Lord Patten, Chairman, BBC Trust

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:00:11. > :00:14.Lord Patten, welcome to HARDtalk. On taking over as chairman of the

:00:14. > :00:18.BBC Trust you said, the BBC is the best broadcasting organisation in

:00:18. > :00:23.the world. A big claim. Are you sure it is true? Yes, it is what

:00:23. > :00:31.friends in other countries tell me. Many of them get all their news

:00:31. > :00:35.from the BBC. I read an interview with Mrs David Bowie the other day.

:00:35. > :00:45.She said, my husband never believes anything until he sees it on the

:00:45. > :00:52.

:00:52. > :01:00.BBC. We should not be complacent, smug, arrogant. At its best, the

:01:00. > :01:07.BBC is as good as it gets. Before we go any further, you use a

:01:07. > :01:12.collective we about the BBC. Do you see yourself as an insider, an

:01:12. > :01:19.integral part of the BBC? I see myself as part of the governance of

:01:19. > :01:28.the BBC. There is a completely ridiculous argument about roles. Am

:01:28. > :01:32.I a cheerleader or am I a regulator? But independence is

:01:32. > :01:35.important. Are you independent of the BBC? No, but the BBC is

:01:35. > :01:45.independent of the Government. If the BBC does things well it is

:01:45. > :01:47.

:01:47. > :01:51.reasonable for me to chair. If there are mistakes with editorial

:01:51. > :01:55.guidelines it is for us to sort them out. You say you talk to

:01:55. > :01:57.people all around the world who believe that the BBC is the best

:01:57. > :02:07.international broadcaster. But let's look at the present and

:02:07. > :02:08.

:02:08. > :02:15.future. Last year the government froze the licence fee. It is seen

:02:15. > :02:25.by many people as a tax on owning a television. It is now frozen. The

:02:25. > :02:30.BBC has to make cuts of up to 20%. That is because it is on a frozen

:02:30. > :02:39.licence fee. It has to take on more responsibilities like the World

:02:39. > :02:44.Service. Television all round the world, it has got to take on

:02:44. > :02:52.financial responsibilities for the Welsh television service. It has

:02:52. > :02:59.got extra responsibilities. But 20% budget cuts. That will do serious

:02:59. > :03:02.damage to the quality of output? hope it will not do serious damage.

:03:02. > :03:07.At present we're talking to the executives - we're talking about

:03:07. > :03:10.how we can accommodate the BBC with a budget less than we would like to

:03:10. > :03:14.spend but we're talking about the BBC running for the next five years

:03:14. > :03:24.on �3.5 billion every year plus the income it can raise from commercial

:03:24. > :03:35.

:03:35. > :03:38.activities. We should be able to run a damn good public broadcaster

:03:38. > :03:47.on �3.5 billion every year, which we do not have to raise ourselves.

:03:47. > :03:51.It comes from licence-fee payers. So while I do not doubt that we

:03:51. > :03:55.have to make some painful choices - and first of all everybody is

:03:55. > :04:05.having to in the UK and around the world because of the financial

:04:05. > :04:13.

:04:13. > :04:16.crisis - I hope that many of the choices will be around efficiency.

:04:16. > :04:20.Then you talk about a damn good broadcaster making difficult

:04:20. > :04:27.choices, it gives down to the basic question: What should the BBC be

:04:27. > :04:30.doing? Where are the areas where it should not necessarily be? Much as

:04:30. > :04:38.I respect you, I'm not going to make announcements about budget

:04:38. > :04:42.choices now. But let me give you an example. It is increasingly tough

:04:42. > :04:47.for a public service broadcaster to compete for sports rights with

:04:47. > :04:51.subscription television, for example. That is started to be the

:04:51. > :04:55.case in the United States and that has started to be the case here now.

:04:55. > :05:05.We do a lot of smaller sports. We do Wimbledon and Six Nations and we

:05:05. > :05:10.

:05:10. > :05:14.have been doing Formula One exclusively. We have not been able

:05:14. > :05:24.to afford that so we have had to pare back Formula One and share it

:05:24. > :05:29.

