BBC local video scheme rejected                               

The BBC Trust has rejected controversial plans to launch a £68m network of local news websites with video content.                       

The plan has faced fierce opposition from newspaper publishers, which have argued that it could damage or kill off their own local online operations.

The trust said the BBC's proposal did not meet its criteria for offering value to the public.

Instead the corporation should focus on improving existing regional services.

A study by broadcasting watchdog Ofcom found that if BBC local video services were launched, annual revenues at existing commercial providers would fall by up to 4%.

The provision of local video services could also deter local commercial media from further innovation in online local news, sports, and weather services, Ofcom added.

Earlier this month, bosses of local newspaper companies told MPs on the Commons culture select committee that local papers - which are already struggling in the difficult economic climate - would be further damaged by an "out-of-control" BBC .

Quality programmes

Sir Michael Lyons, chairman of the BBC Trust, said that while licence fee payers wanted better regional and local services from the BBC, the proposal to run 65 video websites was "unlikely to achieve what they want".

"We also recognise the negative impact that the local video proposition could have on commercial media services which are valued by the public and are already under pressure," Sir Michael added.

"Our decision to refuse permission for local video means that local newspapers and other commercial media can invest in their online services in the knowledge that the BBC does not intend to make this new intervention in the market."

He called on BBC management to consider carefully the conclusions of the Trust's public value test before putting forward new proposals.

"We believe the BBC's priority should be improving the quality of existing services. The public wants better quality regional television news programmes and more programmes of all kinds produced in and reflecting their areas," Sir Michael said.

Investment call

The National Union of Journalists said that the rejection was "a missed opportunity to enhance local media".

"Local papers are closing and job cuts mean thousands of journalists don't have the time to do their jobs properly anymore," said the NUJ's general secretary Jeremy Dear.

He added that while ITV was scaling back regional and local news, the BBC proposal was "an opportunity to take a small step in the opposite direction by actually enhancing local news provision" and called on the BBC to ensure other local news services benefited from investment.

The NUJ also accused local media bosses of cutting jobs to boost profits and of opposing the BBC plan to protect their investment.

"Now is the time for them to put their money where their mouth is and invest more in local journalism - in jobs, in training and in resources for hard-pressed newsrooms."       

Source : bbcnews