Statement from the BBC Trust in response to the Culture, Media and Sport Select Committee’s report

Date: 28.01.2009     Last updated: 23.09.2014 at 09.50
The Trust welcomes the select committee’s conclusion that it was generally satisfied with the responses given to its questions on the Annual Report 2007-8 by the Trust and BBC Executive.

The Trust will submit a full response to the select committee in due course and at that time respond to all of its conclusions and recommendations. The Trust, however, does not accept the committee’s findings on the Trust’s consideration of Project Kangaroo.

The Trust first considered the Kangaroo proposition in June 2007. It agreed with the Executive that the proposition should be developed further, including work on fair trading compliance and consideration against the commercial criteria, and that formal approval would be required.

As would be expected for a project of this nature, the BBC Executive updated the Trust on progress (in June and October 2008). At these meetings, the Trust made clear to the BBC Executive that this proposition would still need to go through the Trust’s formal regulatory processes.

The Trust considered that, in the light of the Competition Commission’s review, it was right to postpone the Trust’s own regulatory processes, as the Commission’s review might significantly alter the proposition that the Trust would be asked to consider. The Trust also assisted the Competition Commission in their enquiries. The Trust considered that this was the most cost-efficient outcome for licence fee payers.

The Trust subsequently offered further evidence on its decision making process in front of the CMS Committee at its 18 November 2008 hearing.

The Trust will expand on these points and others when it submits its full response to the Committee.