Category: BBC
Date: 13.07.2004
Printable version
The BBC laid
before Parliament today the first of the external value for money reviews
commissioned by the BBC Governors' Audit Committee.
The National Audit Office (NAO) review of the BBC's
investment in Freeview – presented to the BBC's Audit Committee
in May – concluded that "the BBC had clear and sound reasons
for investing in Freeview and that the BBC contributed significantly
to the quick and successful launch" in October 2002.
The review is part of the BBC's wider programme of value
for money studies which will include the Governors commissioning work
by a range of external bodies, in addition to the NAO.
Dame Pauline Neville-Jones, Chairman of the BBC's Audit
Committee, said: "Ensuring the BBC invests
licence fee funds in the public interest is a primary responsibility
of the Board which we as Governors take very seriously.
"Having undertaken a thorough review of the BBC's
investment in Freeview, the BBC welcomes the NAO's conclusions and its
recognition of the progress made in driving digital take-up via DTT
with the provision of a free-to-view service."
Sir John Bourn, the head of the NAO, said: "I am
pleased to have presented the BBC Governors with the first value for
money review carried out under the new arrangements introduced in 2003.
"Freeview has been marked by a swift and successful
launch and very rapid take-up.
"I welcome the steps being taken by the BBC to
address customer confusion about the service among analogue audiences
and to make its digital services more readily available to those viewers
who live outside the Freeview coverage area."
The Governors and the head of the NAO have agreed a
programme of six reviews by the NAO until the end of the current Charter.
Notes to Editors
• Freeview is a free digital terrestrial television service launched
on 30 October 2002. It offers up to 30 digital channels (including television,
interactivity and text) plus over 20 digital radio stations.
• The NAO Review of the BBC's investment in Freeview, together
with the BBC's response, can be viewed online at: www.bbc.co.uk/info/policies/vfm.shtml
• In the context of the Communications Act 2003,
the BBC and the Government agreed a development in the BBC Governors'
oversight of value for money to improve scrutiny of licence fee expenditure.
• This is enshrined in the BBC's
revised Agreement with the Secretary of State
• A key component of the programme is the appointment of external
agencies – by the Governors' Audit Committee – to review an
agreed investment project or topic.
• All studies performed by external agencies, including the NAO,
will be reported to the BBC Governors and subsequently laid before Parliament
by the BBC together with any BBC response to that report.
• The programme builds on the existing value for money assessments
performed by the BBC's Internal Audit and divisional management.
• The programme of reviews by the NAO until the
end of the current Charter in 2006 agreed by the BBC's Audit Committee
and the NAO's Comptroller & Auditor General are:
o BBC's investment in Freeview
o Measures of public service broadcasting
o BBC Property: The White City project
o Overhead definitions
o Risk management processes
o Outsourcing arrangements
