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Spending more of the BBC licence fee raised in Scotland on indigenous TV production could deliver a major boost to the Scottish economy, Culture Secretary Fiona Hyslop said today.

Speaking at a Charter renewal consultation event she was hosting in Edinburgh, Ms Hyslop expanded on her vision for the BBC to operate under a federal structure and outlined how re-aligning current spending would strengthen the country’s creative industries and wider economy.

She said:

"Scotland has the right to expect something truly radical from the BBC Charter review if the organisation is to meet the needs of audiences or support the development of a sustainable production sector in Scotland.

"We are calling for a federal BBC and for budgets to be transferred to BBC Scotland, which would allow independent decision making in relation to commissioning and editorial choices, staffing structures and the wider running of the organisation.

"BBC Scotland must have control over a far greater proportion of the £323 million collected in TV Licensing revenues in Scotland. The BBC as a public sector broadcaster has the power to transform the industry in Scotland and that is why I am calling for BBC Scotland to have a much more representative share of the licence fee, which could see an additional £100m available for production in Scotland, supporting an estimated 1,500 jobs and contributing around £60 million to the Scottish economy.

"Even small changes to the way the BBC Scotland budget is currently spent could generate economic benefits to Scotland.

"Simply realigning all of the £80-90 million BBC Scotland currently spends on production in Scotland to commissioning content from indigenous producers could generate as much as £30 million further spending across the economy.

"Although ‘lift and shift’ currently generates some economic activity, this demonstrates the scale of economic activity that could be supported if the full commissioning budget was spent in Scotland, and underlines the much broader, positive effect this could have - both on the economy and the long-term future of our creative industries.

"We understand the UK Department for Culture, Media and Sport (DCMS) has received around 200,000 responses to their recent consultation, which demonstrates the importance of the BBC’s role as our primary public sector broadcaster.

"It’s crucial that Scotland sets out a coordinated, reasoned and well evidenced argument on its asks as part of Charter renewal. From our discussions we have held with the sector in Scotland, we know there is support for our proposals and an appetite for positive change through the charter renewal process."