UKHamlet's Blog

BBC Broadcasting House - turned into apartments for the wealthy?

There’s an idea being floated in the ranks of power that the BBC should be made to pay its own way. The concept is that through its own endeavours, the BBC should fund its activities and perform as a commercial organisation would have to. I disagree and I’ll tell you why.

If the BBC had its 40p a day public funding removed, it would have to fight for revenues in the shrinking market of advertising, it would have to ramp up its commercial output, it would have to cut costs and it would have to change its output to meet the demands of a commerce. Not such a bad thing you might think. You would be wrong.

According the BBC’s 2008-2009 annual report its income is derived from the following sources:

• £3493.8 million in licence fees
• £775.9 million from commercial business
• £294.6 million from government grants
• £41.1 million from other sources such as overseas sales

Recently, it was reported that Internet Advertising had overtaken television advertising, with a record of £1.75 billion spent in the first six months of 2009. So, we’re talking about a comparable period. Extrapolating from that, making the assumption that advertising spend remains constant at this record level, we can assume that the Internet will generate £3.5 billion in advertising revenues in year. This is roughly the same as the cost of the licence fee and more than the total spend on television advertising. So, for the BBC to replace its licence fee with advertising, it would have to take ALL the advertising revenue from the ITV companies and then find some more.

Continue reading

I’m not a drug user – I experimented in the seventies, but lost interest in the eighties and I have a certain amount of sympathy with those who believe cannabis use leads to lethargy and psychological problems. In my view, however, there is mounting and undeniable evidence that continued prohibition of narcotics is causing society more problems than it is solving.

The cost of drug prohibition to society is enormous – from policing the supply and use to the cost of property crime associated with drug use, through the cost of NHS treatment for overdoses, AIDS, hepatitis and so on. If you remove prohibition, regulate the supply and quality, allow prices to fall to a market level low enough to remove the need for additional funding from crime, and offer support from the NHS, you will at a stroke remove:

• The cost of policing drug use and supply
• The cost of crime against the person and their property
• The cost to the NHS
• The criminalisation of people that need help not condemnation
• The opportunity for criminals to control addicts, forcing them into prostitution and other crime

You will also create jobs in a new narcotic supply industry – not just at home, but abroad too – where farmers in poor countries can grow cash crops without fear. We will generate income for the Exchequer through taxation, save lives through quality control, allow the police to focus on “real” crime and disassociate drug use from criminality.

Continue reading