The government would not allow publicly-owned Channel 4 to be sold to “hostile countries” such as Russia or China, a former culture secretary told Sky News.
John Whittingdale, who was culture secretary from 2015 to 2016, said there was a “strong case” for selling Channel 4 after current Culture Secretary Nadine Dorries confirmed on Monday the government has decided to push ahead with plans to privatise the channel.
Ms Dorries said she had concluded “government ownership is holding Channel 4 back from competing against streaming giants like Netflix and Amazon”.
Mr Whittingdale said it is a “completely different world” from when the channel was launched in 1982, when there were only three other channels and no streaming platforms with “lots of money”.
Addressing concerns Channel 4 could be sold to a private company based outside the UK, the Conservative MP for Maldon said overseas ownership “can bring real benefits” as seen in Sky being bought by American company Comcast.
“So we shouldn’t be frightened of that,” he said.
However, he said not all countries’ offers would be welcomed, especially “hostile countries,” and he named Russia and China – but said the government would not let that happen.
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“There are countries who I think we’ll be much less happy if they were to acquire strategic assets,” he said.
“That’s something which the government actually legislated on in the last session of parliament where we identified specific sectors which were a strategic importance to the UK, and gave the government power to step in to prevent them being acquired by countries who we see as hostile.
“Without wishing to single out particular countries, obviously Russian ownership or indeed Chinese ownership might well be something the government would want to step in and stop.”
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Channel 4 needs ‘good programmes’ to compete with Netflix
Mr Whittingdale said Channel 4 depends “completely on advertising” and has no other form of income so needs to make “very good programmes” to compete with the likes of Netflix and Amazon Prime.
He argued that a private company could, and said most potential owners “would be happy to accept” conditions of sale stipulated by the government, including keeping its news section, keeping it based outside London and ensuring there are many commissions outside the capital.
“Part of the brand is it’s distinct and different and any owner wouldn’t want to change that,” he added.
Money will be invested into creative industries
The MP also said the reason for selling Channel 4 was “not to raise money for the exchequer” and no money from the sale would go into government coffers but would be invested in skills in creative industries and TV production.
“Unless it is able to access that additional capital and continue to make great programmes that people want to watch then its future is not very good,” he said.
“So the purpose of all this is to bolster Channel 4 and give it a thriving future.”
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‘This government has the creative knowledge of tofu’
The sale of Channel 4 is causing a rift within the Conservative Party, with the plans likely to face a bumpy ride through Parliament.
Father of the House and Tory MP Sir Peter Bottomley said the House of Lords will take out any clause that privatises the network, and said he will make a speech in the Commons shortly after the Queen’s Speech explaining why he thinks the plans are “unconservative”.
Several actors and producers have been vocal in their opposition to the plan.
Stephen Lambert, chief executive of Studio Lambert which produces programmes like Gogglebox and Naked Attraction, said there is “simply no real reason” for Channel 4 to be privatised.
Sanjeev Bhaskar, who was in the Kumars at No 42 and Unforgotten, said Channel 4 was not meant to compete with streaming services.
He added: “This government has all the creative knowledge, wisdom and interest of tofu.”
Plans for the sale are to be set out in a White Paper later this month and will be included in a new Media Bill for next spring.