BBC division 'out of control'.

BBC Worldwide, the corporation's commercial arm, is an "out of control juggernaut" threatening the profits of TV companies and magazines, MPs were told yesterday.

And the BBC's plans for new local news services are undermining local newspapers.

The House of Commons Culture, Media and Sport Committee was told BBC Worldwide lacked transparency and was snapping up businesses, such as the Lonely Planet guidebook company, which have no link to BBC programming.

Giving evidence at the launch of an inquiry by the committee into the BBC's commercial operations, Lyn Hughes, editor-in-chief of Wanderlust travel magazine, said: "BBC Worldwide is an out of control juggernaut at the moment.

"BBC magazines in particular is totally out of control. It is the third-biggest magazine publisher in the country." She added: "They don't have a Lonely Planet programme so why on earth are they launching Lonely Planet magazine? It cannot be justified."

She said: "No other publisher would be launching a travel magazine at this time.

"It's the worst possible time. So why is the BBC doing it?

"I can only think that it's because they are smug, because they have got deep pockets."

The BBC should stick to magazines such as Top Gear, which relates to TV output, she said.

BBC Worldwide acquired a 75% stake in the Lonely Planet guide book company for a reported pounds 89.9m in October last year.

The commercial arm of the publicly- funded BBC unveiled record profits of pounds 117.7m in its annual review, published this summer, up 17% on the previous year.

BBC World wide's profits are delivered back to the BBC, supplementing the Corporation's licence fee.

Tony Cohen, chief executive officer of Fremantle, an international production company whose programmes include The X Factor, accused the BBC of distorting the market and "exceeding its remit".

He said there were "serious concerns" about how BBC Worldwide is "conducting its operations".

Carolyn McCall, chief executive of the Guardian Media Group, said the plans threatened the future of local and regional newspapers.

"The BBC will be able to do local video much more quickly with much deeper pockets." she said. Local newspapers "might not be able to survive", she said.

Sly Bailey, Trinity Mirror's chief executive, said: "The BBC has lost sight of its strategy, its purpose. It is too big and unwieldy. It is using public money to compete in areas that it doesn't need to be."