:05:29. > :05:33.with Sky. What other sports do you see going? I hope there will be no

:05:33. > :05:37.others. I hope that that choice - and it was a painful choice,

:05:37. > :05:40.everyone who loves motor racing was cross with us because we do it so

:05:41. > :05:50.well - but we will still be doing motor racing. It will not be

:05:50. > :05:54.exclusive anymore. So you think other sports will stay as a result

:05:54. > :05:58.of that? I would hope so. There are still sports that are of some

:05:58. > :06:04.importance, like Six Nations. Match Of The Day. How could you get

:06:04. > :06:07.through a Saturday evening without that and Strictly Come Dancing?

:06:07. > :06:10.Strictly Come Dancing is an interesting one. It is a very

:06:10. > :06:18.popular entertainment programme. BBC runs all sorts of reality

:06:18. > :06:22.television programmes. Some of them are high-gloss entertainment comes

:06:22. > :06:25.some less so. It does quiz programmes, and cooking, property.

:06:25. > :06:35.All of these are shows that are very similar, if not equivalent, to

:06:35. > :06:38.

:06:38. > :06:46.shows on commercial networks. Why does the BBC need to do that?

:06:46. > :06:50.should educate and inform but also entertain. That is the trendy. --

:06:50. > :06:54.the Trinity. That was said by an American radio pioneer. That is

:06:54. > :06:57.what we have tried to do over the years. But when the squeeze is on

:06:57. > :07:01.is it not important to make choices? Surely one choice is to

:07:01. > :07:07.say, where we are doing things that are duplicated in the commercial

:07:07. > :07:10.sector, we're not offering anything unique there. You cannot run a

:07:10. > :07:16.national service paid for by everybody in the country just to

:07:16. > :07:20.satisfy me. I am rather curious because I do not watch EastEnders

:07:20. > :07:23.but people who do watch it will often go on to watch another

:07:23. > :07:33.programme which has, how can I put it, the ambition of educating and

:07:33. > :07:40.

:07:40. > :07:50.informing. If you get 5 million or more people watching a drama at 9pm

:07:50. > :07:50.

:07:50. > :07:54.in the evening you get a much larger audience for the 10pm news.

:07:54. > :08:02.If you get a small audience, 3 million, fewer people watch the

:08:02. > :08:07.news. It is called hammocking, apparently. You have successfully

:08:07. > :08:16.avoided telling me what you want to be cut. This is fear it gets

:08:16. > :08:22.difficult. Savings have to be made. The last man who sat in your chair,

:08:22. > :08:30.he said the BBC must avoid imposing universal cuts on everything. He

:08:30. > :08:38.said: In the end, you said, you have to make some big choices.

:08:38. > :08:43.hope we will be able to avoid cutting whole services. Amputation

:08:43. > :08:47.for the sake of it, in order to show one has been filled with

:08:47. > :08:52.testosterone, does not seem to me to be central. But if you do not

:08:52. > :08:57.amputate, the general body is diminished? Isn't that the point?

:08:57. > :09:00.hope we will be able to continue to run a very good service on radio

:09:00. > :09:05.and television but we will not be able to produce all the luxuries

:09:05. > :09:09.which we have been able to manage in the past. We will have to focus

:09:09. > :09:12.on our core and most valuable services. We will have to focus on

:09:12. > :09:17.our Corps and most valuable services: Children, drama, news,

:09:17. > :09:23.factual programmes. Those are things we will have do spend money

:09:23. > :09:28.on. We will not be able to spend as much money on sport and, I suspect,

:09:28. > :09:32.entertainment. What are the luxuries you will be able to do

:09:32. > :09:40.away with? That is something you will discover in October when you

:09:40. > :09:50.can interview one of my colleagues. We are in a process at the moment

:09:50. > :09:55.

:09:55. > :09:59.of discussing the final options we have to make, the final choices. I

:09:59. > :10:02.think we will be able to demonstrate at the end of this

:10:02. > :10:12.process there is a change about driving to greater efficiency and

:10:12. > :10:13.

:10:13. > :10:17.productivity and we will have to focus more clearly on our strengths.

:10:17. > :10:26.Just to finish this theme, is it safe to assume that some of the

:10:26. > :10:35.largest celebrities will have to be thanked and sent elsewhere? In has

:10:35. > :10:39.already been happening. We have heard from Jonathan Ross about his

:10:39. > :10:46.sadness at having to claim his millions from elsewhere. But there

:10:46. > :10:53.are 14 stars who are paid millions every year. Will they have to go?

