Monday, March 21, 2011

Good risk

The estimable Steve Hewlett has a well-informed detailed view of the BBC Delivering Quality First challenge in The Guardian.  And highlights the problem with DG Mark Thompson's hasty calculations in the worked-out-over-a-weekend licence fee settlement.

The deal requires the BBC to cut 16% in real terms over a six year licence fee period - though Mark has set higher targets of 20% for output and 25% for support, in order to re-invest.  Spread over six years, the BBC ought to be used to this process - having worked under 3% to 5% "efficiency targets" for some years.   But Thommo's moves to take over financing of the BBC World Service, BBC Monitoring, and then getting lumbered with S4C, mean the cuts have to be front-loaded - so half the savings HAVE to be delivered in the first year of the licence fee deal, 2013/14.

If Thommo had thought a bit harder, he might have asked to raise the BBC's bizarre borrowing limit of £200m a little, then the whole thing could have been evened out.  Maybe Lord Patten might think it's still not too late...

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