By Anas Sarwar MP - 3rd February 2011
Granting STV independent status would have an effect on the economic impact of Scotland's wider production sector, says Anas Sarwar MP.
STV Productions is one of few businesses of scale in the Scottish television production sector.
It's a hugely important part of the Scottish creative industries cluster and a key employer in Glasgow's thriving media hub in my constituency.
The growth of STV Productions can help to secure and develop a thriving, sustainable television production sector in Glasgow and throughout Scotland, delivering significant economic, social and cultural benefits.
In November of last year the secretary of state for culture, media and sport announced that STV Productions would not be given the independent status that it had sought.
Officially classifying STV as an independent television production company would have allowed it to continue to grow by competing for programme commissions under production quotas reserved for independents by broadcasters such as the BBC and Channel 4.
In short, independent status would have offered STV the opportunity to have more programmes commissioned and broadcast.
A consultation period took place between November 9 2009 and February 2 2010, after which Ofcom broadly welcomed STV's aspirations, saying that independent status would encourage greater access to network commissioning by external producers.
Meanwhile, Ofcom's Advisory Committee for Scotland endorsed the broad policy position of ensuring that television production be enhanced in the nations.
The secretary of state decided to overlook this advice.
As a result, the economic impact of STV Productions in 2016 is expected to be £3.9m less than it could have been with indie status.
Indie status for STV Productions would also have an effect on the economic impact of the wider production sector in Scotland.
The resulting growth by 2016 could have increased the economic impact of the sector as a whole to £98m, supporting 1,847 jobs, an increase in 38 per cent from the current impact of the sector in the Scottish economy.
Instead, the decision by the secretary of state will allow independents with HQs outside Scotland to gain at the expense of the growth of STV and those with HQs in Scotland, with the overall effect of reducing the future economic impact of the television production sector in Scotland.
This decision fails to recognise that STV is the only Scottish company with sufficient capacity to take on large scale productions.
It appears that the secretary of state has yet to gain full understanding of the measures needed to secure a viable and sustainable broadcasting industry in Scotland. It also flies in the face of the coalition's stated aim to encourage private sector job creation in my constituency and across Scotland.
I intend to use today's adjournment debate to explain these points to the secretary of state for culture, media and sport. I will also ask him to visit STV Productions in my constituency and initiate a review of his decision.
Anas Sarwarwas elected as Labour MP for Glasgow Central in 2010. He currently sits on the House of Commons international development committee.
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