The privatisation of Channel 4 could lead to production companies across Yorkshire being placed in jeopardy, according to industry experts.
The channel is currently publicly owned, but privately financed through advertising. The government has revealed plans to change this structure though and wants to place it in the hands of a new private owner to give it "the tools and freedom to flourish and thrive".
Nadine Dorries, the secretary of state for Digital, Culture, Media and Sport, announced yesterday (Monday) the government is pressing ahead with plans to privatise the broadcaster in a move that could raise up to £1 billion. She claimed public ownership is "holding Channel 4 back".
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But there has been widespread criticism of the decision. Labour says it "doesn’t make any sense", the University of Sheffield fears it will force the channel "back into its shell", while Channel 4 itself has described the announcement as "disappointing".
Matt Richards, managing director of Leeds-based production company Air TV, told LeedsLive it is "a big blow" to the entire industry.
"There’s a really vibrant TV production sector in Leeds and that’s now at risk," he said. "More than 150 companies signed a petition and the majority of the sector has been against privatisation."
Channel 4 only moved to Leeds last year. The city fought off competition from Manchester and Birmingham to become the new national headquarters in a move described as the biggest shake-up in the broadcaster's history.
Channel 4 News has begun broadcasting sections of its programme from Leeds city centre, while flagship shows such as Steph's Packed Lunch are also produced in the heart of the city.
The channel is unique in that its entire output is produced by independent production companies. Although 200 in-house roles were moved to Leeds as part of its 4 All the UK strategy, the boost to Yorkshire-based businesses was seismic as local talent lined up to work alongside Channel 4 on a range of programmes.
Although Air TV isn't currently commissioned by Channel 4, Mr Richards said significant progress has been made with the channel's bosses since their move to Leeds last year.
"Channel 4 moving to Leeds was a big boost for the area," he said. "Everyone clubbed together to bring Channel 4 to Leeds and it gave a really vibrant atmosphere to the whole city.
"Like all production companies, we are concerned whether that will all be reversed. Most of our work is with other broadcasters, but we are in discussions with Channel 4 about future programmes. We have made lots of progress with them in the last year since they moved to Leeds.
"Channel 4 is unusual in that it doesn’t make anything itself, so it is perhaps the most important broadcaster to most companies in reflecting different parts of the UK. It commissions in such high volume and there’s just that real risk that the breadth of voices that appear on the channel could be reduced.
"Whoever the new owner is could reverse some of the choices that have been made. There has been a big commitment by Channel 4 to level up in the last few years and that’s now in jeopardy."
Just last year, Ms Dorries appeared to believe Channel 4 was financed by the public. She incorrectly said it was "in receipt of taxpayers' money" before being quickly corrected by other MPs.
Her comments came as a public consultation was launched on the future of the channel. Around 60,000 people have submitted their thoughts to the government and Channel 4 said it even offered "a real alternative to privatisation that would safeguard its future financial stability".
"This is particularly important given that the organisation is only two years into a significant commitment to drive up its impact in the UK’s Nations and Regions," added a Channel 4 spokesperson. The government is pushing ahead with the plans though.
"It's clearly a worry that this broadcaster that has been such a force for change for almost 40 years might have to go back into its shell just because it's being bought out by a private company," said Matt Robson, a Journalism Studies teacher at the University of Sheffield.
"Channel 4 was set up in the 80s to bring different voices into media production. As a university department, that's something we are really keen on, getting people from all sorts of different backgrounds into the industry.
"We can't really tell who is going to buy Channel 4 and what their plans are going to be, but the broadcaster has an amazing reputation for trying out new things and giving people from different backgrounds a platform. It's likely a private company won't be able to prioritise that. They will be more interested in making a profit."
Cllr James Lewis, the leader of Leeds City Council, added he would be seeking reassurances on how this could impact on local jobs. He said: "We are very concerned by the government’s sudden announcement and I am opposed to privatisation.
"Channel 4’s move from London to Leeds was levelling up in action, as they committed to recruiting people from Leeds and Bradford who normally don’t get jobs in the media. The government’s plan threatens to jeopardise the excellent work Channel 4 has already done in our region to create opportunities for people either in media jobs, or working for one of the many production companies here that are flourishing following Channel 4’s move to Leeds.
"Privatisation will require new legislation to be passed by parliament and during this process, we will be looking closely at how jobs and investment in Leeds and West Yorkshire will be protected especially if the government plan to sell Channel 4 to foreign owners."
Announcing the news, Ms Dorries tweeted: "Channel 4 rightly holds a cherished place in British life and I want that to remain the case. I have come to the conclusion that government ownership is holding Channel 4 back from competing against streaming giants like Netflix and Amazon.
"A change of ownership will give Channel 4 the tools and freedom to flourish and thrive as a public service broadcaster long into the future. I will seek to reinvest the proceeds of the sale into levelling up the creative sector, putting money into independent production and creative skills in priority parts of the country - delivering a creative dividend for all."
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