:10:53. > :11:02.want to reassure the audience that does not include you. Doubtless it

:11:02. > :11:07.should do! We will have to cut down on talent costs. First we will

:11:07. > :11:17.reveal the figures. Not every individual because you get into

:11:17. > :11:17.

:11:17. > :11:23.privacy but we cannot pay as much for people. We have shown overall

:11:23. > :11:27.figures and made it clear we cannot pay as much for people. It is part

:11:27. > :11:31.of our job at the BBC to bring on talent. If they want to go

:11:31. > :11:33.elsewhere, fine. What people find is that they go off to other

:11:33. > :11:37.channels for money but nobody watches them. The international

:11:37. > :11:40.role of the BBC. You say it is important but why is it as

:11:40. > :11:44.important when you go to countries like India and Turkey and you

:11:44. > :11:47.switch the television on and there is a host of national and

:11:47. > :11:50.international news providers, why is it as important as it was?

:11:50. > :11:53.Because people think BBC News tells what is going on. Unfortunately

:11:53. > :11:56.many of the broadcasters in other countries have a news agenda which

:11:56. > :12:06.is biased or corrupted by government control or by commercial

:12:06. > :12:40.

:12:40. > :12:44.interests. If it is that important how do you feel about the fact that

:12:44. > :12:48.in the last 12 months the World Service in radio has frankly been

:12:48. > :12:51.very badly hit by a round of cuts? Five Language Services have been

:12:51. > :12:57.closed down and seven others have gone online with no radio element.

:12:57. > :13:00.Some of those services include Russian, Mandarin, Spanish for Cuba.

:13:00. > :13:10.The problem with Mandarin is that it was effectively blocked and

:13:10. > :13:16.

:13:16. > :13:19.there is no point in going on with it. It is easier for the Chinese to

:13:19. > :13:25.block the internet. If you talk to a group of Chinese students about

:13:25. > :13:28.firewalls they give you an old- fashioned answer. Would I have

:13:28. > :13:38.preferred it if we had been given responsibility for the World

:13:38. > :13:38.

:13:38. > :13:42.Service without an initial budget cut? Of course but everybody has

:13:42. > :13:52.had to face up to large budget cuts because of the extent of the

:13:52. > :13:53.

:13:53. > :13:58.deficit. You have got the option, because the BBC will take over the

:13:58. > :14:02.funding, you have a guarantee that some of these services will be

:14:02. > :14:06.restored and new money will be put into World Service. We have already

:14:06. > :14:11.found some new money for some of these services. For example I felt

:14:11. > :14:14.conflicted about cutting back on the Hindi short-wave service. It is

:14:14. > :14:18.old technology but if you are one of the 10 million Indian peasant

:14:18. > :14:21.farmers with no electricity it is rather important. I was keen we

:14:21. > :14:25.should continue with our ability to cover what is happening in the

:14:25. > :14:35.Middle East and we have restored money, some of it coming from the

:14:35. > :14:40.

:14:40. > :14:50.Foreign office and some of it You talk about truth-telling and

:14:50. > :14:55.

:14:55. > :15:01.why that is important. Let me turn to television. BBC World News is

:15:01. > :15:06.commercially funded. Too little. The budgets are tight. It has a

:15:06. > :15:10.budget of �63 million. Because of state aims, we have to be careful

:15:10. > :15:20.about its commercial funding. It has gone up by �10 million over the

:15:20. > :15:24.

:15:24. > :15:27.last year. But one of the areas, I am not just saying it because I am

:15:27. > :15:32.on your programme...one of the areas where we want to spend more

:15:32. > :15:42.money is on World news. One recent case that has raised serious

:15:42. > :15:46.

:15:46. > :15:54.concerns is a private company, FBC, making programmes for the BBC.

