The Scottish Government

1. The Commission recommends the creation of a new Scottish Network: a digital public service television channel and an extensive and innovative online platform. The network should be funded out of the new UK settlement for PSB plurality and should be licensed and given full regulatory support by Ofcom.

The Scottish Government wrote to the UK Government on 11 September and 8 October. A response was received on 2 November. The then Minister for Europe, External Affairs and Culture met with Lord Stephen Carter, the UK Government Minister for Communications, Technology and Broadcasting in December 2008 to highlight the importance of the new Scottish Network as part of the public service broadcasting services for Scotland. The Minister for Culture, External Affairs and the Constitution has also recently met Stephen Carter following the publication of the interim report of the UK Government's Digital Britain review.

The Scottish Government response to the Ofcom Public Service Broadcasting Review focussed strongly on the Broadcasting Commission report, and the value of the Scottish Network to Ofcom's models for the future of public service broadcasting ( PSB).

Ofcom's Statement and Recommendations on Public Service Broadcasting was published on 21 January 2009 and it welcomed the thoroughness of analysis by the Scottish Broadcasting Commission. The Statement made it clear that Ofcom recognised the "value of choice in public service content for... the devolved nations" and that the digital network for Scotland was a possible way of achieving this. It also proposed a contestable fund for public service broadcasting in Scotland, Wales and Northern Ireland as an alternative method of ensuring public service provision. Ofcom expressed no preference between a new digital network and a contestable fund and has since clarified that the two need not be mutually exclusive options - they could be complementary.

The interim report on Digital Britain was published by the Department for Culture, Media and Sport and the Department for Business, Enterprise and Regulatory Reform ( BERR) on 29 January 2009. The interim report recognised "the need to secure adequate provision of content for Northern Ireland, Scotland and Wales in the context of any new PSB model", in addition to the necessity of ensuring a plurality of news coverage in Scotland, Wales, Northern Ireland and the English regions. It also acknowledged the "desires in Scotland for a stronger, national voice".

The Scottish Government welcomes the fact that both Ofcom and the UK Government clearly recognise the importance of ensuring that there is a diversity of high quality public service broadcasting within Scotland, both for news and other programming. We see the Scottish digital network as being the best way of ensuring that a sufficient volume of high quality content is easily accessible to the public, and that there is strong competition to the BBC within Scotland. We will therefore continue to make the case for a new digital network. We have done this in our formal response to the interim report on Digital Britain, and will do so throughout our ongoing discussions with the UK Government.

2. The Commission recommends that the remit for the new network should include a commitment to high-quality information and entertainment, including news and current affairs covering Scottish and international issues, and innovative and ambitious cultural content.

Development work on this will continue.

3. The Commission recommends that the new network should seek to maximise its educational and economic impact, through partnerships with further and higher education and with Scotland's creative industries, and by promoting Scottish content in the UK and overseas.

The Scottish Government has had initial discussions with Learning and Teaching Scotland about using the Glow network as a platform for educational content for schools, focused on the creative industries, prior to the establishment of the Scottish network.

4. The Commission recommends that broadcasters (including the new Scottish Network) should pay close regard to the views expressed by audiences in Scotland and recorded on the Commission's website

Linda Fabiani MSP, the then Minister for Europe, External Affairs and Culture wrote to all relevant broadcasters advising them that they should be aware of the publication of Platform for Success.

5. The Commission recommends that BBC Scotland should review its television commissioning policy and funding for Scottish programmes to address concerns about ambition and range.

The BBC Trust's response to the then Minister for Europe, External Affairs and Culture stated that the Audience Council for Scotland currently assesses BBC Scotland as delivering strongly across the BBC's public purposes. However the Audience Council also takes the view that audiences in Scotland do not necessarily feel that all their needs are being adequately addressed by the BBC. The BBC Trust is therefore considering whether more detailed research might be commissioned on BBC Scotland's programming. The Scottish Government looks forward to hearing again from the BBC Trust in the near future once it has decided how to address audience's concerns.

6. The Commission recommends that Ofcom seeks to maintain the current non-news programme obligations in the two STV licences, but is clear that maintaining Scottish news and current affairs on those services is an absolute requirement of any new settlement.

The then Minister for Europe, External Affairs and Culture responded to the Ofcom Review of Public Service broadcasting on 28 November 2008. The response clearly stated the Scottish Government's concern at the proposals for reduction in the public service obligations connected with the two STV licences.

Officials met with STV senior management to discuss the Scottish Broadcasting Commission report and Ofcom's PSB Review in November 2008.

On 21 January 2009 Ofcom announced that it had reduced significantly the non-news public service broadcasting obligations on the two STV licences. STV is now only required to broadcast 90 minutes of non-news services each week. The Scottish Government is disappointed that Ofcom's decision has reduced the obligations upon STV in this way, although it is encouraged by STV's clear statements that it retains a strong commitment to public service broadcasting.

