Dyke dismantles BBC Resources

A major reorganisation splits up BBC Resources and creates a new technology company.

The changes, announced on July 6 by Director-General Greg Dyke, move high-tech areas out of Resources into a new subsidiary BBC Technology Ltd, while Information and Archives, and all staff in Property Services and Facilities Management, move into the Finance Directorate.

Dyke said that "there would be redundancies", but said that staff would be treated "fairly and properly". Staff in Distribution and Technology Division are also affected - many face a transfer into the new company.

Savings and extra revenue generated by the reorganisation are projected to be worth between £150m and £200m added up over the six year period of the current licence settlement.

View chart of all changes

Resources' two main pillars, Production Services and Resources Limited, both survive the reorganisation, but are reduced in size. Production Services continues with responsibility for Radio Production Resources, and English Regional Resources, but loses Information & Archives and News Resources which re-integrates with News Division in October this year, along with SCAR from Resources Technology.

Resources Limited loses its technology sections and its national broadcast facilities in Scotland, Wales, and Northern Ireland, which are given back to the Nations & Regions Division from April 2000. The company keeps the Belfast-based interactive and online centre, as well as facilities in London TV, Bristol, Birmingham and Manchester. Both Birmingham and Manchester are under review, with a strong possibility that studios could close in both cities. Central Technical Areas in the English Regions remain in Resources for the time being.

Cuts are expected in London Operations, the section of Resources Limited which runs London TV Studios, OBs (London and Manchester), Post-Production and Graphics, Visual Effects, Scenic Services and the Costume Store. These are not due to be announced until Monday July 10, but the union has already been warned to expect "substantial redundancies" in loss-making Studios and OBs.

Finance Division and BBC Technology Limited, the new company due to be incorporated in October 2000, take over key areas of the dismantled Resources Directorate. Property staff and the BBC's archives go into Finance, along with all of Resources' procurement activities.

BBC Technology Limited, to be part of the Distribution and Technology Division, will manage all the BBC's broadcast playout areas, and takes over marketing of the BBC's proprietary BNCS network switching system, currently parts of Resources Technology. The new company also takes charge of many IT areas, all support for the BBC Desktop, and most of the BBC's web assets - the infrastructure needed to host and maintain websites.

Dyke believes that these activities can earn external revenue for the Corporation, and plans to move them into a limited company to allow them to begin commercial trading, assuming approval from the Department of Culture, Media and Sport.

The Distribution and Technology Division will continue to look after the BBC's technology strategy, Research and Development, and management of technology contracts.

Resources Limited, the existing subsidiary company, remains in the Resources Division, but with a target of going into profit within 12-18 months. BBC management have implied that there could be further drastic changes within Resources Limited if it fails to break even.

Several areas are still uncertain about their future despite the reorganisation announcement - the Wood Norton Conference Centre could be sold off, and staff in Manchester may be forced into a new studio centre set up jointly between the BBC and Granada Media. Birmingham's Pebble Mill complex is said by management to be working well below capacity, and is effectively on probation until a full review of the BBC's Midlands facilities has been completed.

The Milton Keynes Open University Production Centre is also said to be in talks with the BBC's Director of Education over its future.

Elsewhere in Resources, Employee Services staff, including Occupational Health, the nurseries and the BBC Club, will move into the Human Resources Division. Local Radio Engineers transfer to Nations and Regions.

The reorganisation's effect on staff is unclear - job cuts are known to be planned in London Operations, but the divisions which take over parts of the old Resources Directorate have not begun assessing whether any overlap or duplication of jobs might lead to redundancies.

The union's initial concerns about the reorganisation are the imminent job cuts in London Operations, and the employment and pension rights of staff who have been earmarked for a transfer into BBC Technology Limited.

Other risks for staff are likely to emerge over coming weeks, as final decisions are made about the future of Manchester Resources, and the possible disposal of the Wood Norton site.

BECTU is due to meet BBC corporate management on Tuesday July 11 for an initial discussion of the changes. London Operations plans to announce its cuts on Monday July 10.

Where Resources' sections all go to

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