Select Committee on Culture, Media and Sport Minutes of Evidence


Examination of Witnesses (Questions 80-99)

BBC

11 JULY 2006

  Q80  Chairman: Who will determine that?

  Mr Grade: The Trust.

  Q81  Chairman: If a commercial operator comes and says, "We think this represents a change or we think this represents a new service," will you nine times out of ten, 99% of the time accept that and conduct a public value test?

  Mr Grade: If the evidence is there, absolutely. Every decision that the Trust makes will be transparent and the judgments they make must be evidence based. That does not rule out judgment but at the end of the day it must be evidence based.

  Q82  Chairman: But you will lean strongly towards conducting tests when asked to do so?

  Mr Grade: Certainly.

  Q83  Chairman: How many tests do you expect to be undertaking roughly in the next couple of years?

  Mr Grade: It is absolutely impossible to forecast.

  Q84  Chairman: Tens?

  Mr Grade: It is impossible to forecast.

  Mr Peat: I do hope, Chairman, that when we come to implementing the public value test that there will be scope, and this will be a matter to discuss with Ofcom, for varying the degree of intensity of the market impact assessment and the PVT that is undertaken, according to the circumstances. I am an economist by trade and I am aware of how complicated and time-consuming these tests can be. It is very important for the major decisions where there are major market impacts that they should be so intensive, but I think there may be instances where the market impact is deemed to be relatively limited, and I think one has to be able to vary the intensity of the examination to take account of that. We do not want to be bogged down in unnecessary work.

  Mr Grade: But the check and balance will obviously be the collaboration which I am sure will be very fruitful with Ofcom.

  Q85  Chairman: There is concern that trials and pilots in themselves are going to distort the market. The Director General has very recently announced the extension of the podcasting trial. At what point do you conduct a market impact assessment there?

  Mr Grade: Every pilot is different. Some are closed pilots; some are open pilots. Each one is of its own kind and they have to be looked at on a case-by-case basis. The principle that will drive the decisions of the Trust—and I would not rule out doing a public value test on a pilot.—the overriding consideration for the Trust is that the BBC does nothing in the way of new services (and that includes pilots) that could potentially damage the choice that is available to consumers. That will be the overriding principle that will guide the Trust through its decisions in this area.

  Q86  Alan Keen: The reason why the BBC, although it is a public body, has been so successful and one of the reasons why I like it so much is that it has acted like the private sector. It has made decisions in private. It has been cut-throat. Do you not think these changes are going to alter the whole culture of it and make it like the Health Service where you are hamstrung by democracy and it is going to be so slow to take decisions that we are going to bury it like other public bodies?

  Mr Thompson: Can I have a go at that. Clearly that is a risk in this mechanism that it is too officious, it is too rigid, it is too slow, that it will impair the BBC's ability to evolve and offer the best possible services to the public. I have to say firstly I think that the interest of other people, other commercial players in understanding what the BBC is proposing, having a chance to be consulted, an objective market impact assessment carried out by Ofcom, all of these things, I understand why people want them, I understand why the Government has gone for this system in the White Paper, and I think it will build confidence. I hope there will be a point where the whole process becomes rather more routine and it becomes one of the things that happens. Just a couple of points on trials. Firstly, a trial with terms of reference already agreed with the BBC Trust is itself quite an important part of the evidence gathering you need to do the public value test and indeed the market impact assessment, so although one takes the point that one must look quite closely at, as it were, prima facie evidence that even the trial itself will have a very significant market impact, one does not want to be in a position where you cannot do a trial without a public value test which itself requires a trial as part of its evidence gathering. What I want to say is that we now control trials and pilots very closely. We have a meeting once a month where we update where we are with trials. It is true that there will be occasions where we believe we should extend a trial. The Chairman mentioned podcasting. There are a number of things we want to explore such as chapterisation in podcastng and we want to look at some different technical formats and Codex in podcasting. We also want to explore downloading in podcasting at different bit rates. There are a number of particular things we want to try and do but in the case of podcasting we will continue to restrict the content available to podcast to 50 hours, a fairly small selection of programmes, and we will restrict it to programme areas where we believe market impact from a trial is likely to be low—speech and unsigned music being the categories. Other trials, and I mentioned local TV, will come to an end. We have already brought the IPlayer trial to an end. Once there is nothing more we can learn from a trial we will stop the trial and then wait for the verdict of the public value test to come through.

