Appendix II.

B.B.C. Wartime Finance.

1. The principles of B.B.C. wartime finance are laid down in an Agreement, dated 14th February, 1940, between the Minister of Information and the Corporation, which supplements the main License and Agreement between the P.M.G. and the Corporation.

Under its terms the Minister is to pay to the Corporation “such annual sum as from year to year the Treasury on representations made by the Corporation to the Minister shall approve as sufficient for the adequate conduct of the services provided by the Corporation”.

2. These “representations” are made by the presentation by the B.B.C. of quarterly and annual estimates, which are discussed here by the Divisions concerned with the Chief Accountant of the B.B.C.

As regards the financial year 1940, the Corporation's estimates amounted to £4,581,000. The Treasury decided to put forward in the Parliamentary Estimate of the Vote for Broadcasting the sum of four and a half millions.

3. The Vote for Broadcasting takes the form of a Grant-in-Aid of the Corporation, from which instalments are paid by the Ministry from time to time during the year. The amounts so paid will finally be adjusted to the B.B.C's actual expenditure.

4. The proposals for an Overseas Service now under discussion would result in the administration of all external broadcasting services as a unit. At present Home and Empire services (both in English) are grouped together, and the Foreign Service is treated as a separate unit.

As regards the Home and Empire services, the B.B.C. work within the provision made in the estimates: the costs of these services can be more or less foreseen as they have not experienced any great expansion. As regards the Foreign Service and Monitoring service, services which can be considered the special responsibility of this Ministry, estimates are presented to the Ministry for all additions to expenditure and each application is referred to the Treasury for approval.

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