Broadcast News
16/09/2010
Pact 'Concerned' About BBC Programme Budget Cuts
Pact is calling on the BBC to reconsider cuts in programme budgets.
The trade body for independent producers warned that cuts could "impact considerably" on the quality of shows produced.
The announcement comes as the BBC announced that the licence fee would be frozen until 2013.
Pact's Chief Executive John McVay said: "Pact recognises that during these difficult economic times that it is broadly right for the BBC Trust to make the decision not to increase the BBC licence fee for the next two years.
"However, we are alarmed at what impact this may have on the TV programme budget and the consequences that any further reduction will have on individual programme budgets, which are already under considerable strain as a result of the BBC's 5% year-on-year efficiency targets."
Mr McVay said that the Trust itself recognised this in its recent response to the BBC's Strategy review 'Putting Quality First' where they stated: "The fact that the existing efficiency programme within the BBC will have produced almost £2 billion over five years, with some reasonable concern among programme-makers that there is now limited scope left for across-the-board efficiencies without risk to editorial quality. One way of guaranteeing overall levels of quality in the future might be to make deeper, more significant changes in a small number of areas."
Pact said that independent producers already have to finance significant deficits for BBC programmes, which are only recouped if the programme is a commercial success.
Recent estimates in Pact's census showed that independent producers contribute over £200 billion to programme budgets last year including BBC programmes. For smaller production companies who often find it more difficult to access additional funding any further reduction of their programme budgets and therefore their margins will be critical.
Mr McVay concluded: "We call on the BBC management to explore how these additional efficiencies can be met from other areas of BBC expenditure in order to ensure that BBC licence payers are rewarded with the high quality programming that they should rightly expect for their money."
(KMcA)
The trade body for independent producers warned that cuts could "impact considerably" on the quality of shows produced.
The announcement comes as the BBC announced that the licence fee would be frozen until 2013.
Pact's Chief Executive John McVay said: "Pact recognises that during these difficult economic times that it is broadly right for the BBC Trust to make the decision not to increase the BBC licence fee for the next two years.
"However, we are alarmed at what impact this may have on the TV programme budget and the consequences that any further reduction will have on individual programme budgets, which are already under considerable strain as a result of the BBC's 5% year-on-year efficiency targets."
Mr McVay said that the Trust itself recognised this in its recent response to the BBC's Strategy review 'Putting Quality First' where they stated: "The fact that the existing efficiency programme within the BBC will have produced almost £2 billion over five years, with some reasonable concern among programme-makers that there is now limited scope left for across-the-board efficiencies without risk to editorial quality. One way of guaranteeing overall levels of quality in the future might be to make deeper, more significant changes in a small number of areas."
Pact said that independent producers already have to finance significant deficits for BBC programmes, which are only recouped if the programme is a commercial success.
Recent estimates in Pact's census showed that independent producers contribute over £200 billion to programme budgets last year including BBC programmes. For smaller production companies who often find it more difficult to access additional funding any further reduction of their programme budgets and therefore their margins will be critical.
Mr McVay concluded: "We call on the BBC management to explore how these additional efficiencies can be met from other areas of BBC expenditure in order to ensure that BBC licence payers are rewarded with the high quality programming that they should rightly expect for their money."
(KMcA)
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