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BBC falls short of independent productions quota

PN 136/03    30 October 2003

The BBC has, for the third consecutive year, missed the statutory target to ensure that at least 25 per cent of 'qualifying programmes' shown on BBC1 and BBC2 were independent productions.

Download Independent productions transmitted by the BBC (pdf file 754 kb).

In the period 1 April 2002 to 31 March 2003, only 21 per cent of qualifying programmes broadcast on BBC1 and BBC2 were independent productions. The monitoring does not extend to the BBC's digital channels.

The BBC did meet the secondary requirement that independent programmes were of satisfactory range and diversity in terms of both hours broadcast and cost of acquisition.

The OFT has today sent its tenth statutory report on the BBC's transmission of independent productions to the Secretary of State for Culture, Media and Sport. Once the OFT has reported, it becomes a matter for the Secretary of State to consider any appropriate action.

In future, Ofcom, rather than the OFT, will be responsible for monitoring the BBC's compliance with its duty to commission programmes from independent producers, and Ofcom will have stronger enforcement powers. This is therefore the last report on independent productions transmitted by the BBC to be published by the OFT.

NOTES

1. The OFT's ninth report found that the BBC achieved a figure of 21.8 per cent between 1 April 2001 and 31 March 2002 (see OFT press release 27/03). The eighth report for the period 1 April 2000 to 31 March 2001 found the BBC achieved a figure of 23.7 per cent (see OFT press release 62/02).

2. Under section 186(1) of the 1990 Broadcasting Act (the Act), the BBC has a duty to secure that, in each relevant reporting period, not less than 25 per cent of the total amount of time allocated to the broadcasting of qualifying programmes is allocated to the broadcasting of a range and diversity of independent productions. According to section 186(2) a range of independent productions refers to a range of such productions in terms of cost of acquisition as well as in terms of the types of programmes involved. Under section 186(9), the relevant period for the purpose of this report is 1 April 2002 to 31 March 2003.

3. Under section 186(3) of the Act, the OFT is required, in respect of each relevant period, to make a report to the Secretary of State for Culture, Media and Sport on the extent to which the BBC has, in the OFT's opinion, performed its statutory duty under these provisions. Section 186(4) provides that this report may contain an account of the reasons for the OFT's conclusions. Under section 186(6), the OFT is required to publish its report.

4. The expressions 'qualifying programmes' and 'independent productions' are defined in the Broadcasting Independent Productions Order (the Order) (SI 1991/1408, as amended by SI 1995/1925). With certain exceptions, 'qualifying programmes':

• are programmes made or commissioned by the BBC; if another party is involved, the BBC must bear at least a quarter of the production costs; or
• consist of live coverage of an event provided by another party, when at least a quarter of the programme has been made or commissioned by the BBC.

5. The Order was amended with effect from 3 July 2003 (by the Broadcasting (Independent Productions) (Amendment) Order 2003, SI 2003/1672). Amongst the changes introduced was an amendment to the definition of 'independent producer' to enable producers owned by non-UK broadcasters to be classed as independents. In addition, new provisions have been inserted into the Order to enable a person, who would not otherwise by regarded as an independent producer, to be so regarded if he met the requirements of the definition at the time at which the relevant programme was commissioned, rather than when it first transmitted, provided certain conditions are met. These changes may be expected to increase the proportion of the BBC's qualifying programmes being classified as independent productions for the 1 April 2003 to 31 March 2004 reporting period. However, as these changes do not apply retrospectively, they have not been taken into account for the purpose of preparing the tenth report.

6. The OFT's role in reporting on the BBC will move to the newly created Office of Communications (Ofcom), on the basis that the Communications Act 2003 (CA03) provides for the repeal of section 186 of the Act and the imposition of a new duty on the BBC, on similar terms, for which Ofcom will be responsible. The relevant provisions of the CA03 are due to come into force at the end of December 2003, at which point the OFT's duties under section 186 of the Act will cease. Since this date falls before the end of the next reporting period (1 April 2003 to 31 March 2004), Ofcom has agreed to produce a combined report on the BBC's compliance with its duties during 2004. Under proposed amendments to the agreement between the Secretary of State DCMS and the BBC, Ofcom will be entitled to levy a penalty of up to £250,000 on the BBC if it fails to comply with the 25 per cent requirement.  In addition, Ofcom may carry forward any shortfall to the next reporting period, thus providing a further incentive for the BBC to comply with the requirement.

7.  Previous reports on the BBC's compliance with its duty under section 186 of the Act were published by the Director General of Fair Trading (DGFT). The Enterprise Act 2002 has replaced the office of the DGFT with the OFT, to which the DGFT's functions have been transferred.

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