Mark Thompson defends BBC Local, handling of Brand/Ross aftermath and BBC Worldwide in the Commons

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There was 'a serious editorial lapse' in the Brand/Ross case that was 'entirely appropriate' for the media to highlight, the BBC's director-general has said.

There are licence fee payers, some of whom have written to Thompson, who have said media coverage of the incident was 'an over-reaction', the director-general said.

According to Thompson, who was giving evidence as part of the ongoing investigation into the commercial operations of the BBC by the House of Commons Culture Media and Sport Committee, the media responded appropriately: "I would not say the press comment was illegitimate."

The BBC is currently preparing a report regarding the issue, Sir Michael Lyons, chair of the BBC Trust, said in his evidence to the committee.

Ross' return to his Radio 2 programme on January 24, as previously announced by the corporation, was not confirmed by Lyons, who said the entire incident remained under investigation.

The Trust has since confirmed in a press release that Ross' position has not been formally decided and the original three month suspension remains in place.

"[B]ased on the oral updates it has received since October 30, it does not expect the director-general's final report to provide new information of substance relating to Jonathan Ross's role which would lead it to change its view on his part in this incident," the Trust said in a release, adding that it did not wish to pre-empt its own enquiry.

The committee also suggested that as one of the producers on Brand's radio show was employed by the star's company, Vanity Projects, it was therefore difficult to keep his employer in check.

In response, Thompson suggested that further safeguards should be put in place, for occasions when independent production companies with commercial interests produce programmes for the BBC.

BBC Worldwide has no

advance knowledge

of BBC editorial content

Both Thompson and Lyons defended the BBC's transparent trading processes.

"There is prohibition on any subsidies to the commercial arm of the BBC from the licence fee payer," said Lyons.

Lyons said the Trust was investigating the chief executive of BBC Worldwide's position on the BBC board – after the committee pointed out this board member might have unfair advantage through receipt of advance information.

"The board only discusses strategic matters," added Thompson, who stressed that no specific upcoming programmes or individual projects are revealed in advance to BBC Worldwide.

BBC Local should not have 'severe market impact'

Speaking on the issue of the BBC's proposed £68 million investment in local video content online , Thompson defended the plans, saying the public constantly asked for better local service from the BBC.

Asked about impact of the plans on local newspapers and radio stations, Lyons said: "If we were to conclude the market impact was so severe that it was stronger than the public value gained then unequivocally we would not go ahead."