MINUTES OF THE BBC TRUST MEETING

Held on Wednesday 19 March 2008 in the Council Chamber, Broadcasting House, London

Present: Michael Lyons Chairman Chitra Bharucha Vice Chairman Diane Coyle Trust Member Dermot Gleeson Trust Member Alison Hastings Trust Member for (36 – 45 only) Patricia Hodgson Trust Member Janet Lewis Jones Trust Member for David Liddiment Trust Member Mehmuda Mian Pritchard Trust Member Jeremy Peat Trust Member for Richard Tait Trust Member

Apology: Rotha Johnston Trust Member for

In attendance Nicholas Kroll Director, BBC Trust from the Trust Sally Willson Head of Secretariat and Governance Unit: Phil Harrold Senior Adviser, Secretariat and Governance Tina Stowell Head of Communications Items 36 – 42, Fran O'Brien Head of Editorial Standards 46 - 53 Items 36 – 42, Mark Wakefield Head of Performance 46 - 49 Items 36 – 38, Christopher Woolard Head of Finance, Economics and Strategy 41 - 53 Items 36 – 43, Penny Young Head of Audiences 46, 50 Item 39 Karl Davies Head of Governance and Accountability Wales Item 40 Alison Gold Chief Adviser, Performance Items 43, 45, 50 Alison Bexfield Chief Financial and Compliance Adviser Items 44, 46, 48 Jon Cowdock Chief Strategy and Policy Adviser Item 47 Stephen Callow Performance Adviser

For items: Items 41 - 49 Mark Thompson Director-General Items 41 - 49 Mark Byford Deputy Director-General Items 41 - 49 Caroline Thomson Chief Operating Officer Items 41 - 49 Zarin Patel Group Finance Director Item 42 Tim Davie Director, MC&A Item 43 Pipa Doubtfire Head of Revenue Management Item 43 Beverley Tew Director, Procurement & Revenue Item 44 John Smith CEO, BBC Worldwide Item 44 Clare Reichenbach Head of Strategy, BBC Worldwide Item 45 Chris Day Group Financial Controller Item 45 Edward James Head of Group Reporting & Analysis Items 45, 46 Jana Bennett Director, BBC Vision Items 46, 47 Pat Loughrey Director, Nations & Regions Item 46 Philippa Gay Head of Production Strategy Item 46 Gautam Rangarajan Head of Policy and Development Item 47 Peter Johnston Controller, Northern Ireland Item 48 Margaret Hill Chief Adviser, Editorial Policy Item 48 Nicholas Eldred Group General Counsel

2 AGENDA

36. Minutes of the meeting held on 24 January 2008 and Matters Arising

37. Reports from Committees and Audience Councils

38. Director’s Report

39. Maximising Audience Councils’ Effectiveness

40. Service Licence Variations

41. Director-General’s Report

42. BBC Corporate Communications Plan

43. Licence Fee Collection Arrangement

44. BBC Worldwide Review of Progress

45. BBC Budget

46. Network Supply Review

47. Minority Language Provision: Purpose Plan and Provision in Northern Ireland

48. Alternative Means of Finance: Policy Statement

49. Use of BBC Parliament for Beijing Olympics 2008

50. Other Business

51. Items for Noting

52. Business Handling and Communications

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36 MINUTES OF THE TRUST CONFERENCE HELD ON 6 FEBRUARY AND THE TRUST MEETING HELD ON 21 FEBRUARY 2008 AND MATTERS ARISING

36.1 The Trust approved the minutes of the conference held on 6 February and the Trust meeting held on 21 February, as accurate records of proceedings.

36.2 Members noted the matters arising from previous meetings.

37 COMMITTEES AND AUDIENCE COUNCILS

37.1 Members noted the reports from meetings of the Trust’s committees and Audience Councils that had been held in February and March. The chair of each committee and Audience Council updated the Trust on priority matters within their reports and decisions that had been made under delegated authority.

38 DIRECTOR’S REPORT

38.1 The Director, BBC Trust spoke to his report, which summarised recent activity of the Trust and provided an overview of upcoming business.

38.2 He noted the work which was being undertaken by the Trust Unit on ‘streamlining’ business processes and said that a further report would be presented to the Trust in due course.

38.3 He also noted the progress that had been made in assessing the Executive Board’s non-service application for providing high definition services on the Digital Terrestrial Television network. He noted that discussions with Ofcom on this issue, and their related consultation programme, were ongoing.

