House of Commons portcullis
House of Commons
Session 2002 - 03
Internet Publications
Other Bills before Parliament

Communications Bill


Communications Bill
Schedule 13 — Financial penalties under the Broadcasting Acts
Part 1 — Broadcasting Act 1990

    415

 

              (1C)                In relation to a person whose first complete accounting period falling

within the relevant period has not ended when the penalty is

imposed, subsection (1B)(b) is to be construed as referring to 5 per

cent. of the amount which OFCOM estimate to be the qualifying

revenue for that accounting period.

5

              (1D)                Section 102(2) to (6) applies for determining or estimating qualifying

revenue for the purposes of subsection (1B) or (1C) above.”

          (2)      In subsection (3) of that section (maximum penalty for failure by holder of a

sound broadcasting licence that is not a national licence to comply with

licence conditions or directions), for “£50,000” there shall be substituted

10

“£250,000”.

          (3)      This paragraph applies in relation to a failure to comply with a condition or

direction only if it is one occurring after the commencement of this

paragraph.

Additional radio services licences

15

  8       (1)      For subsection (2) of section 120 (penalties for failure by holder of additional

radio services licence to comply with licence conditions or directions) there

shall be substituted—

              “(1A)                The amount of a financial penalty imposed on a person in pursuance

of subsection (1) shall not exceed 5 per cent. of the qualifying revenue

20

for the licence holder’s last complete accounting period falling

within the period for which his licence has been in force (‘the

relevant period’).

              (1B)                In relation to a person whose first complete accounting period falling

within the relevant period has not ended when the penalty is

25

imposed, subsection (1A) is to be construed as referring to 5 per cent.

of the amount which OFCOM estimate to be the qualifying revenue

for that accounting period.

              (1C)                Section 118(2) applies for determining or estimating qualifying

revenue for the purposes of subsection (1A) or (1B) above.”

30

          (2)      This paragraph applies in relation to a failure to comply with a condition or

direction only if it is one occurring after the commencement of this

paragraph.

Power to amend penalties under the 1990 Act

  9       (1)      The Secretary of State may by order amend any of the provisions of the 1990

35

Act specified in sub-paragraph (2) by substituting a different sum for the

sum for the time being specified in that provision.

          (2)      Those provisions are—

              (a)             section 18(3B)(a) and (3C)(a);

              (b)             section 42B(3A)(a);

40

              (c)             section 101(3B)(a) and (3C)(a);

              (d)             section 110(1B)(a) and (3).

          (3)      No order is to be made under this paragraph unless a draft of the order has

been laid before Parliament and approved by a resolution of each House.

 

 

Communications Bill
Schedule 13 — Financial penalties under the Broadcasting Acts
Part 2 — Broadcasting Act 1996

    416

 

Part 2

Broadcasting Act 1996

Preliminary

  10       The 1996 Act shall be amended as follows.

Revocation of television multiplex licences

5

  11      (1)       In subsection (5) of section 11 (penalty on revocation of television multiplex

licence), the words from “not exceeding” onwards shall be omitted.

          (2)      For subsection (6) of that section (amount of penalty) there shall be

substituted—

              “(5A)                The maximum amount which a person may be required to pay by

10

way of a penalty under subsection (5) is the maximum penalty given

by subsections (5B) and (5C).

              (5B)                In a case where the licence is revoked under this section or the

penalty is imposed before the end of the first complete accounting

period of the licence holder to fall within the period for which the

15

licence is in force, the maximum penalty is whichever is the greater

of—

                    (a)                   £500,000; and

                    (b)                   7 per cent. of the amount which OFCOM estimate would

have been the multiplex revenue for the first complete

20

accounting period of the licence holder falling within the

period for which the licence would have been in force.

              (5C)                In any other case, the maximum penalty is whichever is the greater

of—

                    (a)                   £500,000; and

25

                    (b)                   7 per cent. of the multiplex revenue for the last complete

accounting period of the licence holder falling within the

period for which the licence is in force.

              (5D)                Section 14 applies for estimating or determining multiplex revenue

for the purposes of subsection (5B) or (5C) above.”

30

          (3)      This paragraph applies only in a case of a revocation in relation to which—

              (a)             the notice required by section 11(2) of the 1996 Act, or

              (b)             the notice revoking the licence,

                   is served after the commencement of this paragraph.

