Supplementary memorandum submitted by
the Commercial Radio Companies Association
CRCA appreciates the Davies Panel's proposals
on BBC public service obligations seek to create the right environment
for buoyant broadcasting economies. They are a welcome attempt
to create "a level playing field"[30]
between the BBC and its competitors. However, we believe they
do not go far enough.
We agree with the Committee Chairman when he
argues any attempt to create a balanced broadcasting environment
must set the BBC within the context of wider developments in audio-visual
communications.[31]
The Davies Panel offers proposals that will alter the behaviour
of the BBC in the hope that this will create fairer markets. We
suggest an alternative approach would be to deregulate the BBC's
competitors so they have the strength to compete with the BBC
and the strength to invest in the same costly new technologies.
The BBC Charter permits the BBC to launch commercial services
and to use any income from these to supplement its licence fee
income. The BBC is the only British cross-media publishing and
television and radio broadcasting conglomerate allowed to exist
under present legislation. Furthermore, the last Government granted
the BBC strong positions on all digital platforms. From our perspective,
it is crucial that UK commercial ownership rules should be both
changed and lightened. We support the maintenance of a publicly-funded
broadcaster with the strength to compete, and with the resources
to develop talent and with a reliable income to be innovative
and distinctive. However, the Government's creative drive should
recognise the contribution commercial boradcasting makes to competitive
markets, in driving innovation and nurturing talent. Without commercial
broadcasters' contribution to the virtuous circle in broadcasting,
the quality of broadcasting would not be what it is today.
The Davies Report states in its Annex that the
BBC is a necessary player in the broadcasting market to "act
as a counterweight to the private concentration of ownership"[32].
It is our view that commercial media ownership rules prevent concentration
of private ownership in media sectors and further protection of
democratic objectives by the presence of the BBC in commercial
markets mean that, effectively, commercial broadcasters are being
hit with a double-whammy. Give us room to compete.
November 1999
30 The Future Funding of the BBC, Report of
the Independent Review Panel, 28 July 1999 (DCMS): 88. Back
31
House of Commons debate on Broadcasting, 29 October 1999. Back
32
The Future Funding of the BBC, Report of the Independent
Review Panel, 28 July 1999 (DCMS): 207. Back
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