SUPPLEMENTARY MEMORANDUM SUBMITTED BY
MR GAVYN DAVIES
First, I would like you to pass my thanks to
the Chairman and the Committee for giving Lord Lipsey and myself
such a detailed hearing last week. We very much look forward to
reading your report.
The Chairman raised an important question on
the growth potential of BBC Worldwide Revenues in the future.
On page 53 of the Panel's Report, we argued that the BBC's commercial
revenue targets were demanding, on the assumption that the structural
arrangements of Worldwide were unchanged from the present status
quo. Subsequently, on page 98, we argued that Worldwide could
considerably exceed its current revenue targets, on the assumption
that the privatisation and other reforms recommended by the Panel
were implemented.
The difference between these two remarks therefore
reflected our judgement of the benefits which could be derived
from structural reforms. Assuming these take place, we feel that
the targets for commercial revenues could be exceeded by a wide
margin.
I hope that this clarifies the apparent inconsistency
which the Chairman has raised.
November 1999
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