Select Committee on Culture, Media and Sport Minutes of Evidence


Examination of Witnesses (Questions 420-439)

MR GREG DYKE

8 MAY 2007

  Q420  Mr Evans: What do you mean?

  Mr Dyke: I think at the time of Hutton, as I told Lord Hutton, we should have set up an inquiry and kicked it into the long grass for a long time. I am not sure I would have changed anything. We did not have many battles with Government. The battles with Government were largely over Iraq and I think they were perfectly justified from our perspective. There are obviously some things which you would do differently. I was quite lucky, I got there when there was quite a good licence fee settlement, and there was a bit of money around. I also took the decision that we should separate a lot of the assets and sell some of them, so that we could use that money to improve the service to the public. We sold BBC Technology; they have since sold BBC Broadcast; all of which I took out and made them as stand-alone units that you could sell. I think there is more opportunity for the BBC to do that. It seemed to me if you did not get an inflation-based licence fee that was the way through the next 10 years; because broadcast inflation always runs above inflation, I do not know why, so you had to find a way of getting extra money to get you through that. There are two things which really drove me: firstly, this was the beginning of the digital age and we needed to be in there, and be in there fast. One of my criticisms of ITV is that they completely failed to do anything for five years. I thought that meant spending money that we did not have, which we did; which we were going to pay back by selling off some assets. Secondly, I thought it was very important that the digital television arena was not dominated by Sky. I thought actually that was not in anybody's interests, and certainly not in the BBC's interests and, therefore, out of that came Freeview when the opportunity came; which said, "Look, let's have some competition in this. There are a lot of people our there who don't want pay television, but they do want more television". When I look back, they are the driving things: firstly, producing more television, more radio in the digital world; and, secondly, let us not let Sky dominate the digital world so that we are all, in the end, beholden to Sky.

  Q421  Mr Evans: Do you think that the channels which are on Freeview should be able to broadcast in high definition television so that people can get it through Freeview; there should be spectrum given there?

  Mr Dyke: With switchover you are going to get a fair amount of spectrum. There is going to be an incredible drive from the Treasury, I suspect, to maximise the income from that. I think there is a real argument to say of course some should be; but it is not only HD; I think local television comes into there as well. Without HD Freeview could be a transitionary technology and not a long-term technology, which I think would be a shame. Secondly, I do think there are opportunities for local television to come out of that as well. I think it is probably worth making an argument as a Committee for some of the spectrum to be used for them but, of course, the spectrum is going to be incredibly valuable.

  Q422  Mr Evans: Do you think HD TV is a premium product and it does not really matter if Sky has a monopoly of it in the end?

  Mr Dyke: No, HD TV will be everyday television at some stage. All new products are premium to start with; but there is a tipping point, is there not? There is a tipping point when people will expect to see movies, sport and drama on HD.

  Q423  Mr Evans: Sky should not have a monopoly of HD TV?

  Mr Dyke: Personally I do not think so, no. It depends what happens to Sky in the meantime. It depends whether it is just a platform or if it is also a programme provider, but that is a different argument. I think Freeview showed a demand; our expectations were pretty high and it took off faster than that. It showed that there were a lot of people who wanted more television but did not necessarily want to pay for it. I think it would be a shame if some of the spectrum is not available for HD channels on Freeview.

  Q424  Mr Hall: Mr Dyke, you said the BBC got it right over Iraq, I actually agree with you because Caroline Thomson, a senior executive, said before the Hutton Report, "Truth and accuracy are the gold standard of the BBC and the Gilligan report fell far short of it". I agree with that statement.

  Mr Dyke: "And the [...]", which?

  Q425  Mr Hall: The Gilligan report fell far short of it.

  Mr Dyke: I do not think it did fall far short of it actually.

  Q426  Mr Hall: That is what she said and she was your senior executive at the time.

  Mr Dyke: She worked for us. I do not remember her saying that.

  Q427  Mr Hall: This is a direct quote.

  Mr Dyke: You would have to give me when she said it. If she did, she did not say it when I was there, that is for sure. A lot of things were said after I had left.

  Q428  Mr Hall: When did you leave? Did you leave before or after the Hutton Report?

  Mr Dyke: I left about the day the Hutton Report came out.

  Q429  Mr Hall: This was before the Hutton Report actually came out.

  Mr Dyke: Look, in all journalism there are mistakes. Journalism is not a science. If you talk to Jon Snow, Jon Snow is very interesting talking about the Hutton Report because he says if any of the journalism he had done in television over 20 or 30 years had been scrutinised to that level it would not stand up to that level of scrutiny. There are mistakes, it is inevitable, but look at the basic theme of what it said.

  Q430  Mr Hall: I want to look at the very specifics of what was said in the Gilligan Report, and why your senior chief executive said it fell far short of the gold standards.

  Mr Dyke: No, she was not a senior chief executive; she was the head of government relations, if I remember rightly.

  Q431  Mr Hall: She was a BBC senior executive.

  Mr Dyke: Journalists call everybody who can talk at the BBC a senior executive if it suits them. I am not arguing about Caroline; she is a very talented executive. I am only arguing about Gilligan. She must have said that after I had gone because she certainly did not say it while I was there.

  Q432  Mr Hall: This is before the Hutton Report, so it is while you were still there.

  Mr Dyke: I doubt it.

  Q433  Mr Hall: What do you mean you "doubt it"?

  Mr Dyke: I doubt she said it. I think I might have noticed.

  Q434  Mr Hall: "The Gilligan Report fell short of the truth and accuracy of the gold standard of the BBC".

  Mr Dyke: What date have you got on that then?

  Q435  Mr Hall: I have not got a date on that, but that is actually what she said. You had actually said the Gilligan report was alright. Was it?

  Mr Dyke: The Gilligan report, no, there were mistakes in Gilligan's report but overwhelmingly right, yes. You are the only person I have met in recent years who does not believe that they sexed up the dossier.

  Q436  Mr Hall: This is what the Gilligan report said, and this is a specific quote—

  Mr Dyke: I presume you are a member of the Labour Party?

  Q437  Mr Hall: What you ought to presume is that I am a Labour Member of Parliament.

  Mr Dyke: Yes, I presumed that because you are here.

  Q438  Mr Hall: Then I would be a member of the Labour Party, would I not? That is just crass on your part, is it not?

  Mr Dyke: No, you are here as an MP. I am afraid I do not know you, Mr Hall, so I do not know you are a member of the Labour Party.

  Q439  Mr Hall: It is quite obvious you do not.

  Mr Dyke: Yes, that is right.


 
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