Thompson pulls plug on BBC 'jacuzzi culture'

• 10 per cent of BBC staff to be shed in drastic cost-cutting move

• Aim is to 'cut costs, improve programmes and secure the government’s renewal of the licence fee'

• Total job losses may amount to 6,000

Key quote

"Although it is unquestionably true that it is going to be a difficult period for many members of staff, and clearly I’m sorry for the sense of pain and uncertainty, in the end I believe this process of very considerable change is the right price to pay to achieve the prize of a strong, independent and creative BBC in the future." - BBC Director General Mark Thompson

Story in full MARK Thompson, the director general of the BBC, announced yesterday that 2,900 jobs, 10 per cent of the corporation’s workforce, were to go in order to cut costs, improve programmes and secure the government’s renewal of the licence fee.

At a meeting relayed by internet to the BBC’s 27,000 staff across Britain, Mr Thompson explained that the cuts would contribute towards savings of 320 million each year, but insisted further budget cuts of 15 per cent across the corporation’s broadcast, new media and news divisions, would follow in the New Year. Unions suggested that the final total of job losses could be about 6,000.

The consequence for BBC Scotland will be a cut of 24 million - 15 per cent - from its annual budget of 160 million, to be phased in over three years, and the loss of about 90 backroom jobs. However, BBC Scotland’s award-winning children’s TV department will not, as feared, be relocated to Manchester, while Scotland can also expect the lion’s share of a 50 million budget to increase the amount of network programmes made by the regions.

When Mr Thompson was, briefly, chief executive of Channel 4, he accused the BBC of "basking in a Jacuzzi of spare public cash". Yesterday, he took on the onerous task of pulling out the Jacuzzi's plug, while insisting the end result would be a stronger BBC which "spent less on process and more on content".

The vast majority of jobs - a total of 2,500 - will be cut in non-programme-making departments: human resources, finance, marketing, training and legal services. However, 400 posts will go in the corporation’s factual and learning departments, which make programmes such as the highly-acclaimed Walking with Dinosaurs.

BBC staff were also told that 1,800 employees would be transferred to Manchester, over the next five years, in order to build up a new regional centre. This is designed to counter the image of the BBC as London-centric and will mean the transfer of BBC Sport, Radio 5 Live and children’s TV and radio.

Mr Thompson said the new BBC media centre in Manchester would help the corporation reconnect with communities across the UK: "It will change our tone of voice and open our doors to new talent and perspectives."

The announcement, at BBC Television Centre, was greeted in grim silence by staff. They listened as Mr Thompson insisted the money saved would be ploughed into programme areas with "commanding reputations" such as comedy, news and drama, with the result that there would be fewer repeats on BBC1 and "fewer derivative or formulaic programmes".

BBC Scotland believes that it will benefit substantially from the changes, as network commissions from the regions (Scotland, Wales, Northern Ireland) will increase from 11 per cent to 15 per cent and the ratio of network drama made outside London will increase from 30 per cent to 50 per cent.

Yesterday’s announcement was the result of four major reviews ordered by Mr Thompson after he took over in June as director general.

Cost-cutting is deemed to be crucial in order to reduce excess spending before the BBC goes cap-in-hand to the government to have its licence renewed in 2007. The BBC is funded by a unique formula - the licence fee, which in April will climb to 126.50 for a colour TV licence.

As Mr Thompson said: "Any discussion about the future level of the licence fee is bound to begin by asking how much of the future we can afford to pay for ourselves by becoming more efficient."

At a later press conference he said: "Although it is unquestionably true that it is going to be a difficult period for many members of staff, and clearly I’m sorry for the sense of pain and uncertainty, in the end I believe this process of very considerable change is the right price to pay to achieve the prize of a strong, independent and creative BBC in the future."

The news was greeted with concern by broadcasting unions such as BECTU and the National Union of Journalists, which both threatened to ballot for strike action if the redundancies were to be compulsory.

"You cannot save 15 per cent of the cost of any department without sacking people, and we are especially worried that he has not said there will be no compulsory redundancies," said Jeremy Dear, the NUJ general secretary. "It’s clear that there are going to be massive savings and as far as news and current affairs are concerned, there is no more fat to trim."

Gerry Morrissey, the assistant general secretary of BECTU, said it would also call a strike vote if there were any compulsory layoffs: "We’re especially worried that as many as half the staff in key sections like health and safety and training may face the axe."

In Scotland Jack McConnell, the First Minister, argued the shake-up would mean more programmes being made north of the Border. "I am delighted that the lobbying from Scotland has achieved such a significant result," he said.

Among staff at Queen Margaret Drive, BBC Scotland’s headquarters, there was relief that the children’s department that has produced hits such as Balamory and Shoebox Zoo would not be relocated to Manchester as well as pleasure that a new comedy and entertainment commissioner would be based in Glasgow to build on the success of Chewin’ The Fat and Still Game. However there was still deep concern at the prospect of further job losses as the management begin to size up areas in which to cut costs.

Ken MacQuarrie, the controller of BBC Scotland, said: "We have been asked to stretch those savings targets to 15 per cent over three years. That said, the money we accrue through efficiencies will be re-invested in Scotland in content and new services. It will be tough, but the end result should be a BBC Scotland that is better able to offer value through our programmes and services."