Memorandum submitted by The British Internet
Publishers Alliance (BIPA)
The British Internet Publishers Alliance (BIPA)
is pleased to submit its views to the DCMS Select Committee. Our
main issue with the BBC is the lack of control over the funding
and scope of its online services, and the consequent negative
effect on those who wish to provide alternative, competitive services
from the commercial sector.
The nature, extent and complexity of this problem
is perhaps best understood from the evidence BIPA submitted to
the Graf Inquiry into BBC Online. Graf is due to submit his report
to the Secretary of State by the end of this month. Copies of
our two submissions are attached herewith for consideration by
members of the Select Committee.
In terms of the highly relevant questions posed
by the Select committee, BIPA would summarise its position as
follows:
Given expected growth in digital TV and likely
developments in the internet and other new media, what scope and
remit should the BBC have?
In terms of online services, there is urgent
need to put in place an agreed remit, and a proper system of regulation
and monitoring. The activities of the BBC, both in scope and funding,
have expanded far beyond the letter and spirit of the DCMS approvals
given in 1997-98, and have seriously damaged the provision of
choice and plurality in this market. BIPA believes that BBC online
services cannot be an open-ended colonization of all aspects of
electronic publishing, but must have agreed boundaries, and be
largely programme-related.
In the context of scope and remit, how should
the BBC be funded?
BIPA has no a priori view on the method
of funding the BBC, except to note that over-generous funding
by the Licence Fee, with no effective spending disciplines, leads
to unproven value for money and a disregard for the healthy constraints
and efficiencies that operate in the private sector. Worst of
all, it gives the BBC an unfair and unassailable advantage in
exploiting its brand and assets in any market in which it chooses
to operate.
How should the BBC be governed and/or regulated
and what role should be played by the Office of Communications?
The Governors operate largely as apologists
for the BBC Management rather than as its regulator. It is significant
that the DCMS was obliged to set up the Lambert and Graf inquiries:
had the Governors been proper regulators, these were functions
it should itself have undertaken. If the Governors cannot be transformed
into effective regulators, then the BBC should come fully under
OFCOM. In any event OFCOM, as the industry-wide regulator, should
have a key role in determining the effect of BBC activities on
the wider market—both before and after new service provisions
have been approved.
In a changing communications environment, does
a 10-year Royal Charter and Agreement with the Secretary of State,
together, provide the most appropriate regime for the BBC?
In view of the pace of change, there is a strong
argument for allowing a shorter time scale in which to test what
radical changes (eg a greater direct role for OFCOM) need to be
effected. Too much can happen in ten years if the present system
remains unreformed.
14 April, 2004
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