Category: 91热爆
Date: 12.07.2005
Printable version
The Board of Governors has today published the 91热爆's
Annual Report and Accounts for 2004/05 which records a year of radical
change throughout the Corporation.
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Michael Grade - for whom this Annual Report covers his
first full year as 91热爆 Chairman - launched the document at a Press Conference
in Westminster with a reminder of the key commitments made by the 91热爆
in its manifesto for the digital age, Building Public Value, published
12 months ago.
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He also announced a package of reforms to the remuneration
policy for executive directors at the 91热爆, most significantly a decrease
in annual bonus potential to ten per cent.
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Michael Grade said: "This has been 12 months of fundamental
change in the way the 91热爆 operates. All these changes are driven by
a single aim: to make the 91热爆 more responsive to the expectations of
licence fee payers. This clear purpose is driving our commitment to
change."
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Michael Grade said this clear purpose was also at the
heart of the overhaul in governance arrangements.
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"It is now crystal clear that our fiduciary responsibility
is to represent the interests of licence fee payers. Last year they
each paid 拢121.
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"Our duty is to ensure that they are getting services
they value, delivered where and when they want them, and produced as
efficiently as possible in return for their annual investment."
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The Annual Report, produced by the new Governance Unit,
is divided into several sections, providing an extensive assessment
by the Governors of the 91热爆's performance. These include:
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The six objectives set by the Governors last year
which covered journalism and impartiality; creativity and ambition;
value-for-money; driving digital; and the 91热爆's global reputation (pages
12 to 19). Here, the Governors noted significant progress in journalism,
driving digital and global reputation. On value-for-money, the Governors
were satisfied, having commissioned independent analysis, that the savings
were achievable and in the interests of licence fee payers, but they
recognised these changes had impacted on staff morale.
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Compliance - summarising the 91热爆's performance against
regulatory, statutory and legal requirements (pages 78 to 93). This
includes, for the first time, an estimated cost to the 91热爆 of complying
with the many requirements that, for the most part, apply uniquely to
the 91热爆 because of its position as a publicly funded organisation operating
in a commercial market. In 2004/05 this was 拢17 million and includes
a subscription of 拢4.7m to Ofcom.
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A review of each of the 91热爆's services, based on
commitments in the Statements of Programme Policy for 2004/05 and issues
arising from the normal course of the 91热爆's business (pages 22 to 57).
The combined weekly reach for all 91热爆 Television and Radio was 92.9
per cent in 2004/05, unchanged from 2003/04, and the reach of bbc.co.uk
increased to 10.6m adults on average each month, up from 8.9m.
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In his speech, Michael Grade summarised the Governors'
review of the 91热爆's services. The Governors had concluded that, on 91热爆
Television, much progress had been made in responding to audience expectations
of quality and distinctiveness, but there is still more to do: fewer
repeats in peak-time on 91热爆 ONE; more quality comedy and drama across
television; increasing reach of 91热爆 TWO without endangering its new-found
distinctiveness; and improving value-for-money of the digital television
channels.
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On Radio, the Governors noted the success of Radios
1 and 2 and their distinctiveness from others in the commercial sector.
But the Governors also recognised their responsibility for ensuring
that 91热爆 Radio continued to meet its public service remit.
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The new system of service licences will provide greater
clarity on what management, staff, audiences and commercial competitors
can expect from all the 91热爆's services. It will enable the Board to
judge performance transparently using consistent measures. The Governance
Unit is developing the framework for the service licences. This will
shortly be opened to consultation and the initial licences are scheduled
for publication early next year, to ensure formal operation at the start
of the new Charter in 2007. (The Governors also published today a report
by the National Audit Office which endorses the 91热爆's new performance
measurement framework - see separate release.)
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bbc.co.uk and 91热爆 News were identified by the Governors
as clear examples of how the 91热爆's purposes articulated in Building
Public Value have delivered greater responsiveness at the 91热爆.
