Green Paper, white in parts

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Posted by Andrew McIntosh

The Government minister responsible for broadcasting, Andrew McIntosh, presented the case for the reform of the BBC along the lines set out in the Green Paper. Some parts of the paper, he said, were more white than green - in fact, the only absolute commitment the Government had wasin the title of the paper - “A strong BBC, Independent of Government".

Lord McIntosh's 'speaking notes' are reproduced below. This text deviates from the minister's actual speech and should not be taken as representing a definitive position.

SPEAKING NOTE

Introduction
Delighted to have opportunity to speak so soon after publication of our Charter Review Green Paper.

Green Paper is of course not an end in itself, but just a means to the end.

Key aspects of process so far have been openness and importance of informed debate, and we expect that to continue in run up to formulation of White Paper. These kinds of events are central to that process.
 
Context
Title of Green Paper was “A strong BBC, Independent of Government".

This was our starting point, and our only assumption. Everything else was up for discussion.

Broadcasting landscape is changing before our very eyes, and at an unprecedented rate - digital technology becoming increasing popular and widespread, changing how we consume our media requirements...

Clear that, in order to remain strong, BBC needs to change,

Public Service Broadcasting
I'm aware that this seminar is paying particular attention to the very important issue of public service broadcasting, so I just wanted to say a few words about that before I turn to the Green Paper itself.

Principles of public service broadcasting (PSB), with BBC at its heart, are widely understood and widely supported.

People in their millions may be embracing the rapidly expanding choices offered by digital broadcasting, but they still see the BBC and public service broadcasting as having a key role in the multi-channel future.

If anything, people see maintaining PSB as more important, not less, as more and more commercial services crowd on to the scene, and I can't stress strongly enough that we wholeheartedly subscribe to that point of view.

BBC is a valuable public service - its programmes bring us real cultural and educational benefits. In a world of proliferating media, it is a source of news and information that almost everyone trusts, and long may it remain so. It should remain the cornerstone of public service broadcasting.

That said: The BBC is only one part of a wider system of public service broadcasting, where a range of different broadcasters offer complementary and competing services.

In the short term, we believe that Channel 4, ITV and Five will continue to provide this plurality in public service television.

However, in the longer term Ofcom suggests that the BBC may be left as a near-monopoly provider of some types of programming, if other major broadcasters adopt a more commercial strategy.

Robin [Foster - ed] may want to speak about this in more detail, but various proposals have been put forward, in response to Ofcom's report, for a longer-term solution including PSP [the 'public service publisher'], public funding of C4 and PSBC.

Nothing has been decided and these are decision (sic) for another day. Hence our proposal for a future review to look at:

* the case for plurality;
* Channel 4's longer-term position; whether any public funding (including licence fee income) should be distributed more widely, beyond the BBC, in order to sustain plurality and competition in public service broadcasting (and, consequently, whether the level of the licence fee needs to change);
* how any such distribution might take place.

Green Paper
Introduction
Although it's a Green Paper, there are some “White-ish" elements" in it. We have, as I'm sure you're aware, done a lot of work, research and consultation to get to this point, and so are confident about the basic principles that we want to work from:

WHITE ON PRINCIPLES AND KEY CONSTITUTIONAL ISSUES
White on the principle of a strong and independent BBC

* BBC to remain a cultural institution of real size and scope
* Wide range of programming - not just minority interests
* Must be independent of Government, Parliament and any commercial influence

White on how to make sure the BBC is strong and independent - its constitution and funding

* Ten-year Charter & Ten-year licence fee settlement
* New governance structure - BBC Trust and Executive Board
* Clearer remit - five public purposes - as basis for measuring performance
* Increased accountability to licence fee payers

GREEN ON DETAILS OF OPERATION AND ORGANISATION
Green on the detail of new accountability structures

* Launch of a public debate on how to best ensure licence fee payers get a say in how the BBC is run

Green on the operation of the licence fee

* Its future level
* How it should be collected
* Whether anomalies in concessions schemes could be removed

Green on detailed issues of organisation and infrastructure

* Membership of the BBC Trust
* Value for money (including costs of any regional expansion or new services)
* Whether BBC-proposed changes are right - eg. archive, ultra-local news services
* How to best ensure fair competition in production/commissioning
* Whether any changes are needed to commercial services or their regulation 
 
GREEN ABOUT THE LONGER TERM
Green about how PSB might be funded beyond the next ten years
Interim review, towards the end of switchover, to consider:

* future funding models for the BBC (beyond 2016)

* possible distribution of licence fee income beyond the BBC (beyond 2012)

Turning to more of the detail, perhaps inevitably, the two aspects that have been the focus of most attention have been Governance and Funding...