7. The Commission recommends that the BBC Trust ensures better news coverage of the devolved nations and requires that services in future are more fully aligned with the needs and wishes of Scottish viewers. Options to be considered should include models for fully integrated news programmes from Scotland combining Scottish, UK and international news.

The BBC Trust's response to the Scottish Government highlights the independent review commissioned by the BBC Trust to assess news coverage for the devolved nations.

This review, led by Professor Anthony King, was published on 11 June 2008. Its report concluded that the BBC was missing opportunities to reflect more consistently the reality of devolution, and that it needed to go further in reporting the changing UK with the range that audiences are entitled to expect. It also set out concerns about the precision and clarity of reporting.

The BBC Executive has developed an action plan following this review. The BBC Trust has assured the Scottish Government that it is monitoring closely the BBC Executive's progress in implementing the action plan.

8. The Commission further recommends that all broadcasters in the UK should review the performance of their news services in reporting the four nations in a manner that is accurate and relevant for all.

See recommendation 7 in respect of the BBC. The then Minister for Europe, External Affairs and Culture wrote to broadcasters to seek their support in taking forward relevant recommendations of the Scottish Broadcasting Commission report.

ITV, STV and Channel 4 have responded and officials met with STV in November. The responses from broadcasters have not so far focused on this particular recommendation. We will arrange further discussions with the major broadcasters following the publication of Ofcom's Review and the UK Government's interim report on Digital Britain, and will urge them to adopt this recommendation at those meetings.

9. The Commission recommends that the BBC reviews the role, remit and funding of Radio Scotland in light of its unique national status and importance to Scottish cultural life.

The BBC Trust's response to the Scottish Government states that a full review of Radio Scotland's performance against the terms of its service licence will take place by 2011 at the latest, since the current service licence was put in place in 2006 and will be reviewed at least once every five years.

The Trust has also stated that the BBC Executive and BBC Scotland are currently engaged in assessing the public value and audience positioning of Radio Scotland's service. This assessment forms part of an ongoing programme of analysis which the BBC routinely undertakes to ensure it fully understands audience needs and demands.

10. The Commission recommends that regulation and support for community radio should be reviewed by Ofcom in Scotland to strengthen this form of broadcasting and its benefits to the public.

The then Minister for Europe, External Affairs and Culture wrote to Ofcom and the Department for Culture, Media and Sport to seek their support for the Scottish Broadcasting Commission report. Ofcom's response of 25 November 2008 stressed that the Communications Act 2003 requires that only holders of community radio licences can have access to the Community Radio Fund. It is therefore not possible for Ofcom to take a flexible view on this issue - legislative change by the UK Government would be required. We have raised this issue in our response to the UK Government's interim report on Digital Britain, and will raise this issue again during our discussions with the UK Government about the recommendations of the Scottish Broadcasting Commission Report.

11. The Commission recommends that the BBC Trust and Executive should fulfil the commitment to secure 8.6% of network television production from Scotland (under the Ofcom definition) by the end of 2012; and maintain that level, in line with population share, as a minimum thereafter.

The BBC Trust's response to the Scottish Government reiterated the BBC's commitment to securing 8.6% of network television production from Scotland by 2016 at the latest.

The BBC Trust's view is that insisting on more rapid progress towards meeting this target "might have led to short term opportunistic changes, involving existing programme strands". It argues that "achieving sustainable growth across a wide range of genres and with an appropriate mix of in-house and independent production would take longer, but… steady, sustainable development would be more beneficial." It adds that the Audience Council for Scotland "is optimistic that the target might be achieved earlier than 2016, but notes the importance of achieving sustainability and acknowledges that this is a higher priority than meeting the target early."

The Scottish Government is disappointed that the BBC Trust has decided to stick to its original target of 2016, since the target of 8.6% of production should represent the status quo. We are not convinced that their meeting the target by 2012 should necessarily lead to the adoption of unsustainable practices.

The Scottish Government does however acknowledge that the 2016 target represents significant progress from the current unacceptably low level of production; that 2016 is seen as the latest possible date for meeting the target; and that an intermediate target of 12% of production being delivered from the devolved nations has been set for 2012. If Scotland were to secure a proportionate share of the 2012 target, approximately 6% of network production would come from Scotland by 2012.

The Scottish Government also welcomes the implementation plans announced by the BBC Executive on 15 October 2008, which made it clear that it intends to build a sustainable production base in Scotland for entertainment, drama, factual, children's and comedy programming. These provide clear evidence of the BBC's commitment to broadcasting in Scotland. We will observe closely the implementation of the BBC's commitments - to make sure that they have a genuine impact on the ground, and to ensure that the BBC implements them as quickly as is practical.

