the arguments for devolving responsibility for S4C from the DCMS to the Welsh Assembly Government. Although we do not accept that now is the appropriate time to take this step, we do accept the case for an enhanced role for WAG and the National Assembly in the funding and scrutiny of S4C. We therefore recommend that the DCMS and WAG should consider an arrangement whereby WAG contributes to the funding of S4C and that the S4C Authority appear annually before the relevant Committee of the National Assembly for scrutiny of its Annual Report and Accounts. Furthermore, any future Broadcasting Bill should address the relationship between DCMS, Welsh Assembly Government and S4C. (Paragraph 149)

Noted.

S4C representatives have appeared before Assembly committees on several occasions although not in any formal accounting role. Regular meetings have also taken place between S4C and Welsh ministers and government officials as well as with interested Assembly Members.

32. We recommend that, on completion of the interview process for the new Chairman of S4C, the preferred candidate should attend a hearing of this Committee to explain his or her proposals for the future direction and strategy of S4C. (Paragraph 150)

This has now happened.

33. The Welsh Affairs Committee will also continue to monitor closely S4C and the terms of any partnership deal that it concludes with the BBC. We expect to take evidence again from S4C during this Parliament to gauge the success of the new arrangements. (Paragraph 151)

As with this inquiry S4C is happy to report on the operation of the new arrangements with the BBC to the Welsh Affairs Select Committee. 11

34. We are disappointed that, despite having the statutory right to do so, the DCMS has not undertaken a review of S4C. This has given weight to the argument of those that claim that the UK Government does not adequately appreciate the importance of S4C to Wales. We recommend that the Secretary of State for Culture, Media and Sport should commission an independent review of S4C at least once every five years. (Paragraph 155)

The DCMS says it will conduct a full review of S4C before the end of the current CSR period.

In the meantime, S4C is conducting a root and branch review of all aspects of its work.

35. We believe passionately in S4C and recognise its importance to the preservation and promotion of the Welsh language. However, in the light of the events of the last year, we recognise the need to rebuild trust in the governance, management and mission of S4C. As a first step in the process of building trust, we recommend that the DCMS commission a wide-ranging independent review of S4C. This review should consult the wide range of parties with a stake in the broadcaster and should consider fundamental issues such as S4C’s purpose, the appropriate size, scale and scope of the institution and its services, and its future funding and governance arrangements. (Paragraph 156)

S4C is conducting a root and branch review of all aspects of its operations and is working to rebuild trust and to re-establish its relationship with its audience and the people of Wales.

The DCMS says it will conduct a full review of S4C in 2014.

While S4C is willing to co-operate with any review it is concentrating efforts on making the Channel fit for purpose before the proposed review in 2014.