Governance
Central issue for this Charter Review.

Current BBC Board of Governors carries out two potentially conflicting roles - both running the BBC and assessing how well it is performing. This is increasingly out of step with best corporate governance practice. Two functions need to be more clearly separated in future - vital that the BBC is subjected to rigorous scrutiny to make sure it fulfils its public purposes.

Propose replacing Board of Governors with a new body that we have called a BBC Trust that will be separate from BBC management. Trust will have ultimate responsibility for the licence fee, and will be structured so that it is directly accountable to licence fee payers. Trust will approve a specific licence for each BBC service - to hold the BBC to its public purposes.

Will also establish a formally constituted Executive Board, responsible for the delivery of the BBC's services within the framework set by the Trust. Will be clear division of functions between the two.

This addresses the Independent Panel's concern that different responsibilities should be clearly separated and set out to avoid any possibility of confusion or capture. Also consistent with the best element of the BBC's Building Public Value proposal, by establishing Trust as a powerful advocate for the public interest, with ultimate power over the licence fee and the BBC.

Acknowledge that many people are concerned about just how accountable the BBC is. To address this, Trust will have a number of tools with which to hold the BBC to account:

* Detailed service licences against which performance can be measured;

* Public Value Tests for new or amended service;
* Expert staff supporting the Trust.

For the time being, propose that regulatory responsibilities should be divided between Ofcom and the BBC Trust in the same way that they are currently divided between Ofcom and the BBC Governors. The Trust retains responsibility for upholding standards of accuracy and impartiality. Will return to review this division five years into next Charter.

Ofcom should have a key role in competition issues - conducting market impact tests for proposed new services and agreeing the terminology used for any other such tests

Also consider new role approving BBC internal fair trading code, and will look at any case made for additional, specific, ex-ante powers in next consultation phase.

Funding
BBC should be funded by the TV licence fee for the next ten years.

Before the end of that ten-year period, towards the end of the digital switchover process, there should be a further review of whether there might be a case for other funding methods, particularly subscription, to make a contribution after 2016.

Will also be assessing the funding needs of the BBC in order to set the level of the licence fee from April 2007. Review will be run by Government. It will take independent advice on a range of issues, including value for money and will take account of the public's views.

Separate work will be done to reexamine any anomalies in the existing licence fee concessions policy, particularly in the ARC scheme that applies to residents of sheltered housing.

Finally, we will review the existing licence fee collection policy to consider whether new technology allows collection to be conducted in a more cost-effective way, for example making more use of direct debit and inter net payment schemes.

But more to the Green Paper than just these two issues. And recognise that there are other issues of particular interest to many here today, particularly around production and programming....

Independent Production
The BBC needs to sustain a significant base of in-house production, but if it wants to broadcast the best possible programme in every slot, also has a responsibility to adopt the most meritocratic commissioning policy possible, and to give the independent sector the chance to compete.

ITC has conducted thorough review of the programme supply market in television, and new codes of practice and terms of trade drawn up between independent producers and terrestrial broadcasters.

Ofcom, proposes to undertake a further review of the market in the course of 2005 - in the meantime, sensible to consider whether recent changes are sufficient for the BBC, and what further options might be adopted.

BBC, along with other terrestrial broadcasters, BBC currently required to source 25% of qualifying programmes from independent producers. Quota done much to create a thriving and competitive production industry across the UK. BBC has failed to meet the quota in two out of the last three years, and one option would be to raise this quota for the BBC, or amend the way it (sic).

BBC's own internal review of content supply has proposed the creation of a new 'window of creative competition' for a further 25% of commissions beyond the existing independent quota.

There needs to be a full and public debate around these points before we can be satisfied that the window of creative competition will be certain to produce a fair and transparent system. We are considering the options in this area and would welcome views.

Regional Production
BBC should make sure its contribution to UK production furthers the economic development of the UK beyond London.

