This is the BBC News report on Michael Grade's appointment as Chairman of Governors:

Grade is new BBC chairman

Grade has a reputation as a charismatic maverick

Former Channel 4 boss Michael Grade will be confirmed as the new BBC chairman on Friday.
The former BBC executive takes on a role vacated by Gavyn Davies, who resigned in the wake of criticism in the Hutton Report.

Mr Grade, 61, has immense media experience, having headed Channel 4, and was among the favourites to get the job despite his maverick reputation.

He will now take the lead role in appointing a new director general.

The interviews for the chairman's post were conducted last week by an independent panel, headed by a civil servant, that offered its recommendation to Culture Secretary Tessa Jowell.

'Morale boost'

The Prime Minister's office is expected to confirm the appointment at lunchtime on Friday.

BBC media correspondent Torin Douglas said the selection of Mr Grade would not be seen as the choice of a "safe pair of hands".

The former director of BBC television will now have to appoint a new director general to replace Greg Dyke.

Former BBC managing director Sir Paul Fox said Mr Grade's appointment would encourage more candidates to come forward.

"A whole load of other candidates suddenly come into the reckoning," Sir Paul told Today.

He said Mr Grade's appointment was an "extremely exciting appointment" that would boost morale among BBC staff.

Speculation

There was much speculation in the wake of the Hutton Report suggesting the role of the chairman and the governors as both champions of the corporations and its regulators could not continue.

The Hutton Report was set up following the death of government scientist Dr David Kelly.

Dr Kelly was the source of information for a BBC Radio 4 Today news item in which reporter Andrew Gilligan said the government had "sexed up" an intelligence dossier on Iraq.

Lord Hutton criticised the BBC saying its editorial system was defective in allowing Mr Gilligan's report to go to air without editors seeing a script.

Its publication prompted the resignations of both chairman Gavyn Davies and director general Greg Dyke.

'Promising'

The appointment of Mr Grade, who is not associated with any political party, was welcomed by the Conservatives.

Shadow culture secretary Julie Kirkbride told BBC Radio 4's Today programme: "We want someone who is strong enough to run the show, and run it firmly and give everyone a fair crack of the whip.

"I have every confidence that Michael Grade will be able to do this."

Mr Grade will replace acting chairman Lord Ryder, who will retire from the board of governors completely later in the year.

Also among the candidates for the post - which offers £81,320 for a four-day week - were BBC broadcaster David Dimbleby and former Panorama presenter Lord Watson.

During his time as chief executive of Channel 4, Mr Grade was not afraid of controversy, being labelled "pornographer-in-chief" by the Daily Mail.

Showbusiness family

He comes from a showbusiness family, having television mogul Lord Grade, a pioneer of ITV, as his uncle.

As well as being director of programmes at London Weekend Television and BBC Television, he went on to head the merged Pinewood and Shepperton film studios.

As BBC One controller in the 1980s, he commissioned top-rating soap EastEnders - but axed sci-fi favourite Doctor Who.

Mr Grade also applied and was shortlisted in 2001 before then vice-chairman Davies was selected.

Some commentators have said he is too experienced, because the chairman's role is not to run the BBC day- to-day.

Text of Michael Grade's statement to a press conference on his appointment:

Statement made by Michael Grade, newly appointed BBC Chairman designate, at a press conference today (Friday 2 April 2004)

As you can imagine, this is quite a day for me. It is some 15 years since I left here as a staff member of the BBC - Managing Director, Television (designate) to be precise.

Here I am today, Chairman (designate) of the Board of Governors of the Corporation.

The appointment of a former broadcasting professional represents quite a departure from the norm – I believe I am the first ex-staff member to be appointed as Chairman of the Governors.

Apart from my obvious pride and delight, I also feel my experience has prepared me to step into the role at a difficult moment in the Corporation's history.

I hope it signals a new approach to BBC board appointments – that people with broadcasting experience can be considered for a role in the regulation and guidance of this great, cultural institution.

I would like to thank those who appointed me for having the courage to break the mould.

I would also like to pay tribute to my predecessor, Gavyn Davies, who gave so much to support the ideals of the Corporation and who showed great courage and dignity in the manner of his departure.

I take up my appointment on May 17th.
Following consultation with the DCMS, I shall be reducing my portfolio of commitments.

I shall be resigning from the Boards of Camelot, SMG and the Television Corporation before May 17th, as well as from a number of other commercial and pro-bono appointments.

I shall retain my non-executive Chairmanship of Pinewood Shepperton and the Chairmanship of Hemscott Group plc.

A list of these and any other commitments and my investments will be disclosed in full to the BBC Secretary and the DCMS and a system put in place for dealing with any conflict real or perceived.

This is not the occasion to discuss the detail of my thoughts for the future of the Corporation, which I have not yet had the opportunity to share with the Governors.

But I can make clear the fundamental principles which underpinned my candidacy and which will guide my policies:

- first: I remain committed to the Licence Fee as the best means of funding the bbc for the foreseeable future;

- second: the regulatory role of the Board of Governors is in urgent need of clarification, if not repair. In practice, this means a greater separation between the executive and the Governors;

- and, third: the editorial independence of the BBC is paramount in maintaining the support of the viewers and listeners. Without it, there is no point to the BBC.

I should add here for the record that I have never been a member of any political party, nor have I ever made a donation to any political party; my voting habits are known only to myself.

On timetable, clearly my first task is to bring the search for Greg Dyke's successor as Director-General to a successful conclusion as soon as possible.

Greg made a considerable contribution to the reinvigoration of the Corporation and has left big shoes to fill.

That is all I am able to say today on the subject of the next Director-General.

I must also commend Mark Byford for stepping in at short notice and keeping the show on the road in such difficult circumstances.

The morale of the staff of the BBC will, I hope, be lifted by the appointment of a Chairman who believes passionately in the independence of the Corporation and draws on 25 years of broadcasting experience in supporting and regulating their endeavours and ambitions.

The other urgent task is to pick up and lead the final stages of the BBC's Charter review strategy. I expect to be up to speed very quickly and to meet the Government's review timetable.

Whatever changes are necessary in the short and long term, one thing remains constant.

The BBC exists for no other purpose than to serve the licence paying public.

Although public service broadcasting defies easy definitions and prescriptions, its purposes are clear to me.

The BBC must always be the single place where all our citizens can be certain to find home grown radio and television programmes and online services of quality and diversity, reflecting the full range of their interests, passions and concerns

This role is ever more important in a fragmenting, multi-channel, market driven world, not least in its key role in sustaining an informed democracy.

The BBC's ability to deliver these public service objectives depends on three pre-conditions: independence; secure and adequate funding; and freedom from commercial imperatives that conflict with the wider interests of the listening and viewing public.

It is my job, and the job of the whole board, to ensure that the BBC can continue to earn public and parliamentary support so that the provision of universally available, value for money, public service broadcasting is neither jeopardised nor marginalised.

Nothing must be allowed to deprive our children and our grandchildren of the rich experience we have come to expect and enjoy these past decades from the British Broadcasting Corporation.