Grade Promises Neighbourly Relations With Rivals

Addressing the Incorporated Society of British Advertisers (ISBA) conference today BBC chairman, Michael Grade, pledged that the BBC would be a good neighbour to its commercial rivals in the wake of Culture Secretary Tessa Jowell’s green paper on the Corporation’s future last week.

In a good humoured speech to delegates, Grade stated that, while he agreed with the Government’s proposals for the future governance of the BBC, he had hoped that the Corporation’s current round of reforms would be given a chance to achieve some of the green paper’s stated aims.

He said: “As the BBC approaches the end of its current charter we can now begin to see the shape of the next, the new BBC. In some respects it is not the shape we have been arguing for, I had hoped that the reform programme we have already put in place would be given enough time to prove its worth, but at least we now know that in the key areas of the length of the new charter, the system of governance and the continuance of the licence fee, the Government’s policy is now settled. The arguments are over.”

Grade stated that the Government’s proposals for the BBC broadly met his own criteria for any forthcoming management reform, with requirements for independence and accountability of paramount importance. “Earlier this year I set out five key tests and principals that any new governance system had to pass,” he told delegates. “They were simply independence, rigorous stewardship of the public’s money, accountability to licence fee payers, clarity of roles and finally practicality and workability. I and my fellow governors believe that the new proposals broadly pass these tests. As far as the governance of the new BBC goes, the governors will no longer exist, but the new trust that will replace them will have the authority to protect the BBC from political or commercial interference.”

However, the broadcast boss also stated that changes were needed in the BBC’s behaviour towards its rivals, with Grade explaining: “I joined the BBC nine months ago in order to change it, not defend the status quo. In the past nine months myself and my fellow governors have made some pretty big, fundamental changes. As a result the BBC is now doing business in a very different way. One of those changes is ensuring that the BBC behaves sensitively and responsibly to its commercial competitors.”

Underlining the Corporation’s role in propagating quality programming, Grade explained that there is a case to be made that a strong BBC benefits the broadcast industry as a whole. “The BBC’s massive investment in high quality, innovative TV and radio programming helps to create and sustain the broadcasting market,” he explained. “Without that investment the advertiser supported sector might just be tempted to reduce its own investment in original production. It’s the BBC that keeps us honest… But there is also a case to be made that the BBC has not always been as vigilant as it could have been about its potential to have a negative effect on its commercial competitors.”

Outlining the changes to come, Grade stated: “Under the new charter the BBC will continue to be a big beast, but that is no reason why it shouldn’t also be a good corporate neighbour to other media providers. I believe it has a duty so to be.”

Michael Grade’s assurances over the BBC’s future practices follow numerous calls against its aggressive self-promotion, with bodies such as the Institute of Practitioners in Advertising (IPA) crying foul over its head-to-head programming (see IPA Report Deplores Aggressive And Commercial BBC).

The Corporation’s online operations have also come under fire from competitors, with several sites being forced to shut down after operating outside of established subject areas (see BBC Plans To Save £6 Million Through Website Closures).

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

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