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BBC White Paper - main points (Read 4990 times)
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BBC White Paper - main points
Mar 14th, 2006, 6:36pm
 
The Government has published its White Paper on the future of the BBC.  This summary of its main points is taken from The Guardian:

We've read it so you don't have to
Tuesday March 14, 2006


Commercial Services

·The BBC will continue to relieve pressure on the licence fee by maximising commercial income, in appropriate areas, to reinvest in programming and talent.

·The new boundaries on the BBC's commercial activity are based on four principles: the fit with the BBC's public purposes; commercial efficiency; BBC brand protection; and avoiding market distortion.

·Commercial services must not be prioritised at the expense of the core duties of public service.

·The BBC trust will be responsible for holding the executive to account for complying with the criteria and devising systems to interpret and apply the criteria.

·For the second criterion - commercial efficiency - the trust should consider whether better value for money might be obtained by selling individual commercial services or closing them down.

·The trust will require the executive to demonstrate how services deliver the best possible return for the licence fee payer.

·The trust will require the executive to submit, as part of the separately published annual report and accounts, a full and open assessment of the performance of the commercial services, including a statement of compliance with the four criteria.

·Commercial services will no longer require the approval of the secretary of state. Instead, the trust will assume the responsibility for commercial approvals.

·There should be no cross subsidy from the BBC's public services to its commercial activities. The trust will provide a greater degree of detail and clarity about the BBC's commercial activities than has previously been the case.

·On-air trails for BBC magazines will be abolished.

·Trails for other products - books and DVDs for example - which are directly related to individual programmes will remain. The trust will keep this issue under review.

Funding

·The licence fee will fund the BBC for the lifetime of the next charter.

·After 2016 the DCMS will review alternative funding mechanisms for public service broadcasting, including looking at the possibility of top-slicing the licence fee.

·In discussions over the level of the licence fee, the government will consider Channel 4's request for the BBC to help with its switchover costs and a demand for "a limited amount" of extra digital capacity from the BBC.

·The BBC trust "needs to deliver greater clarity to licence fee payers about what their money is used for and how it is being spent".

·The government has appointed accountants Pkf to provide "expert advice" on how the BBC delivers value for money.

·The BBC will need to find a "large part" of its funding requirements through "self help" measures.

·The government is to look at ways to stop cases involving non-payment of the licence fee clogging up the magistrates courts including giving the BBC/TV Licensing the power to issue summonses in addition to making easier payment option schemes more available.

Governance

·The Government has confirmed the imminent end of the BBC board of governors after nearly 80 years of regulating the corporation in today's white paper announcement.

·The board will be replaced with a BBC trust and separate executive board with the trust issuing licences to the board for running BBC services, which will set performance targets, reflect the views of licence fee payers and safeguard the Corporation's independence.

·The trust will also need to apply a "public value test" to news services, while the media watchdog, Ofcom, has also been given a role in regulating the launch of new BBC services, with the power to carry out a Market Impact Assessment.

The key points of the white paper's proposed changes on governance include:

·A so-called "triple lock" system to "ensure the highest standards of accountability" according to the Department for Culture, Media and Sport. Licences will be issued by the trust to the executive board for running each BBC service.

·This also includes a "public value test" to be applied to all new BBC services or significant changes to existing services.

·The white paper clarifies that whenever the trust carries out a "public value test", the media regulator, Ofcom, will be responsible for providing the "market impact assessment".

·Powers to approve new services that currently sit with the secretary of state will be devolved to the trust. However, the secretary of state will be able to veto a new public service if the trust does not follow proper approval procedures.

Remit

·The BBC's six purposes will be: sustaining citizenship and civil society; Promoting education and learning; stimulating creativity and cultural excellence; reflecting the UK's nations, regions and communities; bringing the world to the UK and the UK to the world; and building digital Britain.

·The BBC's Reithian aims will continue, with everything the BBC does will be geared towards delivering the public purposes.

·The BBC must provide entertainment, not just "worthy" programmes, and should not chase ratings through derivative or copy-cat programming.

·Being entertaining means competing with other broadcasters on grounds of quality, not by simply copying or adapting successful formats from other broadcasters or making programmes solely to tried and tested formulae.