:15:54. > :15:57.Those programmes have included a focus on Malaysia. FBC, according

:15:57. > :16:03.to the Independent, has received substantial money to do corporate

:16:03. > :16:10.strategic work on behalf of the Malaysian government. The BBC says

:16:10. > :16:17.it was not aware of that. It says it should have been. Does that

:16:17. > :16:20.raise serious questions about the systems the BBC uses? It raises

:16:20. > :16:22.serious questions about the importance of sticking to the

:16:22. > :16:30.editorial guidelines, which are clear on the case you have

:16:30. > :16:32.mentioned. You should not get into this smudgy, blurry area where you

:16:33. > :16:36.cannot be certain that commercial interests have not affected the way

:16:36. > :16:46.a story is covered. In this case, there was a breach of editorial

:16:46. > :16:51.

:16:51. > :16:54.guidelines. The Trust has made that clear it should not have happened.

:16:54. > :16:57.One of the reasons that the Trust exists is, like any good board, to

:16:57. > :17:00.stop things like that happening. Does it mean we cannot possibly

:17:00. > :17:03.produce a really good and independent world news with

:17:03. > :17:06.commercial income? It doesn't. I want to see us providing more

:17:06. > :17:16.commercial income through co- production and through other BBC

:17:16. > :17:21.

:17:21. > :17:29.channels, and through proceeds from Worldwide. FBC say that at no time

:17:29. > :17:35.the programmes were influenced by the funding. But the point is, the

:17:35. > :17:44.FBC programmes have been suspended. It seems there is a real concern

:17:44. > :17:49.that they are not adequate. The checks and balances. What we are

:17:49. > :17:52.clear about is the guidelines should be followed. If there is any

:17:52. > :17:56.question of people raising doubts about the accuracy of a piece of

:17:56. > :18:02.television, it is a cause for concern and we will stop. I wonder

:18:02. > :18:06.whether there is a bigger question from this. The BBC, because budgets

:18:06. > :18:15.are tight, the BBC is desperate to find as many creative ways to draw

:18:15. > :18:18.money as it can. There's BBC Worldwide... But you can do it

:18:18. > :18:25.without undermining the reputation of the BBC. That is an interesting

:18:25. > :18:35.assurance. Are you sure that's always true? Am I sure we will

:18:35. > :18:35.

:18:35. > :18:39.never make a mistake? Of course not. Am I sure we should never be able

:18:39. > :18:43.to put in place guidelines which, if followed, will stop us making a

:18:43. > :18:51.mistake? Yes. This is about the BBC brand as a whole. Which is really

:18:51. > :18:55.important. Of course. As it has expanded into buying Lonely Planet

:18:55. > :18:58.and Top Gear and making big money from top magazines, and buying

:18:58. > :19:08.other companies, do you think the BBC is in danger of becoming too

:19:08. > :19:17.big and the commercialism... ..wagging the dog and tail metaphor.

:19:17. > :19:20.Will it take over? What is clear to me is that Worldwide has been

:19:20. > :19:23.incredibly successful and should fo fo BBC's core activities.

:19:23. > :19:33.There are some things Worldwide got into, like magazines, which we

:19:33. > :19:35.

:19:35. > :19:38.should have disposed of, and they have. They've sold them off.

:19:38. > :19:47.Worldwide should try to place themselves at the heart of the

:19:47. > :19:53.creative content in this country. I think it should work in partnership

:19:53. > :20:01.with independent producers to sell to the rest of the world.

:20:01. > :20:05.profit matters in that instance. Commercial nous matters. I want to

:20:05. > :20:13.shift. When you are thinking about bringing the attitudes of the

:20:13. > :20:16.marketplace into the BBC, I do start thinking about pay. I think

:20:16. > :20:21.about what you said, which is, the BBC has paid executives salaries as

:20:21. > :20:24.if they work at Barclays. Do you think that, your word, toxic

:20:24. > :20:32.problem has gone away? I have tried to deal with it quickly and

:20:32. > :20:35.decisively. Principally, I have done it by getting the agreement of

:20:35. > :20:37.the executives to be the first organisation to implement the

:20:37. > :20:47.proposals, the main proposals, on public service pay which were

:20:47. > :20:50.

:20:50. > :20:57.advocated by the distinguished economist Will Hutton. But that's...

:20:57. > :21:01.The basic proposal is you cap the highest salary to the medium pay.

:21:01. > :21:05.You stop a big gap opening between what the medium is paid and what

:21:05. > :21:15.the seniors are paid. The director general, chief executive, Mark

:21:15. > :21:19.

