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BBC Trust/S4C Strategic Partnership Deed of Agreement

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BBC Trust/S4C Strategic Partnership Deed of Agreement Strategic Partnership Deed of Agreement between the BBC and S4C This Deed of Agreement is made the 17th day of October 2006 between: THE BRITISH BROADCASTING CORPORATION, a corporation incorporated under Royal Charter, whose principal office is at Broadcasting House, 1 Portland Place, London W1A 1AA (“BBC”); and S4C of Parc Ty Glas, Llanishen, Cardiff, CF14 4DU (“S4C”). It is agreed and this Deed witnesses as follows: 1. Introduction 1.1 This Strategic Partnership Agreement between the BBC and S4C recognises the responsibilities and traditions of both organisations in providing high-quality public services to audiences in the Welsh language. 1.2 The Agreement further recognises that both S4C and the BBC perform critical roles in supporting and nurturing the development of the Welsh language, and that the public value of Welsh language services, across various media and platforms, will benefit from a closer strategic partnership between the two broadcasters. 1.3 Under s 58 of the Broadcasting Act 1990 the BBC is under a statutory duty to provide the S4C Authority (free of charge) with sufficient television programmes in Welsh to occupy not less than 10 hours transmission time per week, and to do so in a way which meets the reasonable requirements of the S4C Authority. Nothing in this Agreement diminishes or replaces that statutory duty. 1.4 As recommended in the Laughton Review (an independent review of S4C commissioned by the Secretary of State for Culture, Media and Sport and published in July 2004), the BBC and S4C by this deed agree on the principles and procedures according to which a range of programmes and other services will be provided by the BBC to S4C, financed by the licence fee, appropriate for the needs of public service broadcasting in the medium of Welsh. 1.5 As proposed in the White Paper entitled “A public service for all: the BBC in the digital age” presented to Parliament by the Secretary of State for Culture, Media and Sport in March 2006, this Agreement represents a new settlement between the BBC and S4C, which provides clarity to S4C about the levels of funding involved, together with control over the commissioning of the programmes to be provided and how the budget is used, but consistent with the BBC’s editorial values and obligations to the licence fee payer. 1.6 This Agreement shall cover the BBC contribution to S4C between January 2007 and December 2009 and will be subject to full review by the BBC Trust and S4C Authority jointly during 2009. 1.7 S4C recognises that the BBC must operate within the duties placed upon it by its Royal Charter and the Agreement between it and the Secretary of State for Culture, Media and Sport and must deal with the licence fee as set out therein. The BBC recognises that S4C is a statutory entity. As such S4C derives its Cytundebpartneriaeths4cbbc.terfynol powers from statute and is unable to act in a manner that is outside the specific powers granted to S4C by Parliament. S4C is under a duty to spend its grant- in-aid in accordance with the provisions of the Broadcasting Acts 1990 and 1996 and the Communications Act 2003. 1.8 The word partnership throughout this document is defined as the process of two bodies acting together with goodwill and co-operation. Nothing contained in this Deed shall be taken to imply that a legal partnership exists between the BBC and S4C. 1.9 References in this Agreement to the BBC’s Royal Charter and its Agreement with the Secretary of State for Culture, Media and Sport and to any statute, statutory provision, regulation, rule or code shall be construed as a reference to such Charter, Agreement, statute, statutory provision, regulation, rule or code as amended, modified, replaced or re-enacted from time to time. 2 Scope of the Agreement 2.1 This Agreement and in particular the process set out at paragraph 5 shall be underpinned by two balancing obligations: 2.1.1 On the BBC to recognise that S4C is solely responsible for delivering its remit, its statutory duties (including duties in respect of expenditure of grant in aid) and its additional activities and objectives as set out in its Corporate Plan, Programme Strategy and Annual Programme Policy. The BBC both in its consultation and in its proposals, will respond positively and practically to S4C’s overall programme strategy, and so seek to maximise the value delivered to the S4C services and audiences. 2.1.2 On S4C to recognise, within its reasonable requirements and subject to s58 of the Broadcasting Act 1990, that the BBC’s programming contribution to S4C’s services is an important element of the BBC’s remit and overall delivery to Welsh language audiences of its public purposes and the public service characteristics enshrined in its Charter and Agreement. Further, S4C recognises that the BBC and its Trust are solely responsible both for how they do this and for the value for money of the BBC’s expenditure, subject always to section 58 of the Broadcasting Act 1990. 