Attribution of television multiplex revenue

35

  12      (1)      In subsection (1) of section 15 (attribution of multiplex revenue for the

purposes of section 17(3)), for “17(3)” there shall be substituted “17(2A) and

(2B)”.

          (2)      In subsection (2) of that section (attribution for the purposes of sections 23(3)

and 27(3)), for “section 23(3) or section 27(3)” there shall be substituted

40

“sections 23(2A) to (5) and 27(2A) to (5)”.

 

 

Communications Bill
Schedule 13 — Financial penalties under the Broadcasting Acts
Part 2 — Broadcasting Act 1996

    417

 

          (3)      This paragraph has effect in relation only to cases in which section 17, 23 or

27 applies as amended by this Schedule.

Multiplex licences

  13      (1)      In subsection (2) of section 17 (penalty for failure by holder of television

multiplex licence to comply with licence conditions or directions), for the

5

words from “whichever is the greater” onwards there shall be substituted

“the maximum penalty given by subsection (2A).”

          (2)      For subsection (3) of that section (maximum penalties) there shall be

substituted—

              “(2A)                The maximum penalty is whichever is the greater of—

10

                    (a)                   £250,000; and

                    (b)                   5 per cent. of the share of multiplex revenue attributable to

the licence holder for his last complete accounting period

falling within the period for which his licence has been in

force (‘the relevant period’).

15

              (2B)                In relation to a person whose first complete accounting period falling

within the relevant period has not ended when the penalty is

imposed, subsection (2A)(b) is to be construed as referring to 5 per

cent. of the amount which OFCOM estimate to be the share of

multiplex revenue attributable to him for that accounting period.

20

              (2C)                Section 15(1) and (3) applies for determining or estimating the share

of multiplex revenue attributable to a person for the purposes of

subsection (2A) or (2B) above.”

          (3)      This paragraph applies in relation to a failure to comply with a condition or

direction only if it is one occurring after the commencement of this

25

paragraph.

Digital television programme licences

  14      (1)      In subsection (2) of section 23 (penalty for failure by holder of digital

television programme licence to comply with licence conditions or

directions), for the words from “whichever is the greater” onwards there

30

shall be substituted “the maximum penalty given by subsection (2A).”

          (2)      For subsection (3) of that section (maximum penalties) there shall be

substituted—

              “(2A)                The maximum penalty is whichever is the greater of—

                    (a)                   £250,000; and

35

                    (b)                   5 per cent. of the aggregate amount of the shares of multiplex

revenue attributable to him in relation to multiplex services

in respect of relevant accounting periods.”

          (3)      In subsection (4) of that section (meaning of “relevant accounting period”),

for “subsection (3)(a)” there shall be substituted “subsection (2A)”.

40

          (4)      In subsection (5) of that section, for “not yet ended, then for the purposes of

subsection (3)” there shall be substituted “not ended when the penalty is

imposed, then for the purposes of this section”.

          (5)      Before subsection (6) of that section there shall be inserted—

 

 

Communications Bill
Schedule 13 — Financial penalties under the Broadcasting Acts
Part 2 — Broadcasting Act 1996

    418

 

              “(5B)                Section 15(2) and (3) applies for determining or estimating the share

of multiplex revenue attributable to a person for the purposes of

subsection (2A) or (5) above.”

          (6)      This paragraph applies in relation to a failure to comply with a condition or

direction only if it is one occurring after the commencement of this

5

paragraph.

Digital additional television services licences

  15      (1)      In subsection (2) of section 27 (penalty for failure by holder of digital

additional services licence to comply with licence conditions or directions),

for the words from “whichever is the greater” onwards there shall be

10

substituted “the maximum penalty given by subsection (2A).”

          (2)      For subsection (3) of that section (maximum penalties) there shall be

substituted—

              “(2A)                The maximum penalty is whichever is the greater of—

                    (a)                   £250,000; and

15

                    (b)                   5 per cent. of the aggregate amount of the shares of multiplex

revenue attributable to him in relation to multiplex services

in respect of relevant accounting periods.”

          (3)      In subsection (4) of that section (meaning of “relevant accounting period”),

for “subsection (3)(a)” there shall be substituted “subsection (2A)”.

