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02/03/2005
Governors face axe but BBC licence fee remains
The publishing of the Government's Green Paper today signalled the abolition of the 77-year institution of the BBC's Board of Governors.
The Green Paper confirmed that the licence fee arrangements will remain until 2016, although a review of alternative funding methods will be carried out prior to this date.
The Governors' role, which was criticised by Hutton, is to be replaced as two new bodies, the 'BBC Trust' and an 'Executive Board' are set up. The Trust will have responsibility for the licence fee, oversee the Corporation in a "transparent" manner and ensure the BBC fulfils its public service remit. The Executive Board will be responsible for day-to-day management, programming and delivery of the corporation's services.
Culture Secretary Tessa Jowell said: "The Governors' dual role as cheerleader and regulator does not sit easily in a public organisation of the size and complexity of the BBC. It lacks clarity. It lacks transparency. And it lacks accountability.
"The BBC Trust and Executive Board will provide much-needed daylight between two quite separate roles - running the BBC and making sure it is run well. Licence fee payers need to know who is speaking up for them. They need to know exactly who is in charge, and they deserve to know how important decisions are made."
BBC Chairman Michael Grade welcomed the retention of the licence fee, but said he thought it "regrettable" that the BBC's recently introduced governance reforms had "not had time to prove themselves". He recognised, however, that the corporation's internal changes had been "essentially more behavioural than structural" and that "the consensus in the public debate has been to buttress them with a new structure".
Mr Grade also said that he was happy that the governance issue "had now been settled ahead of the new Charter, providing the BBC with necessary certainty and stability".
Endorsed by Mr Grade as his choice to chair the new Executive Board, BBC Director-General Mark Thompson welcomed the continuation of the licence fee funding.
Mr Thompson said: "The BBC faces exciting and daunting new challenges over the next decade… but the assurance that original, British content from the BBC will be a guaranteed fixture of any future landscape is good news for the industry and our audiences."
(GB)
The Green Paper confirmed that the licence fee arrangements will remain until 2016, although a review of alternative funding methods will be carried out prior to this date.
The Governors' role, which was criticised by Hutton, is to be replaced as two new bodies, the 'BBC Trust' and an 'Executive Board' are set up. The Trust will have responsibility for the licence fee, oversee the Corporation in a "transparent" manner and ensure the BBC fulfils its public service remit. The Executive Board will be responsible for day-to-day management, programming and delivery of the corporation's services.
Culture Secretary Tessa Jowell said: "The Governors' dual role as cheerleader and regulator does not sit easily in a public organisation of the size and complexity of the BBC. It lacks clarity. It lacks transparency. And it lacks accountability.
"The BBC Trust and Executive Board will provide much-needed daylight between two quite separate roles - running the BBC and making sure it is run well. Licence fee payers need to know who is speaking up for them. They need to know exactly who is in charge, and they deserve to know how important decisions are made."
BBC Chairman Michael Grade welcomed the retention of the licence fee, but said he thought it "regrettable" that the BBC's recently introduced governance reforms had "not had time to prove themselves". He recognised, however, that the corporation's internal changes had been "essentially more behavioural than structural" and that "the consensus in the public debate has been to buttress them with a new structure".
Mr Grade also said that he was happy that the governance issue "had now been settled ahead of the new Charter, providing the BBC with necessary certainty and stability".
Endorsed by Mr Grade as his choice to chair the new Executive Board, BBC Director-General Mark Thompson welcomed the continuation of the licence fee funding.
Mr Thompson said: "The BBC faces exciting and daunting new challenges over the next decade… but the assurance that original, British content from the BBC will be a guaranteed fixture of any future landscape is good news for the industry and our audiences."
(GB)
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