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Lord Barnett: My Lords, I again pay tribute to the Minister for the way he has handled this Bill, the BBC Charter and Agreement and the discussions which we had about it. We are very grateful for his knowledge and ability and the way in which he has handled matters.

I am happy to take away Amendments Nos. 165 and 166. I hope that I said that there can be many news providers. I do not object to them at all. If the ITC nominates other news providers who will meet their own criteria it will be for the ITV companies to choose which one they want to use. I have no objection to that because it is absolutely right. With the principle that the Minister set out and the way in which he agrees to Amendment No. 165, I beg leave to withdraw the amendment. We shall look at the proposed amendment which I assume the Government will put down at Third Reading.

Amendment, by leave, withdrawn.

[Amendment No. 166 not moved.]

7 Mar 1996 : Column 460

Lord Inglewood moved Amendment No. 167:


After Clause 70, insert the following new clause--

Restricted television services

(". After section 42 of the 1990 Act there is inserted--
"Chapter IIA
Restricted services

Restricted services.
42A. In this Part "restricted service" means a service which--
(a) consists in the broadcasting of television programmes for a particular establishment or other defined location, or a particular event, in the United Kingdom, and
(b) is provided on a frequency or frequencies assigned to the Commission under section 65.
Licensing etc. of restricted services.
42B.--(1) An application for a licence to provide a restricted service shall be made in such manner as the Commission may determine, and shall be accompanied by such fee (if any) as the Commission may determine.
(2) Subject to subsections (3) and (4), sections 40 to 42 shall apply in relation to such a licence as they apply in relation to a licence to provide a Channel 3 service.
(3) In its application to a licence to provide a restricted service, section 41 shall have effect with the omission of subsection (2); and the maximum amount which the holder of such a licence may be required to pay by way of a financial penalty imposed in pursuance of subsection (1)(a) of that section shall not exceed whichever is the greater of--
(a) £50,000, and
(b) the amount determined under subsection (4).
(4) The amount referred to in subsection (3)(b) is--
(a) in a case where a penalty under section 41(1)(a) has not previously been imposed on the holder of the licence during any period for which his licence has been in force ("the relevant period"), 3 per cent. of the qualifying revenue for his last complete accounting period (as determined in accordance with section 19(2) to (6)); and
(b) in any other case, 5 per cent. of the qualifying revenue for that accounting period (as so determined);
and in relation to a person whose first complete accounting period falling within the relevant period has not yet ended, paragraphs (a) and (b) above shall be construed as referring to 3, or (as the case may be) 5, per cent. of the amount which the Commission estimate to be the qualifying revenue for that accounting period (as so determined).".").

The noble Lord said: My Lords, as I explained in the debate in Committee on Amendment No. 192, tabled by the noble Baroness, Lady Dean, the Government are keen to see the expansion of smaller scale television operations where there is suitable available spectrum. This amendment follows representations made to us by the Independent Television Commission and mirrors, almost exactly, the provision for radio restricted service licences, and it is our hope that it will be as popular.

I should stress that this amendment applied to the current world of analogue transmission. With the arrival of digital and its more efficient use of spectrum, the multiplex provider will be in a position to include all manner of local television services aimed at special events or particular sections of the community. These will be a matter for contract between broadcasters and the multiplex provider.

7 Mar 1996 : Column 461

Last year the Radio Authority issued over 300 restrictive service licences for 28 days or less and there are over 40 longer term RSLs operating in hospitals, universities and colleges. The economics of establishing a television service are somewhat different in scale than is the case for radio. We therefore envisage that the Independent Television Commission will need to consider carefully how best to encourage the take-up of these licences. However, the Government are keen to give the ITC the maximum possible room for manoeuvre in awarding them and this is why the amendment before your Lordships is drafted in broader terms than that put forward in Committee by the noble Baroness, Lady Dean.