  Mr Grade: There is some helpful direction in the White Paper at 53.13 if I may quote an extract: The ability to pilot new services has the potential to generate useful data to assist a public value test. However, the Trust will need to be satisfied that any pilot proposed by the Executive Board is of the smallest possible scale and duration to deliver the required information and there should be a general presumption that, where practical, a pilot will come to an end before any decision on a public value test is taken." That is the clear guidance for the Trust. To which I would add what I said earlier which is if the Trust at any time believe that even a pilot—and one cannot foresee all the changes that are going on at this stage in the media—if there is any potential that a pilot could interfere with the choice available to consumers, we would not allow it.

  Q87  Alan Keen: But overall are we not betraying licence fee payers by going soft? Do they not deserve ruthless managers to look after their money instead of having to go and consult people about it? That is one way of looking at it, is it not?

  Mr Grade: There is no question that the BBC's impact on the sector must be harnessed to be beneficial to the licence fee payers overall. That is our role and we have to manage that relationship with the private sector better than it has been managed hitherto.

  Q88  Alan Keen: You are helping Channel 4 or talking to Channel 4 I presume over releasing some of the spectrum? Are those talks going along fruitfully?

  Mr Grade: There is goodwill on our side to be as helpful as we possibly can to Channel Four and those talks are continuing, so far as I know, with real goodwill on our side.

  Q89  Janet Anderson: Could I just take you on in terms of the Governors' objections to the independent study by Sir Quentin Thomas on the impartiality of news coverage of the Israeli/Palestinian conflict. This prompted Philip Stephens, who was a member of that independent review panel, to write an article in the FT where he referred to the BBC's coverage of domestic political affairs. He said: "I do not believe there is deliberate political bias, even if some well-known BBC figures will never forgive the prime minister for the Hutton Report on Iraq. Rather, quality, depth and judgment are sacrificed to showbiz trivia and hyperbole. Labour, Conservatives and Liberal Democrats are equal victims of this shallowness. Partly it is a question of lazy journalism. It is much easier to retail Westminster gossip than to seek to report complex policy debates, or to shout at politicians rather than subject them to forensically robust cross-examination." I just wondered if would like to comment on that.

  Mr Grade: Before I pass to the Editor in Chief who is responsible for news on the BBC, I would have to say as a viewer—forget my role as Chairman of the BBC—that I would not recognise that rather crude caricature of the BBC's journalism. Certainly the BBC in different kinds of bulletins and different services serving different audiences does cover what one might call the populist agenda from time to time. There is nothing wrong with that. Everyone pays their licence fee and if you are interested in Wayne Rooney's metatarsal, I do not think the BBC should avoid covering it. However, I would not recognise as a viewer, as a news junkie that very crude caricature of the BBC's journalism.

  Q90  Janet Anderson: How many complaints, for example, do you get about the line of questioning on occasion by John Humphrys on the Today programme?

