BBC Rejects Sharing the Licence Fee

Speaking at the Westminster Media Forum this morning, BBC Chairman, Michael Grade stated that the licence fee would be even more valid in a digital world, and that the BBC was strongly opposed to the Government’s proposal to consider “top-slicing” the £2.8bn fee in future.

Top-slicing was pitched by Tessa Jowell as an area to be reviewed (as part of a wider future review of alternative funding methods), and would mean ITV or Channel 4 could pitch for funding for public service arts, religious or educational output. Naturally, ITV is pitching hard for this to be adopted.

Grade said “top-slicing” would “break the clear and well-understood line of accountability between the corporation and the licence fee payer,” and described it as “a thoroughly bad idea” which is “not good news for viewers and listeners”.

Tessa Jowell’s March green paper, proposed extending the licence fee method of funding the BBC for the full ten year period of the next charter, which begins in January 2007, but with a review of potential alternative funding methods taking place during that period.

Questioned at the same event by the BBC’s own media correspondent, Nick Higham, Grade rejected any call for the governors to intervene to prevent further strike action at the BBC, saying it would be “wholly inappropriate” for them to get involved.

He said the strike was “regrettable”, but it was up to the director general Mark Thompson and his management team to try to end the dispute.