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Government denies decision made on Ofcom replacing BBC Trust Government denies decision made on Ofcom replacing BBC Trust
(35 minutes later)
Industry experts are to be appointed to help decide on a wide-ranging review of the BBC, according to government sources who denied reports that media regulator Ofcom was set to take over regulation of the corporation.Industry experts are to be appointed to help decide on a wide-ranging review of the BBC, according to government sources who denied reports that media regulator Ofcom was set to take over regulation of the corporation.
The forthcoming green paper on the BBC is likely to call for the abolition of the BBC Trust without backing an alternative regulator, according to sources close to the government.The forthcoming green paper on the BBC is likely to call for the abolition of the BBC Trust without backing an alternative regulator, according to sources close to the government.
“There is going to be an open consultation,” said one source. “To say a decision has been taken is just nonsense.”“There is going to be an open consultation,” said one source. “To say a decision has been taken is just nonsense.”
There is little doubt that the BBC Trust has few allies. Within a few months of her appointment, the chair of the Trust, Rona Fairhead, indicated it was not fit for purpose and that its powers should be transferred to an external body dedicated to regulating the BBC. There is little doubt that the BBC Trust has few allies. Within a few months of her appointment, the chair of the trust, Rona Fairhead, indicated it was not fit for purpose and that its powers should be transferred to an external body dedicated to regulating the BBC.
The Telegraph reported that ministers had rejected that option and were instead planning an expanded role for Ofcom, which already acts as the regulator for commercial TV.The Telegraph reported that ministers had rejected that option and were instead planning an expanded role for Ofcom, which already acts as the regulator for commercial TV.
A report in February on the future of the BBC from the select committee chaired by John Whittingdale was sharply critical of the Trust, suggesting that a unitary board allied with an external regulator might be a better option. There are some who believe Ofcom could be that external regulator but no decisions have yet been made, 18 months before the end of the current charter. A report in February on the future of the BBC from the select committee chaired by the now-culture and media secretary John Whittingdale was sharply critical of the trust, suggesting that a unitary board allied with an external regulator might be a better option. There are some who believe Ofcom could be that external regulator, but no decisions have yet been made, 18 months before the end of the current charter.
Options for alternative regulatory structures are likely to form part of the green paper set to be published before parliamentary recess on 20 July. The consultation exercise is likely to include a cross section of people within the industry as well as the public.Options for alternative regulatory structures are likely to form part of the green paper set to be published before parliamentary recess on 20 July. The consultation exercise is likely to include a cross section of people within the industry as well as the public.
“The abolition of the BBC Trust is hardly a splash story,” said one Westminster source.“The abolition of the BBC Trust is hardly a splash story,” said one Westminster source.
George Osborne and Whittingdale are understood to not yet have had a detailed discussion about the BBC charter renewal process.George Osborne and Whittingdale are understood to not yet have had a detailed discussion about the BBC charter renewal process.
The government source also downplayed the idea that the charter renewal period would be shortened from 10 to five years, although such a move would simply extend the decision made in 2005.The government source also downplayed the idea that the charter renewal period would be shortened from 10 to five years, although such a move would simply extend the decision made in 2005.
According to sources, there are due to be four or five key themes that the green paper will explore, including governance and, perhaps more controversially, privatisation or part-privatisation of BBC Worldwide.According to sources, there are due to be four or five key themes that the green paper will explore, including governance and, perhaps more controversially, privatisation or part-privatisation of BBC Worldwide.
Details of the paper are still being finalised but there are also suggestions that it will look at the privatisation options for the BBC’s in-house production departments. Details of the paper are still being finalised, but there are also suggestions that it will look at the privatisation options for the BBC’s in-house production departments.
Parts of the corporation’s programme-making divisions are due to be spun off into a separate outfit called BBC Studios, which will eventually become a commercial subsidiary. In addition it is understood there have been discussions within government about BBC Worldwide being put on the portfolio of assets it is considering selling. Parts of the corporation’s programme-making divisions are due to be spun off into a separate outfit called BBC Studios, which will eventually become a commercial subsidiary. In addition, it is understood that there have been discussions within government about BBC Worldwide being put on the portfolio of assets it is considering selling.
Six years ago the Labour government put the corporation’s commercial wing on its asset list but it was granted a reprieve a year later under the coalition. However it is understood that politicians have been considering putting it back on the list. Six years ago, the Labour government put the corporation’s commercial wing on its asset list, but it was granted a reprieve a year later under the coalition. However it is understood that politicians have been considering putting it back on the list.