Pulse.Assent

• Independent review looking at sustainability of S4C published today
• Key recommendations include increased digital input, changes to governance structure, and greater freedoms for S4C in making commercial decisions
• Government commits to maintaining current annual funding of £6.72m until 2020

The review, led by Euryn Ogwen Williams, presents a package of reforms which have the potential to deliver real change to make S4C a better organisation that more effectively serves Welsh speaking audiences. The review’s recommendations will also be instrumental in strengthening the independence of the broadcaster and increasing the transparency of its operations.

As part of its commitment to ensuring a strong future for Welsh language broadcasting, the Government has also announced it will be maintaining UK Government funding for S4C’s funding at its current level of £6.762 million for 2018/19 and 2019/20. This will give S4C the funding certainty it needs for the next 2 years to deliver the much-needed reforms set out in the review.

Secretary of State for Wales Alun Cairns said:

S4C undeniably makes an enormous contribution towards the creative industries in Wales, and crucially, to promoting the Welsh language and our culture around the world.

The UK Government recognises the importance the people of Wales place upon S4C. Broadcasting across the UK is a reserved function, that is why this Government will continue to provide funding certainty to the channel as it navigates the recommendations set out in the review over the coming two years.

I am confident that the future is bright for S4C. We want to see the channel continue to evolve to meet the needs of the digital age, and develop some of the UK’s most innovative, authoritative and entertaining programming now and in the years to come.

Minister for Digital and the Creative Industries, Margot James said:

S4C has a unique cultural and social value as the world’s only Welsh language broadcaster. We want to see it continue to thrive, but, as with all broadcasters, it needs to adapt to the changing media landscape. This review sets out a clear and sensible path for its future, and we are providing the funding certainty that S4C needs to deliver this.

The reviews recommendations are as follows:

• The government should update S4C’s public service remit to include digital and online services and remove the current geographical broadcasting restrictions. This will allow S4C to broaden its reach and offer its content on a range of new platforms in the UK and beyond.
• S4C should establish an in-house digital hub to develop and improve S4C’s digital footprint and form the basis of a Welsh language digital cluster.
• S4C should establish a language partnership with the Welsh Government and others to help deliver the Welsh Government’s commitment to reach 1 million Welsh language speakers by 2050.
• S4C’s public funding should be provided entirely through the licence fee from 2022/23 onwards, with all future funding decisions made as part of the BBC licence fee funding settlement.
• The government should consider amending current approval requirements to give S4C greater freedom to invest and generate commercial revenue.
• The S4C Authority should be replaced with a new unitary board comprising executive and non-executive directors.
• The government should consider whether S4C’s current financial audit arrangements are suitable, including whether it would be appropriate to appoint the Comptroller and Auditor General as S4C’s external auditor.

Chair of the independent review, Euryn Ogwen Williams said:

I was delighted to be asked to lead on this independent review, on a subject very close to my heart.

Being the only Welsh language broadcaster, S4C’s role is one of great importance to Welsh speaking audiences in and outside of Wales and I wanted to make sure it can continue to thrive in this new and fast developing media landscape. I hope that my report and recommendations will guarantee S4C’s status as an independent broadcaster that can play a major role in the Welsh language partnership, having secured the stability to do so for the years to come.

The government accepts all of the recommendations for government made by the review. We also expect S4C to take forward the review’s recommendations and suggestions. Government has now asked S4C to provide a detailed implementation plan by July 2018 on how it will deliver the necessary reforms.

While some of these recommendations will likely require legislative change when parliamentary time allows, the government expects S4C to work flexibly in the interim to deliver these reforms as much as possible within the constraints of the current statutory framework.

Notes to Editors

• The independent review was chaired by Euryn Ogwen Williams. Euryn has over 50 years of broadcasting experience in Wales, and was appointed based on his understanding of the Welsh language broadcasting sector as well as his knowledge of Welsh language, culture and society.
• The Chair conducted an in-depth 3 month review which considers S4C’s public service remit, funding methods and governance structures. During the review the Chair considered a wide range of stakeholder views to inform his conclusions.

The Planning Inspectorate always aims to issue decisions promptly after the event. However, in the run-up to Local Elections we are always concerned to ensure that appeal decisions concerning proposals which have raised particular sensitivities or interest in an area cannot be deemed to have influenced the election or have been used to electoral advantage by any interested body. Accordingly those decisions are not issued until the election results have been announced.