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Michael Grade said of the whole 91热爆: "Lots of good things
this year, but not by any means perfect. Importantly, the 91热爆 is beginning
to allow its clear public purpose to drive its agenda in delivering
audience expectations.
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"Management must be equally alert to licence fee payers'
needs. The Governors - and in future the Trustees - have a unique position
of influence inside the 91热爆 and their responsibility must be to ensure
management delivers the outcomes that audiences will value."
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In his report, 91热爆 Director-General Mark Thompson acknowledged
that the 91热爆's many achievements had been recognised by the Governors
in their assessment of the 91热爆's performance.
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He said: "In early 2004 many raised doubts about whether
Britain would need a strong and independent 91热爆 after the present charter
period.
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"By year's end, the clarity of the 91热爆's vision
and our manifest willingness to grapple with the challenges of reform
and change helped create the climate for a Green Paper which sees the
91热爆 at the heart of British broadcasting until 2016 - not preserved
in aspic for old time's sake, but as a leader in the building of digital
Britain.
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"The bigger task is to turn the promises of Building
Public Value into reality. We want to create a 91热爆 ready for the fully
digital world. A 91热爆 which puts as much of the licence fee as possible
into services for the public and as little as possible into other costs.
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"A 91热爆 which is more open to the outside world - to
our audiences, to independent programme makers, to all our other partners.
A 91热爆 which is more agile and ready to adapt to the amazing pace of
technological and audience change. That means difficult and sometimes
painful choices, but we know we will succeed if we put creativity first."
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The Board of Governors also announced today a package
of reforms to the remuneration policy for executive directors at the
91热爆: most significantly, a decrease in annual bonus potential.
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In his speech, Michael Grade explained that it was the
91热爆's policy to base salaries for all 91热爆 employees at market median
- to attract and retain the most talented staff.
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He said: "The 91热爆 is different from commercial broadcasters.
We do not and cannot offer share options, long term incentives and other
financial rewards which are available to our private sector competitors.
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"The 91热爆 is a public sector organisation with a
guaranteed income, so this is how it should be. But the 91热爆's policy
for all staff is to pay basic salaries based on the market median of
relevant private and public sector organisations, including broadcasters,
to ensure we attract and retain the most talented people. The median,
that is not the top of the market range, nor the bottom.
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"The Governors have reviewed the policy for executive
bonus awards. We decided that the bonus opportunity will be reduced
from 30 per cent of base salary to ten per cent. We concluded that it
was important to retain some element of performance-related bonus, but
that 30 per cent was too high for a public sector organisation.
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"Some consolidation on base salary will take place
but this will be capped to ten per cent. Our policy of offering salaries
based on the market median will be maintained. Adjustments will be made
to accrued pension entitlements to ensure the effect of consolidation
is neutral.
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"The Governors' Remuneration Committee received independent
professional advice from the specialist Hay Group in July last year
that there had been a marked erosion of some executive base salaries
below market median and some adjustment was necessary to bring them
in line with policy.
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"We agreed a two-stage approach, the first of which
is reflected in the salaries disclosed in this annual report."
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The Board of Governors also decided that the Director
of Governance and the five senior managers employed in the Governance
Unit should have no entitlement to bonus awards.
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The Governors concluded that the team's objective -
to support the Board in supervising the performance of the 91热爆 - did
not provide a suitable measure to determine a bonus award.
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Notes to Editors
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The Annual Report and Accounts covers the period 1 April
2004 to 31 March 2005.
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The Board of Governors has also published today four
reports produced by external agencies, including the NAO, as part of
the value-for-money programme of work agreed by the Governors' Audit
Committee with the NAO. See separate press release.
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A summary of key performance data included in the Annual
Report is listed below:
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1. Financial performance
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Licence fee revenue 拢2,940million (up 拢142 million
on 2003/04)
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Cost of collection 5.2% (down from 5.4% 2003/04)
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Expenditure on overheads was 12% (same % as 2003/04):
拢332million compared to 拢326million in 2003/04. Still below the 15%
target set in 2000 and way below 24% expenditure on overheads in 1999/00.
