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THE BBC has been urged by ministers to end the culture of “fat cat” pay for top presenters or risk cuts to its £3.4 billion a year of public funding.
Andy Burnham, the culture secretary, has issued a warning that the seven-figure contracts given to stars such as Jonathan Ross are undermining licence fee payers’ confidence in the broadcaster.
Burnham is understood to have told Sir Michael Lyons, chairman of the BBC Trust, that the corporation needed to show “sensitivity and an awareness of where the public are”. Ministers believe the recession has fuelled hostility to the elite presenters who are insulated from the economic downturn.
Ross, who is on an £18m three-year contract, was last week suspended without pay for three months over obscene telephone calls made to Andrew Sachs, the Fawlty Towers actor, during a Radio 2 show. The row puts BBC chiefs in an awkward position. They are keen to hang on to Ross, but they cannot renegotiate his salary until his contract comes up for renewal next year.
Ross, 47, is planning to “reinvent” himself during his enforced absence and will have to curb the lewd behaviour that has made him such a controversial figure. “He’ll come back as a different act,” said a source.
Sir Michael Parkinson, the veteran chat show host, attributed Ross’s behaviour to a “fit of madness”. He said: “Jonathan should have more oil in his lamp, frankly - more sense. He’s very good at his job but he’s given to fits of madness now and again and I think he had one on this occasion.”
A source close to Burnham said: “Andy is by instinct a friend of the BBC and would not dream of undermining its oper-ational independence. But if it is going to make a case for the licence fee, the BBC needs to show a certain sensitivity and an awareness of where the public are. He believes it will be harder to argue the BBC’s corner unless it is seen to be tackling the salary culture.”
Burnham spoke to Lyons about the problem of star salaries before the scandal broke and remains concerned.
Figures obtained by the News of the World under the Freedom of Information Act reveal that the BBC's top 50 highest paid executives earn up to £14.3m a year between them; 50 managers earned more than £190,000 last year, with Mark Thompson, the director-gener-al, on a package of £816,000.
The corporation faces a political backlash after the lewd phone call scandal involving Ross and Russell Brand. The row led to Brand quitting the BBC and also claimed the scalp of Lesley Douglas, controller of Radio 2.
Thompson said that Douglas had been made aware of “key parts” of the offensive messages left on Sachs’s answerphone, but had failed to prevent the prerecorded show being broadcast.
Ross is the highest paid BBC presenter but Graham Norton has reportedly signed a £5m deal over two years A BBC spokesman said last night: We fully appreciate that to the general public these are very large salaries but we can't just go and cut these people’s salaries because we are in a recession; they have contracts." The Tories may chop the licence fee by about £6 a year if they win the next election. Some would like to see deeper cuts to the BBC’s budget.
Lord Carter, the communications minister, is reviewing the future of broadcasting. His report could recommend “top-slicing” the licence fee of £139.50 a year to subsidise other broadcasters such as Channel 4 after 2012.
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If the BBC wants to keep its credibility, now that its been brought to the public attention, what these so called comedians earn, lets hope they will see the error of their ways, and clean up these shows. 'Little Britain' is a disgrace,
Mrs M. Elward, Bridgend, Glam
Oh my god I simply cannot believe Ross is being paid this much money. His shows are dire, his so called sense of humour non existent and he is on so late his audiences are miniscule. He is certainly not value for money. Someone needs sacking for this.
Tony Stewart, Chicago, USA
I found I hardly watched TV, preferring DVD's and the internet, so I junked my TV. I don't miss it at all. The only downside being the harassment from TV Licensing thugs Capita who will never accept that you don't have a TV.
sedgwick, London, UK
Go on then, commercialise the BBC.
All that will achieve is putting every commercial radio and TV channel out of business.. Think about it, where would you rather advertise your business, on tens of local radio stations or on the most listened to radio station in the country Radio 2 or 4....
John, Reading,
'.........all of the top talent will be poached! '
erm - so we'd get to watch them on another channel without having to pay for it?
Where would we be without the BBC!?
Jeff, Coventry, England
I think certain people within the BBC want the BBC commercialised. It would be in their financial interest. Think about it, when I accidently tune into Radio 1 I often hear product placement (advertising) from "edgy" presenters who, I am now learning have their own independant producers.
Paul, Gourock, UK
Cut the "Licence Fee" to £50 and just call it a Tax.
Let the BBC find its own funding and they can sink or swim.
