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A £250 million raid on the licence fee to pay for the costs of digital switchover, forcing the BBC into programme cutbacks, may be a waste of money, the National Audit Office has warned.
The body called on the Government to re-examine its figures for the plan which will see the analogue signal television switched off by 2012.
Households still need to convert or replace up to 26 million analogue televisions, including secondary sets, if they are to receive signals after switchover, the NAO report found.
With the rise of Freeview, 85 per cent of households now have at least one digitally-enabled set. The Government estimates that the total conversion costs for consumers will be £3.8 billion.
The BBC has set aside £800 million to pay the costs of switchover, money removed from programming, which has prompted thousands of job cuts under a reduced licence fee.
The BBC agreed to fund a Government scheme to help the disabled and elderly convert to digital. But take-up from the first region to convert, in Cumbria, suggests the demand has been massively over-stated.
The NAO said: “Our re-run of the cost model for the help scheme suggests that the funding requirement in the licence fee settlement to 2012-13 would reduce by some £250 million.”
Ministers should re-assess whether “all the sums due to be raised though the licence fee for the help scheme are still required.”
Edward Leigh MP, Chairman of the Committee of Public Accounts, said: “Nearly a third of the population has no idea what to do to continue watching television after the analogue switch off.
“At the same time, in the first seven months of 2007, 45 per cent of all televisions sold were still analogue. This is a recipe for confusion. It certainly suggests that a lot of screens will go blank after switchover.”
He added: “The Government needs to improve its estimate of just how much the help scheme is going to cost. It should collect from licence-fee payers only what it needs.”
Don Foster, Liberal Democrat Media spokesman, said: “This report adds weight to the view that the Government massively overestimated the number of people who need help making the transition to digital.
“Progress has been made, but it will come as little comfort to the hundreds of BBC employees who lost their jobs following the Government’s tight licence fee settlement.” He called on the Government to return unspent cash to the licence-fee payer.
A spokesman for the BBC Trust said: “We will continue to monitor the help scheme to ensure the money is spent efficiently. It could be too early to assess the take-up for the scheme.”
Jeremy Hunt, Shadow Culture Secretary, said: “Its time the Government got to the bottom of why they have failed to get the message out there both on switchover in general and the assistance scheme in particular.
“We need know what they will do if there is a significant under-spend on the assistance scheme – this is public money and they need to say where it will be spend if it’s not needed for its original purpose.”
The Department for Culture, Media and Sport must decide whether unspent money ring-fenced for switchover, could be returned to the BBC after 2012.
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By the comments on here alot of people obviously don't know anything about the bandwidth used by analogue and digital TV. The reason so many areas have little or no freeview reception is because the required power of the analogue transmissions swamps the airwaves leaving little room for digital. The idea is when the turn-off happens digital signal will be free to boost the bandwidth up to cover these areas.
Which is why some areas won't receive it til 2012, the estimated turn-off period.
Although to be honest I think rural areas with poor analogue reception will still suffer. With the way digital tv works these people may go from having a bad analogue signal to a pixelated/corrupted digital signal :-(
Also why is the article saying 'analogue tv' and suggesting these will be useless? A freeview box costs as little as £9 these days, so the tvs are hardly 'useless' they just require a freeview box as the analogue tuner won't be of any use.
Tim Kermode, Salisbury,
The reception in my area is so bad I can't even get channel 5 yet let alone freeview. Before they make another change why can't they finish the old changes in all areas completely.
I can see me having all the right equipmentment and still not having any picture at all when we change to digital which should be interesting when I sue the BBC for fraud ie. offering services that don't exist for money.
K. Wilkes
K. Wilkes, Belper, Derbys
It's typical government knowing best. Fine, it free's up the bandwidth so the government can sell it off (no profiteering here is there?). Around here we're being switched off at the start of 2009, but we don't have access to Freeview, and it's doubtful it's going to be available on time as we have these problematic things the government seem's to of forgotten called mountains!
Area's like here are stuck with a choice of using BT's TV down the phone line, or using Sky (again some places can't even get Sky due to the mountains), cable doesn't exist up here. If you can get either, it's a subscription service. So we have to subscibe and pay a TV license? Stupid. FreeSat has the problem of mountains again.
