BBC's chief financial officer to review use of personal service contracts to pay long term presenters
Zarin Patel, chief financial officer for the BBC, has said to MPs that she will review use of personal service contracts to pay long term presenters, with 148 believed to be on this type of contract.
Margaret Hodge, chair of the Public Accounts Committee, suggested that with this type of contract, it was unknown what percentage of tax was paid, adding that the BBC also saved money because it didn't have to pay employer national insurance contributions, sickness pay, holiday pay or pension contributions.
Patel said the reason for use of such contracts was that it provided presenters with the flexibility to work for other companies, while giving the broadcaster the flexibility to respond with speed when programme needs changed.
She said of the system: “We will review it and we will review it with real seriousness”, while strongly denying that anyone in a management role was on a personal service contract.