39 MAXIMISING AUDIENCE COUNCILS’ EFFECTIVENESS

39.1 The Director, BBC Trust, introduced the item noting that the project had been sponsored by the member for Northern Ireland, as Chair of the Trust’s Audience Council Committee. The project had reviewed the operations of the BBC’s Audience Councils and made recommendations to maximise the contribution of their work to the Trust. The Audience Council Committee had previously reviewed and endorsed the recommendations and further work plan contained within the report.

39.2 Members noted that the recommendations included a revised approach to developing the Councils’ programme of work as well as an improved business cycle and proposals to enhance the audience engagement and insight work that the Councils undertake.

39.3 The Trust accepted the recommendations in the report and noted the additional

4 work that was to be undertaken to implement the proposals. It was agreed that the outcomes of this work would be shared with Council members.

39.4 Members agreed that this was the first step in enhancing the effectiveness of Audience Councils and agreed that the Audience Council Committee would lead on implementing the recommendations and developing further initiatives in this area.

40 SERVICE LICENCE VARIATIONS

40.1 The Trust’s Head of Performance introduced the item, which sought the Trust’s approval to variations of the service licences for the BBC’s UK public services. He noted that the variations had been proposed in response to feedback from the public consultation undertaken in 2007 as well as the Trust Unit and Executive’s own recommendations following approval of the BBC’s six-year strategic plan, Delivering Creative Future. The proposed variations also reflected the Trust’s expectations of the BBC, informed by a full year of governing the Corporation

40.2 It was noted that the baseline budgets reflected in the licences were also being varied to take into account the strategic plan and the three-year financial plan, which was being considered as part of the budget process later in the meeting.

40.3 The Chair of the Audience and Performance Committee noted that the committee had reviewed the licences in detail, had endorsed them and was recommending approval by the Trust.

40.4 The Trust approved the variations and noted that the amended service licences would be published on the Trust’s website following agreement to the revised baseline budgets.

41 DIRECTOR-GENERAL

41.1 The Director-General updated the Trust on his assessment of recent performance by the BBC’s services. He particularly noted the steady growth in use of iPlayer and the upgrading of .co.uk.

41.2 In reviewing recent performance of the BBC’s journalism, the Deputy Director- General noted the recent launch of BBC World Service’s Arabic television service. He also noted the coverage of the fifth anniversary of the Iraq war and coverage of recent economic issues.

41.3 The Trust discussed the BBC’s approach to managing the sports rights budget and were provided with an assurance from the Deputy Director-General on the process for ensuring compliance with the agreed strategy and budget.

41.4 The Director-General updated members on recent industry developments, particularly noting the upcoming launch of Freesat, and staff appointments.

41.5 Lastly, he noted the untimely death of Anthony Minghella, noting that among his 5 broad range of achievements he was the Executive Producer of an upcoming adaptation of The No.1 Ladies’ Detective Agency, which was soon to screen on BBC One.

42 BBC CORPORATE COMMUNICATIONS PLAN

42.1 The Director of Marketing, Communications and Audiences spoke to his paper, which summarised the BBC’s corporate communications strategy. It was being presented to the Trust for information and discussion.

42.2 He noted that the BBC faced a challenging communications environment and this plan was developed to provide a structure around the way in which the BBC seeks to communicate with its audiences. The challenge was to ensure that the BBC engaged and built relationships with its audiences and sought to listen to a broad range of views.

42.3 Members noted the work that had been undertaken in developing the plan and discussed the Trust’s role in ensuring that audiences have a clear understanding of the BBC’s objectives and how the Corporation spends the licence fee.

42.4 The Director-General agreed to keep the Trust updated on progress towards implementation of the plan.

43 LICENCE FEE COLLECTION ARRANGEMENTS 43.1 The Director, Procurement and Revenue introduced the first paper, which outlined the Executive Board’s strategy for collection of licence fee income. It was being presented to the Trust for approval as required by the Trust’s protocol on licence fee collection arrangements.

43.2 The Trust discussed the strategic approach and particularly noted the focus on efficiency and proportionality. Members noted that the strategy had been reviewed in detail by the Trust’s Finance and Strategy Committee, who had endorsed it and were recommending it for approval.

43.3 The Trust approved the licence fee collection strategy as presented by the Executive Board.

43.4 Members noted that as part of the Trust’s work plan for 2007/08 it had agreed to a review of the licence fee collection process, to assess whether the BBC (via TV Licensing) had met the challenge of making collection and enforcement as fair and effective as possible. The Trust approved the detailed plans for the Trust’s review, as proposed by the Trust Unit, and agreed that this review would be overseen by the Finance and Strategy Committee.

