The report showed that the controversial decision to push back the BBC late evening news programme to 2200 led to an overall increase in combined BBC and ITV news viewing of almost two million.

The decision to shift the news had been criticised by the government and the fomer Culture Secretary Chris Smith, in particular.

'Mistake'

Sir Christopher said: "Moving the news was controversial but one that has paid real dividends."

The BBC also acknowledged that its decision not to cover the Queen Mother's birthday pageant was a "mistake".

The corporation faced heavy criticism for its decision at the time and ITV stepped in to cover the event.

The BBC board of governors, who regulate the corporation, report that of the 12 objectives set the broadcaster, seven were completed in full and five in part.

Of those met in part, the governors reported that the BBC had made "good progress" in strengthening BBC One and was moving in the right direction on improving diversity within the corporation.

Salaries

Earlier this year Greg Dyke was reported as describing the BBC as "hideously white".

The BBC is working towards a target of 10% of staff from minority ethnic backgrounds by the end of 2003 and in March 2001 the figure was 8.4%.

The salaries of some BBC management have prompted much press criticism in recent months and the figures are contained within the annual report.

The director general was paid �347,000 and �91,000 as an annual bonus and more than �5m was spent on executive committee salaries as a whole.

The BBC governors have also listed a new set of objectives for the corporation and they are:

There was criticism of the loss in viewing figures for the current affairs programme Panorama, which recently moved from Monday evening to Sunday.

In an effort to improve audience figures an extra �500,000 has been set aside for the programme during 2001/2002.