Memorandum submitted by Martin Hoscik
Further to your recent press notice on your
inquiry into public service media content I wish to make representations
on the issue of public funding of broadcasters in addition to
the BBC.
The BBC's direct funding through the Licence
Fee allows the public a unique opportunity to measure the value
for money of a government levied sum; Licence Fee payers know
exactly how much we pay and can easily see assess for ourselves
the merit of the BBC's output.
Many reports and commentators discussing the
possibility of public funding other broadcasters often refer to
"top-slicing" the Licence Fee. I believe this should
be rejected wholesale as an option on the following grounds:
(i) Top-slicing would break the visible link
between the amount paid and the output it funds—Licence
Fee payers would no longer have a transparent link between collection
and output.
(ii) If the LF were top-sliced it is likely
that it would need to be increased to prevent the BBC suffering
a reduction in income. It could not be certain that all viewers
would understand that this money was not going to the BBC, this
in turn could have serious long term implications for ongoing
public acceptance of the Fee.
The Government already collects significant
sums from the commercial broadcasters in taxes and spectrum levies.
It would therefore be relatively simple to offset the costs of
any PSB output against their tax obligations.
At the moment all LF funded output is produced
by the BBC and the receipts from commercial exploitation channelled
via BBC Worldwide back in to BBC output. Similarly the commercial
broadcasters keep any receipts from their own PSB output which
are the disposed of in keeping with the needs of the business
and their obligations to shareholders.
However it would be improper for any commercial
broadcaster to retain profits generated by the exploitation of
publicly funded programming. Again, if this content were funded
by a portion the Licence Fee it would unacceptable for such receipts
to fund the broadcaster's commercial activities.
The Practicality of Continuing to Impose Public
Service Obligations on Commercial Broadcasters.
Commercial broadcasters should be freed of much
of their PS obligations. This would allow them to pursue the legitimate
needs of their shareholders.
October 2006
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