12. The Commission recommends that the BBC should establish and maintain a substantial network commissioning presence in Scotland and transfer the management of one of its four national television services to Scotland.

The BBC Trust's response reiterated the commitment it made on 15 October 2008 to base a number of key commissioning roles in Scotland.

• A new independent Factual commissioning executive for Scotland will be based in Scotland.
• A new Entertainment commissioning executive for independent producers outside London will be based in Scotland.
• A new Daytime commissioning executive will be based in Scotland.

We welcome these changes, which represent a good start in ensuring that there is a substantial commissioning presence in Scotland.

The BBC Trust has stated that it considers that moving one of its main TV channels outside London "is not appropriate at present" but that the Director General had made clear that this issue "will be kept under review." The Scottish Government will continue to press the BBC on this issue.

13. The Commission recommends that Channel 4 should have a mandatory target for production from Scotland of 8.6% in line with share of population, and that the Channel should base one of its commissioning departments in Scotland.

The then Minister for Europe, External Affairs and Culture wrote to Channel 4 to seek support for the Scottish Broadcasting Commission report. The Minister also met with the Head of Programmes for Nations and Regions at Channel 4 on 30 September 2008.

Channel 4 responded to the Scottish Government on 2 December 2008. It expressed concern that a mandatory production target "would undoubtedly place restrictions on creativity and flexibility". It did, however "recognise that the devolved nations have not yet significantly benefited from the Out-of-London quota."

On 20 January 2009 Channel 4 announced that it would establish a commissioning editor position based in Scotland, and that it would ensure that a proportion of programmes in all of its key programming strands (for example, Dispatches, Cutting Edge and Comedy Lab) would be made by companies based in the devolved nations.

This follows on from its earlier pledge to establish a Nations' Pilot Fund of £1 million from 2009 to address what it perceives as "the lack of critical mass in the production sector in the smaller nations." In addition, Channel 4's digital media innovation fund, 4iP, is budgeting to invest up to £50 million across an initial three year period, much of it outside the M25. As part of the 4iP initiative it has set up a commissioning hub in Scotland.

The Scottish Government welcomes these initiatives, but is still concerned that there is no firm commitment from Channel 4 to increase the share of network production which comes from Scotland. Furthermore, we are disappointed by Ofcom's decision to set a quota of 3% for Channel 4 network production from Scotland, Wales and Northern Ireland combined. Since the devolved nations account for approximately 17% of the UK's population, this figure seems remarkably low. Although we note that Ofcom has pledged to review - and consider increasing - these quotas once the future of Channel 4 is clearer, we are surprised that a higher initial quota is not seen as being desirable.

We will continue to engage constructively with Channel 4 to encourage and assess its support for network production, and the development of the broadcasting industry, within Scotland. We will also maintain an ongoing constructive dialogue with Ofcom, during which we will encourage it to review the quota set for Channel 4 at the earliest possible date.

14. The Commission recommends that BBC and Channel 4, and the new Scottish Network once established, work together (with the public agencies) on delivering the strategic aims of strengthening and diversifying the independent production base in Scotland.

The BBC Trust's response to the Scottish Government has underlined "the importance it attaches to the continued development of a strong independent sector."

Channel 4's response made it clear that it supported this recommendation from the Commission, and added that it "would encourage the BBC to ensure that their strategy is not limited to their own in-house facilities only."

Representatives from the independent sector ( PACT members) have written to the Minister for Europe, External Affairs and Culture supporting the Scottish Broadcasting Commission report. Scottish Government officials have offered to meet with them to discuss the report.

Scottish Enterprise is committed to working with Channel 4, the BBC and the Scottish Network, once established, and its approach to doing this will be set out in its economic development strategy (see recommendation 15).

15. The Commission recommends that Scottish Enterprise produces the economic development strategy for the sector by the end of December 2008, together with an action plan for how this is to be delivered, taking full account of this Commission's report.

Scottish Enterprise produced the first draft of the economic strategy for Scotland's broadcasting industry in December last year. Consultation with certain key stakeholders has subsequently taken place, and Scottish Enterprise is publishing the strategy today. Among other things, the strategy highlights the size of the economic opportunity facing the broadcasting industry in Scotland and sets out how Scottish Enterprise will engage with the sector to identify and remove the barriers to growth for the industry in Scotland."

16. The Commission recommends that Creative Scotland takes the leadership role in bringing together broadcasters, production companies, economic development bodies, skills agencies, further and higher education to work collaboratively in delivering what is required to ensure a thriving creative content sector.

