The decision to privatise Channel 4 would cost the economy billions, according to a report given to the Culture Secretary.
It was revealed this week that the government intends to press ahead with its plans to privatise Channel 4. The publicly owned broadcaster, which turns forty in November, had been in the government’s eyeline for a number of years as they began to overhaul public service broadcasting in the UK.
Culture Secretary Nadine Dorries says that a privatised Channel 4 would allow it to “flourish and thrive” as it continues to be a public service broadcaster. At present, Channel 4 does not make a profit as money made from advertising revenue goes back into its operations.
It has been revealed that Channel 4 gave Nadine Dorries a document on the wider issues that a privatised Channel 4 would create. The document, reported by The Times newspaper, claims that sale would inflict a £3 billion hit to the economy as well as a prove terminal to some independent production companies.
The Department for Culture, Media and Sport opened up a consultation last year on its proposal to change the operating model of Channel 4. The consultation claims that Channel 4 will be able to take opportunities it currently can’t do while under public ownership.
“The government believes that this will allow it to continue to contribute economically, socially and culturally by taking advantage of the opportunities available outside of public ownership.” – Government on last year’s consultation
The proposals to privatise Channel 4 are expected in May’s Queen’s Speech. Following the process through both houses of Parliament, the government expects the sell-off to be completed by 2024.
Channel 4, along with its Welsh counterpart, S4C, were created under a Thatcher government in 1982. Channel 4 programmes are made by independent production companies rather than made by themselves as is commonly the case with other broadcasters such as ITV and Sky.
The government has said that S4C, which is now mainly funded by the licence fee via a partnership with the BBC, is not part of the plans.
