The chair of the Commons culture, media and sport select committee has written to BBC director general Tony Hall about his concern over the corporation’s plans to spin off its production arm into a separate commercial unit.
Jesse Norman, who replaced John Whittingdale in May, said he had asked Hall about the impact on commercial rivals and the production sector.
The proposals would turn the BBC’s in-house production departments – making shows such as Dr Who and Mrs Brown’s Boys – into a separate organisation called BBC Studios. The new unit would be able to make shows for other broadcasters but would also have to compete with rival organisations for a large proportion of BBC programming.
It will initially be created within the publicly run BBC, but will eventually by turned into a commercial subsidiary.
The plans are part of Tony Hall’s “compete and compare” strategy outlined last year, which is designed to open BBC programming to wider competition and ensure those parts reserved for the BBC are benchmarked against commercial equivalents.
Issues of particular concern include how BBC Studios will be governed, possible conflicts of interest between BBC commissioners and BBC Studios, and whether the new organisation could fall foul of state aid rules.
Norman said: “These are significant issues, and we wish to be sure that, as far as possible, parliament and the general public have the opportunity to consider the BBC’s detailed proposals and ideas for BBC Studios fully and in good time as part of the process of charter renewal.
“The committee is requesting, as soon as possible, the timetable for work on these proposals, setting out when and how the director general will be addressing these concerns, and what expert advice the BBC is taking in developing the proposals.”
Peter Salmon, who was announced as the first head of BBC Studios in July, attempted to placate industry critics in September, saying he wanted the unit to be “part of a successful British creative ecology” and encourage a “thriving booming British independent sector”. He also confirmed that children’s TV, which is largely provided by the BBC, would remain within the public part of the corporation.
A BBC spokesperson said the corporation welcomed Norman’s questions: “The published Studios proposals addresses some of the issues raised and we will continue to respond to the further points made by key stakeholders, including indies, broadcasters, the BBC Trust, Ofcom and DCMS.”
Norman’s committee has been taking evidence on the renewal of the BBC charter from a range of sources, include past and present BBC executives, commercial rivals, and organisations representing the independent production sector.
