Select Committee on Foreign Affairs Minutes of Evidence


Examination of Witnesses (Questions 200-219)

LORD CARTER OF COLES

8 FEBRUARY 2006

  Q200 Ms Stuart: In relation to the role of the Permanent Secretary, what do you think would be the ideal role, because you raised the issue of conflict of interest?

  Lord Carter of Coles: I think it is a conflict of interest, yes. I have a sense from that that would probably be better—it is a difficult position to adopt. I think the board should represent itself and not have conflicts.

  Q201 Ms Stuart: A board completely appointed by the Foreign Secretary—

  Lord Carter of Coles: At the moment the board has twelve members. There would be a case for the Foreign Secretary appointing some additional, or some of the retiring members. On the other hand, as in most other organisations, there should be a nominations committee that brings some independent people. To our earlier point, you cannot have it both ways: you cannot have a board absolutely appointed by—if you wish to maintain that. What I am really trying to pursue is the sense of alignment and accountability; and it is getting the alignment of all these activities focused on something.

  Q202 Sir John Stanley: Lord Carter, did you form any view as to the balance of the staffing within the British Council between the number based in the UK and the numbers overseas; and did you form any view as to whether the British Council might be, rather surprisingly, overstaffed as far as its UK staff was concerned?

  Lord Carter of Coles: I did not look at that; I was not looking at the economics in that sense. I was surprised, I should say, when I read Lord Kinnock's evidence to you of 1,500 people in the UK, or a larger number than I had thought.

  Q203 Sandra Osborne: To go back to the appointment of the board members, I can appreciate what you are saying about seeking alignment, but is there not a danger that that would result in obvious political interference at an unacceptable level?

  Lord Carter of Coles: Yes, and that is the thing we have to be really mindful of. I would not like to see either of these organisations criticised because that would be wrong. On the other hand, I think you need the appointment of people who—how can I put it; you need a bit more of a challenging board. I think you get that with some appointed in one way and some appointed in another way; that might be a useful mechanism.

  Q204 Sandra Osborne: You have identified the need for a greater sense of urgency amongst public diplomacy partners, and more evidence that they are capable of responding and shifting resources according to priorities and changing circumstances. How successful did the review team find the Council to be at shifting resources according to priorities and changing circumstances?

  Lord Carter of Coles: I think historically more so, but it still needs attention. There is a slowness to realign services. I am trying to think of an example to give you. We found a number of times where we could have been quicker off the mark in doing that. The abiding one is the World Service in the sense of coming out of eastern Europe. It is just realising where things are going and getting on it quickly and redeploying the money that is the critical thing.

  Chairman: Can we move on to some questions about the BBC World Service and then we will come back to the structural issues later on.

  Q205 Mr Hamilton: Can I follow up some points made by John Maples and Gisela Stuart. John Maples mentioned the desire, and in fact intention, of the BBC World Service to set up its Arab television satellite service. When Nigel Chapman gave evidence to this Committee late last year, we followed that through and asked him about other possible satellite services, for example one in Persia, which would be quite appropriate right now. In response, Nigel Chapman told the Committee that there was a limit to how far the World Service can go in re-prioritising its existing budget in order to meet new ambitious challenges that it has to face if it is going to be effective. Lord Carter, how do you think the FCO could better ensure that the World Service's strategic objectives and priorities are compatible with the policies and priorities of the Foreign Office; and indeed should they be; should there not be some divergence? What is your view on this?

  Lord Carter of Coles: I return to that re-prioritisation from eastern Europe, which has let us finance Arab TV, and the fact that we probably should have done it sooner—the Americans were out of eastern Europe three years before us, which I think is significant! In relation to the question of priorities as set by the FCO, clearly Arab TV and Persia, and Urdu services, which the Americans have introduced, are things that should be looked at because of the changing emphasis. Should the BBC be totally aligned? No; I think there will always be some slight difference of interpretation in these things. Fundamentally, in the broad thrust of things they have to be aligned because it is a question of the government choosing where it wants to take policy, and this is a tool of public diplomacy—"public" being the word. Therefore government has to have some say in that, I believe.

