‘No Case For Supplementary BBC Funding’ Says The IPA

The Institute of Practitioners in Advertising (IPA) gave its submission today to the Department of Culture, Media and Sport for the BBC Funding Review Panel. The Group’s submission comes after similar ones from ITV and the CRCA (see Newsline) and ISBA (see Newsline).

The IPA feels that before the idea of supplementary funding for the BBC be addressed, the issue of what the BBC is for should be tackled.

The Institute was concerned that the BBC has failed to follow its remit since 1992, and that it is in fact behaving more and more like a commercial broadcaster, consequently having a restrictive effect on the commercial sector. The IPA therefore thought it paradoxical that the BBC have fewer regulatory constraints than the principle commercial broadcaster ITV.

The IPA believes therefore that there should be a single external economic regulator (which could be the Independent Television Commission) for the BBC and commercial broadcasters.

As far as supplementary funding is concerned, the Institute does not believe that there is a strong enough case for it, at least not until the Government Review of 2003/04 establishes the BBC’s future purpose and governance. Until this review, the IPA recommended that the Government relax its ‘disproportionate’ constraints applying to ITV, and encourage the BBC to focus on its Extending Choice remit.

In its submission, ISBA suggested that the BBC seek funding by more commercial means. The IPA said that should the Review Panel be persuaded to recommend to the BBC that it seek commercial sources for supplementing the licence fee revenue, it should first undertake a major economic review of the possible consequences for the market, and for the commercial broadcasters in particular.

IPA: 0171 235 7020