BBC orders its services to justify existence under new charter

LONDON - The BBC has unveiled plans of how its services will have to justify their existence, under a management restructure proposed for its new Royal Charter that begins in 2007.

As part of the review of its charter, the corporation is proposing to set up a service licence framework for existing services and a public value test for any new services.

The licences will lay out a detailed remit for services, including how its performance will be monitored, its budgets, how it will be delivered and its geographic scope.

As well as all new services being subject to a public value test, the BBC is also proposing a market impact assessment test to evaluate their impact on the wider market.

Michael Grade, BBC chairman, said: "Both the public value test and the service licences will make the BBC more transparent.

"This is much needed and if achieved will be of benefit to licence-fee payers, to the commercial organisations that operate within the same markets and to the BBC itself."

The BBC has launched a consultation about the plans and is inviting views from licence-fee payers, media groups, regulators and commercial broadcasters. The deadline is December 16.

The plans are part of a reorganisation proposed under the new charter that replaces the board of governors and splits its management and regulation role.

Regulation will come under a newly created BBC Trust, with an executive board responsible for management and strategy.

Grade added: "The test for the new trust under my chairmanship will be the establishment of a reformed governance structure that is more robust, effective, transparent and consistent in its approach without stifling creativity."

Earlier this month, as part of the review, the BBC called for a licence fee hike of £3.14 a year excluding RPI. This could take the current fee of £126.50 to £183 by 2012 and has been criticised by the Conservative Party as a "stealth tax".

The review of the charter concludes next year.

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the

Topics

Market Reports

Get unprecedented new-business intelligence with access to ±±¾©Èü³µpk10’s new Market Reports.

Find out more

Enjoying ±±¾©Èü³µpk10’s content?

 Get unlimited access to ±±¾©Èü³µpk10’s premium content for your whole company with a corporate licence.

Upgrade access

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an alert now

Partner content