The BBC's efficiency programme


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BBC's efficiency Programme : Seventy-third report of session 2010-12, report, together with formal minutes, oral and written Evidence




The efficiency of radio production at the BBC


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The BBC, in 2007-08, spent £462 million on its 16 radio stations. The BBC has set these 16 stations a combined target of efficiency savings of £69 million over the five year period to March 2013, representing an annual saving of 3 per cent. The BBC proposed unacceptable constraints on the Comptroller and Auditor General's access to information and his discretion to report to his findings to Parliament. The situation arose because the Comptroller and Auditor General does not have statutory unrestricted rights of access to the BBC, which he does with all other publicly funded bodies. The BBC has wide ranges of costs for similar programmes within and between its radio stations. The average cost for an hour of comparable music programmes on Radio 2 is more than 50 per cent higher than on Radio 1. For most breakfast and 'drivetime' slots, the BBC's costs are significantly higher than commercial stations, largely because of payments to presenters. The BBC has not used cost comparisons across its own programmes, or against commercial radio, to identify scope for efficiencies. The BBC uses its principal value for money indicator-cost per listener hour-to justify the cost of presenters on the basis of audience size, but the indicator does not provide assurance that programme costs are the minimum necessary to reach the required quality and intended audience. For most radio programmes, presenters' salaries represent the majority of programming costs, but the BBC is paying more than the market price for its top radio presenters. The BBC has prevented full public scrutiny of the value for money of expenditure on presenters by agreeing confidentiality clauses with some presenters.




Performance


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BBC Commercial Operations


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This report investigates: the governance of the BBC's commercial arm, BBC Worldwide; the activities of BBC Worldwide, including programme sales, production, magazines and websites; BBC Worldwide's acquisition of Lonely Planet; and the possible partnership between BBC Worldwide and Channel 4. There are major benefits from the BBC undertaking commercial activities: the profits generated by the exploitation of the BBC's intellectual property can be reinvested in the BBC's public services, to the benefit of licence fee payers. But the manner in which some of the BBC's commercial revenue is generated, and the governance arrangements within which the BBC Worldwide operates, causes increasing concern. Worldwide has proved successful in recent years in exploiting new commercial opportunities, made possible by a loosening of the rules that govern the limits to its operations. However, there a balance to be drawn between Worldwide generating a return for the BBC, and limiting Worldwide's operations in order to ensure it upholds the BBC's reputation and does not damage its commercial competitors. Worldwide's minority stakes in overseas production companies, its controversial acquisition of Lonely Planet, and its growing portfolio of magazines, suggest that the balance has been tipped too far in favour of Worldwide's unrestricted expansion, jeopardising the reputation of the BBC and having an adverse impact on its commercial competitors. It is in the interests of the UK's creative economy as a whole that BBC Worldwide's activities are reined back. The BBC Trust should reinstate the rule that all BBC commercial activity must have a clear link with core BBC programming.




BBC licence fee settlement and annual report


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The Culture Media and Sport Committee says that the main outcomes of the BBC Trust's strategic review do not move the BBC on to the extent required by current circumstances, and that the incoming Chairman will have much to get grips with. The new licence fee agreement was reached "unexpectedly" in October 2010 between the Department for Culture Media and Sport and the BBC, but without any time for wider consultation with viewers or Parliament. The Committee believes the agreement reached is a reasonable one, but the process undermined confidence in both the Government's and the BBC's commitment to transparency and accountability. On the partnership between BBC and S4C, it is unclear how S4C can retain its independence under the new arrangements. It is extraordinary that the Government and the BBC should agree such wide-ranging changes without consultation or giving S4C any notice or say at all. The Committee is particularly concerned that National Audit Office still does not have the promised access to conduct independent assessments of the BBC's value for money. The Committee is also disappointed that banded information on talent salaries is still not in the public domain. The BBC opened itself to predictable ridicule with the decision to hire a "migration manager" who had to commute from the United States to manage the transition to the new Salford site. The report concludes that big questions remain over how radically the BBC needs to reconfigure both content and delivery in the years ahead.




