Tessa Jowell appoints Terry Burns to advise on BBC Charter Review
107/03
Media Secretary Tessa Jowell today appointed Terry Burns as an independent adviser on the BBC Charter Review.
Lord Burns, who is Abbey National Chairman and a former Permanent Secretary to the Treasury, will provide advice to Tessa Jowell throughout the process.
His first task will be to help draft a set of questions about the BBC and its future which will kick-off the Review.
Tessa Jowell announced the appointment at the Royal Television Society (RTS) Biennial Convention in Cambridge. She also used the event to confirm the Government's commitment to digital switchover.
And she stressed that public involvement was absolutely essential in both Charter Review and switchover.
Tessa Jowell said:
"I want this Charter Review to be characterised by vigorous and open debate about the kind of BBC we want for the future. The BBC is paid for by the British people and it belongs to them.
"That is why I am determined that in the long process of review leading to a new Charter, the public will be fully involved.
"We need to ask ourselves what we want and expect the BBC to deliver; what range and scale of services it should provide; how it should be positioned in relation to the market; how it should be funded and regulated; and whether it delivers good value for money."
Speaking about Lord Burns' appointment she said:
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"I am delighted that Lord Burns has agreed to act as an independent adviser.
"I am determined that this process will be helped and guided by a strong,
independent element, a source of advice, analysis and validation throughout the review process."
Lord Burns said:
"I fully support the objective of a strong and independent BBC. The Charter
Review is clearly very important to the lives of millions of people and it
is vital that it should be carried out in an open and transparent way. I am
delighted to have the opportunity to be involved in it".
Tessa Jowell outlined the Charter Review process. She said that forthcoming reviews of the BBC's digital TV and radio services, an on-going review of its on-line services and a wider review of the role of Public Service Broadcasting television by Ofcom would all feed into the process.
The key stages will be:
- Publication of draft questions about the BBC and its future by year-end.
- A wide-ranging public and industry consultation seeking views on whether these are the right questions, to help set the agenda for the review.
- The publication of a Green Paper, expected around the turn of 2004-2005. This will be subject to further consultation.
- The publication of a White Paper, setting out the Government's considered recommendations. This will be set before Parliament and the public.
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This is an indicative timetable, but she said that the process will be concluded well before the Charter expires at the end of 2006, so that the BBC and industry have time to adjust to any changes.
Spelling out the Government's commitment to switching off analogue television transmissions, she said:
"The advantages of digital are such that the question is not whether, but how and when we will achieve switchover."
She set out three main arguments for switchover:
- More choice for consumers – it will bring a broader range of better quality services to the public.
- The waste of duplication – broadcasters are spending huge sums of money transmitting in both analogue and digital, cash that could be invested in programming.
- More efficient use of spectrum, meaning more and different services for consumers and leading to more jobs and business opportunities.
She said that public service broadcasters and multiplex operators needed to produce their plans for achieving universal coverage. These would be complemented by reports by Ofcom and the BBC, due to be published next March, on developments in the digital market.
This would then enable the Government to consult with industry and the public on the prospects for switching over.
She also said that she would like to see Ofcom's Consumer Panel play a role in identifying the public interest in switchover and come forward with recommendations. The Consumer Panel's position inside the new independent regulator would give the public the assurance they need that their interests are protected. The Consumer Digital Television Expert Group, which has been set up to ensure the public has a say in the progress towards switchover, will also play a key role.
However she said there were still challenges ahead. In particular the public would have to be persuaded of the case for digital switchover and equipment would need to be more user-friendly. She said that phasing switchover region-by-region would enable technical problems to be dealt with better and switchover by 2010 remains achievable.
Tessa Jowell spoke as the Government published a Cost Benefit Analysis Report setting out the economic case for switchover. The report indicates net benefits to the UK economy of between £1.5bn and £2bn.
The Department of Trade and Industry also issued a report today by Scientific Generics Ltd, which examines how currently available digital television equipment rates in terms of usability. Tessa Jowell warned the industry they need to keep products simple.
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Notes to editors
1. Tessa Jowell was speaking at the Royal Television Society Biennial Convention in Cambridge.
2. The Royal Charter is a formal document granted under the Royal Prerogative establishing the BBC and defining its general objectives and functions. It is accompanied by the Agreement between the BBC and the Government, which sets out how the BBC will meet its general obligations, services it will provide and the standards it will meet.
3. Lord Burns has been Chairman of Abbey National plc since 2002. He is also Chairman of Glas Cymru Ltd (Welsh Water) and a non-executive director of Pearson Group plc and British Land plc. He was Permanent Secretary to HM Treasury from 1991 to 1998 and was Chairman of the Inquiry into Hunting with Dogs in 2000 and Chairman of the National Lottery Commission from 2000 to 2001. He graduated with a BA in economics from the University of Manchester before joining the London Business School in 1965. He became Professor of Economics there in 1979. He was appointed Chief Economic Adviser to the Treasury and Head of the Government Economic Service in 1980, before becoming Permanent Secretary. Lord Burns was made a Life Peer when he stepped down from the Treasury in 1998. He is Chairman of the Governing Body of the Royal Academy of Music. He is married with one son and two daughters.
4. The Cost Benefit Analysis and the Scientific Generics report into usability are available at http://www.digitaltelevision.gov.uk
5. The £1.5bn to £2bn figure quoted in the Cost Benefit Analysis is in net present value terms.
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