Thriving production centres bring jobs and revenue to their region, and where there is a critical mass of activity they promote the growth of other creative industries, too. For these reasons, the BBC has already set quotas for television that require 25% of its UK-produced network hours to be produced outside London, and 30% of total UK production funding to be spent there.

Quotas are important, but we recognize that they can be something of a blunt instrument. We therefore welcome the BBC's recent announcement that it will consider moving a significant amount of production to cities outside London, particularly to a new hub in Manchester.

We will want to consider more closely the potential costs and benefits of any proposal as we conduct work to set the future level of the licence fee.

Regional Programming
The BBC should provide network programming that reflects the activities and cultures of the diverse range of different communities within the UK.

This includes reflect modern Britain's diversity through the on-air portrayal of ethnic minorities, those with disabilities and those from other minorities and different religions and other beliefs that is appropriate to multi-faith Britain (sic).

It should continue to provide the much-valued news and current affairs programmes on television at a regional level.

In line with Ofcom's recommendation, the BBC should consider what scope it has for expanding its contribution to regional programming. This includes providing a larger amount of dedicated programming in and for each of the devolved nations, which in turn should include provision in indigenous minority languages across a range of platforms

However, the BBC should not be asked to simply compensate for the reduction of ITV regional output.

The rest
I've spoken for long enough, and hope I've given you an insight into where the Government stands on public service broadcasting, governance and funding, and production and programming issues.

There are of course other issues addressed by the Green Paper that I'm happy to take up further if others wish:

* We believe that the best way to give the BBC the independence and certainty it needs is through a new Royal Charter, lasting for another ten years.
* One of the conditions of the new licence fee settlement will be that the BBC should play a leading role in the process of switching Britain over fully from analogue to digital.
* The BBC should remain a cultural institution of real size and scope. It should not only be a broadcaster of minority interest programming - it should provide a wide range of different programmes to a wide range of different audiences, though its size and shape of the BBC must be allowed to change (sic) over the next ten years as the market, technology, public opinion and consumer behaviour change around it.
* While we want a strong BBC, we also need to sustain a flourishing commercial sector, and BBC needs to be vigilant about its potential to have a negative effect on commercial competitors. Proposals addressing the BBC's commercial activities are contained in the Green Paper.

To conclude
I haven't tried to cover everything in the Green Paper in my speech to you today. I haven't even touched, for example, on foreign and World Service issues, important though they are. You all have a copy, you know what it says.

What you want to do is discuss those aspects of particular interest to you, and I hope that my quick summary has helped bring some of the issues out in those areas.

I just want to conclude by saying reiterating (sic) that the broadcasting landscape is a very different one to that of ten years ago, and we can expect it to be very different in another ten year's time.

BBC's mission to “inform, educate and entertain" remains relevant, but we've expanded it to include the six new purposes as a way of encompassing the new role that the BBC will be expected to fulfill over the forthcoming period.

Five purposes...

i - Sustaining citizenship and civil society
* eg, Informing ourselves and others and increasing our understanding of the world through news, information and analysis of current events and ideas

ii - Promoting education and learning
* eg, Stimulating our interest in and knowledge of a full range of subjects and issues through content that is accessible and can encourage either formal or informal learning
* Providing specialist educational programmes and accompanying material to facilitate learning at all levels and for all ages

iii - Stimulating creativity and cultural excellence
* eg, Enriching the cultural life of the UK through creative excellence in distinctive and original programming
* Fostering creativity and nurturing talent - using the licence fee as venture capital for creativity
* Promoting interest, engagement and participation in cultural activity among new audiences

iv - Reflecting the UK, its nations, regions and communities
* eg, Reflecting and strengthening our cultural identity through original programming at UK, national and regional level, on occasion bringing audiences together for shared experiences
* Making us aware of different cultures and alternative viewpoints, through programmes that reflect the lives of other people and other communities within the UK

v - Bringing the world to the UK and the UK to the world
* eg, Making UK audiences aware of international issues and of the different cultures and viewpoints of people living outside the UK
* Bringing high-quality international news coverage to a global audience through radio, TV and new media

...As well as the sixth purpose will commits the BBC to helping to build digital Britain (sic)...

This is only a Green Paper. They are proposals for consultation. Please feed your views in.

DATELINE: 25 January, 2010

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