Nadine Dorries's department admits seeking to alter Channel 4's annual report

A hearing of the Department of Culture, Media and Sport Committee in Parliament with Channel 4 chief executive Alex Mahon heard that a behind-the-scenes battle over what should be included in the report, which was finished in May, is the reason why it is yet to be published.

Labour MP Kevin Brennan asked Ms Mahon why it had been delayed and she replied it had been provided to DCMS, which is overseen by Ms Dorries, on May 23 but “there have been some delays in the normal process”.

Mr Brennan asked: “Have they been trying to rewrite the report to make privatisation look more desirable?”

She replied: “I think it is fair to say that DCMS made some comments that they would have preferred to see particularly about our future financial sustainability.

“They have now agreed the report can be submitted to Parliament in the normal course without any changes.”

A DCMS spokesperson confirmed to The Yorkshire Post that changes had been requested but said this was due to concerns "some language in the report could be interpreted as going against the corporation's commitment, given to both officials and ministers, to refrain from campaigning against privatisation".

The department wrote to Channel 4 on June 9 outlining its concerns about the language in the report and received a response on June 15. The department confirmed on June 23 that they were content with the report being published as it originally stood.

Channel 4 has argued it has a viable future as a publicly-owned broadcaster but the Government’s attempts to privatise the organisation are based on the argument that despite current profits, this will not be the case in coming years.

Ms Mahon told the hearing the finalised and unchanged report should be sent to the committee within the next week.

She said: “There was some concern from DCMS that they would have preferred to change some wording but it will be the original report as signed off by the independent auditors and the board of directors, who are independent.”

Mr Brennan said: “They tried to nobble you but you refused.”

Ms Mahon replied that it had been suggested “there were differences of opinion between Government policy on future financial sustainability of Channel 4 and the independent auditors’ and the board’s position on that”.

Ms Mahon added: “It is fair to say Channel 4 is in the strongest financial health it has ever been in, it does not need help financially, it does not need fixing. We have a very clear plan, we are doing extremely well and are excited about the future.”

Committee chair and Tory MP Julian Knight asked whether the delay was down to the fact that the department “wanted to effectively insert that sustainability was an issue for you”.

Ms Mahon said: “Management and the independent board’s view is that Channel 4 is in a very strong and financially sustainable position. That is also the independent auditor’s view.

“As you know, one of the questions that government has raised in its consultation is whether Channel 4 is financially sustainable. I think it is right to say that we have a difference of opinion about that. I have seen no independent or otherwise evidence to show that we are not in a future financially sustainable position.”

Mr Knight asked whether it was fair to summarise the position as being that the DCMS wanted to change the report to say the broadcaster is potentially "not sustainable in the long run”.

Ms Mahon replied: “Yes. But the DCMS are now happy for the annual report to proceed.”

Mr Knight asked whether she had ever encountered an issue like this before and Ms Mahon replied: “It is the first time to my knowledge in 40 years that there have been queries about the annual report.”

Mr Knight responded: “This is more than just a query - this is a fundamental point of policy when it comes to the future of Channel 4.”

Following the hearing, a DCMS spokesperson said: "As the owner of Channel 4, the government is fully entitled to comment on the contents of its annual report.

“During the normal process of discussion we highlighted that some language in the report could be interpreted as going against the corporation's commitment, given to both officials and ministers, to refrain from campaigning against privatisation.

"It is the government's job to take a long term view on how to best secure the most successful future for Channel 4 in a rapidly changing media landscape and we believe private ownership will give the broadcaster the tools to innovate and grow at pace."

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