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| BBC regulation should go to Ofcom and trust should be scrapped, says review | BBC regulation should go to Ofcom and trust should be scrapped, says review |
| (35 minutes later) | |
| An independent report has called for “fundamental reform” of BBC governance, scrapping the BBC Trust and making Ofcom responsible for all regulatory oversight in a move that would bring the historic system of self-regulation to an end. | An independent report has called for “fundamental reform” of BBC governance, scrapping the BBC Trust and making Ofcom responsible for all regulatory oversight in a move that would bring the historic system of self-regulation to an end. |
| The Clementi report, which forms part of the government’s review of the BBC’s royal charter, also recommends that the BBC should have a unitary board made up with a majority of non-executive directors. | The Clementi report, which forms part of the government’s review of the BBC’s royal charter, also recommends that the BBC should have a unitary board made up with a majority of non-executive directors. |
| If the report’s recommendations are accepted by the government in renewing its charter this year, it will mark the first time in its 94-year history that the BBC has been regulated by a fully external body. | |
| David Clementi, former chairman of Virgin Money and Prudential, and previously a deputy governor of the Bank of England, said in a statement that there should be “fundamental reform of the system of governance and regulation” for the BBC. | David Clementi, former chairman of Virgin Money and Prudential, and previously a deputy governor of the Bank of England, said in a statement that there should be “fundamental reform of the system of governance and regulation” for the BBC. |
| Related: Lords committee: no compelling case for scaling back BBC | Related: Lords committee: no compelling case for scaling back BBC |
| “The BBC Trust model is flawed. It conflates governance and regulatory functions within the trust. The BBC should have a unitary board charged with responsibility for meeting the obligations placed on it under theroyal charter and agreement, and responsibility for the interests of licence fee payers. | “The BBC Trust model is flawed. It conflates governance and regulatory functions within the trust. The BBC should have a unitary board charged with responsibility for meeting the obligations placed on it under theroyal charter and agreement, and responsibility for the interests of licence fee payers. |
| “Regulatory oversight should pass wholly to Ofcom, which is already the public service regulator for the UK’s broadcasting industry and has the ability to look at the BBC in the context of the market as a whole. Ofcom would be a strong regulator to match a strong BBC.” | “Regulatory oversight should pass wholly to Ofcom, which is already the public service regulator for the UK’s broadcasting industry and has the ability to look at the BBC in the context of the market as a whole. Ofcom would be a strong regulator to match a strong BBC.” |
| Clementi recommends that full responsibility for regulation should be handed over to media regulator Ofcom is the real surprise in Clementi’s report given the almost universal consensus that the trust is not fit for purpose. Ofcom, which already handles a fraction of the necessary BBC oversight, regulates other public service broadcasters. | |
| The BBC Trust, a system of governance which replaced the board of governors 10 years ago, has been blamed for several management failures with its dual nature of both champion and regulator seen as ineffective. | |
| In response to the Clementi report on Tuesday, BBC Trust chairman Rona Fairhead said: “Sir David Clementi proposes a strong BBC board and a strong external regulator – a change we have argued for. It will be important to get the details right, and we now want to work with the government to ensure roles are clear, the structure is effective and the BBC’s independence protected.” | |
| When Clementi was appointed last September by the culture minister, John Whittingdale blamed the BBC system of governance for some of the “bad mistakes” of the past which “have all contributed to a widespread view that the governance structure needs reform”. | |
| He cited the scandal over Jimmy Savile, the misidentification of Lord McAlpine and editorial lapses over Ross-Brand as well as severance payments and excessive salaries. | |
| Almost exactly a year ago, the current chair of the trust, Fairhead, suggested that the body she led was not fit for purpose, with a lack of clarity over governance for some of the financial and editorial management failures of recent years. | |
| However, Fairhead and several others have argued that the BBC needs a “bespoke regulator” as Ofcom, which already has some regulatory oversight, is responsible for the BBC’s commercial rivals as well. | |
| Other critics of the BBC Trust include the BBC management and, before the last election, a report chaired by the current culture secretary. | |
| At the Oxford Media Convention in 2015, Fairhead said there was a “faultline in the blurred accountabilities” between the trust and the BBC management it was supposed to oversee. | |
| Last week, the Dame Janet Smith report into the Savile scandal made damning reading for the BBC and its governing body. | |
| The Clementi report also found: | |
| More details soon ... | More details soon ... |