Conclusions and recommendations
1. We
recognise that this reservation [the continuing review being undertaken
by the BBC Trust] applies to the discussion in our Report of the
relationship between BBC Worldwide and Channel 4, and the future
of the licence fee. However, we are disappointed that the BBC
Trust appears to have used this as an excuse to avoid responding
to a number of our wider recommendations. As a consequence, the
BBC Trust's response cannot be regarded as a coherent response
to the Committee's Report. (Paragraph 4)
2. In view of its
important statutory functions, we naturally assumed that the BBC
Trust, in recognition of those functions, would have responded
in more detail and with greater diligence to a select committee
report. (Paragraph 5)
3. We do not accept
that the present system is more stringent, nor do those commercial
parties affected by BBC Worldwide's activities who gave evidence
to us. The Trust's assertion that the guidelines are now more
stringent is not justified by a comparison of the two sets of
guidelines themselves. (Paragraph 7)
4. We disagree. The
purchase of Lonely Planet remains the most egregious example of
the nature of BBC Worldwide's expansion into areas where the BBC
has no, or very limited existing interests. Had the BBC Trust
been a more responsible oversight body, it would have given more
serious consideration to the likely impact on the commercial sector.
We can only speculate as to why it did not. (Paragraph 8)
5. Our report demonstrated
that, in terms of public disclosure of the financial details of
the Lonely Planet purchase, the BBC was certainly not as transparent
as it claimed to us to have been. The BBC's arrogance demonstrated
in much that it presented in its case to us in this respect, and
in the way that it ignored this aspect in its response, is self-defeating
in terms of the preservation of its public reputation. (Paragraph
9)
6. We are disappointed
to find that, despite the earlier assurances from BBC Worldwide,
Lonely Planet magazine seems to have occupied very similar editorial
grounds to an existing commercial competitor and is therefore
having an adverse effect on the marketplace as a result. (Paragraph
11)
7. There is considerable
concern in the commercial sector about BBC Worldwide's activities.
Such activities may be funded commercially but their impact on
the businesses and jobs of the commercial sector are real, and
generating income for the BBC should not be an end in itself.
The Trust should welcome the opportunity to impose a tighter regime
on these activities, and the PVT system is an ideal way to achieve
that. (Paragraph 13)
8. We are disappointed
that the BBC Trust has failed to respond in full to our recommendations,
most particularly as the BBC receives such a substantial amount
of public funding. We were especially concerned about the apparent
arrogance of the BBC Trust who appeared to believe that they had
no case to answer. We consider that the BBC has a duty and responsibility
to properly account for exactly how its commercial activities
benefit the licence fee payer. (Paragraph 15)
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