[Community Television] Carter: we won’t top slice the BBC

[Michelle McGuire]

Carter: we won’t top slice the BBC
Colin Robertson and Conor Dignam
  30 September 2004 07:51


Ofcom chief Stephen Carter has told Broadcast that the BBC should 
continue to be "fully funded" – suggesting Ofcom will not propose "top 
slicing" the licence fee as part of its strategy for public service 
broadcasting beyond 2007.

Today (Thursday) Carter will unveil Ofcom’s second phase PSB report and 
say that unless more direct public funding is made available to 
commercial broadcasters like ITV and Channel 4 they will have no 
incentive to commission public service programmes as the television 
market goes digital.

But despite reports that Ofcom could lop 10% off the licence fee to 
hand to the commercial sector, Carter said: "This report will look at 
the entirety of the provision of public service broadcasting, not just 
the BBC.

  "However, a fully funded BBC will be a key part of our proposals."

The report published today will also say that its research has found 
people do not want "the BBC to have a near monopoly" on PSB provision 
and will argue that "competition for quality drives innovation and 
keeps the BBC on its mettle".

Ofcom’s report will also conclude that the current system of PSB 
provision "will not survive the move to a fully digital television age" 
and that action has to be taken now to create a new system to protect 
PSB output by commercial broadcasters – once the analogue signal is 
switched off.

  While Ofcom will be at pains not to appear to be "slicing" into the 
BBC’s public funds for commercial services – it does not mean it has 
ruled out looking at whether some licence fee funds – over time – 
should be available to other broadcasters.

Ofcom will unveil what it describes as "a new mechanism" for supporting 
PSB on commercial channels that its preface to the report, says "will 
refresh and provide the spur to innovation that PSB needs every decade 
or so".

Ofcom refused to comment on exactly how that new mechanism would work 
before publication today, but one senior industry source has told 
Broadcast it could mean capping the BBC’s costs at essentially a 
similar level to today – based on current population and number of UK 
households.

As the population and number of households grows the additional 
revenues could go towards funding PSB on commercial services rather 
than to the BBC.

A public pot of contestable funds could also be created and 
broadcasters and programme makers would be able to pitch for funds – if 
the programme has already been commissioned.

There may also be more direct public subsidies for C4 and possibly ITV 
to encourage them to continue producing PSB programming once the 
digital switchover takes place in 2012.

  If this outline proves to be the case Ofcom is expected to argue that 
the method is not "top slicing" the BBC’s income – as it would still 
have adequate resources to continue providing its current services.

Source: broadcastnow.co.uk