Jowell Says Licence Fee Will Stay

Culture Secretary Tessa Jowell today all but dismissed the idea that the licence fee system of funding the BBC will be scrapped in the near future.

Speaking at the Social Market Foundation Seminar on Public Service Broadcasting, she confirmed that a review of the Corporation’s charter would begin in 2004 and that a decision must be in place by 2006 but said: “Is PSB going to be scrapped in the next three years? No. Has anyone come up with a formula for replacing the Licence Fee that would actually work in the circumstances of the next three years? No.”

The minister went on to say that she would be happy to hear genuine proposals for how the BBC could be funded, but added: “This is a well worn path and I’m not expecting to be surprised.”

She also spoke of the changing role and regulation of the BBC: “The last ten years have seen more change for the BBC than in any decade preceding. It must continue to change. But that does not mean chasing every commercial opportunity, every development in the commercial TV world. It means finding the range (the very wide range) where its offer is distinctive. We need to find those limits and look to the regulatory regime to police them.”

A different viewpoint was offered by Tim Yeo, Jowell’s opposite number on the Conservative benches. Speaking at the same event, he suggested: “Now is the time to move towards a market in broadcasting where viewers pay for what they choose to watch and not for much else; time to reduce the distorting effects of the BBC licence fee; and to set the BBC itself free to grow in competition with other suppliers.”

DCMS: 020 7211 6200 www.culture.gov.uk

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