LONDON - Former British Broadcasting Corporation's director-general Greg Dyke said yesterday that a judicial inquiry that harshly criticised the broadcaster's reporting standards could have damaging implications for the entire media industry.

Hutton, the senior judge investigating the suicide of arms adviser David Kelly shortly after he was named as the BBC source, cleared Prime Minister Tony Blair and his officials of wrongdoing in connection with the death and called the network's report 'unfounded".

'I and others at the BBC, certainly our legal team, were all very surprised by the nature of the report," Dyke told BBC radio yesterday.

'It's remarkable how he's (Hutton's) given the benefit of judgment to virtually everyone in the government and to no-one at the BBC."

The publicly-funded BBC apologised 'unreservedly" on Thursday for the errors it made in the story.

The network said it had to confront 'serious defects in the corporation's processes and procedures".

Sir David Attenborough, who has written, produced and hosted natural history television programmes for 50years, said yesterday that he was dismayed by the corporation's apology.

'I found that distressing to hear those words," said Attenborough, 77.

'Adjectives like 'abject' and 'servile' come to mind. It is a sad day when that kind of grovelling is required."

Blair accepted the apology he had long demanded, and said it was time for all involved in the bitter row to move on.

The BBC has been badly shaken by Hutton's assessment on Wednesday that its news report had been 'unfounded" and its editorial procedures 'defective".

Hutton said the allegations were 'very grave" and faulted BBC editors for failing to review what Gilligan was going to say before he went on the air with the first, and strongest version of his story.

Dyke's resignation came one day after that of Gavyn Davies, the chairperson of the BBC's board of governors.

Dyke, who acknowledged some mistakes in defence correspondent Andrew Gilligan's story on BBC radio, said he defended the right to broadcast an accurate reflection of Kelly's concerns.

'Lord Hutton does seem to suggest that it is not enough for a broadcaster or a newspaper... to simply report what a whistleblower or someone like Dr Kelly says because they are an authoritative source. You have to demonstrate that it's true," Dyke said.

'That would change the law in this country." - Sapa-AP