Ofcom approves STV's plan to axe north news programme

The TV regulator Ofcom has approved STV's controversial plans to cut its north of Scotland news programme.

The plans were announced as part of the broadcaster's efforts to save £2.5m by next year.

Ofcom's decision follows a lengthy consultation process as well as opposition from the Scottish government, several senior politicians and the National Union of Journalists (NUJ).

STV said the approval will allow them to continue to serve viewers with "high quality" national and regional news in a way that is sustainable.

STV's plan will see the end of the entirely separate news service for the north of Scotland, which is the legacy of the former Grampian Television.

All news programmes will be presented from Glasgow and viewers in both central and northern Scotland would see the same stories most of the time.

However, at least a third of the main 18:00 programme will be different in each of the two regions.

STV said it would still have journalists in Aberdeen, Dundee and Inverness and argued that the plan will allow them to retain the "distinct regional character" of the north and central belt, while expanding its digital news service.

The changes will also mean the end of the short sections of the 18:00 programme which focus on purely local stories from Glasgow, Edinburgh, Aberdeen and Dundee.

Ofcom says it will monitor the company's compliance with its new licence conditions and hold it to account.

It was originally thought the plans would lead to up to 60 jobs being cut - 30 of which were in news.

However revised plans mean only a small number of staff remain at risk of compulsory redundancy.

Many affected have been redeployed or agreed to voluntary redundancy.

The company has highlighted the long-term fall in TV viewing figures and falling advertising revenue.

NUJ members held a one-day strike over the news changes and associated job cuts in January.

STV's chief executive officer Rufus Radcliffe said the company had to respond to the "significant shift" in audience behaviour.

He said: "As a commercial public service broadcaster, that receives no public funding, we are focused on the future and what we do best - trusted news and high-quality content that continues to resonate with audiences across all of Scotland."

Last year, the SNP, Scottish Conservatives, Scottish Labour, Scottish Liberal Democrats and the Scottish Greens united to sign a letter to TV watchdog Ofcom condemning the proposal.

Nick McGowan-Lowe, the NUJ's organiser for Scotland, described Ofcom's decision as a "weak decision".

He said: "Ofcom's remit is to act in the interests of viewers, yet today it has rubber-stamped plans that were supported by only 4% of viewers in the north and north-east of Scotland.

"This is the weakest of decisions in the face of the strongest of opposition from viewers, politicians and STV's own journalists."

The NUJ had claimed the changes were primarily driven by STV's financial position. The share price fell badly after a profit warning last year and has not recovered.

It also questioned the company's decision to invest in setting up a radio station while making cuts to its main business.

Meanwhile Russell Borthwick, chief executive at Aberdeen and Grampian Chamber of Commerce, said Ofcom's decision was "deeply disappointing".

He said: "While STV has made changes to its original proposals, the reality remains that the north of Scotland will lose its dedicated news service and the local presentation that has been a trusted part of viewers' lives for generations."

These changes are hugely controversial. Arguably they represent the biggest single change ever made to commercial television in Scotland.

The fact the north of Scotland had a separate news service from STV was the legacy of the former Grampian Television.

But opponents argued the need for such a service was as strong as ever.

STV argued the way people consume news is changing. TV viewing figures are falling. Advertising is under pressure too.

STV's news service is, in effect, subsidised by the rest of the schedule.

This decision will be disappointing to opponents - not least the Scottish government.

However it is incredibly difficult for the regulator to compel commercial broadcasters to do things which are not in the company's commercial interests.

The days when STV was a monopoly with "a licence to print money" are a distant memory.