:21:19. > :21:23.Thomson, earnt �779,000 last year. Admittedly down on the year before

:21:23. > :21:27.but still so far beyond the median salary inside the BBC. It busts

:21:27. > :21:31.your desire. If there is another director-general during my time at

:21:31. > :21:35.the Trust, they will not be paid that much. What I have made

:21:35. > :21:42.absolutely clear is we will be bearing down on the cap on

:21:42. > :21:48.executive pay to reduce that ratio with median pay. We're also...

:21:48. > :21:52.I stop you there? It is extraordinary that you as the

:21:52. > :21:56.chairman of the BBC Trust are telling me the chief executive is

:21:56. > :22:00.overpaid? It is not extraordinary for me to say I think all BBC staff

:22:00. > :22:10.have to take account of the fact the BBC is a public sector

:22:10. > :22:20.

:22:20. > :22:23.organisation. To say what I've said in the past, you cannot on the one

:22:23. > :22:26.hand talk about the public service ethos and think you can be paid

:22:26. > :22:29.what you might be paid if you worked in the financial services

:22:29. > :22:35.sector. To be clear, Mark Thomson and other long-serving executives

:22:35. > :22:43.were paid too much money. I am sure they were worth every penny. But

:22:43. > :22:46.they will not be paid as much in the future. To end on this thought,

:22:46. > :22:53.in 2016 the BBC's charter will be reviewed by the Government. What

:22:53. > :22:56.will the BBC look like then? I hope when it's reviewd it will still be

:22:56. > :22:58.looked at as an organisation that provides a public space for

:22:58. > :23:02.national conversation, respected around the world for the imbalance

:23:02. > :23:05.and accuracy of reporting, and I hope it will continue to produce

:23:05. > :23:15.programmes which understand the average man or woman is better than

:23:15. > :23:22.

:23:22. > :23:28.the average. Will it be much smaller? It will not be as big as

:23:28. > :23:32.it would have been if we did not have these cuts. It will still be,

:23:32. > :23:37.I think, the best public service broadcaster in the world and one of

:23:37. > :23:47.the three or four largest employers of journalists. We have to leave it

:23:47. > :23:58.

:23:58. > :24:08.there, thank you for joining us. For many, a different day today

:24:08. > :24:09.

:24:09. > :24:14.compared to yesterday. More cloud for northern and western areas.

:24:14. > :24:20.Some of that rain, heavy. You can see the picture. Lots of cloud,

:24:20. > :24:28.showers or central areas of the UK. Persistent in the wet. On the

:24:28. > :24:31.upside, it will not be as cold. A lot of rain for Northern Ireland,

:24:31. > :24:35.the rain will move into western parts of Scotland. A generally

:24:35. > :24:38.cloudy start to the day. The far north of Scotland should be quite

:24:39. > :24:44.bright. Temperatures in Lerwick of about six degrees. More cloud in

:24:44. > :24:49.northern parts of England. Outbreaks of rain. More showers in

:24:49. > :24:59.the Home Counties. But the far south of England, a fairly sunny

:24:59. > :25:04.

:25:04. > :25:13.start to the day. Dry for many in the far west. Cloudy skies.

:25:13. > :25:17.Persistent rain for Scotland. This band of rain will move its way from

:25:17. > :25:19.west to east. Some of it will be on the heavy side, especially the

:25:19. > :25:24.northern parts of England, southeast Scotland. The far south-

:25:24. > :25:29.east of England, the southern coast, not a bad day. Some sunshine and

:25:29. > :25:34.temperatures in London about 22 degrees but not as warm elsewhere.

:25:34. > :25:38.Cooler elsewhere. Cloud and rain. That rain will persist across

:25:38. > :25:45.Scotland, into north-eto north-ed. It all comes from this area of low

:25:45. > :25:52.pressure. With it, these isobars are tightly packed. As we go into

:25:52. > :25:55.the weekend, some blustery winds from the north-west. With it,

:25:55. > :26:00.showers will be especially heavy in the western and northern areas

:26:00. > :26:08.during Saturday. We will all see showers during the day. More for

:26:08. > :26:15.the west. For the Great North Run, in Newcastle, there could be a few

:26:15. > :26:18.showers. Especially during the run itself. Coverage of that on BBC One.

:26:19. > :26:24.Most of the showers confined to eastern areas. Further west, a dry