BBC not expected to replace Grade until April

With the interview process for the vacant post not expected to begin until after Christmas, there is no chance of someone new taking the reins for months.

It means the BBC will be 'rudderless' at one of the most pivotal points in its history.

The BBC's board of governors is due to be abolished after 77 years and replaced by a new 'arm's length' BBC Trust on 1 January, acting as a regulatory counterbalance to the BBC's executive board and director general Mark Thompson. Mr Grade was to have headed the Trust.

Meanwhile the corporation will have to grapple with what is widely expected to be an unsatisfactory licence fee settlement, leaving a hole in its spending plans.

Yet the Department of Culture, Media and Sport has yet to advertise the £140,000-a-year post of chairman. Civil servants are still said to be drafting the job specification. Insiders today suggested adverts are now most likely to be published in the new year.

A shortlist process will follow, led by a panel featuring a representative of the Culture Department, the BBC and an independent adviser, leading up to interviews. The final appointment is based on culture ministers' recommendations.

Liberal Democrat shadow culture spokesman Don Foster today branded the delay unnecessary.

"The BBC is going through a particularly fraught time and I can't see any reason why the [Culture Department] couldn't advertise for the post almost straight away," he said.

"The structure of the new BBC Trust is very clear and the vacancy clearly exists so I thought that would be the perfect position to have the process in motion instantly. Any delay will be a huge difficulty for the BBC."

Conservative MP John Whittingdale, chairman of the culture select committee, agreed: "It would be hugely unsatisfactory if the appointment were not concluded in the best haste."

He added that he was 'profoundly depressed' by the current frontrunners. They include film producer Lord Puttnam-current bookmakers' favourite at 7/2, closely followed by veteran broadcaster David Dimbleby at 5/1.

Mr Whittingdale said the trust's independence was paramount, adding: "So whoever the chairman is it must not be a cheerleader or a public statesman."

Former culture secretary Chris Smith today ruled himself out of the job, saying that he would be 'astonished' if he were approached and that he was was set to become the new chairman of the Advertising Standards Authority from next July.

"To take on the BBC would obviously be a massive conflict of interest," he said.

Former BBC director general Lord Birt is also the subject of speculation. Contenders who could be argued to have less of a personal interest in the BBC include former permanent secretary to the Treasury Lord Burns and CBI director general and former Financial Times editor Richard Lambert.

A Culture Department spokeswoman today said: "We want to do this properly and carefully. The most important thing is to have the best person in the job."

A BBC spokeswoman insisted the lack of a permanent chairman would not affect the new trust's work. Deputy chairman Anthony Salz is filling in until he leaves and new deputy Chitra Bharucha will succeed him this month.