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| Ex-Bank of England deputy governor to lead review into BBC regulation | Ex-Bank of England deputy governor to lead review into BBC regulation |
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| The government has appointed a former banker to carry out an independent review into the way the BBC is governed and regulated amid increasing criticism of the existing BBC Trust. | The government has appointed a former banker to carry out an independent review into the way the BBC is governed and regulated amid increasing criticism of the existing BBC Trust. |
| Sir David Clementi, a former deputy governor of the Bank of England who was chairman of Virgin Money and Prudential, is expected to present his proposals by early 2016 ahead of a white paper renewing the BBC charter which runs out at the end of next year. Clementi has previously reviewed the regulation of legal services in England and Wales. | Sir David Clementi, a former deputy governor of the Bank of England who was chairman of Virgin Money and Prudential, is expected to present his proposals by early 2016 ahead of a white paper renewing the BBC charter which runs out at the end of next year. Clementi has previously reviewed the regulation of legal services in England and Wales. |
| In a statement to the House of Commons, John Whittingdale, secretary of state for culture, media and sport, made clear that the current system had failed and referred to previous lapses in editorial judgment or standards: “Television is of huge importance to the nation – and the BBC lies at the heart of British television. However, no one could deny that the BBC has made some bad mistakes in the last few years. | In a statement to the House of Commons, John Whittingdale, secretary of state for culture, media and sport, made clear that the current system had failed and referred to previous lapses in editorial judgment or standards: “Television is of huge importance to the nation – and the BBC lies at the heart of British television. However, no one could deny that the BBC has made some bad mistakes in the last few years. |
| “Savile, McAlpine, Ross-Brand, severance payments and excessive salaries have all contributed to a widespread view that the governance structure needs reform.” | “Savile, McAlpine, Ross-Brand, severance payments and excessive salaries have all contributed to a widespread view that the governance structure needs reform.” |
| The announcement comes two months after the government green paper on the BBC sounded the death knell for its current governance system. It pointed out that the BBC Trust had come under “sustained criticism” as a result of the Jimmy Savile scandal, the £100m Digital Media Initiative fiasco and excessive payoffs and salaries to BBC executives. | The announcement comes two months after the government green paper on the BBC sounded the death knell for its current governance system. It pointed out that the BBC Trust had come under “sustained criticism” as a result of the Jimmy Savile scandal, the £100m Digital Media Initiative fiasco and excessive payoffs and salaries to BBC executives. |
| Three broad options were outlined to replace it: reform the current trust system; give the BBC a unitary board alongside a new standalone regulator; or create a new BBC board with regulatory powers switched to existing media regulator, Ofcom. | Three broad options were outlined to replace it: reform the current trust system; give the BBC a unitary board alongside a new standalone regulator; or create a new BBC board with regulatory powers switched to existing media regulator, Ofcom. |
| While “all options have their benefits and weaknesses,” the paper ruled out a reformed BBC Trust, saying it is “clear that there is a case for more radical change”. | While “all options have their benefits and weaknesses,” the paper ruled out a reformed BBC Trust, saying it is “clear that there is a case for more radical change”. |
| The trust was also criticised in a report by the influential cross-party media select committee chaired by Whittingdale in February, when Labour committee member Ben Bradshaw called it a “busted flush”. Since then, few have rushed to its defence with even Rona Fairhead, appointed chair of the trust a year ago, calling for some kind of external oversight of the BBC rather than one body acting as both regulator and governor. The 10-year-old system of governance has long been controversial for creating a supposedly external body which acts as both arbiter of disputes and cheerleader. | The trust was also criticised in a report by the influential cross-party media select committee chaired by Whittingdale in February, when Labour committee member Ben Bradshaw called it a “busted flush”. Since then, few have rushed to its defence with even Rona Fairhead, appointed chair of the trust a year ago, calling for some kind of external oversight of the BBC rather than one body acting as both regulator and governor. The 10-year-old system of governance has long been controversial for creating a supposedly external body which acts as both arbiter of disputes and cheerleader. |
| Ofcom, the wider industry regulator praised by several government ministers over the past year, including the culture secretary, has responsibility for some areas of content such as harm and offence. | Ofcom, the wider industry regulator praised by several government ministers over the past year, including the culture secretary, has responsibility for some areas of content such as harm and offence. |
| In a speech at the RTS television festival in Cambridge on Thursday, Sharon White, the head of Ofcom, is expected to talk about the huge impact adding BBC governance to her department would make. Complaints to the BBC dwarf all other broadcasters combined. | In a speech at the RTS television festival in Cambridge on Thursday, Sharon White, the head of Ofcom, is expected to talk about the huge impact adding BBC governance to her department would make. Complaints to the BBC dwarf all other broadcasters combined. |
| In its statement on Wednesday, the Department for Culture, Media and Sport said the independent review “will help make sure that the right framework of accountability, incentives, checks and balances necessary are in place so that the BBC delivers for licence fee payers, takes account of its market impact, spends its money wisely and is held to account in doing so.” | In its statement on Wednesday, the Department for Culture, Media and Sport said the independent review “will help make sure that the right framework of accountability, incentives, checks and balances necessary are in place so that the BBC delivers for licence fee payers, takes account of its market impact, spends its money wisely and is held to account in doing so.” |
| A BBC Trusts spokesman said: “We welcome this review. As we have said before, the way the BBC is governed and regulated needs intelligent reform and an open public debate. We look forward to working with Sir David Clementi.” | |
| Clementi was deputy governor of the Bank of England for five years until 2002. Before joining the Bank in 1997, he worked at private bank Kleinwort Benson for 22 years as chief executive, vice chairman, head of its equities division and head of corporate finance. | Clementi was deputy governor of the Bank of England for five years until 2002. Before joining the Bank in 1997, he worked at private bank Kleinwort Benson for 22 years as chief executive, vice chairman, head of its equities division and head of corporate finance. |
| At Kleinwort, he played a key role in the UK privatisation programme, including advising government on the privatisation in 1984 of British Telecom, the first global equity issue and the privatisation of the electricity industry in 1991. | At Kleinwort, he played a key role in the UK privatisation programme, including advising government on the privatisation in 1984 of British Telecom, the first global equity issue and the privatisation of the electricity industry in 1991. |
| In 2004, he carried out a government review on the regulatory framework for legal services in England and Wales. He has also been chairman of King’s Cross Central, the partnership which is developing the 67-acre north London scheme. | In 2004, he carried out a government review on the regulatory framework for legal services in England and Wales. He has also been chairman of King’s Cross Central, the partnership which is developing the 67-acre north London scheme. |