Harry Potter and the BBC's big bucks

The BBC yesterday defended its decision to sign a multi-million pound movie deal that includes showing the first Harry Potter film, after being accused of profligacy by Channel 5.

Kevin Lygo, director of programmes at Channel 5, claimed the corporation was prepared to spend a disproportionately large sum simply to win the Christmas Day ratings battle. Harry Potter and the Philosopher's Stone will be the cornerstone of the BBC's Christmas schedule.

Mr Lygo told the British Academy of Film and Television Arts that the BBC had spent £10m on the package, outbidding Channel 5. The BBC said the figure was "wildly inflated", and Channel 5 had not even bid for the Potter package.

Channel 5 yesterday stood by Mr Lygo's contention that the government should force the corporation to spend licence-fee income on homegrown programmes.

Mr Lygo said £10m could have been spent on developing six British films like The Full Monty. Delivering the annual Bafta lecture, Mr Lygo said: "It makes you think: hang on a minute, what's that all about? That's just so the BBC can win the ratings on Christmas Day."

He called on the government to make the corporation originate 90% of its programmes in the EU, a condition imposed on the BBC3 youth digital channel.

"Why should they be shovelling money into Hollywood moguls' pockets? Why don't spend it on their own shows?"

He also claimed that the BBC had outbid Channel 5 for an exclusive interview with George Best. Mr Lygo said: "We had agreed to pay him £35,000. But then the BBC came in with £50,000 for two hours of filming." The corporation misused its power, he said. "The BBC is the cultural maypole around which we all dance."

The BBC said it showed some films as part of a commitment to broadcast a wide range of programmes."The audience expects to see first-run movies on the BBC, shown without ad breaks and sponsorship messages. We only cherry pick the best ones."