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7.45 pm
Mr. Sproat: I beg to move amendment No. 24, in page 116, line 42, leave out 'sixteen' and insert 'seventeen'.
Mr. Deputy Speaker: With this, it will be convenient to discuss Government amendments Nos. 25, 26, 36, 37 and 158.
Mr. Sproat: Amendments Nos. 24, 25 and 26 enable the Secretary of State, by order, to include the new category of restricted service television licences within the categories of licence that are subject to the 15 per cent. total television audience share limit.
Amendments Nos. 36 and 37 allow the Secretary of State to limit, by order, the number of such licences that may be held by any one person.
Amendment No. 158 allows the Secretary of State to make an order imposing restrictions on cross-ownership of restricted service television licences and newspaper companies, and to apply the public interest test to them, should this prove appropriate in the future.
Amendment agreed to.
Amendment made: No. 25, in page 116, line 45, at end insert--
Amendment proposed: No. 220, in page 117, line 24, leave out from beginning to end of line 26, and insert
Mr. Deputy Speaker:
With this, it will be convenient to discuss the following amendments: No. 237, in page 117, line 25, leave out '15' and insert '10'.
No. 234, in page 117, line 26, after 'not', insert 'subject to sub-paragraph (3B)'.
No. 131, in page 117, leave out lines 44 to 49.
No. 249, in page 117, line 46, leave out '15' and insert '10'.
No. 221, in page 117, leave out from beginning of line 50 to end of line 14 on page 118.
No. 235, in page 117, line 50, after '(1)', insert 'and subject to sub-paragraph (3A)'.
No. 132, in page 118, leave out lines 1 to 4.
No. 133, in page 118, line 7, leave out '1(2)(b)' and insert '1(2)(a), (b)'.
No. 134, in page 118, line 9, leave out
and insert 'a qualifying'.
No. 135, in page 118, leave out lines 11 and 12.
No. 236, in page 118, at end insert--
No. 222, in page 118, leave out from beginning of line 23 to end of line 13 on page 119.
No. 136, in page 118, line 27, at end insert--
Government amendment No. 27.
No. 223, in page 119, line 13, at end insert--
Mr. Robert G. Hughes (Harrow, West):
I have been asked to table amendments Nos. 132 to 135 by Carlton Television. They are technical amendments that change the so-called audience attribution system introduced in Committee by the Government.
The purpose of the Government's system is to take some account of holdings in television stations that are significant but fall short of overall control. If a company holds more than 20 per cent. of a television station but not enough to have control, it has to add one half of that
station's audience share to its overall total. The amendments' purpose is to ensure that all such minority stakes in television stations are treated the same.
Under the Bill as drafted, stakes over 20 per cent. in television stations trigger the audience attribution system, except in the case of channel 3, where the trigger is set at 15 per cent. I do not see a case for treating channel 3 stakes differently. It could lead to some serious anomalies.
If, for example, the consortium running Channel 5 is made up of five companies holding 20 per cent. each, none of them would incur any extra audience share. Yet a 20 per cent. holding in a channel 3 licence, such as the one Carlton, Scottish and Granada hold in GMTV, would incur extra percentage points.
The amendments make the system a little more balanced and give the Secretary of State the power to alter the trigger threshold should the need arise in future.
Mr. Sproat:
Amendments Nos. 220 to 223 and 249 seek to remove the scheme whereby holdings in television are regulated against a 15 per cent. audience share limit. We chose audience share as a way of regulating television ownership because it relates directly to plurality. Limits based on the number of licences are no longer appropriate because licences are not a balanced unit of measure and do not reflect the ability of a media owner to influence opinion.
Amendment No. 237 is an alternative that would reduce the general limit on the holding of television licences from 15 per cent. of the total television audience to 10 per cent. But a 10 per cent. threshold would discourage companies from moving into digital broadcasting, particularly some of the larger players that would be well placed to make such investments. We therefore oppose those amendments.
Government amendment No. 27 introduces an order-making power, subject to the affirmative resolution procedure, whereby sub-paragraphs (1), (3) and (6) of paragraph 2 of part III of schedule 2 can be amended to reflect any significant change in audience measurement practices of the television industry.
We have reflected further on the calculation of audience share and we are prepared to accept amendments Nos. 234, 235 and 236, and I hope that Opposition Front Benchers will enjoy my saying that. I am grateful to my hon. Friend the Member for Harrow, West (Mr. Hughes) for his cogent explanation.