As for the TV license. It's like some plastic flip-flop shoe company taxing everyone who wears shoes as theirs are free. Frankly the BBC can go fund itself on adverts, it shows enough of it's own adverts so it would feel no different.
Allan, Cumbria, UK
Digital switchover sounds great in principle. What do people like myself do, who cannot receive terrestial digital signals? Will I get a reduced licence fee? I don't think so!! So I have no option but to pay additional costs for satellite as well as an exhorbitant licence fee.
keith knutton, holmfirth, yorkshire
It seems Edward Leigh doesn't understand what is happening.
Quote from article above:
"...It certainly suggests that a lot of screens will go blank after switchover.â
As long as people have a separate Sky or a Freeview box, a digital TV is not required.
Conversely my area of East Sussex cannot get Freeview and are not scheduled to get it until 2012. So why would we want to buy digital TVs?
Bob, Eastbourne, East Sussex
I can't wait for the first storm after the switchover. No-one will be able to watch anything!
Hugh, High Wycombe,
Ummm. shouldn't that headline be GOVERNMENT overbudgets by £250m...
D Williams, Paris,
To Paul, in Poole: There is nothing quite like 'plucking programmes out of thin air'. Broadcast TV might have the disadvantage of interference (in either analogue or digital form) but does not take any more infrastructure or resources (establishing the area coverage aside) to have one person or a million watching a programme.
Internet-delivered content can be guaranteed of identical quality for all viewers, if downloaded and watched asynchonously, but suffers from its own delays (and/or at lower quality) when attempting to watch 'live' across clogged links. Modern network broadcast protocols make it quite lot less significant than a milion indiviual seperate downloads might, but transfering everything from radio waves to cabled internet would still swamp the capacity of even the next few generations of network pipes without some advanced trickery.
The argument between Analogue and Digital is another one. Digital: Either 'perfect' or faulty; Analogue: Degrades gradually to snow.
Phil, Sheffield,
I've got digital tv. It's pretty much a waste of money. I mainly watch the terrestrial channels, apart from 'Lost', which I could easily watch online if I wanted. Free broadband isn't bad, though!
Babs, London,
I totally agree with the person from Oxford. Why do we have to change can't we have a choice?
Vicki, Tewkesbury, G.Britain
Of course the "help" scheme is underspending. It is badly targeted, badly publicised and expensive for those not on benefits. It also only addresses one element of a multi-faceted problem. Typical Government "help" scheme, really.
Gerry, Coventry,
Has anyone actually done the sums? OK me either but certainly where DAB radio is concerned anecdotal evidence suggests that the new transmitters are significantly less efficient than analogue. High manufacture and running costs can only contribute to global warming, the government's new sworn enemy.... The roll out of digital radio is suffering faltering support, witness GCap media's recent pull out of DAB radio citing poor economic viability. I don't quite see TV suffering the same way but the question stands. While most of todays society seems ot plump for quantity over quality there are still those who prefer analogue vision and sound where 'they' can't turn down the bit rate to cram more channels in. While all it takes is £30 and 5 minutes plumbing in a freeview receiver to sort out one half of the problem the irritation kicks in when you have to pay to get your aerial pointed in the right direction to stop the stuttering pixelated images that arethe bain of digital TV viewers.
Roly, Ditton, Kent
Complete waste of time and money.The analogue tv signal is much more solid,clearer,doesn't pixilate,doesn't say...."please wait checking signal" etc.etc.....Who on earth wants 50+ programmes of junk tv, junk adverts, a surfeit of trashy american programmes and endless repeats often on different channels at the same time. Digital Junk TV...No thank you. Why are we being forced into this road that very few wish to go down ?
Josh Martin, Oxford, Gt.Britain
Whilst some would welcome the 'Digital age a large majority of viewers would not. You can watch millions of TV Programs, Films, and Documentries on the Internet for alot less than the current TV licence. You can watch as much as YOU like, when YOU like. Programs don't 'stutter' like the digital ones do and i'd rather not look into the possibility of having another Box of tricks sat with the DVD player and Video Recorder.....Digital TV? No thanks!
paul, poole, GB