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Licence fee: trouble looming? (Read 5335 times)
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Licence fee: trouble looming?
Jun 19th, 2006, 10:19am
 
This is taken from the Financial Times:

Jowell hints at plan to scale back BBC licence-fee bid
By Jean Eaglesham, Chief Political Correspondent
Published: June 19 2006 03:00



Tessa Jowell, the culture secretary, has given the strongest signal yet that the government plans to scale back the BBC's licence-fee bid, saying ministers were scrutinising the wage cost element of the "very high" 10-year increase proposed by the state-owned broadcaster.

In an interview with the Financial Times, Ms Jowell rejected claims by the BBC's commercial rivals that it was creating superinflation in the media sector by paying over the odds for high-profile creative talent.

Speaking days after the BBC signed a package of more than £15m for Jonathan Ross, the presenter, Ms Jowell said: "I've had some [research] work done on this. I don't think the evidence points to the BBC driving significantly higher costs for other broadcasters."

But she stressed: "Where I do think we have to look [at the BBC bid] is in relation to wage costs." Ms Jowell said the ongoing talks on the licence fee, due to be announced later this year, were taking place in the context of the "somewhat sceptical" report by PKF, the accountants.

This warned in April that the broadcaster had delivered only "marginal" efficiency savings and said it should get a less generous funding rise than it was seeking. The BBC's bid for an annual licence-fee increase of 2.3 per cent above inflation has outraged competitors and triggered concerns among opposition parties. Critics accuse the broadcaster of using its state-guaranteed income to squeeze out smaller new media and drive a global expansion in its brand.

Ms Jowell said the BBC, as a public service broadcaster, should not "go for aggressive commercial expansion". New controls under the charter being agreed later this year will require a trust to assess whether proposed services meet a public-value test, to include the impact on the commercial market.

Before these arrangements bite, Ms Jowell said she "would hope" BBC executives were applying this test to any significant proposed new investment. "The message to the BBC in the future is you have to balance your desire to innovate with the commercial consequences and the value for licence feepayers," she said.

She rejected suggestions the corporation was going on a commercial rampage now it had won agreement to retain the licence fee, stressing the fact that the level of the fee had yet to be agreed. "I am absolutely certain they will be prudent about not spending money they don't have," she said.

Criticism that the new BBC trust, which will re-place the board of governors, lacks the independence needed to keep proper control of the corporation's ambitions to expand its brand was dismissed by Ms Jowell as "just nonsense". But she admitted "the trust will have to prove itself".
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Re: Licence fee: trouble looming?
Reply #1 - Jun 20th, 2006, 8:49am
 
This is from the Financial Times:

The BBC is losing the public service plot
by Philip Stephens
Published: June 20 2006 03:00


Some time soon the government will announce the BBC's new licence fee settlement. The funding increase will not be as extravagant as the corporation would like but probably not quite as miserly as the Treasury would prefer. This will be the last such deal. The present model of public service broadcasting is destined to struggle against the rising tide of digital technology. The BBC's failing journalism may well set the seal on its demise.

A poll tax levied on ownership of a television set is already beginning to seem eccentric. Who needs a box in the corner of the sitting room when they can get news on their mobile phone and watch their own on-demand television channels on a multimedia flat screen?

The BBC's response is to reinvent itself. Mark Thompson, the director-general, recently set out the vision. It gushes technology. The BBC, he declared, is to become a global media player, competing in every market and every technology. Forget Reith, think Google and AOL.

It is hard to draw the connection between this global power play and a levy on every British household. The more the BBC resembles Google, the weaker is its claim to a unique role as Britain's public service broadcaster. For licence fee payers, if not for the new and growing BBC audiences around the world, big looks like bad.

There are still plenty of reasons to back a strong public broadcaster. The market will not pay for brilliant drama, powerful documentary and imaginative comedy. In an age of diversity, the BBC can promote social and cultural coherence. When it tries hard, its television and radio output is as good as it gets.

