Tuesday, June 22, 2010

BBCs landmark headquarters is £110m over budget as building projects top £2bn

By Anita Singh, Showbusiness Editor Published: 6:53PM GMT twenty-five February 2010

BBC Redevelopment of Broadcasting House is over-budget and 4 years late Photo: JUSTIN THOMAS

The growth is 4 years at the back of inform as a outcome of "weak governance" and bad planning, and the bill has spiralled to �1 billion, according to a ban inform by the National Audit Office.

A serve �188 million was outlayed on the BBC Scotland domicile in Pacific Quay, Glasgow, �62 million over budget.

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Moving Radio Five Live, BBC Sport and 3 alternative departments from London to the "MediaCity" site in Salford, Greater Manchester, will cost �877 million.

The NAO inform resolved that "the BBC is not well placed to denote worth for income from the �2 billion it has committed to spending on the 3 projects over their life".

The open spending watchdog pronounced a "change in culture" was indispensable at the Corporation.

Condemning the figures, Edward Leigh, authority of the Commons Public Accounts Commitee, said: "One of the simple beliefs of plan government is to set out at the commencement of the plan just what you wish to achieve. In handling the �2 billion construction a whole programmes, the BBC did not do this.

"It is startling that the redevelopment of Broadcasting House will cost over �100 million some-more than creatively programmed and will be delivered over 4 years late."

The 1932, Art Deco construction a whole was due to cost �991 million and be accomplished by Dec 2008, on condition that a new home for the BBC"s headlines and air wave teams. The bill has given risen by �55 million to a foresee �1.046 billion. It is right away due for execution in Apr 2013.

The delays forced the BBC to outlay an one more �55 million on fluctuating the franchise and record upgrades at their old Bush House offices, that they had hoped to empty by now.

Much-derided plans for Broadcasting House embody a �1.65 million open piazza engraved with lines of longitude and latitude, and an "arts celebration" featuring a �25,000 fly-past by a remote-controller helicopter.

In the report, the BBC certified that it could have saved �50 million by constructing new London domicile elsewhere rather than refurbishing the Grade II listed building, but pronounced it was simpler to capture politicians and celebrities to Broadcasting House than serve afield.

The BBC pronounced the 3 developments would save looseness price payers income in the prolonged run, indicating out that relocating departments to Broadcasting House reduces the series of BBC buildings in London from seventeen to two. Salford Quays will additionally come in underneath budget.

A BBC orator said: "Pacific Key, MediaCity and Broadcasting House are formidable projects that have been written to not usually residence programme-makers and technical facilities, but to be fast turning point buildings that the open use. All 3 projects are right away on lane and, once completed, the sum cost of skill government at the BBC will tumble by �50 million per year."

Jeremy Peat, a BBC Trustee, said: "Serious mistakes were done in the initial proviso of the Broadcasting House project. Licence price payers were let down, and the Trust regrets this."

The NAO can usually review areas of BBC finance management if invited to do so by the BBC Trust, the Corporation"s ruling body. Mr Leigh said: "Today"s inform provides an additional e.g. of the BBC Trust"s incapacity to hold the BBC to comment for how it spends the money. As things stand, the National Audit Office is you do the most appropriate but it is being hold at arm"s length by the Corporation.

"It is unsuitable that the BBC is not theme to the same inspection as each alternative open physique in the land. Licence price payers design and merit zero less."

A Trust orator said: "It is critical to the BBC"s autonomy that the BBC Trust rather than Parliament takes shortcoming for slip and inspection of the corporation. We will go on to actively and dynamically hold the BBC to comment on interest of looseness price payers through, for example, reports similar to this, and will work to safeguard that the BBC achieves worth for income in all the activities."

Broadcasting House, Portland Place, W1Original budget: �991 millionForecast budget: �1.046 billionThe BBC"s costliest growth is in dual phases: a revamp of Val Myer"s strange Art Deco construction a whole and the construction a whole of a new extension.It will residence the "largest live newsroom in the world", surrounded by potion walls that will concede visitors to see reporters at work and watch the continue foresee being filmed.When completed, the stream workforce of 400 will enlarge to 4,500 staff from news, air wave and the BBC World Service.Broadcasting House cost �500,000 to erect in 1932 - around �25 million by today"s standards.When the construction a whole was inebriated during the Blitz, newsreader Bruce Belfrage famously one after another to review the 9pm circular notwithstanding being lonesome in roof plaster.

Pacific Quay, GlasgowOriginal budget: �126 millionActual cost: �188 millionBBC Scotland"s domicile were finished in Jul 2007 - a year overdue.The steel, potion and petrify construction a whole has been likened to a hulk greenhouse, and the interior is dominated by a thespian red sandstone staircase.Staff changed there from their old offices in Queen Margaret Drive. Gordon Brown attended the building"s central opening.The Weakest Link, hosted by Anne Robinson, not long ago proposed filming there, and it is home to Newsnight Review.

Salford Quays, Greater ManchesterOriginal budget: �953 millionForecast budget: �877 millionFive departments - Sport, Children"s programming, Radio 5 Live, Technology and Learning - will immigrate to Salford in 2011 as piece of the BBC"s plans to turn less "London-centric".The cost of construction a whole the offices and college of music space was borne by the developer, but the BBC will compensate �233 million let costs over the subsequent twenty years.Furniture, IT resources, relocation packages and alternative costs take the sum figure to �877 million.Last month, it emerged that not a singular 5 Live presenter had committed to move north, preferring to invert rather than give up their London homes.

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