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A review of the co-regulatory system for training for broadcasters

Summary

Legislative framework

1.1 Under the Communications Act 2003 (‘the Act’), Ofcom has a duty to promote the development of opportunities for training in television and radio (Section 27) and to require that broadcast licensees make arrangements for training (Section 337). These obligations go beyond what was required under previous legislation. Broadcasters which employ 20 or fewer staff or have a licence to broadcast for 31 days or less a year are exempt from the training requirements in Section 337 of the Act under Section 337(6)(b).

The co-regulatory system

1.2 In 2003, the Secretary of State asked the Sector Skills Council for the Audio Visual Industries (‘Skillset’) to form a task force to advise Ofcom on how best to fulfil the statutory requirements for training. The task force made recommendations to strengthen training provision, make it more forward looking and more closely allied to business needs, and develop common reporting and measurement systems across the industry. Ofcom supported these objectives and proposed that co-regulation should be explored.

1.3 In 2004, the industry, Skillset and Ofcom formed a working group to design a system of co-regulation which would allow Ofcom to meet its statutory requirements under the Act and also give greater increased responsibility to the industry itself for delivering on its obligations. This system was intended to measure the effectiveness of training by evaluating outputs rather than inputs, focussing on performance and the impact of training activity on individual businesses rather than - as had previously been the case – the amount of activity and level of investment.

1.4 In July 2005, following public consultation and extensive discussions with industry and other stakeholders, a new co-regulatory system – which created a new organisation, the Broadcast Training & Skills Regulator (‘BTSR’) – was established.

1.5 The partners in the co-regulatory system are Ofcom, Skillset, the RadioCentre (formerly the Commercial Radio Companies Association), the Satellite & Cable Broadcasters Group (‘SCBG’), BBC, ITV Network and GMTV, Channel 4, Five, BSkyB and S4C.

Self-evaluation and validation

1.6 In 2006, BTSR introduced a new framework for self-evaluation by broadcasters, intended to encourage broadcasters to analyse the effectiveness of their training and to support them in making any necessary improvements. Each eligible broadcaster is required to provide information specifying how they consider their training and development activities deliver against seven key indicators of performance. Returns from the self-evaluation process are substantiated and moderated by visits by an independent company (currently PricewaterhouseCoopers, ‘PwC’). PwC visits selected broadcasters and discusses their training activities to capture evidence to support the self-assessment. The validation process also seeks to provide a view as to whether the self-evaluation process is working, to extrapolate examples of good practice and provide a base measurement for the further improvement of training and development.

Requirement for review of co-regulation

1.7 The underlying principles and functions to be performed by the co-regulatory system are set out in a Memorandum of Understanding (‘MOU’) between the partners (see Annex 1). The MOU also says that Ofcom will review the performance of the co-regulatory system every three years and publish the results of the reviews.

1.8 This report sets out the findings of Ofcom’s first review of the system, with particular reference to the principles and functions identified in the MOU.

1.9 As part of our review, in early 2008 we commissioned qualitative research into stakeholder awareness and attitudes toward co-regulation, in particular the self-evaluation and validation process. This research is published as a separate annex [^(-1-)] . We have also taken account of the feedback from stakeholders expressed in responses to Ofcom’s 2007 consultation on co-regulation of equal opportunities and from workshops and focus groups with industry.

Summary of conclusions

1.10 We have concluded that there is clear evidence that the co-regulatory system is delivering against the principles and functions in the MOU. The system is still at a relatively early stage, with the second full year of self-evaluation having just been completed. But it is already clear that, despite limited available resources, co-regulation is delivering more than previous direct regulation, in terms of:

improved feedback and analysis for broadcasters of training needs and activity – at both an individual and industry-wide level – and a clearer sense that the information they provide is serving a useful purpose
greater clarity for broadcasters on how they can improve their performance
better quality of information received, focussing on broadcasters’ individual training plans and activities, rather than level of spend
a clearer picture of the level of training provision, both at an industry-wide level and in terms of different sectors and company sizes
more open and constructive dialogue with broadcasters, and improved buy-in from all parts of the industry

1.11 However, there is room for improvement, particularly around the sharing of best practice by BTSR and recognition by broadcasters of their own responsibilities to make the most of available support and guidance. Ofcom intends to discuss with partners in the co-regulatory system how best to take forward these issues and others arising from the first three years.

1.12 In addition, Skillset and BTSR are conducting a strategic review, with Ofcom’s support, to examine how well broadcasting is equipped for changing training and development needs and for the changing nature of its workforce, and what the sector is doing to prepare for future needs and challenges. Ofcom expects this review to provide important indicators of the issues that will need to be addressed through training and development over the next few years. We are confident that these can be addressed through the co-regulatory framework, and will work with our partners to ensure that it remains relevant to the training needs of the broadcasting sector.