20

          (4)      In subsection (5) of that section, for “not yet ended, then for the purposes of

subsection (3)” there shall be substituted “not ended when the penalty is

imposed, then for the purposes of this section”.

          (5)      Before subsection (6) of that section there shall be inserted—

              “(5B)                Section 15(2) and (3) applies for determining or estimating the share

25

of multiplex revenue attributable to a person for the purposes of

subsection (2A) or (5) above.”

          (6)      This paragraph applies in relation to a failure to comply with a condition or

direction only if it is one occurring after the commencement of this

paragraph.

30

Power to amend digital television penalties

  16       For section 36(2) and (3) (provisions that may be amended and negative

resolution procedure) there shall be substituted—

              “(2)                The provisions referred to in subsection (1) are—

                    (a)                   section 11(5B)(a) and (5C)(a);

35

                    (b)                   section 17(2A)(a);

                    (c)                   section 23(2A)(a); and

                    (d)                   section 27(2A)(a).

              (3)                                No order is to be made under subsection (1) unless a draft of the

order has been laid before Parliament and approved by a resolution

40

of each House.”

 

 

Communications Bill
Schedule 13 — Financial penalties under the Broadcasting Acts
Part 2 — Broadcasting Act 1996

    419

 

Revocation of radio multiplex licences

  17      (1)      In section 53(5) (maximum penalty on revocation of radio multiplex licence),

for “£50,000”, in both places, there shall be substituted “£250,000”.

          (2)      This paragraph applies only in a case of a revocation in relation to which—

              (a)             the notice required by section 53(2) of the 1996 Act, or

5

              (b)             the notice revoking the licence,

                   is served after the commencement of this paragraph.

Attribution of radio multiplex revenue

  18      (1)      In subsection (1) of section 57 (attribution of multiplex revenue for the

purposes of sections 59(3)), for “59(3)” there shall be substituted “59(2A) and

10

(2B)”.

          (2)      In subsection (2) of that section, (attribution for the purposes of sections

62(3) and 66(3)), for “section 62(3) or section 66(3)” there shall be substituted

“sections 62(2A) to (5) and 66(2A) to (5)”.

          (3)      This paragraph has effect in relation only to cases in which section 59, 62 or

15

66 applies as amended by this Schedule.

Contraventions of conditions of radio multiplex licences

  19      (1)      In subsection (2) of section 59 (penalty for failure by holder of radio

multiplex licence licence to comply with licence conditions or directions), for

the words from “whichever is the greater” onwards there shall be

20

substituted “the maximum penalty given by subsection (2A).”

          (2)      For subsection (3) of that section (maximum penalties) there shall be

substituted—

              “(2A)                The maximum penalty is whichever is the greater of—

                    (a)                   £250,000; and

25

                    (b)                   5 per cent. of the aggregate amount of the share of multiplex

revenue attributable to him for his last complete accounting

period falling within a period for which his licence has been

in force (‘the relevant period’).

              (2B)                In relation to a person whose first complete accounting period falling

30

within the relevant period has not ended when the penalty is

imposed, subsection (2A)(b) is to be construed as referring to 5 per

cent. of the amount which OFCOM estimate to be the share of

multiplex revenue attributable to him for that accounting period.

              (2C)                Section 57(1) and (3) applies for determining or estimating the share

35

of multiplex revenue attributable to a person for the purposes of

subsection (2A) or (2B) above.”

          (3)      In subsection (4) of that section (maximum penalty to be imposed on holder

of local radio multiplex licences for failure to comply with conditions or

directions), for “£50,000” there shall be substituted “£250,000”.

40

          (4)      This paragraph applies in relation to a failure to comply with a condition or

direction only if it is one occurring after the commencement of this

paragraph.

 

 

Communications Bill
Schedule 13 — Financial penalties under the Broadcasting Acts
Part 2 — Broadcasting Act 1996

    420

 

Digital sound programme licences

  20      (1)      In subsection (2) of section 62 (penalty for failure by holder of digital sound

programme licence to comply with licence conditions or directions), for the

words from “whichever is the greater” onwards there shall be substituted

“the maximum penalty given by subsection (2A).”

