Parliament: Media: BBC digital news cost has doubled budget, says Birt

SIR JOHN Birt, the director general of the BBC, has admitted that the corporation's digital news channel, BBC News 24, has cost nearly twice as much as was expected when the channel was set up.

Sir John, during a tough questioning by the Commons Select Committee on Culture, Media and Sport, said the channel would cost the BBC pounds 53.9m in the current financial year.

Gerald Kaufman, chairman of the committee, claimed that figure was nearly twice as much as had been anticipated. "When BBC News 24 was set up, we expected a cost closer to pounds 30m. How can we justify the increased cost?" he said.

However, defending the need for the overall pounds 650m increase in corporation's funding, Sir John told MPs that six million people watched BBC News 24 on cable every week, more than watched Sky News.

Most of the 1.82 million viewers who receive digital television access the BBC's digital channels as part of pay-TV packages including cable, Sky Digital, and ONdigital, the terrestrial service. Both Sky Digital and ONdigital offer free set-top boxes to viewers subscribing to a package of channels. But 10,000 viewers have bought a pounds 100 set-top box to receive the limited number of free-to-air digital channels.

Greg Dyke, the incoming director general of the BBC, told the committe that the corporation would not be able to compete with Sky Digital over sports coverage.

He said Sky Sports was likely to pay pounds 5m to pounds 6m for each Premier League football match next season. "We cannot justify spending that sort of money. We could produce an eight to 10-part drama series for that," he said. "The rates for sport coverage are going up beyond the BBC's means so we will have be about picking and choosing."

The future funding of the BBC has been the subject of intense debate since a government advisory committee recommended in August that the BBC's expansion into digital services should be funded by a pounds 24-a-year levy on digital viewers. The committee, headed by the economist Gavyn Davies, said the levy would increase the BBC's income by between pounds 150m and pounds 200m a year.

The plans have been widely criticised by commercial broadcasters who fear the levy could discourage people from signing up to digital. Sky, which draws most of its revenue from subscriptions, would prefer to see some BBC digital services - most notably BBC News 24 - funded by advertising.

Chris Smith, the Secretary of State for Culture, Media and Sport, has already announced that private sector consultants will be brought in to conduct a wide-ranging study of the corporation's efficiency savings.

Mr Smith has said that an "objective, non-partisan analysis" was needed to decide an appropriate level of funding for the BBC in the period to 2006.

PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebooksAn evocation of the conflict through the eyes of those who lived through it
Life and Style
techCould new invention save millions in healthcare bills?
Sport
David Moyes gets soaked
sport Moyes becomes latest manager to take part in the ALS challenge
Voices
A meteor streaks across the sky during the Perseid Meteor Shower at a wind farm near Bogdanci, south of Skopje, Macedonia, in the early hours of 13 August
voicesHagel and Dempsey were pure Hollywood. They only needed Tom Cruise, says Robert Fisk
News
peopleEnglishman managed quintessential Hollywood restaurant Chasen's
Life and Style
food + drinkHarrods launches gourmet food qualification for staff
Arts and Entertainment
Michael Flatley prepares to bid farewell to the West End stage
danceMichael Flatley hits West End for last time alongside Team GB World champion Alice Upcott
Life and Style
Horst P Horst mid-fashion shoot in New York, 1949
fashionFar-reaching retrospective to celebrate Horst P Horst's six decades of creativity
News
Members and supporters of the lesbian, gay, bisexual, transgender (LGBT) community walk with a rainbow flag during a rally in July
i100
Life and Style
Black Ivory Coffee is made using beans plucked from elephants' waste after ingested by the animals
food + drinkFirm says it has created the "rarest" coffee in the world
Arts and Entertainment
Jamie T plays live in 2007 before going on hiatus from 2010
arts + entsSinger-songwriter will perform on the Festival Republic Stage
Life and Style
food + drinkThese simple recipes will have you refreshed within minutes
Independent
Travel Shop
the manor
Up to 70% off luxury travel
on city breaks Find out more
santorini
Up to 70% off luxury travel
on chic beach resorts Find out more
sardina foodie
Up to 70% off luxury travel
on country retreats Find out more
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

SQL Developer (TSQL, SSRS, SSAS) Fund Manager - London

£45000 - £50000 per annum + Benefits: Harrington Starr: SQL Developer (TSQL, S...

