[dagw]

Basically it's a principle argument around the role of government companies. Should government companies compete directly with local private companies in non-essential sectors? There are already lots of british companies producing popular entertainment shows, why should they have to compete against the government that is also supposed to support them. How would you feel if your taxes went to finance your direct competitor?

Furthermore it creates a potential conflict of interest. Do you pass a law that benefits 'your' company over private companies? What about passing a law levels the playing field in a sector but will take profits away from the government?

[twic]

I know this is the standard argument against state participation in the economy, but in the particular case of the BBC, i have never heard this argument seriously presented.