Mark Thompson, the director-general of the BBC, today slammed a suggestion that BBC Worldwide, the corporation’s commercial arm, could be gifted to Channel 4 to plug a funding gap of up to £150 million.

“The idea of BBC Worldwide being gifted to Channel 4 is a rather odd decision. Worldwide is not a portable ATM machine,” said Mr Thompson, speaking at the RTS conference in London today.

“It’s an odd thought that the BBC website would be BBC branded in the UK but Channel 4-branded when you cross over to Calais.”

The division, which has been developed into a profitable operation under the leadership of John Smith, could be handed to Channel 4, according to proposals from Ofcom, the communications regulator, to plug the funding gap.

Mr Thompson said: “I’m not convinced that the way [of Channel 4] meeting its risks is by putting more money into it.”

Andy Duncan, chief executive of Channel 4, said that the commercial broadcaster would publish its ideas on how its funding gap could be plugged in the next few weeks.

Ofcom said earlier this week that, as part of its second review of public service broadcasting, public funding of between £145 million and £235 million would be needed to maintain public service content provision beyond that of the BBC by 2012.

This includes the £60 million to £100 million Ofcom has already identified that Channel 4 needs to deal with its funding gap.

“Proposals, such as the BBC developing partnerships with commercial broadcasters, or the transfer of some or all of BBC Worldwide to Channel 4’s ownership also have merit, although the practicalities require careful assessment,” Ofcom said.

It also emerged this week that Channel 4 would be cutting 15 per cent of its workforce, screen more repeats and reduce serious programming in favour of lightweight reality shows, such as Big Brother, as the difficult advertising market takes its toll of the media sector.

The broadcaster said that it would slash £100 million from its costs - cutting back on current affairs, serious factual programmes and possibly dramas for the rest of this year and next.

The regulator has said that up to £235 million a year will be needed by 2012 to maintain public service content on commercial television. The communications regulator also said this week that ITV should be allowed to reduce regional programming by 50 per cent and reduce some current affairs programmes.

Ofcom has said that other possible sources of funding include direct public funding, Channel 4 taking a stake in BBC Worldwide, and the use of the excess licence fee settlement, which is currently paying for digital switchover costs, after 2012.

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