New tack on Resources Ltd

Propaganda from BBC management in support of converting Resources Directorate into a Limited Company is expected to change targets as the Corporation absorbs the implications of the European Union's new protocol on Public Service Broadcasting.

The protocol relaxes restrictions in the Treaty of Rome, one of the EU's founding agreements, which could have prevented state-funded broadcasters from undertaking commercial work.

Lawyers believe that the re-worded section now permits organisations like the BBC to engage in for-profit work without being accused of using their public subsidies to undermine the open market in TV and radio production facilities.

Prior to the adoption of the protocol, the BBC had claimed that the creation of Resources Ltd was the only way to get round European law, but the union now predicts that management will attempt to convince staff that the UK Fair Trading Act, not the Treaty of Rome, is the real barrier to Resources working for profit.

The switch in line, if true, will not be the first change of tune over Resources Ltd - early arguments for the Limited company centred on the need to borrow external capital and alleged difficulties with the BBC Charter. Neither of these issues has been heard of since the Treaty of Rome was flagged by management as the major obstacle that had to be overcome.