5

          (2)      For subsection (3) of that section (maximum penalties) there shall be

substituted—

              “(2A)                The maximum penalty is whichever is the greater of—

                    (a)                   £250,000; and

                    (b)                   5 per cent. of the aggregate amount of the shares of multiplex

10

revenue attributable to him in relation to national radio

multiplex revenue in respect of relevant accounting periods.”

          (3)      In subsection (4) of that section (meaning of “relevant accounting period”),

for “subsection (3)” there shall be substituted “subsection (2A)”.

          (4)      In subsection (5) of that section, for “not yet ended, then for the purposes of

15

subsection (3)” there shall be substituted “not ended when the penalty is

imposed, then for the purposes of this section”.

          (5)      After that subsection there shall be inserted—

              “(5A)                A determination or estimate for the purposes of subsection (2A) or

(5) above of the share of multiplex revenue attributable to a person—

20

                    (a)                   in the case of a contravention relating to a digital sound

programme service provided for inclusion in a radio

multiplex service, is to be in accordance with section 57(2)

and (3); and

                    (b)                   in any other case, is to be in accordance with section 15(2) and

25

(3).”

          (6)      In subsection (6) of that section (maximum penalty where licence is a local

digital sound programme licence), for “£50,000” there shall be substituted

“£250,000”.

          (7)      This paragraph applies in relation to a failure to comply with a condition or

30

direction only if it is one occurring after the commencement of this

paragraph.

Licences for digital additional sound services

  21      (1)      In subsection (2) of section 66 (penalty for failure by holder of digital

additional sound services licence to comply with licence conditions or

35

directions), for the words from “whichever is the greater” onwards there

shall be substituted “the maximum penalty given by subsection (2A).”

          (2)      For subsection (3) of that section (maximum penalties) there shall be

substituted—

              “(2A)                The maximum penalty is whichever is the greater of—

40

                    (a)                   £250,000; and

                    (b)                   5 per cent. of the aggregate amount of the shares of multiplex

revenue attributable to him in relation to national radio

multiplex revenue in respect of relevant accounting periods.”

 

 

Communications Bill
Schedule 14 — Media ownership rules
Part 1 — Channel 3 services

    421

 

          (3)      In subsection (4) of that section (maximum penalty where licence is a local

digital sound programme licence), for “£50,000” there shall be substituted

“£250,000”.

          (4)      In subsection (5) of that section (meaning of “relevant accounting period”)

for “subsection (3)” there shall be substituted “subsection (2A)”.

5

          (5)      In subsection (6) of that section, for “not yet ended, then for the purposes of

subsection (3)” there shall be substituted “not ended when the penalty is

imposed, then for the purposes of this section”.

          (6)      After that subsection there shall be inserted—

              “(6A)                A determination or estimate for the purposes of subsection (2A) or

10

(6) above of the share of multiplex revenue attributable to a person—

                    (a)                   in the case of a contravention relating to a digital additional

programme service provided for inclusion in a radio

multiplex service, is to be in accordance with section 57(2)

and (3); and

15

                    (b)                   in any other case, is to be in accordance with section 15(2) and

(3).”

          (7)      This paragraph applies in relation to a failure to comply with a condition or

direction only if it is one occurring after the commencement of this

paragraph.

20

Power to amend digital television penalties

  22       For section 69(2) and (3) (provisions that may be amended and negative

resolution procedure) there shall be substituted—

              “(2)                The provisions referred to in subsection (1) are—

                    (a)                   section 53(5)(a) and (b)(i);

25

                    (b)                   section 59(2A)(a) and (4);

                    (c)                   section 62(2A)(a) and (6); and

                    (d)                   section 66(2A)(a) and (4).

              (3)                                No order is to be made under subsection (1) unless a draft of the

order has been laid before Parliament and approved by a resolution

30

of each House.”

Schedule 14

Section 339

 

Media ownership rules

Part 1

Channel 3 services

35

Ban on newspaper proprietors holding Channel 3 licences

  1       (1)      A person is not to hold a licence to provide a Channel 3 service if—

              (a)             he runs a national newspaper which for the time being has a national

market share of 20 per cent. or more; or

 

 

 
previous section contents continue
 
House of Commons home page Houses of Parliament home page House of Lords home page search page enquiries

© Parliamentary copyright 2003
Revised 10 February 2003