Software Developer (JavaScript, TDD, Jasmine, Angular.JS)

Negotiable: Harrington Starr: Software Developer (JavaScript, TDD, Jasmine, An...

Front-End UI/UX Developer (HTML5, CSS, JavaScript, jQuery, Ang

£45000 - £50000 per annum + Benefits + Bonus: Harrington Starr: Front-End UI/U...

C#.NET Server Side Developer (C#, XML, WCF, Unit Testing,SQL)

£30000 - £40000 per annum + benefits+bonus+package: Harrington Starr: C#.NET ...

Day In a Page

All this talk of an ‘apocalyptic’ threat is simply childish

Robert Fisk: All this talk of an ‘apocalyptic’ threat is simply childish

Chuck Hagel and Martin Dempsey were pure Hollywood. They only needed Tom Cruise
Mafia Dons: is the Camorra in control of the Granite City?

Mafia Dons: is the Camorra in control of the Granite City?

So claims an EU report which points to the Italian Mob’s alleged grip on everything from public works to property
Emmys look set to overhaul the Oscars as Hollywood’s prize draw

Emmys look set to overhaul the Oscars as Hollywood’s prize draw

Once the poor relation, the awards show now has the top stars and boasts the best drama
What happens to African migrants once they land in Italy during the summer?

What happens to migrants once they land in Italy?

Memphis Barker follows their trail through southern Europe
French connection: After 1,300 years, there’s a bridge to Mont Saint-Michel

French connection: After 1,300 years, there’s a bridge to Mont Saint-Michel

The ugly causeway is being dismantled, an elegant connection erected in its place. So everyone’s happy, right?
Frank Mugisha: Uganda's most outspoken gay rights activist on changing people's attitudes, coming out, and the threat of being attacked

Frank Mugisha: 'Coming out was a gradual process '

Uganda's most outspoken gay rights activist on changing people's attitudes, coming out, and the threat of being attacked
Radio 1 to hire 'YouTube-famous' vloggers to broadcast online

Radio 1’s new top ten

The ‘vloggers’ signed up to find twentysomething audience
David Abraham: Big ideas for the small screen

David Abraham: Big ideas for the small screen

A blistering attack on US influence on British television has lifted the savvy head of Channel 4 out of the shadows
Florence Knight's perfect picnic: Make the most of summer's last Bank Holiday weekend

Florence Knight's perfect picnic

Polpetto's head chef shares her favourite recipes from Iced Earl Grey tea to baked peaches, mascarpone & brown sugar meringues...
Horst P Horst: The fashion photography genius who inspired Madonna comes to the V&A

Horst P Horst comes to the V&A

The London's museum has delved into its archives to stage a far-reaching retrospective celebrating the photographer's six decades of creativity
Mark Hix recipes: Try our chef's summery soups for a real seasonal refresher

Mark Hix's summery soups

Soup isn’t just about comforting broths and steaming hot bowls...
Tim Sherwood column: 'It started as a three-horse race but turned into the Grand National'

Tim Sherwood column

I would have taken the Crystal Palace job if I’d been offered it soon after my interview... but the whole process dragged on so I had to pull out
Eden Hazard: Young, gifted... not yet perfect

Eden Hazard: Young, gifted... not yet perfect

Eden Hazard admits he is still below the level of Ronaldo and Messi but, after a breakthrough season, is ready to thrill Chelsea’s fans
Tim Howard: I’m an old dog. I don’t get too excited

Tim Howard: I’m an old dog. I don’t get too excited

The Everton and US goalkeeper was such a star at the World Cup that the President phoned to congratulate him... not that he knows what the fuss is all about
Match of the Day at 50: Show reminds us that even the most revered BBC institution may have a finite lifespan – thanks to the opposition

Tom Peck on Match of the Day at 50

The show reminds us that even the most revered BBC institution may have a finite lifespan – thanks to the opposition