APPENDIX TO THE MINUTES OF EVIDENCE TAKEN BEFORE
million to the costs in that year with further increases in subsequent years.
2
ཏ།
23. Because of the size of extra costs to be caused by these special factors, the World Service has asked the FCO for supplementary funds in 1990-91 over and above the sum already agreed. They believe that this will be necessary "if the broadcasting operation is to be preserved in anything like its present form."3 The response of the FCO was set out in a letter which Sir Patrick Wright sent to the Committee after giving oral evidence. He said that the FCO "recognise the BBC's concern, but have to look to them to cover cost increases within the cash limits of the Triennium arrangement, which so far has served the BBC well.”+
24. We explored with the BBC the extent to which savings could be made. Mr Tusa expected to hold an extra budgetary meeting to take up to £1 million out of the budget in order to fund the
pay
settlement, and the same method would have to be used next year. The consequences might affect the quality of programmes rather than the "prescription" which they aimed to avoid cutting. In all, he had no doubt that the cuts would be painful. The continued presence of the World Service in Bush House, was supported by Mr Tusa because of its “ideal” location and role as a focal point, despite its inefficiencies as a building. Above all, Mr Tusa resisted making sudden changes in the hours broadcast in particular languages or in the languages broadcast, which destroy a service's credibility:
7
“You cannot turn language services on and off like a tap. You lose audiences very fast, it takes years to re-establish them."
25. In the light of the special cost factors which the BBC World Service are due to face in 1990-91, we believe it would be right for the FCO to provide them with some exceptional additional provision before the end of the current Triennium. The BBC have already demonstrated their ability to achieve efficiency savings in order to increase output, which has gone up from 733 to 771 hours over the last 2 years or so. To wait until the 1991-94 Triennium to take account of the vastly increased costs would risk damaging the service unduly.
26. We do not consider that the use of an additional grant to cover the special factors of the Unified Business Rate and the rent review of Bush House would call into question the continuing use of a Triennium arrangement. The 3-year arrangement has provided the degree of extra stability that the BBC needed. What is required is some method of compensating for exceptional additional costs in 1990-91. Accordingly we recommend that the FCO, in conjunction with the Treasury, should consider the provision of an exceptional grant-in-aid to help cover the extra costs of the Unified Business Rate and the Bush House rent review within the current Triennium.
27. We also consider that it would be timely to hold a review of the method by which inflation is allowed for in the calculations of the Triennium. We therefore recommed that the FCO hold discussions with the BBC World Service to identify a method for compensating for inflation on an annual basis, if the original allowance made in the Triennium is shown to be seriously out of line with subsequent actual trends.
Monitoring Service
28. One of the four Grants-in-Aid to the World Service covers the operating of the Monitor- ing Service which the BBC undertakes for the benefit of the FCO and other Government Departments and the United States Government. In 1989-90, the BBC will receive £8.3 million for current expenditure and £3.5 million for capital expenditure. The BBC Monitoring Service operates in conjunction with the Foreign Broadcast Information Service (FBIS) of the American Government. The BBC covers mainly the USSR, Far East, China and Europe, while FBIS covers the other areas of the world. There is a free exchange of information between the two organisations, which has operated for some 30 years.10
Evidence, p 65.
,
Q 207.
'Evidence, p 65.
• Evidence, p 69.
Q 192.
6
Q 187.
7 Q 194.
* Q 205.
५
Q 199.
10Q 214.
..
No comments yet.
Private notes are available after approval.