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- guardian.co.uk, Monday November 20 2000 07.41 GMT
Ministers have watered down sensitive plans to curb the powers of the BBC's governors to avoid a damaging row with the corporation in the run-up to the election.
Proposals to weaken the board of governors were to be included in a white paper on the communications industry, to be published next month. But, as the election draws near, ministers have stepped back from their instincts to act tough and will simply outline a range of options instead.
Chris Smith, the culture secretary, has long harboured ambitions to abolish the board. His frustration with the corporation's regulators was renewed this year when they approved the decision of Greg Dyke, the director general, to move the Nine O'Clock News to 10pm at short notice.
But it is understood that Number 10 and the Department of Trade and Industry - which is producing the white paper with Mr Smith's Department for Culture, Media and Sport - feel that a "gung-ho" attitude against the BBC would be unwise just before the election.
The white paper - the basis for a later communications bill should Labour be re-elected - will underscore the need for reform but will not give a definite blueprint. This means that ministers do not have to set out their views now: further consultation will take place before legislation in the next parliament.
In drafting the white paper, there have been tensions between the DTI, the DCMS and Downing Street policy advisers. Mr Smith was furious at the BBC's decision to move its nightly news, and the apparent complicity of the BBC governors' chairman, Sir Christopher Bland. The culture secretary was particularly irritated by Sir Christopher's response that Mr Smith was simply "a licence fee payer and therefore entitled to his view".
Mr Smith said yesterday that he would be watching "very carefully" viewing figures and programme quality after the move from the 9pm slot.
"If we are seeing a diminution of news, in quality and audience of news, then I think the governors of the BBC have to think very seriously about what they are going to do," Mr Smith told BBC 1's Breakfast with Frost.
Downing Street has significant doubts about taking on the BBC when the fight could be postponed until after the election, a view shared by the DTI. "There's a huge battle going on between the DTI and the DCMS over the BBC particularly," said a policy-maker at a national broadcaster.
Publicly, the BBC opposes the idea of placing the board of governors under the auspices of an independent regulator. Privately, senior policy-makers at the organisation concede that change is inevitable. "The devil will be in the detail," one said - the corporation will accept independent monitoring of programme standards and public complaints, but will fight to retain its influence over the BBC's remit and editorial independence.
The white paper will also map the way towards a single ITV company. At the moment, the network has two major broadcasters, Carlton and Granada, with several lesser players. Strict rules prevent any further consolidation. Recent reports that the way towards one network would be barred are understood to have been wide of the mark.
The white paper will signal a big upheaval in the way television, broadcasting and newspapers are regulated.
For the first time, the different media will be treated globally, rather than separately. Rules on cross-media ownership will be more flexible, and one regulator will oversee the whole industry.
Arguments over the detail have delayed publication of the white paper several times, and it is now due to be released on December 12.
Baroness Jay, Labour's leader in the Lords, yesterday angrily rejected suggestions that she was seeking to succeed Sir Christopher as "complete fiction".
Her spokeswoman said that Lady Jay was "bemused" by a report in yesterday's Sunday Times linking her to the chairmanship of the governors because she told the newspaper on Saturday night that its information was wholly inaccurate. "This is complete and utter rubbish," the spokeswoman said. "Margaret has no plans to become the chair of the BBC."
