Snapped at No10, the file that reveals ministers’ plans to privatise Channel 4
MINISTERS have drawn up plans to privatise Channel 4, according to a sensitive document accidentally made public yesterday.
An official was pictured walking into Downing Street with a paper setting out options for a sell- off, which are being discussed at Cabinet level.
The document made the case for ‘extracting greater public value’ from the broadcaster and ‘focusing on privatisation options in particular’ – something that ministers had denied was being considered.
It was posted online by a photographer outside No10, with the words ‘official – sensitive: commercial’ clearly visible. It said the proposal had been discussed at a meeting between Cabinet Office minister Matthew Hancock and two unnamed secretaries of state.
A spokesman for the Department for Culture, Media and Sport said in response to the photo that the Government was looking at a ‘range of options’.
Channel 4 News presenter Jon Snow last night wrote on Twitter that he was ‘concerned’.
Ministers were said to be considering privatising the publiclyowned broadcaster two months ago in a move that could raise £1billion for the Exchequer.
The Liberal Democrats vetoed a similar plan while in Coalition. But last month, Culture Secretary John Whittingdale told the Edinburgh International Television Festival that the sale of Channel 4 was not being discussed.
The document revealed yesterday, dated 24 September, reads: ‘In your recent meeting with Matt Hancock you agreed that work should proceed to examine the options for extracting greater public value from the Channel 4 Corpo- ration (C4C), focusing on privatisation options in particular, whilst protecting its ability to deliver against its remit.
‘This submission outlines the options we propose to explore… including a recommendation that you write to C4 requesting that they open their books’. Critics of the proposals argue that a sell-off would lead to the budget for
‘Looking at a range of options’
independent programme-making being slashed.
Chief executive David Abraham – who earns £855,000 a year – has warned that running Channel 4 for profit would mean cutting the money spent on output from around £ 600million a year to £400million to deliver returns to shareholders.
Mr Whttingdale will look at the future of Channel 4 as part of a shake-up of public-service broad- casting, which includes a review of the BBC licence fee.
His deputy, Culture Minister Ed Vaizey, would not be drawn this month when Tory backbenchers in the Commons pressed ministers about the benefits of taxpayers owning a ‘Left-wing broadcaster’.
Tory former minister Christopher Chope told ministers this month: ‘Channel 4 has a turnover of about £ 1billion a year and assets of roughly £500billion. Surely the taxpayer stake could be sold and help the Chancellor with his agenda’.
A Culture Department spokesman said: ‘The Government has made no decisions regarding reform of Channel 4. Channel 4 has an important remit and we are looking at a range of options as to how to continue to deliver this.’
Channel 4 bosses oppose any move to privatise the broadcaster. A spokesman said: ‘Channel 4’s not-for-profit model enables it to deliver significant public value to viewers and the economy with a unique remit focused on innovation, diversity and new talent.’