Minutes of the BBC Trust Meeting, 21 February 2008
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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 England (36 – 45 only) Patricia Hodgson Trust Member Janet Lewis Jones Trust Member for Wales David Liddiment Trust Member Mehmuda Mian Pritchard Trust Member Jeremy Peat Trust Member for Scotland Richard Tait Trust Member Apology: Rotha Johnston Trust Member for Northern Ireland 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 3 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 bbc.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.