1 INTRODUCTION
1. On 11 December 2003, the Secretary of State for
Culture, Media and Sport issued a written ministerial statement
on the BBC Charter Review. This marked the launch of the first
of three phases, each involving public consultation, though with
the declared pre-emptive result of "a strong BBC, independent
of Government". The initial consultation, which closed on
31 March 2004, was supported by a "very broad" consultation
document.[1] A green paper—with
'white edges'—is expected in the early part of 2005,[2]
with a conclusive white paper to follow later in the year. The
Government will conclude the process with "a full and formal
opportunity for both Houses to contribute their views."[3]
Lord (Terry) Burns has been providing the Secretary of State with
advice throughout the process, as chairman of the Independent
Advisory Panel on Charter Review (IAP). He has been conducting
a series of seminars aimed at exploring options and developing
arguments, and earlier this month published a preliminary document
on "emerging themes".
2. The key questions posed by the Government were
open-ended in nature. They solicited views on BBC services and
how they might adapt to changes in technology and culture. The
funding, organisation, regulation and accountability of the BBC
were also covered.
3. Feeding into the Government's Charter Review have
been a number of parallel exercises, notably: the Office of Communications'
statutory review of public service television broadcasting (PSB);
and independent reviews, commissioned by DCMS, of BBC Online (bbc.co.uk),
digital television channels and digital radio services.
4. The Office of Communications (Ofcom) began the
first of its quinquennial reviews into PSB, as required by the
Communications Act, in November 2003. The review's purpose was
to examine the effectiveness with which the public service broadcasters
- BBC, ITV, Channel 4, S4C, Five and Teletext - have, taken together,
delivered their public service obligations, and to make recommendations
for maintaining and strengthening these. A report on the first
phase of this review was published in April 2004.[4]
A second phase report was published on 30 September, and contained
a number of proposals for consultation. That consultation ended
on 24 November and will inform Ofcom's third and final report,
containing firm recommendations which is expected in the coming
weeks.
5. The independent review of the BBC online service
by Philip Graf was commissioned by the Secretary of State as the
second in a rolling programme of reviews of the BBC's new services
(the first was Richard Lambert's review of BBC News 24 in 2002).
The Graf review reported in May 2004. In October, Professor
Patrick Barwise and Tim Gardam reported on, respectively, the
BBC's new digital television and radio services. Both reports
were supported by a market impact assessment conducted by Ofcom.
6. All of the above reviews have involved the BBC
preparing submissions, including the Corporation's formal response
to the DCMS consultation on Charter review, a document of 142
pages; many of which are understandably devoted to proclaiming
the range and diversity of BBC output, on television, radio and
the Internet. At the same time, the response does acknowledge
some failures, for example in relation to specific programmes,
while asserting that these are sometimes inevitable in any organisation
charged with taking creative risks. The BBC argues that its ability
to take such risks is important and is due, in part, to the security
of licence fee funding. It recognises that the media landscape
has arguably changed more radically and rapidly than ever before.
At the time the BBC submitted its Charter review response, it
published Building public value, its "manifesto for
the future" and explicit bid for the renewal of its mandate
and funding on broadly similar terms as currently apply.
7. On 11 March, the Committee issued a call for evidence
to aid its own inquiry into BBC Charter review. On 25 May we held
our first oral evidence session, involving a panel of engineers
and policy academics who provided invaluable insights into the
purpose, scope and remit of the BBC against a backdrop of accelerating
technological change. This oral evidence, together with some
of the written submissions we had at that stage received, was
published on 16 June, so as to inform our future deliberations.[5]
8. Our inquiry has focused on four inter-linked issues:
the scope and remit of the BBC in the context of the growth of
digital TV and on-going technological developments in audio-visual
communications; the funding mechanism for the BBC; its governance
and regulation; and whether a Charter provides the most appropriate
means of establishing the Corporation in a rapidly-changing communications
environment. In considering the BBC's remit, the Committee examined
the role, definition and scope of public service broadcasting,
both in terms of content and access to that content.[6]
Further context was provided by the public service obligations
on other broadcasters, the growth of multi-channel television,
the on-going roll-out of broadband networks, and the Government's
plans to switch off the analogue television signal - a necessary
precursor to maximising the quality and geographical coverage
of digital broadcasts. We welcome the undertaking of the Secretary
of State to give "very serious consideration" to both
the proposals and arguments mounted in this report.[7]
For our part, we intend to examine closely the Government's green
paper on the outcome of its Charter review process.
1 Review of the BBC's Royal Charter, DCMS, December
2003 Back
2
Ev 232, Q 588 Back
3
HC Deb 11 December 2003 c99WS Back
4
Is television special?, Ofcom, April 2004 Back
5
BBC Charter Renewal, Oral Evidence and Written Evidence, 2003-04,
HC 598-i. For ease of reference this material is republished,
with the subsequent evidence heard and received, in the volume
of evidence that accompanies this Report; HC 82, 2004-05, Volume
II. Back
6
The public evidence sessions held, and witnesses heard, are listed
at the back of this volume. The visits conducted by the Committee
are discussed in paragraphs 33 to 46 of the Report. Back
7
Ev 243, Q 636 Back
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