44 BBC WORLDWIDE REVIEW OF PROGRESS

44.1 The Director-General introduced the item, which provided the Trust with a review 6 of BBC Worldwide’s performance against its five-year strategy for the year 2007/08. The paper also provided the Trust with an overview of BBC Worldwide’s strategic priorities and budget for 2008/09.

44.2 [withheld from published minutes - commercially prejudicial information]

44.3 The Chief Executive Officer, BBC Worldwide, provided the Trust with an overview of performance against the strategy.

44.4 Members discussed the performance of BBC Worldwide and recognised the significant year-to-date achievements by the Chief Executive Officer and his team. Members noted that the Finance and Strategy Committee had scrutinised the performance review in detail on behalf of the Trust and that formal approval of the budget for the upcoming year would take place as part of the Corporation’s budget process. The Chair of the Finance and Strategy Committee also noted that the Executive Board would publicly report on progress of the BBC’s commercial activities through the Corporation’s Annual Report and Accounts.

44.5 The Trust noted the performance report for BBC Worldwide.

45 BBC BUDGET 45.1 The Group Finance Director introduced the 2008/09 Budget and three year financial plan (to 2010/11), which was being presented by the Executive Board for the Trust’s consideration and approval.

45.2 The budget set out the next stage of development for the BBC, building on the six- year plan – Delivering Creative Future. She presented to the Trust on the income base, proposed expenditure levels and high-level risks facing the Corporation. She noted that the budget had already been scrutinised at two meetings of the Trust’s Finance and Strategy Committee.

45.3 The Chair of the Finance and Strategy Committee outlined to members the areas where the committee had focused its attention – primarily on fit with the six-year plan and ensuring alignment with service licence budgets. On the latter point, he noted that the committee had spent substantial time considering the proposed re- basing of service licence budgets, which took into account changes in strategic approach as well as changes to the way costs were allocated. The committee had asked the BBC’s auditors to provide assurances to the Trust that the proposed revisions to service licence budgets were appropriate.

45.4 The Finance and Strategy Committee had endorsed the budget and were recommending it to the Trust for approval. It was noted that the committee had satisfied itself that the budget was: - appropriate to deliver the BBC’s Public Purposes - financially prudent - in accordance with Trust-approved strategies (including those priorities set by purpose remits, service licences and other Trust directives)

7 - in accordance with applicable directions from the Secretary of State and the Foreign Secretary (as appropriate).

45.5 Members noted that the Trust was due to consider the pan-BBC technology strategy the following month and that it would be appropriate to reserve judgement on any increase in technology spend until it had considered the strategy. It also noted that the service licence budget for bbc.co.uk was being considered separately, as part of the Trust’s review of that service.

45.6 The Trust approved the BBC budget and three year financial plan, with the exception of any increased technology spend, which would be considered following receipt of the technology strategy, and the budget for bbc.co.uk, which was to be considered as part of the service review.

46 NETWORK SUPPLY REVIEW

46.1 The Chief Operating Officer introduced the item, which updated the Trust on progress since the previous month’s paper on developing a strategy for the supply of network television programming across the United Kingdom.

46.2 The paper provided additional information from the Executive Board on the matter of agreeing an appropriate definition to measure and report the level of television output produced outside London and, specifically, in the three Nations.

46.3 [withheld from published minutes – Information to be published at a later date]

46.4 [withheld from published minutes - Information to be published at a later date]

46.5 [withheld from published minutes - Information to be published at a later date]

46.6 Members agreed that the Executive should develop the full strategy on the assumption that the Trust supported this approach to defining production. It was noted that the full strategy for the supply of Network programmes would be presented to the Trust in the coming months.

47 MINORITY LANGUAGE PROVISION: PURPOSE PLAN AND PROVISION IN NORTHERN IRELAND

47.1 Two papers were presented to the Trust by the Executive Board. The first sought the Trust’s approval for an additional component of the purpose plan ‘Representing the UK, its Nations, Regions and Communities’, on the BBC’s provision of output in minority languages. The second paper dealt specifically with provision of indigenous minority languages in Northern Ireland.

47.2 Members noted that the component of the purpose plan dealing with the provision of minority language programming had been withheld from approval the previous month while the Executive considered additional information on this area, some of which was developed following consultations conducted by the Audience Council 8 Northern Ireland. The Trust reviewed the proposed content of the purpose plan and agreed that it was appropriate. The Trust agreed that it be published alongside the other purpose plans.

