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BBC Trust begins public value test of BBC local video proposal

24 June 2008 (updated 4 July to extend closing date for consultation responses and 30 September to reflect changes to timetable)

The BBC Trust has today started its public value test (PVT) of the BBC's local video proposal.

The Trust has published BBC management's application as well as supporting documents, a service description and a full timetable for the PVT.

Diane Coyle, BBC Trustee and Chair of the Trust's Public Value and Fair Trading Committee, said:

"Last year the Trust challenged BBC management to respond to licence fee payers wanting better local services. We wanted a proposal that would deliver public value with minimum adverse impact on local newspapers and other commercial media services.

"We have now received the management's application and are publishing their plans today. BBC management's proposal for a local video broadband offer to complement existing BBC Local websites supersedes previous plans for a local television service. BBC management believes the proposition will help the BBC meet its public purposes and close the gap between the importance that audiences attach to the BBC's local role and their view of current performance.

"The Trust is inviting all interested parties to participate in our consultation on BBC management's proposals. We want to receive all comments – positive and negative – from the public and the industry before we consider the application in detail. This input from people outside the BBC will be essential to the Trust reaching a decision in the interest of licence fee payers. Once we reach our initial conclusions, the Trust will consult again."

The new Charter, which came into effect in January 2007, transferred to the Trust responsibilities previously held by the Secretary of State for deciding major service-related investment proposals. The Trust must carry out a transparent and systematic process of scrutiny and evaluation before reaching its final decision.

The public value test has three main parts:

The process includes two periods of public consultation. The first consultation period allows contributions from interested parties about any relevant issues. A further period of consultation takes place after the Trust publishes its provisional conclusions. The Trust is scheduled to reach its provisional conclusion in November 2008 and its final decision in February 2009. Both will be published. This PVT is expected to complete within eight months, rather than the usual six, owing to the time needed to complete the more complex market impact assessment for this service.

Ofcom is today beginning its consultation prior to conducting its market impact assessment of BBC management's proposals.

Ends

Notes to editors

  1. Members of the public and any organisation can contribute to the PVA consultation at: www.bbc.co.uk/bbctrust/consult/closed_consultations/
    local_video_pvt.html
  2. Ofcom has issued a press release on its MIA consultation which is available at: www.ofcom.org.uk/media/news/2008/06/nr_20080624
  3. The following documents have been published by the BBC Trust today at:
    www.bbc.co.uk/bbctrust/consult/closed_consultations/
    local_video_pvt.html
    1. BBC management's application for its local video proposal
    2. The supporting evidence for this application
    3. A service description
    4. Questions for the PVA consultation
  4. The timetable for the PVT is set out below
    Date Event
    24 June 2008PVT commences
    PVA/MIA representations open
    4 August 2008PVA/MIA representations close
    27 November 2008Final date for publication of PVA, MIA and provisional conclusions. Public consultation period opens
    5 January 2009Public consultation period closes
    25 February 2009Final date for publication of final decision
  5. Details of the PVT process can be found at:
    www.bbc.co.uk/bbctrust/framework/public_value_test/index.html
  6. The BBC Trust is supported by the Trust Unit, which provides Trustees with independent and objective advice
  7. Research carried out for the Trust in 2007 showed a gap in the importance attached to the following priority statements and the BBC's current performance:
    • The BBC represents my area and my community to other people in the UK
      All adults (Importance 60%, Performance 42%, Gap -18 points)
    • The BBC helps me feel more involved in my local communities
      All adults (Importance 53%, Performance 32%, Gap -21 points)

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