in our plans to lead Wales to economic recovery. It is the same economic renewal programme that has been warmly welcomed by the current Secretary of State for Wales.
S4C’s contribution both in building our wider skills base and releasing creative potential is difficult to underestimate. The Government is therefore very concerned about the cultural and economic impact should S4C’s budget be cut and its output reduced.
This threat is not confined to S4C alone. Ofcom’s recent communications market report records that, in 2009, the joint BBC and ITV spend on television services in Wales declined by no less than 16 per cent over the previous year and by an average of 11 per cent per annum over the five years since 2004. That represents a drop of £5 million, from £33 million to £28 million. In fact, the decline in spending for Wales is greater than that for any other nation in the UK. This Government has already raised that matter with ITV and the BBC Trust chairman, Michael Lyons, as the corporation continues with its strategic review. Thus, although broadcasting is not a devolved matter, it is of great importance to our people, our economy, and our culture.
I have written to the Secretary of State for Culture, Olympics, Media and Sport, Jeremy Hunt MP, to express concern over the £2 million-worth cut to S4C’s budget announced earlier this year. I have sought reassurances that the cut will not result in S4C’s funding falling below the amount calculated in the Broadcasting Act 1990, and I have asked for a meeting, which is to take place next week. In addition, the First Minister has written to the Secretary of State for Wales, outlining the Welsh Assembly Government’s concerns in relation to S4C’s financial situation.
We are aware that discussions have taken place between the Department for Culture, Media and Sport and S4C in relation to S4C’s future budget. We believe that S4C should be treated similarly to other public service broadcasters in the discussions about its long-term future and financing. However, that must take place within the context of the arrangements that were set out and agreed under the Broadcasting Act.
S4C was created by statute to ensure the organisation’s long-term stability and independence and to avoid annual wrangling over the Welsh language. Its duties, responsibilities, and its funding arrangements were laid down in law for very good reason. The Department for Culture, Media and Sport should not ignore its statutory obligations towards the channel, and neither can it forget that S4C is a public service broadcaster, not a Government department or a non-departmental government body.
If S4C is to continue to meet the needs of Welsh viewers in an ever more competitive broadcasting landscape, it must continue to be culturally distinctive. It is essential, for example, that it should be able to commission ambitious programmes such as the new landmark drama series Pen Talar. It will be able to do so only if it is provided with a sustainable source of funding. S4C continues to be a service appreciated by its audience. It was particularly
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