47.3 The Controller, Northern Ireland, presented the proposals for the enhancement of BBC Northern Ireland’s output in Irish and Ulster-Scots over the period 2008 – 2011. The paper proposed increased expenditure of £700,000 per year on top of the existing baseline spend for indigenous minority language content in Northern Ireland, which aimed to increase the range, volume and impact of programming in Irish and Ulster-Scots.

47.4 Members considered the proposals against the Trust’s factors for assessing an appropriate level of provision of minority languages. The Trust agreed the proposed increase in provision. The Trust agreed to amend the service licence for Radio Ulster/Foyle to reflect the agreed changes.

48 ALTERNATIVE MEANS OF FINANCE: POLICY STATEMENT

48.1 The Trust noted that clause 75 of the Framework Agreement between the Secretary of State for Culture, Media and Sport and the BBC requires the BBC Trust and the Secretary of State to approve a statement outlining the policy for accepting funding outside the licence fee for some specific areas of the BBC’s activity, including the co- funding of some minority language output.

48.2 The paper, presented by the Executive Board, was recommending to the Trust that it accept the policy, based on the BBC’s existing Editorial Guidelines. Members noted that the policy outlined the key principles for ensuring the BBC’s integrity and independence and stressed that the BBC must always retain editorial control of its output.

48.3 Members noted the Trust Unit’s independent assessment of the proposed statement and approved the statement of policy, agreeing that it be submitted to the Secretary of State for approval.

49 USE OF BBC PARLIAMENT FOR BEIJING OLYMPICS 2008

49.1 The Trust considered the Executive’s proposal to use BBC Parliament’s capacity on the Digital Terrestrial Television network to enhance the quality of interactive TV coverage of the Beijing Olympics during August 2008. The proposal from the Executive set out the public value rationale for the change and the technical changes required.

49.2 Members noted that the Trust’s Public Value and Fair Trading Committee had considered the proposal and was recommending that a Public Value Test was not required following confirmation that: - all of the United Kingdom’s Parliaments and Assemblies would be in recess during the period in question; and

9 - should any parliament or assembly in the UK be re-instated during this period, the normal service BBC Parliament would be resumed. The Executive had provided this assurance and it was noted that this amendment would only be required for the DTT platform; BBC Parliament would continue normal service on other platforms.

49.3 The Trust approved the Executive’s request and authorised a temporary amendment to BBC Parliament’s service licences, which would enable the change.

50 OTHER BUSINESS

50.1 Delivering Creative Future Dashboard The Trust noted the progress that had been made in developing a dashboard to enable the Trust and Executive Board to measure the delivery of the objectives within the BBC’s six-year plan, Delivering Creative Future.

50.2 Children's Service Review Terms of Reference The Trust approved the terms of reference for the review of content and services for children under 13 and agreed that they be published. The Members noted that Mehmuda Mian Pritchard would take a lead role on this review and that the Audience and Performance Committee would oversee the process on behalf of the Trust.

50.3 Trust Forward Financial Plans and Efficiency The Trust approved the proposal to use the financial year 2007/08 as a baseline for the application of efficiency targets for its own activities and agreed that costs of running the Trust, including the payment of fees to Ofcom, would not exceed a cap of 0.5% of BBC public service broadcasting spend. Members noted that the Trust would reserve the right to increase this cap should demand-led activity increase exponentially.

50.4 Digital Switchover Help Scheme: Amends The Trust approved the proposed amendments, which were largely technical, to the Digital Switchover Help Scheme Agreement between the Secretary of State for Culture, Media and Sport and the BBC, and delegated authority to the chairman of the Finance and Strategy Committee to approve any further minor alterations to the Scheme Agreement should these be necessary.

50.5 S4C Programming Plan 2008 The Trust approved the programming plan for S4C in 2008 as required under the Strategic Partnership between the BBC and S4C. Members noted that the plan had been prepared by BBC Wales management and had been endorsed by the Audience Council Wales and the S4C Authority.

51 ITEMS FOR NOTING

51.1 The following items were noted: - 2008 Board Evaluation Results

10 - Board Streamlining Project Report - Minutes of Trust Committees and Audience Councils - Election Guidelines: England, Wales, London - Documents for Sealing

52 BUSINESS HANDLING AND COMMUNICATIONS

52.1 The Trust discussed the communication of matters considered at the meeting.

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