Report 'casts shadow over BBC's charter'
Lord Hutton’s damning criticism of the BBC could have serious implications for the Corporation’s charter renewal in 2006.
The management structure of the BBC has remained virtually unchanged since it was formed in 1922.
While other broadcasters come under the auspices of new media regulator Ofcom, the BBC is independent.
Its 12-strong board of governors serves a dual purpose – the champion of the BBC but also its regulator, tasked with investigating complaints.
This lack of independent regulation has long been the subject of criticism.
The Britsh government is currently undertaking a charter review to look at the way the Corporation is governed, regulated and funded.
And Lord Hutton’s criticism of the governors is bound to lend weight to the argument that the management structure should be overhauled and the BBC brought under Ofcom as a condition of charter renewal.
Culture Secretary Tessa Jowell recently denied that the outcome of the review would be influenced by the Hutton Inquiry.
But media analyst Graham Lovelace of Lovelacemedia said: “The outcome of the Hutton Inquiry is far worse for the BBC than many had predicted, and has clearly plunged the corporation in deep crisis.
“Hutton focused on lax procedures at the BBC, which have since been tightened. But he also chose to highlight what he said was a failure on the part of the BBC’s governors to properly investigate the British government’s complaints.
“The governors came under sustained criticism during the inquiry for not fully performing the role of the BBC’s regulator. Instead, the governors were seen to be championing the corporation.
“As chairman, Gavyn Davies robustly defended the role of the governors in the Kelly affair, and resisted renewed calls for the corporation to come under the new communications regulator Ofcom.
“Those calls are now bound to intensify as the BBC enters a crucial period in its history, the review of its Royal Charter.”
In his report, Lord Hutton said the governors should have investigated complaints made by the then No 10 communications director Alastair Campbell about the content of Andrew Gilligan’s report.
The board consists of 12 figures drawn from public life who are appointed by the Queen on the advice of ministers. They are accountable to the licence payers and to Parliament.
They have an interest in public service and the arts, business and industry, and all are part-time non-executives who meet monthly to carry out their BBC duties.
Graham Lovelace said: “The BBC’s management structure is seen as an archaic system dating back to the 1920s.
“It has an independent group of individuals drawn from public life who have little experience of broadcasting or journalism.
“The board are the champions and the regulators of the BBC and that dual role will now come under close inspection as we approach Charter Renewal.”
In anticipation of the Hutton report, the BBC recently brought in a new complaints and compliance system.
The British government is currently consulting on the charter review process, having invited public and industry response on a set of questions about the BBC and its future.
Following the consultation, the British Department of Culture, Media and Sport (DCMS) will publish a Green Paper setting out its thinking, on which it will also consult.