My guess is that swimming will not be the outcome.
Alan Hargreaves, Holywell, UK
The unique way the BBC is funded... They demand money with menaces from people who don't watch their programmes, you can't drop out without vowing never to watch TV and they don't listen to the public. Just turn off the switch. ITV, channel 4, 5 etc etc do a pretty good job. we don't need BBC
Clifford, reading ,
Most people would love to see actoin that works - but the BBC can do anything with No eventual outcome at all
i'd switch off the BBC - but i'll still have to pay my licence fee- some justice !!
remove the fee - then do what you like-then if i switch off i know i'm not paying for YOUR choices.
Jay , NOTTINGHAM, UK
Ah now you see, it doesn't take a recession to expose Britain's socialist undercurrents. If BBC pay is curbed, then guess what'll happen................all of the top talent will be poached! Yet another bandwagon for the bitter "Why Should He Earn More Than Me?" brigade. Any excuse.
Steven Griffin, Dublin, Ireland
What does the BBC say when asked about it's high license fee? For that matter why does the Govt insist that one has to PAY a fee for Tv. It's a disgraceful cost that old penioners and shut-ins cannot afford but need so they know what is happening in the outside world.
Beaumont, North Fort Myers, Fla, USA
By all means scrap the licence fee. But why wont the government do this? Do the BBC get ALL the licence fee? Thimk about it, its just another tax except the BBC get a cut. It has been this way since 1949. But every year since the war, Wasteminster have wanted more.
Abolish TV licence, WE WISH !
eeuun, overton, UK
I voted against the licence fee by simply not having a television years ago.
Keith, WELSHPOOL, UK
If the BBC wants to be independent and impartial, it should forgo government funding.
These contracts are ridiculous.
In the private sector, incomes are high because risks are high. You can be here today, gone tomorrow.
Keith S, Winnipeg, Canada
I live in the U.S. and sometimes watch BBC America. The shows often seem trashy and puerile. You wonder what sort of society will emerge from watching this junk year after year. Reith used to seem out-of touch, but compared to the current philosophy of the network he seems like a wise visionary.
mike smith, NY, USA
Sorry, but the BBC is supposed to be independent and impartial. Who are the government to start dictating to the BBC!? What's next precisely? Govt urging the BBC to start being more pro-Labour?
James Cullup, Oxford,
The BBC has for many years been too left-leaning, too London-centric and too youth-obsessed. It's paid a price this week, but if someone doesn't wise up and put in place a management structure that is at least partly representative of the licence fee payers, the payers will vote for its abolition.
C. Warren, Wantage, England
Just to put this into perspective there are 50 BBC executives that get £14.3 million between them, for this you could employ an extra 600 policemen, which would make more sense.
I think the government should scrap the TV licence of £139.50, give it back to the people and let the BBC sink or swim
william thomson, lincoln, uk
It's always the same people moaning about salries, wheather, it's presenters, footballers or bankers, it's envy pure and simple, if you want to earn a lot of money, get off your butt and do something with your life.
Uche George, London, england
The BBC claims high salaries are needed to attract and retain high-calibre managers. Well, it ain't working: these overpaid executives lack basic common sense and leadership skills and are ruining the BBC's reputation for quality and integrity. You've got monkeys: you might as well pay them peanuts.
Chris K, Cheltenham, UK
The BBC exhibits all the aspects of families that live off inherited wealth rather than having to work for a living.
The culture of excessive expenditure seen in other areas of Government since 1997. If all TV channels were commercial revenues per capita in TV might be halved, along with earnings
Damian, Brighton, UK
The BBC broadcasts tens of thousands of hours of programming a year, most of it very good, some of it brilliant. This was a mistake but don't throw out the baby with the bath water.
Jimbo, Chipping Norton,
50 civil servants with an average salary of just under £300,000 and another lesser 50 earning just under £200,000 per year per year and they all get final salary pensions to whuich they have not fully contributed so we have to subsidise those too. The BBC is even more profligate than Wasteminster.
ian, derby,
There is one problem with cutting the budget, as a former producer at the BBC I know only too well that it will not be top management salaries or "talent" that bare the brunt of cuts but front line programme makers and staff. The irony is if you cut their money they will cancel things like Coast etc
Jason, London, UK
Not only is the licence fee on a par with the poll tax - unfair and unjust, but the adverts from TV Licensing that treat us practically like terrorist sympathisers and guilty until proven innocent, need to be removed permanently. Worth remembering that you can watch iPlayer without a licence too.
