S4C

Written evidence submitted on behalf of the BBC Trust and the BBC Executive Board

This evidence to the Welsh Affairs Select Committee is provided jointly by the BBC Trust and the BBC Executive Board.

The BBC Trust is the governing body of the Corporation with responsibility for setting the strategy for the BBC and representing the interests of licence fee payers. The evidence from the Trust deals with the strategic relationship between the two broadcasters.

The BBC’s Executive Board is responsible for the operational management of the Corporation. The evidence from the Executive, provided by BBC Wales, outlines the programming provided by the BBC to S4C.

BBC Trust evidence

1. BBC and S4C Strategic Partnership

1.2 The first strategic partnership is currently being renewed, and the BBC hopes to complete this process by the end of 2010. The renewed partnership would be for two financial years, until March 2013.

1.3 Renewing this partnership is important to the BBC as the two broadcasters begin a journey towards greater collaboration.

1.4 In addition to the formal partnership the Trust has encouraged the BBC Executive to explore additional collaboration between the two broadcasters, particularly in sharing ‘back office’ and support functions. The S4C Authority outlined their own support for shared functions in their recent submission to DCMS (6 October 2010) and management teams from both broadcasters continue to explore the possibilities in this area.

2. Spending Review announcement

2.1 The Secretary of State for Culture, Olympics, Media and Sport, Jeremy Hunt, has made clear that, having decided to reduce the UK Government’s funding for S4C as part of the Comprehensive Spending Review, a new partnership model with the BBC was the best way of securing the long term future of the service. This proposition was put to the BBC in the context of discussions on a new licence fee settlement. The BBC is now committed to taking forward this policy.

2.2 A new arrangement will see the BBC build upon our existing commitment to the provision of a broad range of Welsh language services. It will provide the BBC with a new, additional, responsibility for funding a large part of a high quality S4C service.

2.3 The BBC has no ambitions to take over S4C. The Corporation is committed to a creatively independent S4C, which attracts revenue from a range of sources, including the licence fee. This income will be alongside a reduced grant from DCMS, of £6.7m in 2013/14 and £7m in 2014/15. The BBC Trust shares the determination of S4C, and the independent production sector in Wales, that S4C should retain its strong relationship with that sector.

2.4 The settlement between the UK Government and the BBC stipulates that in 2013/14 and 2014/15 the BBC will contribute £76.3m and £76m respectively in cash to S4C. This will be in addition to the continuation of the statutory supply of programming to the organisation.

2.5 The settlement also stipulates that there will be a further review of S4C’s strategy and finances, which will conclude before the end of 2014/15. The BBC does not yet have a position on how that review should be undertaken.

2.6 The BBC Trust is the guardian of the licence fee and as a result will need to have oversight of how the licence fee that is allocated to S4C is being spent. New governance arrangements for S4C will be required in order for the Trust to have appropriate oversight of this. The licence fee settlement between the UK Government and the BBC sets out in broad terms how this might be achieved.

2.7 The BBC would like to move quickly to agree the form that these governance arrangements will take. The BBC Trust is committed to working with the S4C Authority and DCMS to find appropriate governance models and to work through the issues that will arise from this change.

BBC Executive evidence

3. Context

3.1 The BBC has been producing Welsh language television programming for over 50 years, and this output has played a key role in supporting the S4C service since the channel’s launch in 1982. It is a central component of the BBC’s mission in Wales , and makes a strategic contribution to the fulfilment of the BBC’s public purposes in Wales .

3.2 In 2009/10, BBC Wales supplied over 600 hours of programming to the channel. This content forms a key part of our commitment to Welsh language licence fee payers, which encompasses services across television, radio and interactive platforms.

3.3 The BBC’s services for Welsh language speakers include BBC Radio Cymru, Wales ’ s only Welsh language radio station. This comprehensive speech and music service broadcasts for 20 hours each day and remains the most popular radio station amongst Welsh speakers, ahead of BBC Radio 1 and 2. The BBC’s online offering in the Welsh language has also developed considerably over the course of the last decade, reflecting the growing importance of interactive platforms.

4. Current BBC programme supply for S4C

4.1 The BBC’s programming contribution to S4C is highly valued by S4C’s audiences. It accounts for about a fifth of S4C’s total output yet attracts almost 40% of the channel's viewing.

4.2 The BBC’s programme supply to S4C is built around three core pillars – journalism, daily drama and sport.

4.3 News has been at the heart of the BBC’s offering to S4C audiences from the outset. In 2009, this news provision was fu r ther extended to create a comprehensive Newyddion service broadcasting 6 times each weekday. It is a highly valued and distinctive service - blending Welsh, UK and world news for Welsh language speakers. In addition, the Ffeil news programme delivers a bulletin which is aimed at children every day of the week.

4.4 Beyond daily news, the politics programme CF99 offers analysis of Welsh politics and a forum for political debate. Pawb a’i Farn travels the length and breadth of Wales to give people the opportunity to quiz Wales ’ s politicians about the burning issues of the day. The current affairs strand Taro Naw adds considerable depth to Welsh language journalism.

4.5 The daily popular drama Pobol y Cwm is the mainstay of S4C’s evening schedule and remains one of S4C’s most popular programmes. Production of the programme will move in 2011 to BBC Wales’ s new drama production centre in Cardiff Bay , and this will enable the programme to migrate to a full-scale HD operation.

4.6 The BBC also provides comprehensive coverage of the National Eisteddfod for S4C viewers. In 2010, more than 100 hours of output were broadcast from Ebbw Vale.

4.7 In addition, t he BBC provides expert coverage of live rugby on S4C, including the Six Nations and Autumn internationals, weekly Magners L eague matches and the Welsh Principality Premiership. Live rugby attracts a wide audience - Welsh and non-Welsh speakers alike - to the channel. Since 2008, English language red-button commentary has been available for domestic matches.

4.8 Looking to the future, BBC Wales will, of course, continue to provide a range of programmes that deliver outstanding public value to S4C. In doing so, however, we will face challenging efficiency savings - in common with the rest of the BBC - and we expect the overall number of hours produced by BBC Wales for S4C to fall closer to the statutory level by 2012/13.

5. Collaboration

5.1 The BBC and S4C management teams announced in September that both broadcasters would undertake a major joint research project to assess long term trends in the usage of Welsh language media. The research will play a major role in helping to ensure that the services of both broadcasters remain relevant with Welsh language audiences for years to come.

5.2 In parallel with this work, and in light of the financial pressures faced by both S4C and BBC Wales, both organisations have recently engaged in discussion s to explore new ways of working that might assist in confronting the challenges ahead. This initiative predates the recent Spending Review and Licence Fee announcements .

5.3 The BBC and S4C management teams intend to work together to explore the scope for collaboration across a wide range of areas including marketing, research, distribution and technology under the renewed strategic partnership to March 2013. They will also undertake an assessment of longer term options that should help to inform the new partnership proposed by the Government in the Licence Fee settlement , including the strategic benefits of co-locating both organisations at a single media centre. Co-location could help deliver significant operational savings for both broadcasters as it would allow technology and transmission systems to be shared.

Conclusion

In these challenging times t he BBC Trust and Executive hope to work positively with the S4C Authority and its management team to ensure distinctive quality programming in the Welsh language that is valued by its audience .

November 2010