Written evidence submitted by the BBC
Trust
The BBC exists to serve all audience groups.
It needs to be more responsive to local needs and properly reflect
the UK, its nations, regions and communities, across a range of
platforms and genres. The BBC Trust is clear that the BBC must
serve local and regional audiences well. This is a key component
in both the BBC's Public Purposes and the Audience Councils for
England, Northern Ireland, Scotland and Wales, who advise the
BBC Trust on the views and needs of audiences in the nations and
regions.
The Trust also recognises that it is vital for
there to be provision of local and regional news and non-news
programming beyond the BBC. This is why the BBC is currently engaged
in discussions with a range of partners about a proposal that
would enable the provision on news beyond the BBC, using the BBC's
existing facilities to enable the provision of editorially distinct
news from a range of parties.
The Committee has set out a detailed and wide-ranging
inquiry into the future for local and regional media. The majority
of the questions posed are rightly for the BBC Executive to respond
to; their full submission follows this short submission from the
BBC Trust.
In this short covering document we set out the
framework in which the BBC Executive is operating, looking at
the priorities of audiences, the reasoning behind the Trust's
recent Local Video Public Value Test conclusions, and our ongoing
challenge to the Executive.
WHAT DO
AUDIENCES WANT
FROM THE
BBC?
In 2007 the Trust carried out research
examining audience priorities, and their views on the BBC's performance.
This research included information on the BBC's local, regional
and national services:
Sustaining Citizenship and Civil Society
Regarded by licence fee payers as one of the
most important purposes, BBC performance is considered to be strong.[67]
Those within the devolved nations of the UK consider that it could
do more to help them understand constitutional affairs. Audiences
also have concerns about the way devolution is reflected in network
news coverage.
Representing the UK, its Nations, Regions
and Communities
In meeting its obligations, the BBC should provide
a range of output[68]
to meet the needs of different audience groups. It remains an
important part of the BBC remit with considerable performance
gaps.[69]
The perception of under-performance is common to all age and socio-economic
groups but this masks regional and demographic differences.[70]
THE LOCAL
VIDEO PVT
In response to the performance gaps indentified
by the Trust, the Executive proposed a Local Video service, which
was the subject of a PVT. However, in its final conclusion the
Trust was not satisfied that any likely adverse impact on the
market was justified by the likely public value of the local video
proposal.
Whilst local video had potential to deliver
some public value it did not represent the most efficient use
of licence fee funds, especially given access issues for non-broadband
users and limited reach to key audience groups. We note, in particular,
the low appeal to broadband users of a local video news offering
that did not extend to listings, reviews and general entertainment
(excluded due to the higher potential for market impact). We also
recognised the negative market impact that might result from BBC
expansion at a local level at a time when some commercial providers
face a degree of structural and cyclical pressure.
The BBC exists to serve all audience groups.
It needs to be more responsive to local needs and properly reflect
the UK, its nations, regions and communities, across a range of
platforms and genres. Our decision did not, therefore, imply a
lack of commitment to improving local provision and meeting deficiencies
or ''gaps'' in respect of the BBC's public purpose to represent
the UK, its nations, regions and communities.
In the Trust's view a series of smaller, targeted
interventions, that take account of current BBC regional provision
and are focused particularly on improving the quality and depth
of its television offering, could increase public value and contribute
to the relevant public purposes. We recognise that these targeted
interventions may differ depending on the circumstances of each
of the nations and English regions. There could also be scope,
through meaningful partnerships, for the BBC to contribute more
widely to existing regional news providers and potential new entrants.
The Trust therefore invited the Executive to
return in 2009 with new proposals designed to close or narrow
the purpose gap and improve nations and regions provision. These
are currently under consideration by the Trust. The proposed £68 million
investment in local video has been ''ring-fenced''. Whilst available
for nations and regions, it is not restricted to this area and
may be used by the Executive for other purposes, subject to Trust
approval.
POTENTIAL FOR
CONTESTABLE FUNDING
OF REGIONAL
NEWS
The question of contestable funding is for the
Government, but the source of that funding and the governance
would require careful consideration. The Trust would only support
proposals that did not compromise the BBC's independence or its
ability to continue to deliver its public services for licence
fee payers.
