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£100m set to be taken from licence fee to top up ITV's news budget

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Published Date: 15 June 2009
MONEY raised from the BBC licence fee could be "top-sliced" to help pay for regional news on commercial channels such as Scottish Television.
A report due this week from UK broadcasting minister Lord Carter is expected to recommend that up to £100 million of licence fee revenue is to be earmarked for redistribution to subsidise news bulletins on ITV.

It follows concerns that the collapse in TV advertising revenues will result in ITV plc, which produces the vast majority of programmes for the network, renouncing its public service obligations in a bid to survive.

Earlier this year, STV cut back its news programming from five hours 20 minutes to four hours per week. The company has warned of a "funding gap" as it attempts to compete with the BBC on news and respond to the changing media landscape, with Scotland due to be fully converted from analogue to digital TV transmission by 2011.

An STV spokeswoman said: "We remain committed to maintaining our valued news service and hope that Tuesday's Digital Britain report will address issues of funding in this area. We are supportive of the idea of an independently funded news consortium as suggested by Ofcom and have offered to pilot such a service in Scotland."

The SNP has argued strongly for more of the £320m a year raised in Scotland from the licence fee – currently £142.50 a year for a colour set – to remain north of the Border. It estimated up to £180m a year is redirected to the BBC in London.

Lord Carter will present his final Digital Britain report to Cabinet tomorrow, with the document being published this week. The interim report, which came out in January, made clear the UK government's belief that having the BBC as the only "publicly-secured provider" would not be sufficient.

It said the government needed to "aim" for different sources of high-quality news at local, regional and national level, "including the nations as well as the UK as a whole".

The interim report said: "The wide range of sources of news at national, regional and local level, and particularly a range of sources of widely available impartial news is not something that we can any longer take for granted."

Lord Carter, who announced last week that he would step down from government next month, is set to propose the biggest shake-up of British broadcasting for a generation. At the same time, he will drive forward a commitment to roll-out high-speed internet broadband access across the UK by 2012.

The SNP's culture minister Mike Russell said: "If any money is to be top-sliced from the licence fee, some of it must be used to properly fund output north of the Border, including the recommendation from the Scottish Broadcasting Commission for a Scottish digital network.

"Scottish licence fee payers are currently being short-changed, and the Scottish Parliament voted unanimously last year for the digital network to be put in place. This is now essential."

The BBC's position has come under scrutiny as its commercial rivals have struggled in the economic downturn.

Last month a Conservative bid to freeze the licence fee for one year was defeated in the Commons.

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  • Last Updated: 14 June 2009 9:31 PM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: ITV , The BBC
 
1

Douglas,

Bathgate 15/06/2009 00:26:09
Hello, I'm a top television executive and I'm afraid my company can't fulfil our contract unless we get some of that iniquitous telly tax (copyright Guga) currently given to the BBC.

No problem TV executive, just hand in that licence to print money at the desk as you leave. We were going to have a word about what you thought passed for quality telly anyway.
2

Willie Mor,

15/06/2009 01:08:41
Listen up folks, the BBC is an organ of bias paid for by you with a mandatory subscription.

Like Westminster which we all know is the mother of all parliaments, and the best in the World, so it is that the BBC is also the best in the World.

As a tribute to the mother of all parliaments the BBC has a habit of appointing and or employing and or sub-contracting the services of some of the finest political commentators in the World.

Indeed, here in Scotland we need look no further than the fine Kirsty Wark and her husband who have had no end of commissions from the Beeb.

Or that fine and impartial political journalist ex of the Herald, one Douglas Fraser, who now has a job with the BBC.

Of course once you are a BBC star like Sir Alan Sugar you can go the other way and get plucked for a Lordship and be appointed to government.

And now with an election in the offing, it is announced that a miniscule sum may be handed to the local ITV stations who are but hardly afloat in these recessionary times.

No wonder I think that we have the finest organ of bias in the whole wide world.

And no, I don't hold any truck with the idea of making the BBC in any way accountable to the people who pay their fat licence fee.
3

Charles Linskaill,

Edinburgh 15/06/2009 02:39:40

Willie Mor @#2,

'HOLY_MOTHER_OF_GOD!', WHERE DID YOU COME FROM!?

Absolutely Brilliant Comment of the Year, to-which, I wholeheartedly Agree!!