The types of cases likely to be affected are where a proposal:
i. is claimed to represent inappropriate development in the Green Belt (other than domestic extensions) or
ii. represents major green field housing or
iii. involves any case where an emerging Neighbourhood Plan is referred to in the evidence or
iv. is any other case where there is a reason to believe that the outcome may be electorally sensitive.

Each decision as to whether an appeal decision should be held back is taken on the circumstances of the case by senior managers in the Planning Inspectorate.

We shall of course ensure that any such decision delayed for the reasons above is issued promptly after the election results are announced.

An online travel agent, P&P Associates Ltd, and 2 operators of price comparison sites, Affordable Car Hire Ltd and Flexiblecarhire.com Ltd, have committed, under legally binding agreements, to include all compulsory charges in their car hire quotes.

This means their initial quotes must include mandatory charges like fuel surcharges, young driver fees and out-of-hours pick up charges, where applicable. They must also show all essential information including the amounts of any deposits and insurance excesses, policy on fuel charges, and what exactly the insurance covers.

All 3 businesses cooperated fully with the Competition and Markets Authority (CMA)’s action, which was launched after an investigation into whether certain sites were complying with consumer protection law. As a result, they have put in place arrangements to check the prices given by their car rental suppliers are fully inclusive going forwards.

The CMA’s enforcement work was launched as a result of its industry-wide review of price comparison sites offering car rental, which found many were advertising very low prices to customers by not including all costs.

This left people paying more than expected at the check-out, and not having the full information required under consumer protection law about what they were paying for.

The CMA, therefore, worked with companies across the sector, resulting in significant improvements in the accuracy and clarity of information available to customers.

A year on, 30 leading websites now carry transparent prices for over 1,300 car companies in over 10,000 destinations, which means UK customers can be more confident they will not be hit by hidden charges and unexpected fees.

Michael Grenfell, CMA Executive Director for Enforcement, said:

It is important people know what they’re signing up to online when hiring a car.

Prices must be transparent and include all compulsory costs so that people can find the deal that’s best for them.

The CMA’s work over the past year has vastly improved the sector and brought the majority of sites offering car hire in line with consumer protection law.

UK customers can now be more confident that what they see is what they will pay.

The CMA is also launching its first direct action against car hire companies based outside the UK. Following extensive complaints from people encountering hidden costs on collection of their car at the airport abroad, the CMA is now taking enforcement action against businesses based overseas but selling directly to UK customers online.

The types of problem UK consumers reported experiencing included hidden charges for fuel, surprisingly high excess amounts and hidden insurance costs.

Michael Grenfell added:

This move sends a clear message: just because a business is not on UK soil doesn’t mean the law doesn’t apply when it sells in the UK.

British consumers have a right to protection under consumer law and the CMA will work to ensure they receive it.

The CMA has also published advice (link to 60SS) for businesses that sell car rental to help them comply with consumer law, as well as advice for consumers on what to watch out for when renting a car.

Notes for editors

1. The CMA is the UK’s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law. For CMA updates, follow us on Twitter, Facebook, and LinkedIn.
2. The key pieces of consumer protection legislation relevant to the CMA’s investigation are the Consumer Protection from Unfair Trading Regulations 2008 (CPRs) and Part 2 of the Consumer Rights Act 2015. The CPRs contain a general prohibition against unfair commercial practices and specific prohibitions against misleading actions, misleading omissions and aggressive commercial practices. Part 2 of the Consumer Rights Act aims to protect consumers against unfair contract terms and notices, and requires contract terms to be fair and transparent.
3. P&P Associates Limited operates the website www.weholiday.co.uk, Affordable Car Hire Limited operates the website www.affordablecarhire.com and Flexiblecarhire.com Limited operates the website http://www.flexiblecarhire.com.
4. This brings to an end the CMA work on car hire online intermediaries. However, it will continue to take steps to encourage and maintain compliance with consumer law in this sector. The next piece of work will focus on overseas firms selling directly to UK customers online.
5. People looking to hire a car online can check our consumer advice.
6. The CMA has published a short summary for car rental businesses.
7. In 2017 the CMA published a market study into digital comparison tools (which includes price comparison websites).
8. Media enquiries to the CMA should be directed to press@cma.gsi.gov.uk or 0203 738 6460