  Mr Thompson: The answer is that we do not tend to get many complaints. More than that I have to say our research and impact from the contacts we have in the public suggest, to be honest, that the robust approach taken on the Today programme with politicians and other public figures, and occasionally senior members of the BBC are on the receiving end of this, is welcomed by the public as a legitimate way of holding public figures to account. I have to say audience research on that would suggest that it is all the other way and that people say that quite robust questioning of politicians is something, if anything, they would like to see more of, not less of. If I could address more broadly the point, and the point that Philip made in his piece, I think if you look at the year in question, it is a very big year for news. There was a UK general election. It was also a year when the BBC did some very large-scale projects to try and increase public understanding and public engagement with key issues. Our recent Climate season across the BBC (but with a lot of attention on BBC1) would be an example. The season last summer Africa Lives on the BBC was an attempt, again using some of our most popular programmes, to engage the public in some really big issues. I would say that in recent years, with Andrew Marr and now with Nick Robinson, that the calibre of political reporting across our news programmes has gone up not down. We have also tried to find to a point key specialist editors. I think of Evan Davies in economics; I think of Mark Mardell, whom we have made Europe editor; I think of Jeremy Bowen, the new Middle East editor, to try and make sure that when we do cover a major, topical political event we do not just tell the story of that day but we have a seasoned journalist who can give some sense of the context and the background to the story. I would say across our current affairs programmes that we are trying harder to do two things. One is we want to try and bring news and current affairs alive for our audiences. If we do not engage our audiences there is a danger that fundamental democratic engagement will break down. It is important that we find ways of actively interesting and engaging audiences. We are trying to do it in a way that does focus on significant issues. I think it is fair to say that it has been quite a busy year and a complex year in British politics. It is also true that individual political personalities and the stories around individual ministers and other senior politicians, leadership elections and so forth, means that that is part of the way we report what is going on. I would say that my own view as Editor in Chief of the BBC is that our news division has had a very good year indeed in terms of covering events in the world, and our coverage of Westminster politics, I think, is growing in depth. With due respect to Philip and the FT, I would say we would compare well with any newspaper you can buy in this country.

  Mr Grade: I can understand why a serious journalist of Philip Stephens's standing and reputation writing for a journal as specialist as the FT would not be terribly interested to switch on the 6 o'clock News on BBC1 and find out that Sir Paul and Lady McCartney were getting divorced. I am sure that is not particularly on his radar screen. However, a great number of people who pay their licence fee are interested and that is a news item of the day, and we have to serve the readers of all newspapers with all their demographic backgrounds and interests, which I think is the point that he has not quite grasped.

  Mr Thompson: Our output on programme analysis on the Westminster Hour, if you look at the depth of political coverage we have now on our website, is unrivalled. Nobody else is covering British politics. BBC Parliament and other partners; no-one is covering our democratic institutions or British politics, not just, by the way, at UK level but at national level in terms of the devolved institutions in the nations, at regional level, at local level. No-one is investing as much or spending as much time on UK politics as we are.

  Q91  Janet Anderson: What you are saying by your response is you think that persistent questions of senior politicians about their private lives fits in with that strategy. You are public figures, you work for a publicly funded body; how would you feel if you were subjected to that kind of questioning?

  Mr Thompson: The answer is it seems to me the approach I take when this happens to me is it depends whether it is a matter of legitimate public interest. Of course, I do not suggest that uninhibited questioning of anyone about their private life is reasonable, but there are occasions where an aspect of a politician's personal behaviour becomes a matter of legitimate, as it were, not interest by the public but public interest, and where not only is it permissible for the BBC to explore questions but, frankly, it is our duty to explore what is going on. Do we need to be careful? Of course we do. Of course we need to be careful about not straying beyond the boundaries, but there are moments where questions about an aspect of someone's personal behaviour are of political relevance and we would be remiss if we did not ask those questions when that happens. If we overstep the mark, we should not, and we should correct it. I would say again my view in recent months in what has been sometimes a very difficult and intense political environment is that we have not overstepped the mark, but perhaps you have examples where we have.

  Janet Anderson: I think you perhaps have on occasions but we will leave it at that.

  Q92  Mr Hall: I listened with great interest to your exposition of the BBC's coverage of politics. I have established anecdotally that the coverage of politics during election time has got to be balanced and yet there was absolutely no balance in the coverage of politics in the run-up to the local elections in May. What have you got to say about that?