  Q206 Mr Hamilton: In that case, why do you think that the FCO did not persuade the BBC World Service to take these steps sooner? Was that a lack of proper dialogue between the FCO and the World Service? Are the mechanisms for oversight and dialogue good enough?

  Lord Carter of Coles: Pursuing the example I gave, probably were not. One of the recommendations obviously is to get that better, to get things to happen quicker.

  Q207 Mr Hamilton: Do you believe the suggestions you have put forward will do that?

  Lord Carter of Coles: Yes, because we will start to get information and evidence about what is happening. Once that is there, it makes it easier to have the debate.

  Q208 Mr Hamilton: Do you think that the BBC World Service should pull out of more local language services in order to fund further TV ventures, like the Persian and Urdu services? Is radio a dying medium?

  Lord Carter of Coles: No, not at all; on the contrary. It is the right sort of radio of course! I think short wave is dying, but FM is absolutely critical. The issue for the BBC is to get FM Drivetime radio into the right countries. Other foreign language TV services—it is one step at a time; let us get Arab TV working and prove that it can meet its projections; let us see if we get the audience. Then we can see how the Americans got on with the Urdu service. I think they have done two hours of Persian, and we will see how those things evolved. Then a decision can be taken.

  Q209 Sir John Stanley: Do you think that in the balance of advantage it was right to slash the vernacular services in the way that has happened in order to be able to accommodate the Arabic television service?

  Lord Carter of Coles: I think it was right to slash the vernacular services, yes, because the world has moved on. The listing figures were no longer there and reaching the target audiences, and I think that was right. Separately, I think Arab TV probably stands on its own as a case anyway, given everything that is happening in the world; so I would not necessarily want to link those two. I think it was a good decision to stop that. They could have done anything with the money, and I think it is a good decision to invest in Arab TV.

  Q210 Sir John Stanley: Do you think that we should continue the system whereby the BBC World Service remains a grant-funded body through the FCO? Given the strategic importance to us of the World Service, would it be better off in direct receipt of a direct government grant and not be put into a position where there may be tension within the FCO, which is that the more given in grant to the World Service means less for the FCO to spend on its own opening up of embassies and running its own department?

  Lord Carter of Coles: Within the review we did think about other homes for these various organisations, but given the need to align it—because we are spending the money in pursuit of the wider government aims of having a good image in these countries—probably the only place it can rest is the FCO.

  Q211 Sir John Stanley: It could be funded directly and not be dependent on the grant it receives from a specific government department, and obviate the inherent tension in the present situation, as I have expressed it, that the more given to the World Service is less for the rest of the FCO.

  Lord Carter of Coles: I think the ring-fence attempts to deal with that, and it has removed some of that. Everybody thinks they can spend everybody else's money better, do they not? That is a fact of life. My sense, looking around, is that that is the most practical sponsoring department for it.

  Q212 Chairman: Can I take you back to the report and your recommendations. I am unclear as to why, although you are recommending establishment of a new public diplomacy strategy management board, there is still continuation of the previous public diplomacy strategy board. Your report states on page 5, paragraph 10: "The review team found that the various members of the Public Diplomacy Strategy Board made valuable contributions to the overall public diplomacy effort." Is this a face-saver for people who have been there and served for a long time and who would be unhappy to have their role taken away from them, or does it mean you are creating a really unusual structure whereby you are keeping in existence something that was only established in 2002 but bringing in alongside it a completely new organisation? I am unclear as to why you have not just said, "this body is abolished; this is the new one".

  Lord Carter of Coles: It is manageability really. The existing Public Strategy Diplomacy Board is large and is representative; it has people involved with administrations and people from a huge range of government departments. It does not conduct business. It actually seeks to inform and to share, and do those things. That does have a valuable role. We wondered whether that same body could take on the tighter strategy performance management role we envisaged, and concluded not; but we thought that had a value. Therefore, with the two structures one feeds into the other; but to drive the change it is the board we are proposing that we seek doing that. I would be reluctant to recommend not getting people together.