Above all these remits, though, stands the BBC's role as a champion of democracy - its duty to provide impartial, high-quality journalism. Take away the responsibility to educate and inform and to provide an impartial channel between politicians and people and all the rest crumbles.

Yet it is precisely here, in its core journalism, that the BBC is failing. Mr Thompson recently devoted a speech to the subject. It was unremittingly defensive. The thrust was that any negative comment about the BBC's journalism was rooted in the personal prejudices or ideological inclinations of the critics. The holy grail of objectivity, it seems, is the sole property of the BBC.

I recently served as a member of an independent panel established by the BBC's governors to review its coverage of the conflict between Israel and the Palestinians. It was a fascinating exercise. As illuminating was the reaction of BBC management.

Apart from the occasional lapse by one or two individual journalists, the panel did not detect the bias or partiality often alleged by the two sides in the conflict. It highlighted some first-class journalism. Italso found serious shortcomings.

These included a failure consistently to maintain editorial standards, lack of depth and analysis and the substitution of reactive journalism for an effort to tell a complicated story. In parenthesis, the panel pointed out that if an individual who blows up a bus in London is described as a terrorist, the same should apply to someone who does likewise in Tel Aviv. The central conclusion, though, was that BBC coverage did not constitute a full and fair account of the conflict. The picture I tookaway from the exercise was of an editorial machine sacrificing quality to quantity and one in which everyone and no one claims to be in charge.

Mr Thompson's response was to misrepresent the panel's conclusions. The report called for a guiding editorial hand to ensure accuracy and quality over myriad outlets. Mr Thompson quite wrongly represented this as an attempt to prevent editors and reporters presenting the facts and making their own judgments. On the basis of their official response to the panel's report, the BBC governors are loath to challenge the director-general.

How the BBC reports the Middle East, of course, will scarcely decide its future. But the failures identified by the panel - the absence of editorial planning, grip and oversight to accompany the headlong expansion of the BBC's news outlets - speak to what has gone wrong elsewhere.

The BBC's coverage of domestic political affairs - the very core of the public broadcasting remit - is a case in point. I do not believe there is deliberate political bias, even if some well-known BBC figures will never forgive the prime minister for the Hutton report on Iraq. Rather, quality, depth and judgment are sacrificed to showbiz trivia and hyperbole. Labour, Conservatives and Liberal Democrats are equal victims of this shallowness.

Partly it is a question of lazy journalism. It is much easier to retail Westminster gossip than to seek to report complex policy debates, or to shout at politicians rather than subject them to forensically robust cross-examination. Healthy scepticism has given way to easy cynicism. My sense is that BBC news reporting has also lost a once iron-clad commitment to objectivity and a necessary respect for the democratic process. If I am right, the BBC, too, is lost
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Re: Licence fee: trouble looming?
Reply #2 - Jun 21st, 2006, 8:30am
 
This response to Philip Stephens appeared in the FT:

The BBC's success story has a public service plot
By Mark Thompson
Published: June 21 2006 03:00


Philip Stephens (Comment, June 20) is right to emphasise that broadcast journalism is going through a revolution: greater convenience, an explosion in choice, more audience participation, more opinionated news, rapidly changing ways in which people access news. He is completely wrong to assert that by responding to the challenges of this rapidly changing digital landscape and striving to remain relevant to all audiences, the BBC is somehow "losing the public service plot". Nothing could be further from the truth.

In a fast changing world of on-demand, podcasts, user-generated content, the BBC recognises fully that the values of its journalism - truth and accuracy, serving the public interest, impartiality, independence and accountability - must remain at the heart of all that it does. Eighty per cent of the British public consume BBC journalism every week. For audiences we are far and away the most trusted and impartial news broadcaster both in the UK and around the world. Our audiences emphasise that news and regional news are the bedrock of what they value from the BBC. They demand high-quality, trusted journalism that is reliable and accurate. But they also want us to be more modern, dynamic and accessible.

