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Account of BOG May 2005

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Account of BOG May 2005 Governance Unit ACCOUNT OF THE BOARD OF GOVERNORS’ MEETING MAY 2005 This is a summary of subjects discussed and conclusions reached by Governors. 1. ATTENDANCE The Board of Governors met on Thursday 26 May at the Media Centre, White City, London. All Governors were present. The following Executive Directors were present throughout: Mark Thompson (Director- General), Mark Byford (Deputy Director-General), John Smith (Chief Operating Officer), Zarin Patel (Group Finance Director), Caroline Thomson (Policy, Legal and Strategy), Tim Davie (Director, Marketing, Communications & Audiences) The following BBC Directors and senior managers attended for items relevant to their responsibilities: Jenny Abramsky (Director, Radio & Music), Stephen Dando (Director, BBC People), Ashley Highfield (Director, New Media & Technology), Richard Sambrook (Director, World Service & Global News), Glenwyn Benson (Controller, Factual Television), David Levy (Controller, Public Policy), Nicholas Eldred (General Counsel), Bal Samra (Television Business & Finance Director), Balbir Binning (Head of Fair Trading), Mark Friend (Controller, Strategy). 2. BUSINESS a. Director-General’s Report The Director-General updated Governors on industrial relations, reporting on staff turn out on Monday 23rd May, and the impact on services and reaction from the audience to the strike. The Chairman asked that the Board’s gratitude, on behalf of licence fee payers, be conveyed to all those involved in keeping services on air during the industrial action. The DG noted that talks with the Unions were happening whilst the Governors met and he would keep the Chairman informed of developments. The DG’s report also included: - Progress on the internal reviews (Content Supply, BBC Broadcast sale, the Change Programme and Creative Future) - General Election coverage - Saturday nights on BBC ONE, the FA Cup, and the new comedy on BBC Four, The Thick of It - RAJAR figures, in particular increasing reach of Radio 1 - Wins at the Sony Radio Academy Awards and Rose D’Or - Senior management appointments and Andrew Marr standing down as Political Editor - Launch of the BBC’s response to the Green Paper and the Westminster Media Forum During the discussion of the General Election coverage Governors requested management to present at a future Board Meeting the audience research in response to the BBC’s General Election coverage, particularly that relating to first time voters. b. Finance Report: March & April 2005 Governors reviewed the management accounts for March and April. During discussion, Governors asked management about their controls relating to any budget overspends and what steps were generally taken when overspends occurred. The Governors’ Audit Committee is scheduled to consider a report on the management of financial controls in the autumn. The Board noted the progress on the Broadcasting House development and requested an update on the BBC’s Property Strategy at a future meeting. c. Charter Review: Licence Fee Settlement Governors were briefed on the BBC’s preparations prior to the start of formal discussions with the Government about the licence fee settlement for the next Charter. During discussion, Governors emphasised that the starting point for the BBC’s licence fee bid was what the BBC had learned from audiences about their expectations now and in the future. Governors also noted that priorities for expenditure would need to be identified relevant to the level of the settlement. The Board endorsed the preparations to date and decided that the Governance Unit should commission independent analysis of the BBC’s licence fee bid in advance of submission to DCMS. d. Technology Review The Board considered the strategy for a new approach to technological innovation and research, with consequent changes to the way in which the BBC was organised to deliver new technological products and services. The Board endorsed the strategic framework for refocusing technology work and spending across the BBC, the organisational framework and the proposed partnership and funding approach. Governors agreed with the proposal that the R&D function be relocated alongside other areas of the BBC, subject to a more detailed risk assessment before approval of the closure of the Kingswood Warren site. The Governors agreed that management should inform staff that the Board had endorsed the strategic framework, but requested management return to the Board with a detailed business case and risk assessment for Kingswood Warren and alternative locations. 2 e. BBC Radio Archive Access to BBC Radio Archive was raised by Tim Gardam in his independent review of the BBC’s digital radio services for DCMS and by Ofcom in its recent consultation on the future of radio. DCMS has requested a response from the BBC. The Board considered proposals from BBC management for making BBC Radio archive programming more widely available to UK audiences and commercial broadcasters within a licensing framework. Governors also considered management’s proposals for formal consultation with audiences. The licensing framework is designed to strike an appropriate balance, giving access to as much material as possible whilst ensuring the BBC and/or licence fee payers are not disadvantaged, that the BBC is credited for its programmes and that programmes are presented in a context that is not damaging to the BBC’s reputation. The Board endorsed the overall strategy, but withheld full approval until the completion of the consultation process. The Board asked the Governance Unit to develop proposals for the consultation for Governors to approve. f. Content Supply Review The Board received an update on management’s proposals for a television commissioning system that operates on the principles of fairness, transparency and meritocracy, and recommendations from management for the BBC Trust’s role in ensuring all parties would have maximum confidence in the integrity of the BBC’s commissioning structure and processes once implemented. The Board endorsed the continuing approach and noted that detailed plans would be brought to the Board for approval later in the summer. The Board of Governors endorsed the proposal that its successor – the BBC Trust – should conduct a biennial review into the operation of the WOCC and consider whether its structure and processes delivered a commissioning meritocracy. g. BBC Broadcast Sale The Board was updated on the progress of the sale of BBC Broadcast. The Board noted the selection of the four shortlisted bidders for BBC Broadcast and agreed to delegate responsibility for approval of the final bid to the Chairman and Governors’ subcommittee, due to the timetable for submission of the recommended bid to DCMS. This was conditional on the final bid exceeding the budgeted sale figure and there being no material changes to the deal. Governors were assured that the contract with the final bidder would give the BBC adequate control over the company being subsequently sold on, venture capital financing or other risks to sustaining the BBC’s broadcasting. h. BBC College of Journalism The Board considered the proposals for establishing a BBC College of Journalism to develop and oversee world class journalist training across the BBC, building on recommendations from the Neil Report. The Governors noted that the establishment of a residential college had been ruled out early on and also noted management’s decision that additional funding for journalism training be focused on training rather than potential overheads. Management had applied the success of the Editorial Policy interactive training module and the Sources, Scoops and Stories workshop and developed a 3 college model that placed emphasis on flexible and interactive training, delivered at or close to the workplace. In response to Governors’ questions about how management and Governors/the Trust would evaluate the success of the College, the Board was informed that measures for performance management were being drawn up in line with the “Reach, Quality, Impact and Value for Money framework” and would report at least annually to the Journalism Board. A progress report on implementation would be brought to the Board of Governors early in 2006. Governors asked about options for making the training available to journalists outside the BBC; management said this was being explored with potential partners but was a long term objective and not part of the start-up phase. The Board approved the proposals for the College of Journalism which will be announced in detail soon. i. Legal Compliance & Fair Trading Compliance Annual Reviews The Board noted the Annual Reviews of Legal Compliance and Fair Trading Compliance. No issues were raised and a summary of the reports will be included in the BBC’s Annual Report and Accounts – to be published in July. j. Attracting Audiences from the UK’s Ethnic Minorities The Board discussed management’s report of progress in attracting audiences from the UK’s ethnic minorities to BBC output and received a report on specific commissioning initiatives that had been implemented. Governors agreed that there was no room for complacency and that the representation of ethnic minorities continued to be a major priority for the BBC. During the discussion of diversity issues more generally, Governors sought assurance that management had systems in place for monitoring the effectiveness of commissioning initiatives on portrayal and also for reporting on the ethnicity of the BBC’s workforce by grade and division. The Board recognised that
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