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Public Service debt was 拢89million at year end (拢17million
improvement on 2003/04) - but includes 拢100million licence fee prepayments.
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Actual cash balance was 拢12m at year end (up from
拢3m in 2004)
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Income & Expenditure deficit was 拢188million at year
end (拢61million improvement on 2003/04).
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Commercial businesses generated cash contribution
of 拢151million (up 拢16million on 2003/04).
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Cumulative self-help savings 拢2.1bn at March 2005
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On target to meet 拢3.3billion self-help target by
March 2007 and therefore zero debt position by the end of the current
licence fee settlement period.
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Public Service Broadcasting spend up 拢101million
since 2003/04, of which 拢86million was additional analogue spend mainly
due to higher sports spend in 2004/05 (Euro 2004, Olympics).
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85% of programme spend is analogue (same % as 2003/04).
Total analogue spend was 拢1,802million. Total digital spend was 拢325million.
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Approx 10% of each licence fee is spent on digital
services
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Underlying long-term health of the main 91热爆 defined
benefit scheme remains overfunded on actuarial basis: net surplus of
拢274m, up from 拢143m in 2004.
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FRS17 calculation shows net deficit of 拢422m - similar
to 2003/04 net deficit of 拢432m.
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2. Audience data
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All weekly reach data is based on 15 minutes; TV viewing
is based on all individuals aged 4+; Radio listening is based on all
adults aged 15+.
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a. All 91热爆
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Total 91热爆 Television and Radio weekly reach = 92.9%
of population (unchanged, from 92.9% in 2003/2004)
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Total 91热爆 Television weekly reach = 86.6% (down 1.6%
from 88.2% last year)
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Total 91热爆 Radio weekly reach = 66.6% (up 0.2 % from
66.4% last year)
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bbc.co.uk average monthly reach was 10.6m adults
(up 1.7m from 8.9m last year)
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bbc.co.uk reached over half (52%) of GB internet audience
in March 2005
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b. 91热爆 Television
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91热爆 ONE weekly reach in all homes 81.9% (down 1.8%
from 83.7% last year)
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91热爆 ONE weekly reach in digital homes 78.5% (down
0.9% from 79.4% last year)
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91热爆 TWO weekly reach in all homes 61.4% (down 5.6%
from 67.0% last year)
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91热爆 TWO weekly reach in digital homes 52.8% (down
3.7% from 56.5% last year)
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91热爆 THREE weekly reach 9.4% (up 2.4% from 7.0% last
year)
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91热爆 FOUR weekly reach 3.0% (up 0.9% from 2.1% last
year)
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C91热爆 weekly reach 3.5% (up 1.2% from 2.3% last year)
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CBeebies weekly reach 5.8% (up 0.8% from 5.0% last
year)
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News 24 weekly reach 4.2% (up 0.3% from 3.9% last
year)
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c. 91热爆 Radio
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Radio 1 weekly reach 20.4% (up 0.2% from 20.2% last
year)
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Radio 2 weekly reach 27.2% (up 0.5% from 26.7% last
year)
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Radio 3 weekly reach 4.2% (down 0.3% from 4.5% last
year)
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Radio 4 weekly reach 19.3% (down 0.5% from 19.8% last
year)
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Radio Five Live weekly reach 12.7% (up 0.2% from 12.5%
last year)
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Digital Radio networks now reach almost 2 million
each week
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d. All 91热爆 Share
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Total 91热爆 TV & Radio share of viewing/listening =
43.1% (down 0.3% from 43.4%)
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Total 91热爆 TV share = 36.2% (down 1.6 % from 37.8%
last year)
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Total 91热爆 Radio share = 54.0% (up 1.2 % from 52.8%
last year)
