BBC 'back down' over fines for breaching standards

The BBC is to end its opposition to the government's plans to impose fines for breaches of programme standards.
The BBC had argued that fines would only penalise licence fee payers, but senior corporation figures - under pressure from ministers - are ready to give way.
Rival broadcasters, already subject to fines, want a level playing field, and the BBC has had difficulty promoting a credible alternative argument.
Gavyn Davies, chairman of the BBC board of governors, upset staff when he initially suggested they could be sacked or demoted if they were responsible for mistakes. He said: "Firing the people is a much better remedy than fining the public."
In its response to the draft communications bill, which sets up the single broadcasting regulator, Ofcom, the BBC maintains its opposition in principle to fines. In private, officials are more conciliatory. "If they decide to go ahead with it, we'll find a way of making it work," one source suggested.
In its response, ITV suggested that any fines levied against the BBC could be imposed on its commercial arm, BBC Worldwide, to avoid the problem of fines appearing to penalise licence fee payers.
"A financial penalty is extremely rare but very effective," it said. "We believe financial penalties should apply to all broadcasters, in the same way that all broadcasters are subject to financial penalties if they lose libel cases."
ITV noted that the biggest fine levied by the independent television commission, which regulates commercial broadcasters, was £2m, which would "hardly make an impact" on the BBC's £2.5bn income. It also said that Channel 4, a public corporation without shareholders, is subject to the same regulations as ITV.
A committee of both houses of parliament, set up by the government to examine the draft bill, supported the principle of fining the BBC. It reported: "Extensive and repeated payment of fines by the BBC would be a waste of licence payers' money, for which the BBC and its governors would be held publicly accountable. That seems to us a reason for the BBC to so arrange its activities as to ensure that it does not incur such penalties, and not an argument for immunity from such penalties."
Some experts say the BBC will concede because it would detract from more controversial areas that it wants kept outside of Ofcom control.
Under government plans, the responsibility for approving new BBC channels and the corporation's public service remit will remain with ministers, not Ofcom. One said: "It suits them to have people focused on fines as a distraction."
(GB)