Main section
-
Top story
Licence fee for 'wasteful' BBC will be cut
By Andrew Porter, Political Editor Daily Telegraph 17 July 2010
DATELINE: 19/7/10
The broadcaster has been responsible for "extraordinary and outrageous" waste in recent years and needs to recognise the "very constrained financial situation" the country is now in, Mr Hunt says. In an interview in today's Daily Telegraph, Mr Hunt says the broadcaster needs to change "huge numbers" of things that it does, warning the management that they should not interpret his silence on the issue of the licence fee since the election as a sign that he is happy with it.We need a better and leaner BBCIn his most explicit statement yet on the future of the £145.50 a year levy, the Culture Secretary says that he can "absolutely" see viewers paying less following next year's negotiations between the government and the BBC.
Responding to a question over whether the fee could fall at the next settlement, he says: "Yes I could. Absolutely. I think that's the discussion that we need to have.
"The BBC should not interpret the fact that we haven't said anything about the way licence fee payers funds are used as an indication that we are happy about it. We will be having very tough discussions."
Mr Hunt has been careful to not pre-judge the outcome of licence fee discussions but his comments are the clearest indication yet that the Coalition wants it reduced.
The process of reviewing the licence fee will begin next year and Mr Hunt says that is when he will use his "electoral mandate to say to the BBC now going forward for next five years." A new lower licence fee could then be in place for 2012.
The Culture Secretary, who says that imminent government cuts will be "horrible" adds: "There a moment when elected politicians have an opportunity to influence the BBC and it happens every five years. It is when the licence fee is renewed."
At a time when Whitehall departments are facing cuts of up to 40 per cent, Mr Hunt says: "The BBC will have to make tough decisions like everyone else.
"There are huge numbers of things that need to be changed at the BBC. They need to demonstrate the very constrained financial situation we are now in."
"All the concerns I had in opposition about executive salaries and use of licence fee funds for things many people thought were extraordinary or outrageous - that (next year) will be moment when I express them."
In recent weeks the BBC has embarked on what appears to be a pre-emptive series of policy announcements designed to head off a clash with Government over the licence fee and how it is used.
It has said it will close its generous pension scheme to new members and promised to cut salary bills at the top of the corporation by 25 per cent over the next 18 months.
Sir Michael Lyons, the chairman of the BBC Trust, has also indicated he wants the salaries of top "stars" published.
Sir Michael has suggested earnings should be published in bands, such as £750,000 - £1m, £1m - £5m and above £5m. He acknowledged that it is an area where the BBC needs to recapture the confidence of the public,
Earlier this month the corporation's annual report showed an increase in the BBC's overall staff numbers and pay bill. The latest figures show that at least 85 senior managers earn more than David Cameron's £142,500 salary.
This week the executive salaries were described as "preposterous" by Paul Gambaccini, the veteran broadcaster. He accused the corporation of allowing the values of the commercial sector to infect the BBC and help drive up pay.
In the interview Mr Hunt reveals that he will soon, despite management objections, be sending in the National Audit Office, to examine the BBC's books.
He says: "One of the biggest issues with the BBC is there seem to be a steady flow of stories where the way that licence fee payers funds are used is not appropriate. Their policy on executive remuneration is the biggest.
"It is absolutely essential that the NAO has access."
Earlier this year BSkyB called for the BBC Trust "to reduce the burden on the licence fee payer".
An annual colour TV licence now costs £145.50. It rose from £142.50 in April.
In today's interview Mr Hunt - who has responsibility for the 2012 London Olympics - also expresses his concerns that terrorist groups already in Britain are targeting the Games.
He says: "We've got a number of terrorist networks in the UK at the moment actively plotting to cause major, major carnage. So security is going to be an issue.
"It's an obvious target. We have to assume they are targeting it and we have to be ready for that."
Last modified: Sunday, August 22, 2010
Your comments:
» Click here to add your comment.
Comments will be subject to approval and should not be defamatory, obscene, racist, in breach of copyright, or contrary to law. The CPBF is not reponsible for any views expressed here.
Previous 'future of the BBC...' stories
BBC Trust rejects 6 Music closure but the campaign goes on
BBC 'failing to provide alternative to commercialised US children's programmes'
Fighting the BBC cuts gets parliamentary support
BBC cuts - make your voice heard
NUJ pledges to fight BBC cuts package
BBC announcement is capitulation to Murdoch
Minister gets the message over licence fee
Dyke in BBC 'conspiracy' claim
BBC's future: a welcome dose of reality
Is BBC News online "next in line" for Conservative cuts?
Keeping Broadcasting Public
Keep Broadcasting Public - Victoria Brittain
Keep broadcasting public - Brendan Barber
Keep broadcasting public - Dr. Georgina Born
A view from the Guardian
Keep Broadcasting Public - observer's report
Keep broadcasting public - Tom O'Malley
Keep broadcasting public - James Purnell MP
BBC Conference Warns Against Complacency
Green Paper, white in parts
Ofcom's remedy is not ours...
Conference presentations can now be read here...
Ofcom's mission to destroy...
First cut or narrow escape?
PSB matters says Ofcom spokesman
Collective action & intervention can save public service
-
Notices
Events & Announcements
Fringe meeting at the TUC
DATELINE: 26/8/10Tuesday 14 September 6.00pm – 8.00pm Mayor’s Parlour, Manchester Town Hall, M2 5DB
‘Media for All – the Democratic Challenge’.
An open event hosted by Making Good Society and the Campaign for Press and Broadcasting Freedom (CPBF), supported by the Carnegie UK Trust.
DOWNLOAD FREEPRESS NOW
DATELINE: 26/3/10
Download PDFs of Freepress here.
MEDIA FOR ALL CONFERENCE 09
DATELINE: 26/3/10
Media for All Conference 09
Conference Papers
-
Previous stories
'future Of The BBC...'
BBC Trust rejects 6 Music closure but the campaign goes on
BBC 'failing to provide alternative to commercialised US children's programmes'
Fighting the BBC cuts gets parliamentary support
BBC cuts - make your voice heard
NUJ pledges to fight BBC cuts package
BBC announcement is capitulation to Murdoch
Minister gets the message over licence fee
Dyke in BBC 'conspiracy' claim
BBC's future: a welcome dose of reality
Is BBC News online "next in line" for Conservative cuts?
Keeping Broadcasting Public
Keep Broadcasting Public - Victoria Brittain
Keep broadcasting public - Brendan Barber
Keep broadcasting public - Dr. Georgina Born
A view from the Guardian
Keep Broadcasting Public - observer's report
Keep broadcasting public - Tom O'Malley
Keep broadcasting public - James Purnell MP
BBC Conference Warns Against Complacency
Green Paper, white in parts
Ofcom's remedy is not ours...
Conference presentations can now be read here...
Ofcom's mission to destroy...
First cut or narrow escape?
PSB matters says Ofcom spokesman
Collective action & intervention can save public service