Select Committee on Public Accounts Twenty-Fourth Report


2  USE OF THE NEW BUILDINGS

10. Two of the new buildings at White City 2 were completed on time in October 2003 and the last was ready for occupation in January 2004, three months ahead of schedule. The BBC has used the new buildings to accommodate staff vacating other sites in London, but a year after the last building in the development was completed, 22% of the office space was still unoccupied. The BBC acknowledged that the full occupation of the site had not taken place as quickly as would have been ideal, although the level of unoccupied space had now been reduced to 6.5% and the BBC hoped to quickly increase occupancy levels towards 100%.[15]

11. The BBC plans to reduce the number of people it employs by nearly 4,000 and proposes to move a further 1,500 staff to Manchester. The BBC said the precise impact of these changes on occupancy levels at White City 2 would not be clear until a final decision had been made on the proposed move to Manchester. However, the BBC had identified a large amount of space in London that could be vacated and, even with the fall in staff numbers, considered that reducing the size of the London estate would not mean that White City 2 would not be fully used. For example, the BBC planned to dispose of its Woodlands site where its commercial subsidiary BBC Worldwide Limited was currently based, and move the staff to the White City 2 site.[16]

12. White City 2 has an enhanced design specification intended to provide flexibility to accommodate a range of different uses. For example, the capacity of the floors to withstand heavy loads is significantly higher than in typical office buildings; and the Media Centre building has been designed to be adaptable to studio production, but it is currently occupied mainly by office staff who do not need the high specification provided. The BBC told us that, as it rationalised its estate, White City 2 would be heavily used by programme makers and it was confident that the buildings would be used to their full capability.[17]

13. The Energy Centre, which forms part of White City 2, has space for a combined heat and power installation. The installation was included in the original design, but the BBC removed it from the specification after concluding that the expense was not justified. The Energy Centre was completed in October 2003, but when the occupation of White City 2 began, the BBC had not been clear about what the energy requirements would be and had decided to keep empty the space in the Energy Centre for the combined heat and power installation. The office space in the Energy Centre also remained empty, at a cost of £900,000 a year.[18]

14. The BBC was going to decide how to proceed when it had confirmed its plans for staff moves and assessed the impact of job reductions. If the combined heat and power installation did not make economic sense, the space would be used for office accommodation. In the meantime the BBC is paying for empty space.[19]


15   Qq 6, 69-72; C&AG's Report, para 25 Back

16   Qq 8-9, 43-46, 51-52; Ev 16 Back

17   Qq 7, 52; C&AG's Report, paras 11, 28, 46 Back

18   Qq 32, 37, 114; C&AG's Report, paras 49-50 and Figures 4, 12 Back

19   Qq 105, 114 Back


 
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Prepared 14 February 2006