THIRD REPORT
The Culture, Media and Sport Committee has agreed
to the following Report:
THE FUNDING OF THE BBC
I. INTRODUCTION
1. This Committee and its predecessor, the National
Heritage Committee, have examined the BBC and the broadcasting
sector on several occasions. The National Heritage Committee considered
the future of the BBC in 1993 as part of the process leading to
Charter renewal.[6]
Its main recommendations, a ten-year renewal of the Charter, with
licence fee funding, were implemented by the then Government.[7]
The National Heritage Committee then returned to look again at
the BBC's development in the light of plans for digital broadcasting
in 1996-97.[8]
In 1998 we reported to the House of Commons on The Multi-Media
Revolution, arguing that technological change would have an
impact on broadcasting more rapid and more radical than was generally
understood.[9]
Later that year we undertook a short inquiry focused on the Report
and Accounts of the BBC for 1997-98.[10]
2. In these last two Reports we made clear our intention
to examine the question of BBC funding prior to Government decisions
on the matter.[11]
The Rt Hon Chris Smith MP, the Secretary of State for Culture,
Media and Sport, appointed Mr Gavyn Davies to chair an independent
review panel on the future funding of the BBC in November 1998.[12]
Members of the Panel were announced in January 1999.[13]
The Panel published its review on 5 August 1999.[14]
Mr Chris Smith expects to announce final decisions arising from
the Davies Review in January 2000.[15]
In order to make our contribution to these decisions, we decided
to report to the House before Christmas.
3. We invited written evidence by 1 November 1999.
We then held six evidence sessions in three weeks between 18 November
and 7 December. Those from whom we took evidence included members
of the Davies Panel,[16]
senior representatives of the BBC (on two occasions),[17]
other broadcasters,[18]
representative or membership organisations,[19]
the Independent Television Commission (ITC) and Mr Chris Smith.
We also received a range of written evidence, some of which is
published with this Report and the remainder of which is available
for inspection by Members of the House of Commons in the Library
of the House and by members of the public in the House of Lords
Record Office.[20]
We are most grateful to all those who assisted the Committee in
the course of its inquiry.
6 Second
Report from the National Heritage Committee, The Future of
the BBC, HC (1993-94) 77-I. See also Minutes of Evidence
taken before the National Heritage Committee, Follow Up to
Previous Inquiries, HC (1994-95) 522-i. Back
7 HC (1993-94)
77-I, paras 54, 78. Back
8 Fourth
Report from the National Heritage Committee, The BBC and the
Future of Broadcasting, HC (1996-97) 147-I. Back
9 Fourth
Report from the Culture, Media and Sport Committee, The Multi-Media
Revolution, HC (1997-98) 520-I. Back
10 Eighth
Report from the Culture, Media and Sport Committee, Report
and Accounts of the BBC for 1997-98, HC (1997-98) 1090. Back
11 HC (1997-98)
520-I, para 93; HC (1997-98) 1090, para 43. Back
12 The
Future Funding of the BBC: Report of the Independent Review Panel,
Chairman: Gavyn Davies, Department
for Culture, Media and Sport (hereafter Davies Review),
p 152. Back
13 Ibid,
p 154. Back
14 Department
for Culture, Media and Sport News Release 216/99, 5 August 1999. Back
15 HC
Deb, 26 November 1999, col 217W; Q 631. Back
16 Mr
Gavyn Davies, Lord Lipsey and Lord Gordon of Strathblane. Back
17 Sir
Christopher Bland, Chairman, Sir John Birt, Director-General,
Mr Greg Dyke, Director-General-designate, Mrs Patricia Hodgson,
Director of Planning and Policy, Mr John Smith, Director of Finance,
and Mr Dominic Morris, Controller of Policy. Back
18 ITV,
Ondigital, BSkyB, ntl, Telewest and Mr Kelvin MacKenzie. Back
19 Broadcasting,
Entertainment, Cinematograph and Theatre Union (BECTU), the Commercial
Radio Companies Association, the British Internet Publishers'
Alliance and the National Consumer Council. Back
20 For
details of how such papers can be inspected, see p liii. Back
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