In a repost to BBC Trust chairman Michael Lyons, who last night criticised suggestions that the licence fee be top-sliced, Duncan said: "The real danger is that current incumbents spend too much time fighting each other. We'll be overtaken by events and lose this very important British tradition of high quality distinctive plural content which is free."
Duncan stressed the urgency of reforming legislation underpinning the UK's PSB system, saying that the government and regulator Ofcom needs to move quickly to protect the tradition of quality, distinctive programming in UK broadcasting.
Speaking at the Westminster Media Forum debate on Ofcom's PSB review he said: "What's a threat is the investment in high quality British TV programmes. We can be 85% commercially self funding, but a new 15% underpinning is needed and there is an urgency to fix that.
Duncan indicated that the commercial downturn in advertising had already impacted C4's programme spending. "We are cutting programme budgets as we speak by 2-3% in absolute terms. The money has gone down and it's having an impact now.
"We welcome any new legislation from Ofcom but our view is that we should move very quickly to new legislation by 2009 so we can get on with a joined up solution [for the future of PSB] and move at the pace at which our global competitors are moving."
Duncan also suggested that it was time that the terms of trade, in which C4 has to return programme rights to independent producers after 30 days, be revisited as a way of solving C4's funding crisis.
Wall to Wall chief executive and Pact chairman Alex Graham dismissed the idea. “On the rights front the brutal fact is that when C4 controlled distribution of its programme rights it made very little money indeed.
One of the most remarkable results of the terms of trade has been the dramatic growth of the distribution sector which has grown at 20% a year. C4 is on track - based on its share of those revenues - to earn just about as much from the exploitation of those rights now as it did when it controlled the rights,” said Graham.
“Let's be clear - the notion that going back to a pre-2003 position on terms of trade would in any way solve C4's financial problems is a total myth.”
Duncan insisted that there was no doubt that viewers wanted plurality from their PSB provision. "There is a very strong consensus about plurality," he said.
"The viewers say they want plurality and Ofcom and our research makes that plain. You don't want just one organisation serving up your TV. You want a varied diet. Let's not debate for another two years whether audiences want it or not - they want it."
He added the BBC benefited from C4's PSB remit. "We help the BBC keep their quality up. They spend their money better because C4 is there competing."
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