This is taken from Broadcast Online:

Licence fee delayed but Salford
move poised to go ahead
by David Rose and Susan Thompson
18 December

The BBC's planned move to Salford is set to go ahead after media secretary Tessa Jowell told MPs that funding for it would be ring-fenced in the licence fee settlement. But the BBC is likely to have to wait until February to find out exactly how much money it will receive.

Jowell admitted a decision on the level of the settlement would not be made this year, but said the Government would "ensure that the structure of the licence fee makes clear that the move to the North West should happen."

She went on: " "I was pleased to hear the Governors last week saying that a move to Salford of key BBC departments would represent value for money for licence fee payers. I can say this afternoon that it is my expectation that the BBC will make that move."

But the media secretary also denied that the corporation has plunged the corporation into a state of limbo by delaying the decision.

With Parliament due to adjourn tomorrow (19 December) for a three-week Christmas break, the minister acknowledged that negotiations with the BBC were continuing and the government would not be able to keep its previous commitment to make an announcement "before the end of the year".

But Jowell claimed in the Commons that the BBC was "completely relaxed about the timing of the licence fee settlement".

That prompted Tory shadow media secretary Hugo Swire to unleash criticism of the government's handling of the licence fee settlement.

"It is now three years since the charter review process started, but the BBC is entering the Christmas period with no licence fee settlement,"
Swire told the minister at department of Culture, Media and Sport questions.

"At a crucial time of preparing for digital switchover and with the BBC Trust yet to begin formally operating, the government's mishandling of the situation has left the corporation in limbo and unable to plan ahead effectively.

"We are gravely concerned that there is no one at the helm of the BBC with any broadcasting experience at such a crucial time.

"What will happen should another Hutton-type situation arise? Can the secretary of state say when the licence fee announcement will be made and crucially whether there will be a new chairman of the Trust in place when it is formally decided?"

The secretary of state told him: "The opposition can be reassured. The BBC is completely relaxed about the timing of the licence fee settlement and it is fully aware that arrangements are now in train to recruit a new chairman for the BBC.

"Those negotiations will continue and I hope will be concluded very soon."

Earlier, Jowell told MPs: "It is worth recording that the last licence fee settlement wasn't concluded until the middle of February.

She continued: "The BBC licence fee settlement has to achieve the following objectives: First, the BBC has to have enough money to lead on digital switchover. Secondly it has to have enough money to be a broadcaster of scale in an increasingly competitive global market place.
And, perhaps most importantly of all, it has to have enough money for the high quality programming that licence fee payers have said they want time and time again over the last two years.

"But against the background of those needs, the BBC must be an efficient organisation and spend the money wisely and in the interests of the licence fee payer."

All-Party Media Select Committee chairman John Whittingdale said that if the Trust was to remain credible the new chairman "should be a critical judge of the BBC and not a cheer leader for it".

Labour MP Barry Sheerman also warned that the government would face a backlash if the licence fee settlement resulted in the BBC abandoning its plan to move key departments to Salford.

"If we don't give sufficient funding for pushing some of the activities of the BBC to Manchester there will be some unpopular ministers sitting on that bench," he said.

But the minister told him: "The BBC spends public money and must spend that money carefully and in the public interest."

Jowell said newspaper advertisements seeking applicants for the chairmanship would be placed in newspapers early in the new year.

"The appointment of the BBC chairman will be conducted entirely within the rules of the Commission of Public Appointments."

She said she hoped the new chairman would be appointed in the spring.

A BBC spokeswoman said: "We look forward to having a strong, good licence fee settlement as soon as possible."