The Committee concludes that the preferred candidate for chair of the BBC Trust, Mrs Rona Fairhead CBE, is a suitable candidate for the post

The Committee held a pre-appointment meeting with the government's preferred candidate for chair of Ofcom, Dame Patricia Hodgson. The Committee is satisfied that Dame Patricia is a suitable candidate and recommends that the Secretary of State proceeds with the appointment.

Around 80% of online gambling in the UK is conducted with operators which are not licensed here. In December 2012 the Government published a very short draft Gambling (Licensing and Advertising) Bill to require overseas gambling operators to obtain a Gambling Commission licence. The overseas-based remote gambling operators generally opposed the Bill, on the grounds it was unnecessary for consumer protection, might drive consumers to cheaper unlicensed operators and was principally intended to bring overseas operators within the UK's tax regime. Much of the UK-based gambling industry, sports bodies and organisations working to combat problem gambling supported the principle of the Bill. Almost all those who gave oral or written evidence to the Committee raised the issue that the enforcement regime would have to be rigorous in order to provide any of the benefits to consumers. The Committee supports the principle that gambling should be regulated on a ’point of consumption' basis. The Committee also notes the concerns raised about taxation of the online industry. The Government stated that the ability to bring all operators serving UK consumers within the tax net is a consequence, but not the prime motivation, of the draft legislation. The Committee notes in this regard that, in setting a tax rate for remote gambling, the Treasury should bear in mind that too high a rate would be liable to drive customers and companies into the unregulated, black market.

The Culture Media and Sport Committee says that the main outcomes of the BBC Trust's strategic review do not move the BBC on to the extent required by current circumstances, and that the incoming Chairman will have much to get grips with. The new licence fee agreement was reached "unexpectedly" in October 2010 between the Department for Culture Media and Sport and the BBC, but without any time for wider consultation with viewers or Parliament. The Committee believes the agreement reached is a reasonable one, but the process undermined confidence in both the Government's and the BBC's commitment to transparency and accountability. On the partnership between BBC and S4C, it is unclear how S4C can retain its independence under the new arrangements. It is extraordinary that the Government and the BBC should agree such wide-ranging changes without consultation or giving S4C any notice or say at all. The Committee is particularly concerned that National Audit Office still does not have the promised access to conduct independent assessments of the BBC's value for money. The Committee is also disappointed that banded information on talent salaries is still not in the public domain. The BBC opened itself to predictable ridicule with the decision to hire a "migration manager" who had to commute from the United States to manage the transition to the new Salford site. The report concludes that big questions remain over how radically the BBC needs to reconfigure both content and delivery in the years ahead.

This report looks at the way in which commercial spectrum holdings are allocated and regulated. This investigation was prompted by the imminence of the next spectrum auction in 2012. Ofcom, as spectrum regulator, has a very difficult role to play in striking a balance between the needs of consumers, spectrum users and service providers, and the public purse. The report finds that Ofcom is doing a good job in striking this balance and is often having to make very difficult and commercially sensitive judgements. Ofcom's consultation on the rules for the next auction has divided opinion among the four mobile network operators, but the Committee remarks that they rarely agree on matters concerning spectrum allocation. Ofcom proposes that one of the spectrum licences available at the auction will contain a coverage obligation requiring the successful bidder to offer mobile internet coverage to an area in which at least 95% of the population lives. The Committee believes that this does not go far enough to hasten the roll-out of mobile broadband, and recommends that the coverage obligation should be set at 98% and that Ofcom consider applying this obligation to more than one licence. The Committee agree with proposals to implement spectrum caps and floors at the auction, this being the best viable option to ensure a competitive tension in the spectrum market place. Ofcom's remit should be widened in order that the interests of British businesses, whose spectrum use plays an important part in the UK economy, are best served.

Arts Council England plays a vital role in safeguarding, consolidating and building the nation's cultural infrastructure and enhancing its quality of life. It supports a range of activities across the arts, museums and libraries. Support for the arts comes principally through the distribution of public money, either grant in aid from the tax payer or proceeds from National Lottery ticket sales. Since 2010, the Arts Council has seen its grant in aid fall by a third, a situation that hasprompted cuts in staff numbers and difficult decisions about where to target support. While it is essential to acknowledge the prevailing economic climate, the Committee would be disappointed if the Arts Council saw any further fall in its grant in aid. There remains a clear funding imbalance in favour of London at the expense of tax payers and lottery players in other parts of the country. The Arts Council is well-placed to restore some balance. Also the ArtsCouncil needs to redouble its already significant efforts at brokering cultural partnerships involving businesses, local authorities, local enterprise partnerships, universities and international organisations, particularly within the EU, which might provide additional funding sources.