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BBC White Paper - What it Means

Media Secretary Tessa JowellMedia Secretary Tessa Jowell has published the government's long-awaited BBC white paper, laying down new rules to ensure the corporation will "justify the privilege of the licence fee". The white paper lays down the way the BBC should operate in future and paves the way for the detailed BBC licence fee negiotiations.

 The white paper - delayed due to a change in the Parliamentary schedule - carries forward much of the thinking contained in last year's green paper. The licence fee is guaranteed for the next charter period, but reviewed around the time when digital switchover is completed in 2012.

 Revealing the BBC White Paper, Media Secretary Tessa JowellWHAT THE WHITE PAPER OUTLINES

  • The BBC Board of Governors will be replaced with a new BBC Trust and an Executive Board
  • The board will be responsible for delivery of BBC service 
  • The BBC Trust will be charged with holding the Executive Board to account.
  • The corporation will promote the switch to digital television.
  • Ofcom will regulate launch of new BBC services and have power to carry out a market impact assessment.
  • Final decision on new services will rest with the Trust under a public value test.
  • A three-tiered check system will see every BBC service given a "detailed service licence" setting out exactly what it should do.
  • Each service must ensure that its content is "demonstrably right for the BBC" by displaying at least one of the following characteristics: high quality; challenging; original; innovative; and engaging.
  • The BBC "should not chase ratings through derivative or copy-cat programming".
  • At the same time, output must not be limited to "worthy" programmes. Entertainment should be at the heart of the BBC's mission.
  • The BBC should bear in mind when buying programmes from overseas - such as major US movies - that any acquisitions "offer licence fee payers something different from what is available to them from other sources".

BBC Director General Mark Thompson: "BBC may not be able to afford this."

THE BBC LICENCE FEE

The contents of the white paper will form the basis of the licence fee negotiations, which looks set to be a fierce battle between the BBC and the government. The Corporation claims the cost of carrying out the green paper's recommendations will be £1.6bn over the next seven years, on top of the £3.9bn savings and extra revenue it intends to make.

That would see the licence fee rise at 2.3% above inflation, reaching at least £180 per household by 2014.Director general Mark Thompson has warned if the settlement falls below this figure, the BBC may not be able to fulfil some of the recommendations. The DCMS has hired accountancy firm PKF to look through the BBC's figures, and will publish their audit of them in the spring.

by James MacGregor

Published 14 March 2006