·The BBC's content should offer something distinct from other broadcasters.

·BBC content must be distinguished by five characteristics: high quality - the BBC's programming should be recognised by licence fee payers as standing out from the rest; challenging - it should make audiences think; original - it should strive to offer the right level of new or originated content; innovative - it should present new ideas or invent exciting approaches, rather than copying old ones; and engaging - it should draw the audience in with fascinating and entertaining subject matter.

·The BBC must to continue to develop wider activities such as community events.

·The trust will consult on new 'purpose remits', taking into account the BBC's impact, not just its output.

·The BBC will continue to play a leading role in the development of a media literate population in the UK, helping people understand and access new communications technologies.

·The BBC now has a specific education and learning purpose and must continue to be a force in both formal and informal learning across all age groups.

·The BBC is one of the country's most powerful creative engines. It will continue to play an important role in knowledge transfer and creative excellence and must reflect the diversity of 21st century Britain. ·The whole country pays for the BBC and the whole country should therefore be able to recognise itself in the BBC's output.

·The BBC must continue to always help the people of Britain get the most out of technological change and lead audiences to new ways of receiving content.

·The BBC should help establish and fund schemes to ensure that the most vulnerable households are not left behind in the digital revolution.

The World Service

·"The World Service cannot stand still"

·The government supports the decision by the BBC World Service to shut 10 foreign language services in central and eastern Europe and open a new 12-hour Arabic TV service.

·The service should expect the competition in the global media market to increase and should be ready to "adjust further."

·The World Service should continue to "pursue vigorously" expansion plans on overseas FM Radio seek opportunities to make its foreign language services more widely available in the UK.

·The World Service should also take into account the challenges of developing successful services in what is, for the World Service, the new medium of TV.

·It will be for the World Service, in discussion with the FCO, to decide its priorities and how expenditure could be prioritised to allow for the development of new services in priority countries.
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Re: BBC White Paper - main points
Reply #1 - Mar 14th, 2006, 8:18pm
 
This is the immediate assessment of the White Paper from the Guardian's veteran media correspondent, Maggie Brown:

BBC sails on
The story is one of continuity, of the BBC sailing on despite upheaval all around, even winning more 'wriggle room' to tweak services and adjust.

Tuesday March 14, 2006


Who can blame Tessa Jowell for wanting a quieter life?

The BBC white paper and draft agreement, which have just been published, contain few surprises for anyone who has been keeping a watchful eye on the long drawn-out process.

The story is one of continuity, of the BBC sailing on despite upheaval all around, even winning more "wriggle room" to tweak services and adjust.

"The Reithian aims will continue," said Jowell soothingly. "We are optimists about the long term future of the BBC."

As one of some 40 journalists "locked in" with the paper during the afternoon at the Department for Culture, Media and Sport, the atmosphere was subdued, with not a hint of electricity in the air.

Broadcast journalists barely reworked their prepared scripts. Newspaper journalists hunted for "the story".

Four points:

·The biggest surprise is that wily BBC lobbyists, combined, admittedly, with public opinion, have managed to write back into the charter the central duty to provide high quality entertainment. Strictly Come Dancing passes the test, so does Radio Five Live's 6.06 football show. The BBC's prime duty is to be a broadcaster.

It is all right too, in the renewed mission to "take fun seriously", for the BBC to go shopping in a restrained manner for films and programmes in Hollywood, especially now it has a refreshed British films policy in place.

·Second, stand back from the policy statements and ask yourself if anyone will notice a difference to the BBC's output this time next year, when the new charter is in operation. The answer has to be no, we won't.

·Third, the draft royal charter labours long and hard over the separate yet interlinked duties, functions and methods of appointment to the new governance system, the BBC trust , "guardians of the licence fee and public interest" and the executive board. Let's hope it works more smoothly than the prose. A clear costing, per annum for the trust, would be pretty useful.

·Fourth, there is indeed an expanded fair trading and new duty of competition laid on the BBC trust, which together should add up to a regime to check the BBC's effect on markets and commercial operators.