Of course the BBC must be committed to connecting to all audience groups with its journalism. That is our responsibility as a universal publicly funded broadcaster. That means our output must be both engaging and relevant in tone for different audiences whether it is on Today or the Asian Network, Newsnight or Newsbeat, BBC Three News or local radio. But all our journalism must be rooted in our values and in an agenda, not just of what is interesting, but what is important.

We are not "unremittingly defensive" about our journalism. Indeed in the past two years we have spearheaded a greater willingness to admit mistakes, overhauled our complaints system and next week will launch an editors' blog on our website to engage with audiences about our decisions and dilemmas. This greater openness is vital to maintaining the trust of our audiences.

On becoming director-general in 2004, I established, for the first time at the BBC, a journalism board where all the senior leaders come together to ensure oversight and co-ordination of all the BBC's journalism at UK, global and local levels. It is chaired by Mark Byford, deputy director-general, as head of the BBC's journalism. It has led to a greater sense of editorial planning, grip, leadership and oversight.

In relation to Mr Stephens' comment that "quality, depth and judgement have been sacrificed to showbiz trivia and hyperbole", I would only observe that in the past 24 hours the BBC led its Ten O'Clock News on North Korea and the US's warning not to test one of its long-range ballistic missiles; Newsnight led with an examination of allegations of the abuse of human rights by the US military in Iraq; and as I write this article, our website and Five Live are leading on lapses in vetting records for teachers. Showbiz trivia?

Mr Stephens may, as a member of the independent panel on the impartiality of our coverage of the Israeli/Palestinian conflict, be frustrated that I and my colleagues in BBC management did not agree with every one of his recommendations. However, we have responded constructively to the report and accepted many of the proposals from the panel including establishing a West Bank correspondent, greater cross-trailing of our website from radio and television and a rolling plan for current affairs coverage.

However, we rejected the idea of a senior "guiding hand" on Middle East coverage as a panacea for editorial consistency - not only because it would add another layer of management but because we feel that we already have a robust editorial structure in place. The Neil Report, examining BBC journalism two years ago, emphasised that "as BBC News has 10 times as many journalists as on a national newspaper, broadcasting 120 hours of output a day, editors are the day-to-day custodians of the BBC's journalistic values". Editors, while maintaining the editorial distinctiveness of their programmes, report through a departmental structure with ultimate oversight from the BBC's journalism board to ensure quality, consistency and clarity of purpose.

As editor-in-chief, I am confident this is the right approach and, far from "losing the public service plot", we are more determined than ever to fulfil our public purpose mission to sustain citizenship and support a national and global debate through high-quality, impartial and independent journalism. Our audiences demand nothing less.

The writer is director-general of the BBC
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Re: Licence fee: trouble looming?
Reply #3 - Jun 21st, 2006, 9:29am
 
This appeared in the letters page of the FT:

Impartial, accurate BBC must make it harder for a Fox
From Mr Ian Martin


Sir, I am writing to say how much I enjoyed, and agreed with, Philip Stephens' article, "The BBC is losing the public service plot" (June 20).

As an expat living in the US, the BBC's website is one of my main links to the UK. It's my home page: I read it daily. Increasingly, though, I find myself fuming at spelling mistakes, grammatical errors and teeth-grindingly poor writing.

I am not totally convinced that, as you say, the "market will not pay for brilliant drama, powerful documentary and imaginative comedy". (Here in the US, HBO provides all three.) But I absolutely agree with your comments on the importance of the BBC's core journalistic role.

I speak as someone who believes that the BBC has a role even, or perhaps especially, in a competitive media marketplace, as a constraining and disciplining influence on the excesses of private media companies who may be tempted to bias their coverage to attract "customers". The presence of a trusted and impartial - and accurate - media player must surely make it harder for a Fox News equivalent to be a success in the UK.

Ian Martin,
Cambridge, MA 02138, US
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