4

Charles Linskaill,

Edinburgh 15/06/2009 03:05:43

The Saddest day will be for us all, is when we loose 'PRIDE'!

We in the UK are unique, this is why, some like 'bin laden', and 'al qaeda', are jealous of us, and find it fit to make war and to go to the depths of terrorism.

It will not be before time, that we appreciate, our founders of British Television, and for the never-ending, Brilliant Service of Excellence that they resentfully give us, for about £2.50 per week, it is money well-spent, in supporting an Organization, that says,...

..."This Is The BBC Network"

RULE-BRITANNIA!!

5

Charles Linskaill,

Edinburgh 15/06/2009 03:23:10
All this for £2.50 per week, why complaion?

BBC One
BBC Two
United Kingdom (Digital-Freeview, cable and satellite only)
BBC Three
BBC Four
BBC Parliament
BBC News (also online for UK users [1])
CBBC Channel (7-12 year-olds)
CBeebies (1-6 year-olds)
BBC HD (High-Definition channel)
BBC Alba
United Kingdom component nations and regions
see BBC UK regional TV
Rest of the world
BBC Entertainment
BBC Prime (Europe, Middle East and Africa)
BBC America (United States)
BBC Canada (Canada)
BBC Lifestyle
BBC Food (Southern Africa and Scandinavia)
BBC Arabic Television (Middle East)
BBC Persian Television
BBC Kids (Canada)
BBC World News
BBC Knowledge
CBeebies
BBC HD
Channels operated by BBC Worldwide Ltd in association with other organisations
Animal Planet (in association with Discovery Communications Inc - not directly operated by the BBC)
People+Arts (in association with Discovery Communications Inc - not directly operated by the BBC)
UKTV (in association with Virgin Media Television)
Free to air (Freeview):
Yesterday
Dave
Subscription (Cable and satellite):
G.O.L.D.
Watch
Alibi
Blighty
Eden
UKTV Style
UKTV Gardens
UKTV Food
UK.TV (in Australasia) in association with FOXTEL and Fremantle Media)
The Community Channel

[edit] Radio
See List of BBC radio stations for a full list.

United Kingdom
BBC Radio 1 (Contemporary popular music) (97-99 FM) - Website
BBC Radio 2 (music for a more mature audience; and comedy), originally known as the Light Programme. (88-91 FM) - Website
BBC Radio 3 (Classical, jazz and non-western music and study in musical topics), originally the Third Programme. (90-93 FM) - Website
BBC Radio 4 (Non-musical entertainment such as drama, comedy, news programmes and factual programmes), previously the Home Service, formed in 1939 from the fusion of the prewar National and Regional Programmes. Radio 4 has both FM and longwave frequencies and broadcasts
6

Unimpressed one,

15/06/2009 09:16:42
Maybe the media should investigate BBC expenses claims. That should seal their fate.....
7

Grumpy,

15/06/2009 09:58:32
(5) You missed out Radio Scotland (which is rubbish anyway), and a whole host of local BBC stations in England. (Yes, the get one for a regio of 45 sw miles, and what do we Scots get - one station for the whole country.

The reason ITV is losing monet is because people hate the advert reaks. I record all programmes on Sky+, watch them later and skip past all the ads. Makes an hour long programme last only 40 minutes.
8

connaughtboy,

stonehaven 15/06/2009 10:14:08
#5 Why complain you ask. Well for starters, the BBC is a Unionist organisation. It is also incredibly inefficient.
9

connaughtboy,

stonehaven 15/06/2009 10:16:10
#7 Grumpy

Right you are. Good Morning Scotland is now utter mince. It used to be excellent until the likes of Gary Robertson started presenting it. Now it is flippant nonsense.
10

Griffe,

15/06/2009 15:13:18
As we pay for the licence there should be a referendum as to how the money is spent i.e. whether it is wholly retained by the BBC or part payments made to others.
11

Voldemort,

Edinburgh 15/06/2009 22:19:14
The BBC needs it wings cut. Nobody should be forced to pay for PC propaganda.

At very least the people should be given a choice to buy a television set that receives no BBC channels and subsequently to pay no licence fee.

If you don't subscribe to Sky movies you don't pay for it why should the BBC be any different ?

 

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