A BRADFORD district MP has branded the BBC “not fit for purpose” with costs for the independent inquiry into the Princess Diana Panorama interview expected to top £1.4 million – money that could have funded free licences for all over-75s in his constituency.

Shipley’s Philip Davies said it was a disgrace that so much licence fee money was paying for inquiries into institutional deception and not on programmes and said bosses should hang their heads in shame.

The inquiry into the Martin Bashir interview of Princess Diana found the organisation guilty of covering up concerns staff had raised with management over Bashir’s behaviour and a continual cover up of how Bashir secured the interview as media interest in the interview increased.

Mr Davies said: “I have long been a critic of the BBC – and always believe the licence fee should be scrapped - and I am even more disgusted following the findings of the inquiry.

“It beggars belief that people at the top of this organisation appear to have covered up this wrongdoing for 25 years and now are happy to waste the money of hard-working people who pay the licence fee to fund the inquiry into its deception.

“This is the organisation that took free licences away from the over-75s claiming it was too expensive. I would suggest if the organisation behaved in a more appropriate manner it would save a lot of money.”

The report and related costs are expected to total around £1.4million. The cost of a standard TV licence is £159 meaning it could pay for 8,805 TV licences – one for every over-75 in the Shipley constituency estimated to be about 8,000 people.

Mr Davies added: “It is bad enough people have to pay the licence fee in the first place but this is a kick in the teeth for all my older constituents having to pay their licence fee.

“My constituents should not be paying for the consequences of a BBC cover-up or reports into its wrongdoings.”

Mr Davies has repeatedly called for government to consult on making the BBC a subscription-based service arguing if the provider offers such good value for money it has nothing to fear from a subscription model, and that people should have the freedom to choose if they want to subscribe to and watch the BBC or not.

Responding to the comments from Mr Davies, a BBC spokesman said: “It is only right that the BBC commissioned a thorough investigation into these events.

“The BBC must uphold the highest possible standards and the thoroughness of Lord Dyson’s work is helping us do just that.”

Current director-general Tim Davie wrote to BBC staff last Friday saying: "I know that we now have significantly stronger processes and governance in place to ensure that an event like this doesn't happen again.
"However we must also learn lessons and keep improving."

Former BBC director-general Lord Tony Hall quit as chairman of the National Gallery after he was heavily criticised in the Dyson report for his botched inquiry into how the interview was obtained.

Lord Hall, who in 1996 was director of BBC news and current affairs, led the investigation which exonerated Bashir, even though he had previously admitted lying about the fake documents he used in obtaining the interview.

The BBC board will launch a review into the effectiveness of the broadcaster's editorial policies and governance following Lord Dyson's report into the 1995 Panorama interview with Diana, Princess of Wales.
The inquiry by the former master of the rolls concluded that journalist Martin Bashir had used "deceitful behaviour" to land the world exclusive and an internal BBC investigation a year later had covered it up.
In a statement, the BBC board admitted the failings set out in the 127-page document and said it hoped to ensure the "mistakes of the past" were not repeated.
It said: "We accepted Lord Dyson's findings in full and reiterate the apology we have offered to all those affected by the failings identified.
"We recognise the impact that the events it describes has had on so many people, not least those whose lives were personally affected by what happened.
"We also acknowledge that audiences had a right to expect better from the BBC."
The review will be undertaken by a group of non-executive board directors, led by Sir Nick Serota, senior independent director of the BBC.