BBC chief threatens shake-up

A top BBC executive has raised questions over the effectiveness of the corporation's system of governors and said "all options should be on the table" for change.

The BBC's self-regulating system, overseen by 12 governors, has come under scrutiny following criticisms by Lord Hutton.

Chairman Gavyn Davies resigned within hours of the Hutton Report, which found the governors should have investigated government complaints about Andrew Gilligan's Today story on Iraq weapons intelligence.

Now Caroline Thomson, the BBC's director of policy and legal affairs, has encouraged a debate on how the corporation is regulated. She questioned whether the governors can effectively supervise the BBC and protect its independence.

When Ms Thomson spoke with Peter Mandelson in July, it was reported this week, the former cabinet minister warned her that the whole apparatus of government would be thrown at the BBC if the corporation refused to back down over Gilligan's allegations.

Ms Thomson's husband Roger Liddle works in Downing Street's policy unit. And she will be in charge of the review process for the BBC charter, due for renewal in 2006.

Ms Thomson said: "We will have to take a long, hard look at the governance structure. We are in the process of having a real debate.

"There has to be public trust. All options should be on the table."

Critics have called for the BBC to come under outside control - perhaps from Ofcom, which regulates commercial television.

Ms Thomson said of the BBC's regulatory system: "It has to operate in the public interest, must safeguard independence and hold the BBC properly accountable to the public." She added: "It is not to say the system is perfect and could not be improved. The governance system is very centralistic.

"Over the next 12 months there is a really good debate to be had about what sort of system will work best."

Lord Hutton's criticism of the governors followed their decision in July not to launch an investigation into the Government's complaints.

Lord Hutton concluded: "Rather than relying on the assurances of BBC management, I consider that the governors themselves should have made more detailed investigations into the extent to which Mr Gilligan's notes supported his report."