World Service costs to come from licence fee
Two senior sources - in Downing Street and the Foreign Office - have told me that a deal has now been done where in future the cost of the 91Èȱ¬ World Service - currently £272m a year - will have to come from the licence fee rather than the Foreign Office budget.
This will come into effect with the next licence fee settlement due in 2012.
This seems to replace previous plans - reported here yesterday - to make the 91Èȱ¬ pay the £556m cost of the paying for free TV licences for the over-75s.
I understand the new deal, brokered between the 91Èȱ¬ and the Department for Culture, Media and Sport is likely to involve a new figure for the licence fee.
A 91Èȱ¬ source tells me the corporation recognised they had to contribute to the Spending Review process, and bringing the World Service within the overall 91Èȱ¬ budget was a logical move given the fact that 91Èȱ¬ and World Service journalists will soon share the same building.
I am told today's deal was not linked to last night's story about free TV licences.
As a result of my blog last night there were furious hastily-arranged talks at the (DCMS) involving the 91Èȱ¬ Director-General Mark Thompson and DCMS ministers and officials.
These went on very late and were resumed this morning.
Two deals were on the table - the 91Èȱ¬ paying for the over-75s and paying for the World Service.
They concluded with a deal today which freezes the 91Èȱ¬ licence fee at £145.50 for the next six years.
Comment number 1.
At 19th Oct 2010, Smeagol wrote:Michael, since the 91Èȱ¬ World Service started, something happened that has transformed the world we live, and has made the need for the 91Èȱ¬ to broadcast to the vast majority of the places it does now COMPLETELY unneccessary! Here's a clue; it was originally invented by two physicists from CERN. Here's another; I'm leaving this message on it right now.
The World service should be majorly reduced to take account of the ease with which billions of people can now log onto the internet and listen and interact with the 91Èȱ¬ and other British media. It should only be broadcast (if you subscribe to the rather sanctimoneous view that this country has some kind of responsibility to preach to the rest of the world that is) into countries where the internet is as yet unavailable or is interfered with.
Will you now cause another 'furious hastily-arranged' round of talks in which the reduced need for the 91Èȱ¬ World Service in the age of the internet is taken fully into account.
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Comment number 2.
At 19th Oct 2010, globaltrotter wrote:Re comment #1 - The Internet currently reaches less than one third of the world's population - there was report recently that there are now 2 billion users, and the global population is nearly 6.9 billion. There are great swathes of the world where the 91Èȱ¬ World service is the only way that people can get access to accurate and (mostly) unbiased news and current affairs. This is especially important where repressive regimes control the local print and electronic media. Thee 91Èȱ¬ World Service is respected worldwide and it would be a national folly if it was to be abandoned or significantly restricted in its work.
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Comment number 3.
At 19th Oct 2010, robcaro wrote:Well, it's true then. We listen to world service all night and Radio 4 morning and evening. Please let's make sure WS remains as interesting as it is now. I could personally do without Outlook, but then I could also do without the Shipping Forecast and Thought for the day.
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Comment number 4.
At 19th Oct 2010, Smeagol wrote:Message 2. Yes I agree that there has to be some kind of of voice for people to hear in oppressed countries, but really Britain with it's chequered imperialist history is not ideal. Should not all member states of the UN contribute to a global radio station, which at least would reduce the load on UK citizens who apparently, according to our host, are worried about the difference between being taxed by the government or being taxed by the 91Èȱ¬!
It would not cost the 91Èȱ¬ one single penny in overhead costs to waive the licence fees for people over 75 years old. Once you transmit the photons they don't cost you any more regardless of how many people are tuning in. Yet again the 91Èȱ¬ are showing themselves to be anti-government, anti-taxpayer, and very much pro-the likes of Jonathon Ross and themselves, by insisting the endangered non-government-borrowed-money-recycling, real-non government-paid taxed income money earners, in other words the absolute suckers of the universe, continue to be forced to pay for the corporation's profligacy.
Only in Britain, anywhere else and there would have been a civil war by now!
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Comment number 5.
At 19th Oct 2010, barriesingleton wrote:I COULD DO WITHOUT DEMENTED BLASTS OF MUSACK (#3)
I live in a semi. Why does World Service behave like Radio 5? In the early hours, if I set the volume to hear speech, the mad musack wakes all the neighbours. Dead edgy though.
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Comment number 6.
At 19th Oct 2010, Neil Robertson wrote:Great scoop, Michael! But of course they should have axed the FCO grant to The British Council instead of squeezing the 91Èȱ¬ - but I guess that
would have hurt the finances of British Council/Education UK which is
intimately involved with Hotcourses - company owned by Jeremy Hunt MP!
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Comment number 7.
At 19th Oct 2010, Neil Robertson wrote:Complain about this comment (Comment number 7)
Comment number 8.
At 19th Oct 2010, Neil Robertson wrote:Complain about this comment (Comment number 8)
Comment number 9.
At 20th Oct 2010, Smeagol wrote:Thank you Sky News for taking the trouble in their 8 AM bulletin to go through the figures concerning the dire state of the UK economy. Now, when the announcement is made I will be able to see the action the coalition as been forced to take in context. In contrast Radio 4's coverage thus far has been totally focused, as per the rest of the 91Èȱ¬ News pro-Labour coverage, in making ultra-pessimistic analyses of the implications of the cuts, this morning from a foc day care centre for children in Exeter.
How dearly I would love to see a government teach the biased Beeb a real lesson in in the true nature of 21st century reality! I wouldn't freeze the licence fee, I would abolish it completely!
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Comment number 10.
At 20th Oct 2010, JunkkMale wrote:Two senior sources...
This seems to...
I understand..
.. likely to involve..
A 91Èȱ¬ source tells me...
I am told..
As a result of my blog last night...
That last, one presumes, confirmed so definitively by... another source?
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Comment number 11.
At 20th Oct 2010, stevie wrote:I still miss the opening music to PM....sad or what...
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Comment number 12.
At 21st Oct 2010, 91Èȱ¬ drama wrote:QUOTE: "It would not cost the 91Èȱ¬ one single penny in overhead costs to waive the licence fees for people over 75 years old." UNQUOTE
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Dear Trout Mask Replica (good username BTW),
If the BBc waived the licence fee for over 75s it would cost the 91Èȱ¬ over £500m. The 91Èȱ¬ is not a government department so they are compensated for the over 65s that don't have to pay a licence. (It's the same with bus companies - they are compensated by the government for the pensioners that don't buy bus tickets.)
Re your point about the World Service. Apart from being a fine product, it also allows the UK to project "soft power" around the world. It's a lot cheaper and more sensible than aircraft carriers without planes. Listen a while, you might enjoy it.
Finally, you praise Sky. You do realise who controls Sky? The great man's media empire exists to project his business interests. It's like watching a Coca Cola advert and expecting impartiality. If you feel infomed by it though, fair enough.
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