But I find myself wondering how frequently the public value test and market impact assessments - conducted by Ofcom - will be used in practice since it covers only new services or significant changes. Hard to see Chris Evans joining Radio 2 figuring on the radar.

And of course, there's not a hint, officially, on a new funding deal - but the steady-as-you-go, more-of-the-same approach suggests to me any rise is going to be pretty modest.

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Re: BBC White Paper - main points
Reply #2 - Mar 14th, 2006, 8:49pm
 
This is the BBC's public response to the White Paper:

BBC will change to deliver its Charter remit
Date: 14.03.2006



On behalf of the BBC, Chairman Michael Grade today welcomed the White Paper and draft Charter and Agreement saying they marked a significant milestone in the process of BBC Charter review and signalled radical reform of the 80 year old institution.

He also welcomed the Government's re-confirmation of its decision last year to renew the BBC's Charter and to continue licence fee funding of the Corporation until 2016, recognising the BBC as the cornerstone of public service broadcasting in the UK now and through digital switchover.

Michael Grade acknowledged that the Government's White Paper required the BBC to make radical changes to the way it operates to satisfy licence fee payers and the wider media industry.

He emphasised that, in delivering its public service remit, the BBC must deliver public value to the benefit of the nation as a whole, and to the individuals who pay for BBC services through their licence fee.

Michael Grade said: "On behalf of the BBC I welcome the White Paper because the structural changes it demands will ensure the continuing independence of the BBC.

"The new governance model lays on the Trust a duty to represent the interests of the licence fee payers both as paymasters of the BBC and as consumers with an interest in wider choice.

"An overhaul of the BBC's governance to a modern structure that serves the licence fee paying public is long overdue.

"Promises of delivery and sincere words of assurance are no longer enough: the BBC has to demonstrate sustained commitment.

"The BBC must operate only in the public interest, ensuring value for money and high quality output.

"But in doing so, the BBC accepts it has a responsibility to take account of its potential impact on the wider market and to demonstrate through transparent decision-making processes how it delivers public value to the United Kingdom.

"The new BBC Trust – separated from BBC management – will be equipped to make this a reality.

"The new system of service licences and purpose remits will ensure expectations and measures of performance are clear and consistent.

"The Trust will work with Ofcom to deliver assessments of market impact in which all parties can be confident."

Michael Grade said that the public would judge the success of the structural changes by the range and quality of services and programmes the BBC provides: "In the end all these structural changes are designed to deliver the highest quality and the most innovative programmes for audiences.

"Those appointed as Trustees will be the champions of licence fee payers, and ensure that decisions made on their behalf are rooted in evidence that demonstrates delivery of audience expectations or wider public value."

The BBC Director-General, Mark Thompson, said the new governance arrangements would provide a robust framework for the BBC to operate within, and greater clarity of expectations allowing the Corporation to concentrate on its core purpose of providing programmes and services that inform, educate and entertain.

He also said that his management team had already embarked on a programme of change, including efficiency measures to deliver greater investment into programme-making.

Mark Thompson said: "The public purposes set out in the White Paper are a clear remit for the BBC to deliver, but achieving them will be a challenge and not a simple box-ticking exercise.

"The BBC is passionate about quality content and we want to deliver on every appropriate platform programmes that are innovative, distinctive and entertaining.

"We are developing a creative strategy that will be the BBC's creative blueprint for the next Charter and set the UK's benchmark for quality content.

"The efficiency savings we are implementing will release more of the public's licence fee into the services they are paying for and help deliver the expectations they have clearly communicated through the Charter review process outlined today in the Government's White Paper."

Notes:

1. Guide to key elements of new BBC Trust

a. Purpose remits

The White Paper sets six public purposes for the BBC.

The Trust is required to develop purpose remits which set out the priorities for each purpose and say how performance will be judged, and to consult publicly in the course of developing them.

This is a new requirement. Preparatory work will begin although the purpose remits will be a matter for the Trust to decide.

b. Service Licences

Service Licences are required for each of the BBC's UK public services.

The licences must define the scope of the service, its aims and objectives and other important features.

They must make clear how the service will contribute to the public purposes and include indicators against which the Trust can monitor performance.

