Governors Axed As BBC Charter Renewed For 10 Years

Culture secretary Tessa Jowell has unveiled radical plans for change at the BBC, with proposals that the Corporation’s governors be replaced with a new “BBC Trust”, while the licence fee continues to provide funding for another ten years.

Announcing her vision in a statement to Parliament, Jowell stated: “Alongside the NHS, the BBC is one of the two great institutions of British national life. For over eighty years, it has sought to represent the highest standards in broadcasting. Its archives are a record of our national collective memory, from the Coronation to the 1966 World Cup. From Dixon of Dock Green to The Office.”

The minister also stressed that the Corporation’s independence from the Government was essential, but recommended that there be changes to its governance, with the licence fee set for a review before the next charter period.

She said: “Perhaps surprisingly, the licence fee retains a high degree of public support. And although not perfect, we believe it remains the fairest way to fund the BBC. So it will continue throughout the next charter. In the coming months, we will decide on the right level for the fee after 2007. But beyond that we have to take account of the rapid advance in technology and media consumption.”

On the topic of governing the BBC Jowell was more radical in her proposals, with her green paper entitled A strong BBC, independent of government stating that “governance is the central issue for this charter review” and proposing a new BBC Trust, which will be chaired by Michael Grade, with responsibility for overseeing the licence fee and ensuring that public service obligations are adhered to.

The Trust, along with an Executive Board, will replace current Governors, making a clear division between the roles of managing the BBC and holding it to account. The BBC Trust will be the custodian of the Corporation’s purposes, the Licence Fee and the public interest, while the Executive Board will be accountable to the Trust for the delivery of the BBC’s services.

Jowell explained that the functions of the two bodies will be clearly defined, “enabling the Trust to judge the management’s performance clearly and authoritatively.” The Trust will also be given the tools to hold the BBC to account, with power to issue new service licences for each BBC service and apply a public value test to proposals for new services.

The executive board will be chaired by the BBC director general or, with the approval of the Trust, a non-executive. While the number of positions on the executive board has yet to be decided it is believed that a “significant minority of non-executives” will hold posts.

Jowell also proposed a 10-year charter, running from 1 January 2007 until 31 December 2016 to give the BBC and viewers more “stability” during the switchover to digital-only TV. However, alternative methods of funding will be investigated, opening the way for a subscription-based system to be in place before the end of the next charter period.

BBC: 020 8743 8000 www.bbc.co.uk

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