  Q213 Chairman: The previous body, which continues, has been chaired by the Permanent Secretary, Sir Michael Jay; the new body will be chaired by an independent figure.

  Lord Carter of Coles: By a minister.

  Q214 Chairman: Are we now moving, in a sense, to a more detailed political control of the public diplomacy as opposed to a bureaucratic control to make sure that your money is spent properly and, as an accounting officer he is content with procedures and can ensure that the Treasury boxes have all been ticked and are all green and not red? Is this an attempt to say, "we are not entirely happy that we have sufficient things joined up, and therefore there is going to be a political lead from the top"?

  Lord Carter of Coles: I think it is to get an ownership of it, to see that there is a strategy. There is a series of silos sitting there; it is to get a strategy that says, "this is generally where we want to go and this is what we are getting back for it". To the accounting officer point, it is a different matter; that the money is accounted for correctly and the boxes are ticked. That is not quite the same as driving something to meet government targets.

  Q215 Chairman: Do you think the Foreign Secretary has time to spend on doing this, given all the other commitments he has?

  Lord Carter of Coles: I do not think it was envisaged that the Foreign Secretary would do this; I think it would be another minister.

  Q216 Chairman: So the number 4 in the department who is also trade minister or who at the moment deals with some areas of this kind—is that what you are thinking; or the minister for Latin America and—

  Lord Carter of Coles: It is obviously up to the department to determine that. Perhaps I can put it the other way. When you are spending £600 million in a very important time, on balance of responsibility—and I happen to believe public diplomacy is effective—you want to make sure that that is as important as some other things and send that message.

  Q217 Chairman: How will the new Public Diplomacy Board relate to the British Council's own board?

  Lord Carter of Coles: I suppose I would summarise it by saying: what, where and how, in the sense of who does what. The things that the board, in my view, should concentrate on are where things are done, i.e., which countries in these priority times, and how they are done in those countries. It is the question of the different channels and how we do this, what should be emphasised and what is working. However, what should be done, how it should be operated, or, in the case of the BBC, what the editorial independence is, should be a matter for the board and the British Council and indeed the BBC. It is that separation. One is strategic—"this is where we are going to go and we are making sure in measurement terms that we are going there".

  Q218 Mr Keetch: You say in your report that in relation to the public diplomacy strategy there is a gap and that we need a comprehensive mid-term plan over a three to five-year period. Can you explain how you envisage creating that and how that would tie not just into the British Council and the BBC but to all the other bodies that are involved in public diplomacy—the Ministry of Defence, the Scottish Executive now even?

  Lord Carter of Coles: There seemed to us to be two things happening. There are the very long-term steady committed things—we are broadcasting in this language to that country on FM, or trying to do this or that. On the other hand, there are various initiatives the whole time, which appear—"we are going to have a campaign here or do something there". There did not appear to be anything in the middle; in other words, what would our commitment to this country look like in three or five years' time, and what would we expect that to be doing for us in terms of our ratings? It was that really, saying that while we all like initiatives, are they paying off, and what are they really designed to do in this country—we have done this and we have done that but where has it led us? It is a matter of joining that up. That then gives the other players an opportunity to build into that; so if DCMS is proposing something and active in that area, or the Scottish Executive, one can say, "this is where we really think this is going over five years; what do you feel your input could be?" as opposed to somebody saying, "we think we are going to sponsor a fair here; let's have a quick phone-round". It is about getting a measured view of what should be done in each country.

  Q219 Mr Keetch: Do you think those other players, like DCMS or the Scottish Executive, will take this on board; or do they increasingly have their own agendas to pursue overseas?

  Lord Carter of Coles: I think they will take it on board if the organisation, the FCO and the British Council and World Service are effective partners in helping them do it. If this becomes effective, they will use it as a delivery chain to help them meet their objectives, but if it is ineffectual they will by-pass it and pursue their own ends.


 
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