The Trust must ensure that these indicators take into account the views of Licence Fee Payers.

A framework document was published by the BBC Governance Unit for consultation in October 2005.

Further preparatory work will be conducted by the Governance Unit over the summer, in order to ensure the Trust can take decisions on Service Licences as soon as possible.

c. Public Value Test (PVT)

Any proposals for a new public service or significant change to the BBC's existing public services must be subject to a Public Value Test, overseen by the Trust.

The PVT involves a Public Value Assessment (PVA), conducted by the Trust, and a Market Impact Assessment (MIA).

The MIA will be overseen by a Joint Steering Group comprising Ofcom, BBC and possibly independent members.

Ofcom will undertake the MIAs in line with a methodology agreed by Ofcom and the BBC.

The Trust will then consider the outcomes of the PVA and MIA and reach a decision.

The Governance Unit published the methodology for the PVT – subject to the Government's White Paper – in October 2005.

The Governance Unit will undertake preparatory work in this area including with Ofcom in advance of the Trust.

d. Fair trading and competition

The Trust must develop a new Fair Trading Policy which will be more specific than the BBC's existing Fair Trading Commitment and will apply to all of the BBC's activities.

The Trust must also publish Competitive Impact Codes covering aspects of public service activity that could raise significant competition issues.

The Trust is must take account of Ofcom codes when doing so, must consult publicly on draft codes, and must review them at least every three years.

The Governance Unit will begin preparatory work in this area and gather evidence in order to inform the Trust's decisions.

e. Criteria for BBC commercial services

The Agreement sets out new governance arrangements for the commercial services.

The Executive Board will be responsible for oversight of the commercial services.

The Trust must set up and publish procedures for the approval of commercial services, ensuring that the four criteria set out in the Agreement are applied.

f. Trust Accountability to licence fee payers

The Trust must consult publicly on key policies – such as fair trading and accountability, and on the BBC's public service remits, services licences and, through the public value test process, on changes to services.

Subject to the Trust's approval, further plans for engaging directly with licence fee payers include:

Regular public meetings around the UK (like those held since July 2005 in London, Glasgow, Cardiff and Belfast)

Dedicated website

Regular public survey of 10,000 licence fee payers

Annual meeting with BBC management to review specifically the results of the audience survey

2. Process of Charter review

The Government launched its Charter review process with a public consultation in December 2003.

The BBC published its contribution to the debate about the BBC's future role, Building Public Value, in June 2004.

The Government published its Green Paper in March 2005 which included some firm policy decisions relating to the Charter, licence fee funding and governance.

The Secretary of State also announced she had invited Michael Grade to become the first Chairman of the Trust.

The BBC responded to the Green Paper formally in May 2005.

Once finalised, the Charter and Agreement will be the legal documents that enshrine the BBC's remit and guide its operations for next Charter period.

In October last year the BBC published – for the first time ever – its case for the next licence fee settlement.

The Government will decide on the level of the licence fee later this year.

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Re: BBC White Paper - main points
Reply #3 - Mar 15th, 2006, 10:21am
 
This entertaining rant is by Guardian columnist Simon Jenkins:

The BBC will never cut its cloth to suit any cloak but big

When the corporation is crying out for a visionary regulator, along comes Tessa Jowell with a paper more yellow than white

Wednesday March 15, 2006


Every 10 years a British government lies down in Whitehall and begs the BBC to walk all over it. The corporation puts on its gold-plated, diamond-studded, billion-pound Doc Martens and stamps hard. Some hapless minister howls "Ooh, you are awful" and hands over the cash. Yesterday it was Tessa Jowell's turn.

This government reforms parliament on the back of an envelope. It nationalises railways, overrules courts and suspends habeas corpus when walking the dog. The one body it treats with constitutional reverence is the BBC. Years of consultation precede any reform. The corporation is like a pre-Reformation monastery - vast, glorious, well-networked and stupefyingly rich. It gets anything it wants from ministers on pain of excommunication from Question Time.

This is probably the best reason for keeping a BBC. There are precious few institutions to which government pays obeisance. We should treasure those we have. The question raised by yesterday's charter white paper is not whether Britain needs a BBC but whether it needs the present one. The white paper does not prove the case. It is not white but yellow. It proves only that Jowell is as frightened of broadcasters as she is of brewers and casino operators.

There are, of course, the customary charter wrist-slaps. The most substantive suggestion is that BBC regulation be separated from management into something called a trust. The BBC will eat the trust for lunch as it eats its governors for breakfast. As for the "competition champion", supposedly to level the playing field with the private sector, he is no more than a light afternoon tea.

This is all so pathetic it is a wonder the BBC has fought against it so long. There is to be no reform and no end to the BBC's monopoly grip on public broadcasting subsidy, just a worthy definition of its values. When asked to justify this monopoly as the digital age approaches, the best Jowell could suggest is that it will not happen again. That was said when the current charter was renewed by a terrified Major government in 1996.

Jowell appears to have asked the corporation what it would like and written it down. The BBC is asked to carry fewer makeover programmes and be more entertaining, less commercial, more accountable and somehow more popular. It should be more British, more ethnic, more educational, more regional and more creative. The BBC was told all this 10 years ago. Nothing changed except that market share fell and subsidy soared.

While most media organisations are cutting back frantically to compete with the internet, the BBC is demanding "inflation plus two and a half per cent" from the government to prop up its ratings. The claim is absurd. The licence fee already yields a stunning £3bn. The BBC recently said it could lose 3,700 staff with no loss of broadcast quality; so who hired these useless people? The BBC bureaucracy is the common agricultural policy of the air, filling silos with overheads to cushion its eventual collapse into one gigantic pension fund. Come the digital revolution in a few years, the Cotswolds will be settled entirely by wealthy BBC pensioners all listening to Classic FM.

The case was overwhelming for this white paper to offer a new public service broadcasting regime for the digital age. There is no longer any reason to deny commercial (or charitable) channels access to public funds for public service and minority broadcasting. BBC television is better than the other channels, but not so much as to justify a monopoly subsidy. BBC1 is seldom radically different from ITV. Product placement is bartered in competition with ITV. Executive and star salaries are inflated, while the corporation's routine "talent" is cut back and underpaid.

BBC radio mostly competes head to head with the commercial sector, as does BBC publishing and marketing. Radios 3 and 4 are entitled to regard themselves as unique cultural institutions, but even this cannot justify an exclusive claim on public funds, least of all funds laundered throughout a compulsory household poll tax. The BBC website is excellent, as it should be at its price. But why the government should finance it to undercut commercial sites is a mystery (the Guardian must declare an interest). The fact is that the BBC is a thundering great media monopoly. Justifying it requires more effort than the white paper has shown.

Though the new telecoms regulator, Ofcom, has shown itself to be as self-aggrandising as the BBC, there is an overwhelming argument for one regulator with one pot of subsidy standing between the Treasury and its beneficiaries. Most civilised Britons would want to see some "British broadcasting corporation", one devoted primarily to newsgathering, comment, education and the arts. It needs to be big enough, rich enough and constitutionally secure enough to offer an output and career structure that can stand up to government (and to Fleet Street critics). But it cannot stand alone.

The internet is now pluralising the media market and squeezing margins on all sides. A visionary public broadcasting regulator should be sponsoring a range of outlets across the marketplace. There is no sense in obscuring this vision by subsidising the BBC infatuation with big-time entertainment, sport and movie-making. If BBC executives want to play at Hollywood mogul or sports magnate, let them go into the private sectors. As for their argument that this is the only way to win ratings and justify a soaring licence fee, that argument is circular, and the white paper should have torn it to shreds. BBC ratings are falling, and Jowell should pledge a lower licence fee for a slimmer service. Instead she tells the BBC to be more popular yet less populist.

The white paper is just a repeat of 1996. The BBC will never cut its cloth to suit any cloak but sheer bigness. The government will not sweat over a restructuring of public service broadcasting when it has a stealth tax to finance the present monopolist. Since parts of the BBC are undeniably good, I am sure the whole extravaganza can keep rolling until it hits the digital wall. Then, like the unreformed monasteries, it will go with a bang.

How much better to have planned an orderly evolution to a public service broadcaster that could sit happily in the new age.
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