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British Prime Minister Tony Blair's government has proposed abolishing the BBC's board of governors, which was sharply criticised last year by an independent inquiry probing the case for war in Iraq.
Culture Secretary Tessa Jowell said the board should be replaced by an independent trust to ensure greater transparency and accountability.
Critics say the board currently faces a potential conflict of interest since it both promotes the BBC's interests and acts as its watchdog.
"The governors' dual role as cheerleader and regulator does not sit easily in a public organisation of the size and complexity of the BBC. It lacks clarity. It lacks transparency and it lacks accountability," Jowell told the House of Commons.
She said, however, that the British Broadcasting Corp would retain its charter and continue to be funded by a licence fee, paid by every household using a TV set.
The BBC was criticised last year by an official inquiry, which probed accusations that Blair's office exaggerated the threat posed by Iraqi weapons of mass destruction.
A BBC radio report, quoting an unnamed source, said Blair's office "sexed up" a government dossier on Iraqi weapons.
Government scientist David Kelly killed himself after being named as the source, sparking a political firestorm and forcing Blair to set up an inquiry to investigate the death.
Lord Hutton, the senior appeals judge who led the investigation, cleared Blair's government of almost all wrongdoing in relation to the suicide.
He concluded that the radio report was unfounded, that the BBC's editorial procedures were defective and that its board of governors had failed to investigate closely enough before defending the piece.
Jowell said the proposed changes, which now go out for public consultation, would ensure a "strong, independent future" for the BBC.
"Its values, its global reach, its standards and its editorial independence ... must be preserved. Our proposals, including keeping the licence fee and renewing the charter for another 10 years, will enable it to do just that," she added.
Original piece is http://seven.com.au/news/topstories/166191