On the suggestion of diverting any digital underspend,
switchover is still in the early stages so it is not possible
to take a confident view on the potential sums involved and there
would be a number of potential calls on the money. It is important
to remember that licence fee payers give us their money in good
faith, believing it will be spent on BBC services and content.
To suddenly tell them mid-way through the settlement that their
money is being siphoned off, as some have suggested it should
be, would be more than an act of bad faith, it would be tantamount
to breaking a contract.
We know what the public would like to happen
to any surplus. Ofcom's own research shows this clearly. They'd
like their money back. As far as the Trust is concerned, returning
any surplus to licence fee payers is the benchmark against which
any other proposal should be judged.
Funding stability is important to the BBC's
creative and editorial independence. It is a unique privilege
which carries big responsibilities to deliver high quality programmes
and services and to play a leading role in digital switchover.
As the public face the reality of a recession, the BBC has an
even greater responsibility to demonstrate to them that the 39p
a day it receives from every licence fee payer is working hard
and being spent to deliver something of real value to them.
The BBC is committed to delivering more for
less, and has been set tough efficiency targets by the BBC Trust
that it must achieve over the licence fee settlement. These amount
to 15% by 2012-13, equalling £1.9 billion over the period,
and will be achieved without jeopardising the programmes and services
that audiences love.
More widely, the constitution of the BBC is
a matter for Government, but the Charter delivers stability and
independence for the BBC which is in the interests of licence
fee payers; principles that should not be compromised. The public
has clearly rejected the idea of stronger direct control of the
BBC by Parliament.
PARTNERSHIPS
The BBC also faces new demands because of the
recession. It has a vital role to play supporting other parts
of the industry. Now more than ever, the public will look to the
BBC for the kind of programmes, including drama and factual, which
others simply aren't making. We are now engaged in a series of
partnership initiatives which will help other broadcasters and
programme makers.
The BBC has already signed an agreement with
ITV proposing sharing facilities for regional news in England
and Wales. The potential is there for ITV to cut its costs significantly
— and, more to the point as far as audiences are concerned,
the proposals could keep ITV's endangered regional news services
on the air. This sharing of facilities could in principle extend
to other providers, including independently funded regional news
consortia.
On behalf of licence fee payers, the Trust will
continue to ensure that the BBC serves all audiences, lives within
its means and, through partnerships, brings the benefits of public
investment to the whole broadcasting sector.
NEXT STEPS
The Executive in its response sets out its current
thinking on the BBC's role in local and regional broadcasting,
not only with respect to the Trust's decision on the PVT but also
the current broader policy debate.
The Trust remains keen to see new proposals
from the Executive to tackle the purpose gaps which remain, and
is encouraged by the progress being made. In its Local Video PVT
findings, it made clear that any new proposals would be considered
by the Trust and subject to the appropriate approval mechanisms.
Aside from this, we also recognise that there
are things the BBC can do to help ensure that audiences continue
to benefit from a diverse range of PSB — both from the BBC
and beyond. We remain of the view that a partnership approach
holds the best potential to create the new value needed to fulfil
this ambition.
It is equally important to recognise that, while
the BBC can make a contribution this must not be at the expense
of its existing and highly valued public services. We welcome
the Secretary of State's recognition that the BBC needs to maintain
strength and stability at the core. As such, it is important that
any proposed partnerships do not transfer value out of the BBC,
as this would compromise the BBC's ability to deliver on its mandated
public purposes. Instead, partnership proposals should create
new value and so enhance the delivery of public service broadcasting
without compromising the independence of the BBC which is so vital.
June 2009
1) The BBC helps me feel more involved in my
community
2) The BBC caters for my area and my community
The biggest purpose gaps are for under-45 C2DE
groups. In "Delivering Creative Future", the Executive
also emphasised the importance of better purpose delivery to C2DE
audiences and of lower perceptions, among this group, of BBC value
more generally.
67 BBC Trust Purpose Remit research, 2007. Back
68
Spanning news, entertainment and factual content. Back
69
It is among the largest for any of the BBC's public purposes.
The provision of a range of output to meet the needs of the nations,
regions and communities was also identified as an area for improvement,
BBC Trust purpose remit research, 2007. Back
70
Looking at the overall UK picture, for Back
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