Alex Kerr, London, UK
Public should stop funding BBC. Government should abolish license fee. It is unfair to pay so much public money to likes of Jonathan Ross & others to humiliate the same people paying them?
Munna , London, UK
There is huge difference between creative comedy,and filth,I have viewed hard core films with comedy contentso why doesnt the BBC screen these,there is a bid demand from groups of viewers,and their ratings would soar
Albert Cooper, Norwich, England
Squirming with disgust, watching Ross stare at - and talk to - his female guest's breasts, asking about their mother's sexual preferences, and droning on and on about the utterly uninteresting lives of his boring family, isn't worth £18m.
Laura Roberts, London, UK
What about the BBC army that has invaded the US for the presidential election? Is so much duplication necessary? Bet they don't fly economy and stay in 3 star motels. Just how much is this jaunt costing us?
Stepan, Glasgow, Scotland
Do not believe for a minute that the BBC does not receive funds from advertising. Their World News service is broadcast from the BBC 24 hours news studio and is riddled with all kinds of advertising. Just ask anyone abroad that receives the service paid for by our subscription money.
G. Penny, London, UK
I actually think the BBC is great value for money considering all the great shows about Britain-Coast,Restoration,Country Walks,history and exploring London etc-which do not get made by any of the commercial stations.However,I do agree the mega salaries for Ross etc are a joke.
Rob, Hitchin,
If the licence fee is to continue, then the BBC should go back to its' roots of good quality general interest programmes aimed at the majority of licence payers. It should also be impartial in the delivery of news, over the past few years the news has become increasingly " dumbed down" and left wing
Sue, Cleckheaton, England
The BBC should be privatized so all the fat cats could get the boot and talented artists could be payed by advertizers and not with tax payers money. No more tv licence!!!
Fabio C, London, UK
Of course BBC fat cat celebs' pay should be squeezed. It's not as if they're going to jump ship to ITV or Sky.
Commercial television delivers consumers to advertisers.
The BBC delivers programmes to the public.
The difference is reflected in the quality of the product.
Pete, Yarmouth,
The licence fee should be cut by 50% stop paying for overpriced so called stars and management, with their perks, and expenses. If they do not like it they can always go to the private companies.
Maggie, London, England
The license is a disgrace..
Tantamount to blackmail..
Buy a tv support the bbc.
We should have the choice...
Pay for the bbc or not pay and not have the bbc.
Nu labour.
Hands in the till.
Sound Familiar???
rick, newcastle, uK
The BBC needs to remain independent.But the huge and ridiculous payments to a few presenters is daft. Their competitors can no longer afford those sums. The yearly payment to Ross is more than the total budget for BBC Radio Drama. Case made so redirect money to other worthwhile areas of the BBC.
GLEN, London,
The BBC should stop competing with other broadcasters. Cut the fees paid to footballers, & other overpaid stars. BBC should be high quality. Cut the rubbish Reduce costs. Cut down broadcasting time. There is no need for 24 hour TV, everyone has a video recorder.
Get the TV licence down to £50
R Lecomber, Huddersfield, England
The BBC is being offered by the government as a sacrificial lamb to divert attention from the banks still rewarding themselves huge bonuses. That the government offers up a soft target instead of dealing with real issue is far more offensive than any wayward presenters comments.
Matt, Bournemouth, UK
The BBC would never sit comfortably with adverising.
How much have they paid for Grand Prix racing to the exclusion of other areas of investment in the beeb.
Tom, Ilford, UK
Alot of folks are struggling to feed themselves ,time to ditch the licence.
Eric Reynolds, blackpool, uk
I was shocked at the salary being paid to Jonathan Ross, and probably a lot of his cronies too.! How ridiculous paying someone millions of pounds just to be insulting! What is the world coming to? I'm sure many younger talented people would do a better job for a tenth of the pay or less? Get rid.
Rita, Mulhouse, France
Absurd. So now the talent will flow to other channels instead. Just what I want, to pay a license fee for even worse quality.
Farrukh, Woking,
The BBC is no longer needed or relevant in the world of today. The licence fee needs to be scrapped. Where we go after that (perhaps a system of voluntary donations with tax rebates added to match co0ntributions) is a matter for public debate. It cannot be business as usual.
