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BBC draws up plan to stop in-house production being sold to private sector BBC considers plan to stop in-house production being sold to private sector
(35 minutes later)
A plan to protect shows such as Doctor Who, EastEnders and Mrs Brown’s Boys from being snapped up by the private sector once swathes of BBC in-house production are hived off into a new company has been put forward to director general Tony Hall.A plan to protect shows such as Doctor Who, EastEnders and Mrs Brown’s Boys from being snapped up by the private sector once swathes of BBC in-house production are hived off into a new company has been put forward to director general Tony Hall.
Under plans proposed by Hall, the corporation is to transfer the drama – including staff working on hit soap EastEnders – entertainment, comedy and factual programme-making departments into a new outfit called BBC Studios.Under plans proposed by Hall, the corporation is to transfer the drama – including staff working on hit soap EastEnders – entertainment, comedy and factual programme-making departments into a new outfit called BBC Studios.
Hall’s “compete or compare” strategy is designed to help keep programme-making talent at the BBC and allow it to compete in the digital world against rivals such as Netflix and global production companies.Hall’s “compete or compare” strategy is designed to help keep programme-making talent at the BBC and allow it to compete in the digital world against rivals such as Netflix and global production companies.
BBC Studios will at first operate within the publicly-funded corporation but then be transferred out and become a separate subsidiary of the BBC group, operating at arm’s length.BBC Studios will at first operate within the publicly-funded corporation but then be transferred out and become a separate subsidiary of the BBC group, operating at arm’s length.
This second stage will need sign-off from the BBC Trust, government agreement and a change in the BBC’s charter.This second stage will need sign-off from the BBC Trust, government agreement and a change in the BBC’s charter.
However, some staff and unions fear that once BBC Studios is spun off from the rest of the corporation it could be bought by the private sector, as happened with BBC Technology and BBC Resources.However, some staff and unions fear that once BBC Studios is spun off from the rest of the corporation it could be bought by the private sector, as happened with BBC Technology and BBC Resources.
The corporation has been contemplating the conundrum, as has technicians’ union Bectu.The corporation has been contemplating the conundrum, as has technicians’ union Bectu.
Having taken legal advice, Bectu has come up with an inventive proposal to try and safeguard the future of staff and programmes within BBC Studios.Having taken legal advice, Bectu has come up with an inventive proposal to try and safeguard the future of staff and programmes within BBC Studios.
General secretary Gerry Morrissey has written to Hall suggesting staff within BBC Studios be given a say in what happens to the new company by having two classes of shareholders.General secretary Gerry Morrissey has written to Hall suggesting staff within BBC Studios be given a say in what happens to the new company by having two classes of shareholders.
The BBC would be sole holder of “A” shares, while employees with a contract for three months or more would be allotted a “B” share.The BBC would be sole holder of “A” shares, while employees with a contract for three months or more would be allotted a “B” share.
Those shares would not receive dividends but in the event “that the ‘A’ shareholders wished to transfer, sell or allot ‘A’ share to a third party, the ‘B’ shareholders would have to approve the transfer by a majority vote,” explained Morrissey in a letter to Hall.Those shares would not receive dividends but in the event “that the ‘A’ shareholders wished to transfer, sell or allot ‘A’ share to a third party, the ‘B’ shareholders would have to approve the transfer by a majority vote,” explained Morrissey in a letter to Hall.
“To be clear, under this structure the employees would have a final say on any sale of the business, but no other voting rights.”“To be clear, under this structure the employees would have a final say on any sale of the business, but no other voting rights.”
Morrissey explained: “We believe that this proposal does not in any way restrict the ability of the company to trade externally but it will give staff the assurances they require that their position in the BBC will not become less secure as a result of the creation of a new company.”Morrissey explained: “We believe that this proposal does not in any way restrict the ability of the company to trade externally but it will give staff the assurances they require that their position in the BBC will not become less secure as a result of the creation of a new company.”
“We believe that this proposal deserves serious consideration.”“We believe that this proposal deserves serious consideration.”