  Mr Thompson: We always make sure not just in UK general elections but also in local elections that we abide by all of the relevant legislation, but more broadly than that we think very carefully about the nature of balance in the context of those local elections. At the same time we take the view that beyond of course our statutory obligations, which we must and do uphold, that it is important that we continue to cover the broad run of political stories that are continuing. For example, international events in which Britain has a role need to continue to be covered, but our Controller of Editorial Policy, David Jordan, has a specific duty to ensure that there is constant monitoring of the general political coverage to make sure that we do not think there is an inappropriate impact on the way in which the local elections are covered and also the context of people thinking about how to vote in local elections.

  Q93  Mr Hall: Were there any good news stories in the run-up to the local elections in May that the BBC published about what the Government had done? I can tell you that every night in the broadcasts there were anti-Government stories leading the news on the BBC.

  Mr Thompson: We would need together—and I am very happy to do this—to go through the running order for all of our news programmes for the weeks in question to be sure about this but what I would say to you is this: firstly, UK general elections affect the entire country, they affect every household in the country; local elections do not affect every household.

  Q94  Mr Hall: That just excuses it, does it?

  Mr Thompson: No, it does not, but what it means is that you need to strike a balance—

  Q95  Mr Hall: I agree, you need to strike a balance; that is the point I am trying to make.

  Mr Thompson: If you are saying that you believe that the BBC's coverage of general politics in the run-up to local elections was biased, I have to say I simply do not believe that is the case. What we try and do is we cover what is going on in this country and also we try and cover the stories which are of interest to UK audiences and which may or may not involve UK government and other UK interests around the world. We try to do them objectively and not from one slant. I have to say I do not believe there is any systematic evidence that in this period or in any other period we failed to do that. We look quite closely and track surveys of people of different political persuasions and ask them whether or not they believe that the BBC is biased against their party. Over this period and over the year in the Annual Report the numbers of people amongst both supporters of the Conservative and Labour parties who believe we are biased went down in both cases. They stayed the same for the Liberal Democrats, but went down for both Tory supporters and Labour.

  Q96  Mr Hall: Is there any programme on Radio Five Live that does not carry a gratuitous attack against the Government?

  Mr Thompson: Again, I have to say I do not recognise the picture you paint of Radio Five Live, any more than I recognise the picture you paint of BBC journalism as a whole. I do not believe there is any programme that I am aware of in recent weeks on Radio Five Live that has included a gratuitous attack on the Government. To state the obvious but I will say it again, it is not the job of BBC news, or BBC journalism more broadly, to launch gratuitous attacks on anyone. We try and report what is going on objectively and fair-mindedly. That is what we are there to do.

  Q97  Adam Price: I would like to turn briefly to the issue of questions about private conduct of politicians and other public figures. Just so we are all clear where we stand on the Today programme what we are likely to be subjected to, do you think John Humphrys was right to ask about the Deputy Prime Minister having other affairs?

  Mr Thompson: I believe that the interview with the Deputy Prime Minister by John on the Today programme a few days ago was legitimate, yes I do.

  Q98  Adam Price: That was a fair question, even though it was open-ended and it had no clear bearing whatsoever, as far as I could see, because no context was given on the conduct of his public responsibilities?

  Mr Thompson: The context, which I believe would have been entirely understood by people listening to the interview, was obviously of a news story which has emerged over recent weeks and months in which it was felt by many—and again it is for people to draw their own conclusions—in the media, and I think the evidence would suggest many voters, that the affair which the Deputy Prime Minister is said to have had with his diary secretary did raise matters of legitimate political interest, and it was right for the BBC and the rest of the media to report that and to explore any political ramifications of that.

  Q99  Adam Price: But the question was about other affairs, was it not?

  Mr Thompson: Well, when the Today programme did its interview, there was an environment where very widely on the Internet and elsewhere there were questions being raised, indeed allegations being made about other affairs. Given the particular circumstances, the extent to which the affair which the Deputy Prime Minister accepted had taken place and the impact that had had on his political standing and the broad debate that it raised, I thought it was legitimate for John Humphrys to press him on this issue in that interview. I think it was done with courtesy. I do not think it was hectoring or impolite.


 
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