Adrian Gilbert, Tonbridge, Kent,
The licence tax should be scrapped: it is a stealth tax on the poor. Make the BBC compete with other media & obtain funding through alternative means. The cost of Govt shd also be reduced. We don't need 650 MPs(300 wld be plenty) as well as all the hangers-on & Quangos. Cut them back & cut the cost.
Donna Walker, Effingham, England
All that remains is for the Government to apply the same principles to itself. Brown is seeking to be rewarded for his failure to be prudent and now takes every opportunity to fire from the hip to divert attention from what really troubles the nation.
James`, London,
The green bug eyed monster of jealously is running amok.
Andy Hill, Teesside, UK
Thats good news. Will this overtly competent government now apply the same principle to banks?
Sean McGlinchey, London, UK
Why the hell has it taken them so long?
Noci, Sleaford,
Why not split the Beeb into channels and let us pay for what we want - like Sky. The problem for politicians is that the market would control the output and politicians would not appoint the executives.
If Ross does not get fired the BBC will have a licence revolt and the DG will be in danger.
N Reed, London, UK
William of Northampton - I enjoyed the word "adnorsium".
Was this spelling a joke? It did make me smile.
Then I wondered if you know what the word meant.
dee , london, england
Since when did government ministers tell the BBC how to manage its day to day affairs? Oh - don't tell me - the BBC is not as independent of government as we thought?
J Jenkins, York,
£18m for three years.
How can we all not get jobs like this with the jolly old Beeb.
Is this what gordon brown meant we he said he wanted to spend his way out of recession?
willie mac, Arden, Scotland
The idea of a state owned broadcaster paying these kinds of salaries is ludicrous. The BBC claims that they need to pay these salaries to attract top talent. Does that mean if they didnt Ross would immediately be hired by ITV or who, someone in the US or Europe ? doubt it and who cares if so.
Mike S, Edinburgh,
meek taxpayers are aplenty- let the gravy train roll on for brass-necked ministers and entertainers alike!
stevie, london, england
I think the BBC is good value. I listen to a min. of 6hrs of radio a day, 5 days a week. I watch approx 2hrs of BBC tv 7 days a week. Thats 44hrs, x52 weeks =2288hrs a year. Thats 6p/min! I get Chris Moyles, Simon Mayo, Spooks, MoTD, Planet Earth, Top Gear, Mock the Week, Panorama, Autumnwatch etc
D Hughes, Rhyl,
Yes stop all the presenter's FAT CAT salaries and give them GOLD PLATED PENSIONS and and a copy of the JOHN LEWIS LIST.
Not forgetting OFFICIAL CARS & GRACE & FAVOUR housing.
Tom Wright, Reigate,
There is only one answer to this, the government knows it, but is too afraid to implement it: scrap the licence fee and fund the BBC by advertising and subscription. Then the presenters will be paid according to their worth, not from an antiquated tax.
Paul, Coventry,
It's very simple. If someone is on that kind of money, there should always be a clause in the contract covering 'bringing the organisation into disrepute', presumably with a list of behaviours likely to cause that.
I don't have a problem with high salaries. I have a problem with rudeness.
Rhys Jaggar, Leeds, UK
why not retire Terry wogan and bruce forsythe and let some younger talent through? Patrick Kielty will no doubt benefit from all this. The BBC is going to become creatively starved of talent thanks to the Government's suggestions. The public will then complain that the BBC is showing rubbish!
jeff, reading,
Pot and kettle hey....
What about Sir John Bournes excesses as Comptroller General of the NAO.
Mandy Mandelsons handsome payout from Brussels, the UK taxpayer etc and a seat in the Lords.
Lord Whatshisfaces £2k a roll wallpaper.....
Let he who is without sin.....
Richard Garland, Greater Manchester,
What nonsensz "commercial confidentiallity"!!!These contracts are awarded to public servants if they "work"for the BBC and should be public knowledge.Who plucks these ludicrous figures out of the air for both "managers" and "stars"?
peter robins, mensignac, france
UK residents are being shafted with the £139 fee to watch TV. Firstly, this is a tax on acquiring knowledge - great for keeping the lower classes down! Secondly, we're getting pathetic value eg. the Australian national broadcaster gets funding of £40 per family pa. Does anyone watch BBC anyway?
Mike, London, UK
Do they like being free and easy with our money...Its like a private club where members just stuff themselves with TV Tax payers money...for utter garbage The less talent you have the bigger the bonus......Little Britain same old rubbish repeated to adnorsium
WILLIAM, NORTHAMPTON, ENGLAND