Welsh minister queries Jeremy Hunt's claim that S4C agreed budget cut

Carwyn Jones, the Welsh Assembly's first minister, said today that the "UK government had some explaining to do" over the £2m budget cut forced on S4C in May. The protest, reported by BBC Wales , came after the Department of Culture Media and Sport responded to a freedom of information request by releasing details of exchanges between the culture secretary, Jeremy Hunt, and S4C's chairman, John Walter Jones, which show that the cut was resisted by the Welsh-language broadcaster. In a letter on 21 May Jones said that on the basis of legal advice S4C could not agree to the £2m cut in its £101m annual grant from the government. But in a reply on 24 May Hunt wrote saying he understood S4C had agreed to the cut. The following day Jones tersely replied that S4C was refusing to volunteer cuts and that it had to be clear "DCMS had to assume the risk of withholding the money". However, Hunt later told the Plaid Cymru MP, Jonathan Edwards, in a written parliamentary answer on 8 June that the cut had been "mutually agreed". The letters released by the DCMS also appeared to indicate that S4C's then chief executive, Iona Jones, was also negotiating with the department. However, it is unclear whether this contributed to Jones's abrupt departure from S4C in July , which brought out into the open the tensions over the Welsh-language broadcaster's future direction and the cuts it faces as part of the government's spending review. "What is clear at the moment is that the UK government have some explaining to do in terms of the news that's emerged this morning as to whether S4C agreed this reduction in funding," Jones said today. "On the face of it, it appears that what was said to parliament by the appropriate minister may have been wrong. Now clearly that needs to be clarified." S4C's annual grant and automatic annual inflation-linked rises are protected under statute. S4C was expected to fall into line and volunteer a repayment as the DCMS sought immediate savings after the coalition government's election win in May. Last week Peter Hain, shadow secretary of state for Wales, released a legal opinion by Clive Lewis, QC, arguing that the S4C budget cut was illegal . Earlier this month Hunt issued an ultimatum to Jones and S4C's interim chief executive, Arwel Ellis Owen, telling them to draw up a viable financial plan before the government announces the outcome of its spending review of 20 October. Hunt is understood to have asked the pair to make the case for why S4C continues to be the right organisation to supply a Welsh-language service. DCMS sources suggested that, in reality, S4C had no choice but to accept the cut, as directed. A DCMS spokeswoman said: "DCMS announced in May that there would be a reduction in S4C's budget for the current year of £2m. This announcement was made following discussions between DCMS and S4C and the reduction was agreed by both parties." • To contact the MediaGuardian news desk email [email protected] or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. • If you are writing a comment for publication, please mark clearly "for publication".