Government Dismisses Plans To Abolish BBC Licence Fee
The Government has dismissed controversial new proposals to break-up the BBC and abolish its licence fee, claiming they would undermine the integrity of the publicly-funded broadcaster.
A group of media experts commissioned by the Conservative party has unveiled a package of plans that would see BBC funding transferred to a special public broadcasting authority that would finance the Corporation out of taxation and subscriptions (see Tory Report Calls For Reduction Of BBC Licence Fee).
David Elstein, chairman of the Broadcasting Policy Group and former Five chief executive, is also calling on the BBC to sell off its commercial division, divest its production operations and split television from radio.
However, Culture Secretary, Tessa Jowell, has dismissed the proposals, warning they would led to a weak and insignificant BBC, rather than the strong and independent Corporation that the Government’s policies were designed to achieve.
She said: “We are pursuing a Charter Review that is genuinely open, so to that extent we will accept the Elstein Report as a contribution to the debate. However, its prescription is for a weak, small BBC and we do not believe that is what the British people want.”
The publication of the report comes at a crucial time for the Corporation, which is facing calls for fundamental changes to the way it is governed following the highly critical conclusions of the Hutton enquiry. The BBC is also facing the prospect of a wide-ranging Government review designed to coincide with Charter Renewal in 2006 (see Dyke’s Departure Casts Doubt Over Future Role Of BBC).
However, Jowell has stressed the importance of the BBC remaining independent of Government and insists that Charter Renewal, which takes place every ten years, would have a far bigger canvas than the damning Hutton report.
She said: “Government policy, which underlines the 2003 Communications Act and is part of the terms of Charter review, is for a strong BBC independent of Government. This means a BBC of a scale and remit able to influence the wider media.”
ITV is also understood to have warned that the commercial sector could be damaged by the panel’s wide-ranging recommendations, which include a potential advertising model and pay-per-view element for the BBC’s range of digital channels.
The Broadcasting Policy Group report is separate from the Government’s ongoing review of the BBC and will not be accepted as policy by the Conservative Party until it has been fully scrutinised.
BBC: 020 8743 8000 www.bbc.co.uk
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