The Ownership of the News


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This report examines the impact that media ownership can have on the news and the effect of consolidation on the newspaper, television and radio industries. The newspaper industry is facing severe problems as readership levels fall; young people turn to other sources of news; and advertising moves to the internet. Newspaper companies are having to make savings and this is having a particular impact on investment in news gathering and investigative journalism. In television news the same trends are evident. Most news programmes have smaller audiences than they had ten years ago; younger people in particular are watching less television news; commercial television channels are losing advertising revenue to the internet. New media, in particular the internet, are having a major impact on the way news is produced and consumed, but the traditional forms of news are likely to be the most popular sources of news for the foreseeable future. The proliferation of news sources has not been matched by a corresponding expansion in professional and investigative journalism. Owners can and do influence the news in a variety of ways. They are in a position to have significant political impact. The consolidation of media ownership adds to the risk of disproportionate influence. The Committee recommends reform of the public interest test criteria for newspaper mergers and also believes that reforming cross-media ownership restrictions on regional and local newspaper and radio mergers is necessary. The Committee does not consider changes in ownership regulation and competition law to be enough if the aim is to ensure a range of voices and high quality news. The public service broadcasting system in the United Kingdom provides an invaluable news service for the citizen and it is crucial that the contribution of all the public service broadcasters is maintained.




The War Against the BBC


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There's a war on against the BBC. It is under threat as never before. And if we lose it, we won't get it back. The BBC is our most important cultural institution, our best-value entertainment provider, and the global face of Britain. It's our most trusted news source in a world of divisive disinformation. But it is facing relentless attacks by powerful commercial and political enemies, including deep funding cuts - much deeper than most people realise - with imminent further cuts threatened. This book busts the myths about the BBC and shows us how we can save it, before it's too late.




Public Bbc,First Report of Session


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The Committee's report on the BBC's Charter review focuses on four inter-related issues: i) the scope and remit of the BBC in the context of the growth of digital TV and on-going technological developments in audiovisual communications; ii) its funding mechanism; iii) its governance and regulation; and iv) whether a Charter provides the most appropriate means of establishing the Corporation in a rapidly-changing communications environment. Key aspects considered include the role, definition and scope of public service broadcasting, the growth of multichannel television, the on-going roll-out of broadband networks, and the Government's plans to switch off the analogue television signal. The report makes 38 conclusions and recommendations, including i) the BBC should be placed on a statutory basis by Act of Parliament at the earliest opportunity, with allowance for pre-legislative scrutiny by a joint Committee of both Houses; with a five year Charter to cover the interim period, between the date the current Charter expires at the end of 2006 and the passing of the recommended legislation; and ii) fundamental changes in the governance system of the BBC, with responsibility for corporate governance separated from maintenance and regulation of its independence.




Cents and Sustainability


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Cents and Sustainability is a clear-sighted response to the 1987 call by Dr Gro Brundtland in Our Common Future to achieve a new era of economic growth that is 'forceful and at the same time socially and environmentally sustainable'. The Brundtland Report argued that not only was it achievable, but that it was an urgent imperative in order to achieve a transition to sustainable development while significantly reducing poverty and driving 'clean and green' investment. With some still arguing for significantly slowing economic growth in order to reduce pressures on the environment, this new book, Cents and Sustainability, shows that it is possible to reconcile the need for economic growth and environmental sustainability through a strategy to decouple economic growth from environmental pressures, combined with a renewed commitment to achieve significant environmental restoration and poverty reduction. Beginning with a brief overview of some of the most pressing environmental challenges of our time, the book then explains 'decoupling theory', overviews a number of factors that can undermine and even block efforts to decouple in both developed and developing countries, and then discusses a number of key considerations to assist the development of national 'decoupling strategies'. The book then focuses on presenting evidence to support greater action, not just on climate change, but also on decoupling economic growth from the loss of biodiversity and the deterioration of natural systems, freshwater extraction, waste production, and air pollution. In the lead up to the 2012 United Nations Earth Summit and beyond, Cents and Sustainability will be a crucial guide to inform and assist nations to develop strategies to significantly reduce environmental pressures, strengthen their economy, create jobs and reduce poverty. 'I commend the team from The Natural Edge Project and their partners for undertaking to develop a response to 'Our Common Future' to mark its 20th anniversary.' Dr Gro Brundtland. Sequel to The Natural Advantage of Nations Published with The Natural Edge Project




Review


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