Commercial Broadcasters Take BBC Licence Row To The Top
Commercial broadcasters’ battle over the BBC’s licence fee bid continues, with the commercial television and radio industries sending a joint letter to Tessa Jowell, secretary of state for culture, media and sport, outlining their collective grievances.
British television and radio companies have joined forces to lobby government, in a bid to protect the commercial broadcasting industry from the huge damage that it perceives the BBC’s licence fee bid could do to the UK’s broadcast ecology if it is granted (see BBC Berated For Huge Cash Claim).
The letter is signed by Charles Allen, chief executive of ITV, Charlotte Wright, executive director of the Satellite and Cable Broadcasters Association and David Elstein, chairman of the Commercial Radio Broadcasters Association. The letter makes it clear to the government that the commercial broadcast industry feels its concerns are not fully appreciated.
The letter reads: “Even those of us who have previously expressed concern at the opacity and fluidity of the BBC’s financial reporting were taken aback by the severity of PKF’s conclusions following their examination of the BBC’s efficiencies and bid.
“We were particularly concerned that PKF had to ‘invest significant time’ in reconciling the BBC’s proposals, that the ‘costings used to support the investment programme are generally best estimates’ and that ‘in the past five years… the BBC has… delivered only marginal cash-releasing organisational efficiency savings.
“These findings suggest an organisation with poor financial control and an approach to financial reporting which is at best incompetent and occasionally misleading. We know how dimly our shareholders would look upon such independent findings against our own businesses and trust that your department will hold the BBC accountable on behalf of the licence fee payer.
“Our concern is compounded by the fact that the BBC’s bid includes monies for new TV, internet and radio services which are still subject to BBC Trust approval. It is both illogical and inappropriate to require the public to pay for services that have not even been deemed necessary.
“If the government were to accept the BBC’s bid for an increased licence fee, even if at a reduced level, it would signal a disregard for the wealth-generating importance of commercial broadcasters and the social imperative of a plurality of quality content provision.
“Our ability to contribute to a balanced broadcasting ecology will be undermined if even greater public funding enables the BBC to increase its dominance across all platforms, whilst driving up the cost of content for all broadcasters.”
BBC: 020 8743 8000 www.bbc.co.uk
ITV: 020 7843 8000 www.itv.com