My department and the ITC are aware of the wish of the Silverstone race circuit to broadcast television services during events held there and we would envisage such broadcasts being licensed as restricted services provided there is spectrum available for such use. I am sure that there will be many more demands for such licences for special events and from the likes of university campuses keen to have a student television service.

I should explain that the provisions of new Section 42B merely replicate the enforcement provisions and the level of fines for breaching a licence which apply to all the ITC's other licensees, as amended by the government amendments debated on Tuesday. I beg to move.

On Question, amendment agreed to.

Lord Inglewood moved Amendment No. 168:


After Clause 70, insert the following new clause--

Enforcement of licences to provide non-domestic satellite services

(".--(1) Section 45 of the 1990 Act (licensing etc. of non-domestic satellite services) is amended as follows.
(2) In subsection (5), for "and" there is substituted "to".
(3) In subsection (6), for "shall instead be £50,000" there is substituted--
"shall not exceed whichever is the greater of--
(a) £50,000, and
(b) the amount determined under subsection (6A).
(6A) The amount referred to in subsection (6)(b) is--
(a) in a case where a penalty under section 41(1)(a) has not previously been imposed on the holder of the licence during any period for which his licence has been in force ("the relevant period"), 3 per cent. of the qualifying revenue for his last complete accounting period (as determined in accordance with section 19(2) to (6)); and
(b) in any other case, 5 per cent. of the qualifying revenue for that accounting period (as so determined);
and in relation to a person whose first complete accounting period falling within the relevant period has not yet ended, paragraphs (a) and (b) above shall be construed as referring to 3, or (as the case may be) 5, per cent. of the amount which the Commission estimate to be the qualifying revenue for that accounting period (as so determined)."
(4) Subsections (8) and (9) are omitted. ").

On Question, amendment agreed to.

7 Mar 1996 : Column 462

Lord Inglewood moved Amendment No. 169:


After Clause 70, insert the following new clause--

Enforcement of licences to provide licensable programme services

(".--(1) Section 47 of the 1990 Act (licensing etc. of licensable programme services) is amended as follows.
(2) In subsection (8), for "and" there is substituted "to".
(3) In subsection (9), for "shall instead be £50,000" there is substituted--
"shall not exceed whichever is the greater of--
(a) £50,000, and
(b) the amount determined under subsection (9A).
(9A) The amount referred to in subsection (9)(b) is--
(a) in a case where a penalty under section 41(1)(a) has not previously been imposed on the holder of the licence during any period for which his licence has been in force ("the relevant period"), 3 per cent. of the qualifying revenue for his last complete accounting period (as determined in accordance with section 19(2) to (6)); and
(b) in any other case, 5 per cent. of the qualifying revenue for that accounting period (as so determined);
and in relation to a person whose first complete accounting period falling within the relevant period has not yet ended, paragraphs (a) and (b) above shall be construed as referring to 3, or (as the case may be) 5, per cent. of the amount which the Commission estimate to be the qualifying revenue for that accounting period (as so determined)."
(4) Subsections (11) and (12) are omitted.").

On Question, amendment agreed to.

Lord Inglewood moved Amendment No. 170:


After Clause 70, insert the following new clause--

Renewal of licences to provide national radio services

(". After section 103 of the 1990 Act there is inserted--
"Renewal of national licences.
103A.--(1) A national licence may (subject to the following provisions of this section) be renewed on one occasion for a period of eight years beginning with the date of renewal.
(2) An application for the renewal of a national licence under subsection (1) may be made by the licence holder not earlier than three years before the date on which it would otherwise cease to be in force and not later than the relevant date.
(3) Where any such application is made before the relevant date--
(a) if no simulcast radio service provided by the applicant is being broadcast in digital form when the application is made, the Authority shall postpone the consideration of the application until the relevant date or, if earlier, the date on which the broadcasting of such a service in that form begins, and
(b) in any other case, the Authority may postpone the consideration of the application for so long as they think appropriate having regard to subsection (8).
(4) Where an application for the renewal of a national licence has been duly made to the Authority, they shall (subject to subsection (5)) grant the application if, but only if--
(a) the Authority are satisfied that the applicant would, if his licence were renewed, provide a national service which complied with the conditions included in the licence in pursuance of section 106 (whether as originally imposed or as varied under that section),
(b) the applicant has given notice to the Authority under section 35(2)(b) of the Broadcasting Act 1996 of his intention to provide a service for broadcasting in digital form, and

