House of Commons - Foreign Affairs

Select Committee on Foreign Affairs Written Evidence

BBC MONITORING

Copy of an email sent to the Chairman of the Committee from Dr Chris Westcott, Director, BBC Monitoring

As you know the FAC has engaged closely with the future of BBC Monitoring since the FCO publicly stated that they intended to remove £2 million pa from our funding. You commented favourably on BBC Monitoring's work and impact in your Report on the FCO's Annual Report (HC 745 para 167):

167. We conclude that it is utterly perverse that the future of BBC Monitoring should be placed in doubt at the very time when its services are arguably most important to the country's security and diplomatic needs, and when it is being almost universally praised by its users. We recommend that BBC Monitoring be given financial security by the FCO and its other stakeholders to ensure its future.

Following the FCO decision to reduce its contribution to our funding the Cabinet Office commissioned a Review of BBC Monitoring which got underway last summer. That Review has now concluded and reported.

I'm pleased to report that the FCO signed off on the BBCM Review outcome last week. This completes the final stage of the review's terms of reference following sign off by the BBC Board of Governors at the beginning of July.

I am going to announce the outcome to all BBC Monitoring staff tomorrow, Monday 1 August. This announcement will coordinate briefings for our staff in Caversham, Nairobi, Moscow, Kiev, Baku, Tashkent and Cairo.

Coincident with my announcement to BBC Monitoring staff (timed for 12:00 BST Monday 1 August) I wanted to share the outcome with you and your committee.

I believe the Review outcome is a very positive one for BBCM. The outcome provides us with an increase in our funding and a new, more strategic, framework within which to work with our stakeholders and users.

I've summarised the outcome and some next steps on a 1 pager that all BBCM staff will get tomorrow that I've attached to this email. In summary the outcome establishes:

— A good funding outcome for FY 06/07—10/11 given the circumstances:

— While the Review recommended an average of £24.6 million pa from 06/07 to 10/11, the actual outcome equates to an average of £23.8 million pa over the same period. As a result we will regrettably need to close 50-80 posts by March 2007. We feel that this is manageable given positive engagement in strategic change by BBCM staff, including the Trades Unions.

— Achieving this level of funding took a considerable amount of time and effort by the Reviewer, Sir Quentin Thomas, and Sir David Omand, both of whom had extensive discussions with our stakeholders and HM Treasury. These discussions, and those of the Review group, were made more difficult by the FCO stating to the Review at its inception that they wished to remove £4.5 millon pa from our funding, not £2 million pa, a position that was described by the FCO as "non-negotiable".

— A new funding regime: single "ring fenced" funding (similar to that pertaining to BBC World Service) replacing the current "dis-aggregated" subscription model.

— The Cabinet Office is our new "sponsor department" replacing the FCO.

— A new Governance Panel chaired by the Cabinet Office to replace the current FCO chaired Stakeholder group.

Furthermore the Review concludes:

— that BBCM services—in partnership with the US FBIS—match UK requirements;

— the review says the partnership works well, is crucial and provides excellent VFM; that the UK requires global open source ("a rich resource"); that open source is low cost relative to the benefit, and its value is greater when dealt with systematically and speedily; and

— that it should be a UK objective to give BBCM stability and confidence allowing us to focus on maintaining the operation and developing products/services that match customer needs.

As you can see from this brief summary the outcome is a very considerable advance on where we have been under the current stakeholder regime and where we could been if the FCO's position had led to other stakeholders also removing funding.

That the Review outcome is such a positive one for BBC Monitoring is due to the strong support shown at the highest levels by our MoD, Cabinet Office, BBC World Service and Intelligence Agency stakeholders. It is also due to the professionalism and dedication of two fine public servants: the Reviewer Sir Quentin Thomas and for the former Intelligence and Security Co-ordinator Sir David Omand.

Finally, on behalf of myself and all my staff at BBCM, I'd like to thank you for your committee's role. From your very public support to your extensive and effective work behind the scenes, your position on BBCM was instrumental in getting us to where we are today. In all the staff briefings on the outcome I and my Direction team will be making this point and expressing their thanks as well.

I would be more than happy to provide you and the members of the FAC with a fuller briefing at any time. Please feel free to contact my office and if there is anything I or BBCM can do for you just call.

31 July 2005

CABINET OFFICE—REVIEW OUTCOME

— A good funding outcome for FY 06/07—10/11 given the circumstances:

— initial five year agreement: stable funding to the end of the decade;

— tight public sector funding a fact of life, so:

— cost reductions + efficiency savings + reprioritisation continue; and

— £2 million pa cost reduction by March 2007: 50-80 net jobs lost.

Financial Year	03/04	04/05	05/06	06/07	07/08	08/09	09/10	10/11

Current Stakeholder funding £m	22.1	22.1	21.1
Review recommendation £m*				24.6	24.6	24.6	24.6	24.6
Review outcome £m				24.6	24.6	23.4	23.4	23.4

* the Review recommended an average of £24.6 million pa from 06/07 to 10/11 the actual outcome equates to an average of £23.78 million pa from 06/07 to 10/11

— New funding regime: single "ring fenced" fund a.k.a. BBC World Service

— replaces separate subscriptions and core/product split

— The Cabinet Office is our new "sponsor department"

— FCO relinquishes role of lead stakeholder

— New Governance Panel chaired by Cabinet Office

— members: existing stakeholders + three agencies.

— BBCM + FBIS normally attend, HM Treasury can be invited

— BBCM services—in partnership with FBIS—match UK requirements

— partnership works well, is crucial and provides excellent VFM

— UK requires global open source—a rich resource

— open source: low cost relative to the benefit & value greater when dealt with systematically & speedily

— UK objective: to give BBCM stability & confidence: