BBC White Paper
Debate between John Whittingdale and Dawn Butler
Mr Whittingdale
We have set out a path that will, we hope, lead to the whole of the BBC’s schedule being opened up for commissioning. We would expect the BBC to meet the targets in doing that. We will continue to talk to the BBC about that and if it looked as though they were failing to meet those targets we might raise that with them before, but that is already set out in the charter. No changes would be required, because we have already made it clear that we expect the BBC gradually to open up the whole of the schedule until it reaches 100%.
Dawn Butler
On the subject of independent producers, after the last debate we had on the BBC I thank the Minister for Culture and the Digital Economy for helping to secure the recordings of “The Real McCoy”. I hope to have a special screening in Parliament with a Q&A with some of the original cast in the not too distant future, and I hope that both the Minister and the Secretary of State will come along.
Mr Whittingdale
I am delighted to have given way to the hon. Lady to allow her the opportunity to praise my excellent Minister, who is sitting beside me.
I want to come back to the point about the National Audit Office and its ability to carry out value-for-money studies across the BBC. It is correct that the activities of BBC Worldwide are not funded with public money—they are commercially funded—but the success of BBC Worldwide has a definite impact on the finances of the BBC since it generates income for the BBC, and it is important that we extract maximum value to minimise the burden on the licence fee payer. As I mentioned when we debated this issue in the Select Committee yesterday, BBC Worldwide has not always had a brilliant record of looking after the money it spends. The Select Committee, when I was the Chair in the last Parliament, was highly critical of the Lonely Planet saga, which resulted in a massive loss to BBC Worldwide. However, I can reassure the hon. Member for Garston and Halewood and the BBC that the National Audit Office is very aware of the concerns that have been expressed and is confident that it can provide reassurance that it will have no impact either on creative decision making in the BBC or on commercial negotiations with other companies.
The NAO already audits a number of public bodies that have commercial relationships with other companies and is well familiar with the need to maintain commercial confidentiality when necessary. I know that the Comptroller and Auditor General will continue to talk to the BBC, but I very much hope that we can find a way whereby the BBC’s concerns are satisfied. The hon. Member for Garston and Halewood also talked about the BBC’s financial independence and, as I said, I believe that we have strengthened that rather than diminished it. We have agreed that the licence fee should be subject to regular review every five years, and that for the first five-year period it should rise each year in line with inflation, having been frozen for a long time. We have also agreed to close the iPlayer loophole and to phase out the broadband top-slice. That means that the BBC can now plan with certainty on the basis of licence fee income, along with its own commercial earnings, and it will have total flexibility in how it spends its money, with the single exception of the ring fence for the BBC World Service and the top-up grant that the Government are giving to fund its expansion.