7 Mar 1996 : Column 463

(c) a simulcast radio service provided by the applicant is being broadcast in digital form or the Authority are satisfied that by the relevant date the applicant has done all that it would in the circumstances be reasonable to expect him to do by that date to procure the broadcasting of such a service within such time as the Authority consider reasonable.
(5) Section 100(4) to (6) shall apply in relation to an applicant for the renewal of a national licence as those provisions apply in relation to such an applicant as is mentioned in section 100(4), but as if any reference to the awarding of such a licence to the applicant were a reference to the renewal of the applicant's licence under this section.
(6) On the grant of any application under this section the Authority--
(a) may, in a case where a simulcast radio service provided by the applicant is not yet being broadcast in digital form on the relevant date, determine a date by which the broadcasting of such a service in that form must begin;
(b) shall determine an amount which is to be payable to the Authority by the applicant in respect of the first complete calendar year falling within the period for which the licence is to be renewed; and
(c) may specify a different percentage from that specified under section 98(1)(d)(ii) as the percentage of qualifying revenue for each accounting period of his that will be payable by the applicant in pursuance of section 102(1)(c) during the period for which the licence is to be renewed.
(7) The amount determined by the Authority under subsection (6)(b) in connection with the renewal of a licence shall be such amount as would, in their opinion, be payable to them by virtue of section 102(1)(a) if they were granting a fresh licence to provide the national service in question.
(8) Where the Authority have granted a person's application under this section they shall formally renew his licence not later than the relevant date or, if that is not reasonably practicable (whether because subsection (3)(a) precluded the consideration of the application before that date or for any other reason), as soon after that date as is reasonably practicable; and they shall not so renew his licence unless they have notified him of--
(a) any date determined by them under subsection (6)(a),
(b) the amount determined by them under subsection (6)(b), and
(c) any percentage specified by them under subsection (6)(c),
and he has, within such period as is specified in that notification, notified them that he consents to the licence being renewed on those terms.
(9) Where a national licence has been renewed under this section--
(a) any conditions included in it in pursuance of section 102 shall have effect during the period for which the licence has been renewed--
(i) as if the amount determined by the Authority under subsection (6)(b) were an amount specified in a cash bid submitted by the licence holder, and
(ii) subject to any determination made under subsection (6)(c);
(b) (subject to paragraph (a)) that section shall have effect in relation to the period for which the licence has been renewed as it has effect in relation to the period for which a national licence is originally in force;
(c) where the Authority have determined a date under subsection (6)(a), they shall include in the licence as renewed a condition requiring a simulcast radio service to be broadcast in digital form throughout the

7 Mar 1996 : Column 464

period beginning with the date determined under subsection (6)(a) and ending with the date on which the licence (as renewed) is to expire; and
(d) the reference in section 111(4) to the end of the period for which a national licence is to continue in force shall, in relation to the licence, be construed as a reference to the end of the period for which it has been renewed.
(10) Subsections (6)(a) and (9)(c) do not prejudice the generality of section 42(2)(b) of the Broadcasting Act 1996 (power to vary national licence to include conditions relating to digital broadcasting).
(11) In this section--
"simulcast radio service" has the same meaning as in Part III of the Broadcasting Act 1996;
"the relevant date", in relation to a national licence, means the date which the Authority determine to be that by which they would need to publish a notice under section 98(1) if they were to grant, as from the date on which that licence would expire if not renewed, a fresh licence to provide the national service formerly provided under that licence.").

On Question, amendment agreed to.


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