Davies argued that the proposed creation of Ofcom has given commercial rivals the chance to lobby for further changes to way the BBC is regulated. He was speaking as he outlined a number of changes to the role of the BBC governors, which were made in response to criticisms of its self-regulation.
Davies made the case that the government's plans already place the BBC under Ofcom "in many crucial areas". These include commercial regulation and basic standards on matters of taste and decency. Also covered are quotas for regional, independent and original production.
With Ofcom overseeing these areas Davies argued that the BBC governors will be able to concentrate on overseeing the BBC's public service remit.
Commercial sector complaints had been based on "profound misunderstandings" about how the BBC will relate to Ofcom. "The BBC has no desire to stand aloof and separate from the new regulator. We welcome the proposed establishment of Ofcom and look forward to working with it," he said.
The BBC's relationship with Ofcom will be formalised in the BBC Agreement with the culture secretary Tessa Jowell, which will give the secretary of state the final say in regulatory issues.
Davies said that ITV and the commercial sector were moving towards self-regulation, and that in future Ofcom, rather than the culture secretary, would have the final say in the regulation of the commercial sector.
The changes Davies outlined will see the roles of the BBC governors and the executive committee separated and clarified. This will give the governors power to appoint external auditors on fair trading, while separate complaints will be handled by the public policy division and monitored by the governors' programme complaints committee, which will also deal with appeals.
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