BBC job 'influenced' by Ministers

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The former market trader turned council chief's links with Gordon Brown, who was Chancellor at the time, sparked accusations of cronyism when he was appointed to the corporation.

Union bosses said they were "puzzled" that someone with little broadcasting experience had been selected for the £140,000-a-year post.

The House of Lords committee criticised the way the chairman was appointed, saying it gave "considerable opportunity" for Government ministers to influence the decision.

"Ministers appointed the selection panel, ministers were allowed to change the shortlist of candidates and ultimately ministers were able to choose between four candidates who passed the interview process," it said.

Referring to the row between the BBC and the Government following the death of Dr David Kelly, communications committee chairman Lord Fowler said: "The independence of the BBC is of paramount importance to its viewers and listeners. Recent history shows that it is possible for the Government of the day to come into conflict with the BBC.

"Yet Government ministers have considerable powers over the selection of the chairman of the BBC."

Before getting the BBC job, Sir Michael carried out three jobs for Mr Brown, including a review of the council tax system, which was shelved.

When Mr Lyons's name was announced in April, critics said appointing the chairman behind closed doors, when Parliament was in recess, had fuelled suspicions of cronyism.

Mr Lyons himself dismissed the allegations, pledging "absolute independence and impartiality".