The then Minister for Europe, External Affairs and Culture wrote to the Chair of the Joint Board of Scottish Screen and the Scottish Arts Council in September 2008 about the Scottish Broadcasting Commission's report. Prior to the establishment of Creative Scotland as a statutory body, the Scottish Government will work with the company Creative Scotland, the Scottish Arts Council and Scottish Screen to ensure that they are able to adopt this leadership role.

On 5 February 2009 the Scottish Government published a framework document outlining the roles and responsibilities of key support organisations - Creative Scotland, the enterprise agencies and local authorities - in supporting creative industries. The framework document is published at: www.scotland.gov.uk/Topics/ArtsCultureSport/arts/CulturalPolicy/creative-scotland .

17. The Commission recommends that Skills Development Scotland, Skillset and the further and higher education sectors ensure they are positioned to anticipate changes in the skills requirement in the fast-moving broadcasting environment and realign their activities accordingly to avoid skills gaps in Scotland.

Skillset and Skills Development Scotland have both responded positively to the letter sent to them by the then Minister for Europe, External Affairs and Culture, and both have indicated a clear desire to ensure that they can respond to changes in the broadcasting environment in Scotland. Both organisations are already working closely with industry, further education and higher education.

The Scottish Funding Council's response to the then Minister for Education, External Affairs and Culture has stressed that it works closely with Skillset and Skills Development Scotland. It has also highlighted that it has decided to invest an additional £5.8 million into further and higher education in the creative industries for the next five years, from 2009-10 (£3.9/0.4/0.5/0.5/0.5m). Much of this investment is to improve equipment and facilities in tertiary education during 2009-10. Approximately £400k each year will help to fund an additional 80 postgraduate students each year - 40 in broadcasting and 40 in other creative industries. This additional investment represents a significant and very welcome step in ensuring that further and higher education facilities in Scotland are equipped to meet future skills requirements in broadcasting and the creative industries.

18. The Commission recommends that the Scottish Parliament takes an active role in considering the broadcasting industry and services audiences in Scotland receive, in order to provide a visible and public forum for debate.

Ultimately, it is for the Parliament to develop its own ways of looking at broadcasting more actively. Scottish Government welcomed the debates in the Scottish Parliament on broadcasting on 8 October 2008 and 4 December 2008. We also note that the Enterprise, Lifelong Learning and Culture ( ELLC) Committee took evidence from Blair Jenkins on several occasions, most recently on 24 September 2008. Blair Jenkins referred to this recommendation at that meeting.

We also note that the ELLC Committee intends to take evidence from the BBC, Channel 4 and Ofcom later this year. We welcome this as evidence that the Scottish Parliament is already taking an active role in considering broadcasting in Scotland, and we hope that this role will develop in the future months and years.

The then Minister for Europe, External Affairs and Culture wrote to the Convener of the ELLC Committee on 19 December 2008 to encourage the Committee to maintain this momentum in the scrutiny of broadcasting, and to ensure that broadcasting issues remain high on the agenda of the ELLC Committee and the Parliament as a whole.

19. The Commission recommends that Scottish Ministers should have greater responsibility, within the UK framework, for those operational functions directly affecting Scotland.

The Scottish Government will continue to discuss this with the UK Government as part of its ongoing discussions about the implementation of the Broadcasting Commission's report.

The Scottish Government's response to the Ofcom Public Service Broadcasting Review also referred to the value of streamlining responsibility for MG Alba by placing overall responsibility with the Scottish Government.

20. The Commission recommends that the relevant public agencies in Scotland, the BBC Trust and Ofcom monitor and report annually on the broadcasting industry and services to audiences in Scotland, in line with their respective responsibilities.

The BBC Trust's response to the Scottish Government states that it "would be happy to discuss with the Scottish Government how it can improve dialogue with the Scottish Parliament and with MSPs."

Ofcom has stressed that it produces a large number of research reports, including its annual Communications Market Report for Scotland. It has indicated that it "would be very happy to consider what more Ofcom might do in this area".

The Scottish Government will undertake more detailed discussions with the enterprise bodies, Creative Scotland, the BBC and Ofcom on how best they can report on their activities and the health of the broadcasting industry in Scotland.

21. The Commission recommends that the influence and responsibilities of Ofcom Scotland should be strengthened and there should be specific representation for Scotland on the Ofcom Board (at UK level).

Ofcom's initial response to the letter sent by the then Minister for Europe, External Affairs and Culture stresses that "Ofcom Scotland plays a major role in our policy making".

Ofcom states that the issue of representation on the Ofcom Board is for the UK Government to consider. We will continue to raise this issue in our discussions with the Department for Culture, Media and Sport.

22. The Commission recommends that Scottish Ministers report overall progress on implementing our report to the Scottish Parliament in September 2009, 2010 and 2011.

The Scottish Government will monitor the implementation of the Scottish Broadcasting Commission report closely and will report on progress in September 2009, 2010 and 2011.