3 The BBC’s contribution of television programmes to S4C 3.1 The BBC shall provide S4C (free of charge) with sufficient television programmes in Welsh to occupy not less than 10 hours’ transmission time per week pursuant to its statutory obligations (the “Contributed Programming”) for exhibition on S4C’s public services (primarily on S4C’s digital channel and, where required by S4C, simultaneously on S4C’s analogue channel and on other S4C public service channels). The Contributed Programming shall be original first run Welsh language programming (“original” meaning new UK content and not repeats or acquisitions, except as agreed within the annual planning process set out in paragraph 5 below and set out within the Editorial Synopsis, and “first run” meaning that the Contributed Programming shall be exhibited in accordance with Appendix 3). Unless otherwise varied in the Cytundebpartneriaeths4cbbc.terfynol Editorial Synopsis, S4C shall have the rights in the Contributed Programming which are set out in Appendix 3 (“the Terms of Supply”). 3.2 Without limitation to the BBC’s statutory duty and commitment referred to at paragraphs 1.3 and 3.1 above the actual number of hours of programmes to be provided to S4C each year shall be determined during the annual planning cycle described below, and shall be subject to approval by the S4C Authority within the framework of its approval of the S4C annual programme policy and by the BBC Trust within the BBC’s annual strategic governance framework, and shall be included in the definition of “Contributed Programming”. Approval from either organisation shall not be unreasonably withheld or delayed. 3.3 The parties acknowledge that the provision by the BBC of broadcasts of the proceedings of the National Assembly for Wales, currently broadcast on S4C2, shall be in addition to the Contributed Programming. 4 Financial level of the BBC contribution 4.1 Subject to paragraphs 4.2 - 4.5 and Note 1, between 2007 and 2009 the annual financial value of the Contributed Programming and other programme-related and non-programme contributions (including, without limitation to the generality of the foregoing, sub-titling) from the BBC as reflected in each annual programming plan (together the “BBC’s Contribution”) will be as follows: 2007 £22.9m – budgeted 2008 £24.0m – forecast 2009 £25.1m – forecast Note 1 The figures above are subject to a 2.5% tolerance to allow for short-term timing differences across the calendar year end. Any variances from the figures set out above would be matched by balancing variances in the following period, save that the sums set out above must be expended in full on the BBC’s Contribution by the end of 2009, unless otherwise agreed by S4C. 4.2 For the avoidance of doubt the BBC may at any time increase the budgeted figure for 2007 and/or the forecast budget for 2008 and 2009 and will inform S4C of any such decision. 4.3 Any BBC proposal to reduce the planned real financial value of the contribution from the levels indicated in this Agreement shall be subject to prior consultation between the S4C Authority, the BBC Trust and the Audience Council for Wales (ACW) under the BBC’s Royal Charter. 4.4 The BBC Trust shall not consent to any reduction in the financial level of the contribution unless it is satisfied that the public value of the BBC’s contribution to S4C, and the S4C service as a whole, shall not be reduced by the proposed change. Cytundebpartneriaeths4cbbc.terfynol 4.5 If BBC management can demonstrate to the BBC Trust that it has been able to generate savings in the provision of Contributed Programming without reducing the quality and public value of the BBC’s contribution to S4C and the S4C services as a whole, BBC and S4C management shall be invited to discuss and explore together ways in which such savings could be used, for example in funding additional programming or services of value to Welsh language audiences. Any proposals identified jointly by the BBC and S4C management for the deployment of such savings shall be put to the S4C Authority, the ACW and the BBC Trust for consideration with a view to reaching agreement between them on such deployment. After full consultation with the S4C Authority and ACW, the BBC Trust will make the final decision on the manner in which such savings shall be used for the benefit of Welsh language audiences within the context of this Strategic Partnership Agreement. 5. Annual editorial planning framework 5.1 In this section, in all cases where agreement is required between the BBC and S4C, or between ACW and the Authority, or between the BBC Trust and the Authority, each party shall be under an equal and balancing obligation to use all reasonable endeavours to reach such agreement.
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