Mr. Maclennan:
I rise briefly to thank the Minister for accepting amendments Nos. 234, 235 and 236: no doubt that will give satisfaction to the ITC, which submitted the amendments.
Mr. Austin Mitchell:
I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Amendment made: No. 234, in page 117, line 26, after 'not', insert 'subject to sub-paragraph (3B)'.--[Dr. Moonie.]
Amendment made: No. 131, in page 117, leave out lines 44 to 49.--[Mr. Robert G. Hughes.]
Amendment made: No. 235, in page 117, line 50, after '(1)', insert 'and subject to sub-paragraph (3A)'.--[Mr. Maclennan.]
Amendments made: No. 132, in page 118, leave out lines 1 to 4.
No. 133, in page 118, line 7, leave out '1(2)(b)' and insert '1(2)(a), (b)'.
No. 134, in page 118, line 9, leave out 'more than a 20 per cent.' and insert 'a qualifying'.
No. 135, in page 118, leave out lines 11 and 12.--[Mr. Robert G. Hughes.]
Amendment made: No. 236, in page 118, at end insert--
Amendment made: No. 26, in page 118, line 27, at end insert--
'(aa) restricted services (within the meaning of Part I of this Act);'.--[Mr. Sproat.]
'No person shall at any one time--'.--[Mr. Austin Mitchell.]
'more than a 20 per cent.'
'(3A) For the purposes of calculating a person's audience time in respect of any period in accordance with sub-paragraph (3):
(a) there shall be included the audience time attributable in respect of that period to each service referred to in that sub-paragraph in respect of which, on the date upon which the calculation of his audience time for the purposes of sub-paragraph (1) is made, he holds the licence, is a participant in the body corporate which holds the licence, or which he provides (as the case may be), irrespective of whether he held the licence, or was a participant in the body corporate which holds the licence or provided the service at any time during the period; and
(b) there shall (for the avoidance of doubt) be excluded the audience time attributable in respect of that period to each service referred to in sub-paragraph (3) in respect of which, prior to the date upon which the calculation of his audience time for the purposes of sub-paragraph (1) is made, he has ceased to hold the licence, or to be a participant in the holder of the licence, or to provide the service (as the case may be).
(3B) Sub-paragraph (1) shall not prevent a person from continuing to hold any licence, or to be a participant in a body corporate which holds any licence, or from continuing to provide any service (as the case may be) if and to the extent that arrangements made by him after the end of period in respect of which his audience time exceeds 15 per cent of total audience time would cause his audience time calculated so as to take into account the effect of those arrangements, not to exceed 15 per cent of total audience time.'.
'(6) In this paragraph "qualifying interest" means an interest of more than 20 per cent.
(7) The Secretary of State may by order amend sub-paragraph (6)--
(a) by substituting a different percentage for any percentage for the time being specified there, and
(b) so as to specify different percentages in relation to licences to provide different services.'.
'3A. Provided that any proposal by a person who holds a licence to provide a service falling within any category specified in paragraph 1(2)(a), (b), (c), (d) or (g) to acquire a further licence to provide one of the services so specified shall not take effect unless the Commission have examined the proposal and satisfied themselves that its terms are conducive to the public interest.'.
'(3A) For the purposes of calculating a person's audience time in respect of any period in accordance with sub-paragraph (3):
(a) there shall be included the audience time attributable in respect of that period to each service referred to in that sub-paragraph in respect of which, on the date upon which the calculation of his audience time for the purposes of sub-paragraph (1) is made, he holds the licence, is a participant in the body corporate which holds the licence, or which he provides (as the case may be), irrespective of whether he held the licence, or was a participant in the body corporate which holds the licence or provided the service at any time during the period; and
(b) there shall (for the avoidance of doubt) be excluded the audience time attributable in respect of that period to each service referred to in sub-paragraph (3) in respect of which, prior to the date upon which the calculation of his audience time for the purposes of sub-paragraph (1) is made, he has ceased to hold the licence, or to be a participant in the holder of the licence, or to provide the service (as the case may be).
(3B) Sub-paragraph (1) shall not prevent a person from continuing to hold any licence, or to be a participant in a body corporate which holds any licence, or from continuing to provide any service (as the case may be) if and to the extent that arrangements made by him after the end of period in respect of which his audience time exceeds 15 per cent of total audience time would cause his audience time calculated so as to take into account the effect of those arrangements, not to exceed 15 per cent of total audience time.'.--[Dr. Moonie.]
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