Question: Why does the government want to switch to digital TV?

Lord McIntosh: The most obvious thing is that the quality is better. It's rather like many years ago when we moved to 405 lines from 65 lines. People didn't appreciate it in the beginning but they certainly did after.

Secondly there's much more spectrum available which means there are many more channels possible. That's already clear from the 36 channels that are available on Freeview as well as cable and satellite.

Less obvious is that there's the opportunity for interactivity: people can choose to stop and start programmes and they can communicate back to broadcasters. That will take longer to catch on but it will in the end.

Question: Do you think there is a demand for this among the public?

Lord McIntosh: Well, 41 per cent of households already have digital. That's way ahead of comparable countries.

Question: Is Britain the only country to be considering this?

Lord McIntosh: Oh no. Everybody is taking advantage of this. To reject it, and as far I know no countries are rejecting it, would be like saying 'we've got radio why do we need television'.

It goes against the grain of modern society to have improvements available and then not to make use of them.

Question: Why has the government decided to get involved in what seems like a technical issue? The government didn't rule on Betamax over VHS.

Lord McIntosh: You're quite right that was a market decision. In this case it is the government and government's all over the world that have control of spectrum. That means everybody has to have some means of allocating it. And all countries have done that through licensing.

When we had the very limited spectrum that was available under analogue then we had a very strict rule of allocation. What digital allows us to do is to have quite a lot of what's called multiplexes, each of which has six or more channels available.

Question: Does the fact that there are only a finite number of viewers mean organisations like the BBC will be forced to compete for viewers?

Lord McIntosh: What happens in practice if you look at the 41 per cent who have digital is that yes the share of viewing among the traditional channels such as the BBC 1, 2 and ITV is decreasing. But it isn't falling dramatically.

There are lots of people out there who can make money broadcasting to really quite small, specialised audiences, give people more choice but not forcing them away from their favourites.

Question: Is this going to lead to lowest common denominator TV?

Lord McIntosh: We're not going to allow it to. What the Communications Bill will do is to protect the quality of content. It will protect the range and diversity of broadcasters and it will protect the diversity of programmes.

Public sector broadcasting will be very clearly protected by the act and all public sector broadcasters using spectrum provided by us will have to adhere to conditions set out by us.

Question: Data released recently pointed to a slowdown in the sale of digital set-top boxes. Will this hit the date of the analogue switch off?

Lord McIntosh: I'd be very surprised. I'm not aware of any significant slowdown. There is still an issue that the retail trade is saying to people don't buy integrated digital televisions; get the set top box instead.

It's not for us to say how they should do it but we certainly think everybody buying a television now should buy the possibility of digital televisions.

Question: Doesn't this make the license fee an anachronism when part of this will involve increasing pay-per-view facilities?

Lord McIntosh: I'm not going to predict the outcome of the review that we are starting now of the BBC charter or of the license fee. We have to do that between now and January 2006 and we're starting work on that.

All I'd say is that I think it's generally recognised that the system that we have with the BBC being the single most important broadcaster in the country and public service obligations on others like ITV and Channel 4 produces the best variety in the world.

Question: Is it fair to say that the BBC's future and status is confirmed in the medium term but not in the long term?

Lord McIntosh: It always has been since Lord Reith in the 1920s. That's always been the way it works. You never give somebody a remit forever; circumstances change.

We now in the review of the BBC charter, have to take into account the digital revolution. Clearly among the issues to be considered is the issue of how much the investment the BBC makes in digital output.

Question: Can there ever be a justification for BBC News 24 unless it returns a healthy profit?

Lord McIntosh: The BBC doesn't have to make money on everything it does. That's why it's the BBC and not a commercial channel. It has the possibility of cross-subsidising. It has the responsibility of ensuring it meets minority tastes as well as majority tastes.

The only way in which it would become the lowest common denominator is if we abandoned all quality, diversity and regional programming. We're not going to do that.

Question: Is there room on the spectrum for community stations?

Lord McIntosh: Certainly there is. We're encouraging both television and radio. In the Communications Act there is specific reference to the allocation of spectrum for access radio and television.

Question: Isn't there a problem that setting up and running a radio or TV station costs money which community groups cannot afford?

Lord McIntosh: Indeed it does cost money although sometimes less than you think. We're giving encouragement to them and we're very keen on both local communities and minority groups having access to the increased spectrum available.

Question: Is the government prepared to back that commitment with money?

Lord McIntosh: That isn't the role of the Communications Act. There are all sorts of people inside and outside government who are willing to put up money for access radio and television.

Question: Can you explain what the consumer expert group is about?

Lord McIntosh: At the moment we have a digital access plan which is being carried forward. It mainly consists of the experts in the trade like broadcasters and equipment manufacturers.

But there are other people who are interested - the viewers and listeners. They are represented by a number of bodies like the National Consumers Council. We're quite open to accept more who have something to add to the debate.

Question: Are you concerned by the level of output? There has been criticism of Big Brother take offs, home improvement programmes and repeats?

Lord McIntosh: It isn't an issue for the government. We've been hearing stories of dumbing down ever since we've had multiple channels and commercial television.

Of course we accept that if we leave things entirely alone there will be a strong temptation to go for large audiences and neglect minority tastes and audiences. One example is the arts.

But that can't happen. We have built into the Communications Act hugely powerful controls led by Ofcom which say all public sector broadcasters must put forward a plan of what they are going to produce.

The regulator will look at the plan and see whether it meets the criteria for quality and diversity and so on. If they don't keep to it we can take action - in the extreme by taking away their license.

Question: Is that a realistic threat? How far does a channel need to go before the regulator would step in?

Lord McIntosh: We certainly hope nobody would get to that stage but what we are doing is getting people to set up their own plans for meeting the standards we are imposing in the public interest. Losing a license would indeed be the last option.

Question: How do you measure public interest in something like a TV programme?

Lord McIntosh: We're very careful in government; we don't answer for the BBC or anyone else about individual programmes. Any questions which come to us about the BBC we refer to its governors.

It's essential for us to stay hands-off otherwise we'd end up as censors of every single programme which nobody would wish and nobody would accept.

For years people have been arbiters of taste and decency - the broadcasters council for example. Bodies like this have existed for a long time and they appear to have done a good job.

Question: Are you a Big Brother viewer?

Lord McIntosh: I've seen snatches of it; it's a bit slow for me.

Question: Has the Iraq row had an impact on wider government thinking about the BBC?

Lord McIntosh: No, certainly not. Somebody said it was going to influence our view of the BBC charter. That's quite untrue.

We would never allow anything of that sort to influence us doing in the longer term the thing which is right as far as the charter and the BBC are concerned.