Office of Public Sector Information
PART I continued CHAPTER V continued
(1) Subject to subsection (2), the Commission shall do all that they can to secure that, in the case of each of the following frequencies, namely—
(a) any frequencies falling within section 48(1)(a) on which television broadcasting services are provided, and
(b) any frequencies notified to the Commission under section 48(1)(b),
all of the spare capacity available for the provision of additional services on that frequency is used for the provision of such services under additional services licences granted by the Commission in accordance with this section.
(2) The Commission shall do all that they can to secure, in relation to the combined spare capacity available for the provision of additional services on frequencies on which Channel 3 services and Channel 4 are respectively provided, that a single teletext service is provided on that spare capacity; but any such service shall be provided only on so much of that spare capacity as the Secretary of State may approve.
(3) In relation to so much of any such service as is provided for reception wholly or mainly in Wales, references in subsection (2) to any such combined spare capacity as is there mentioned shall be construed as references to the spare capacity available for the provision of additional services on frequencies on which S4C is provided; and the Secretary of State shall exercise his powers under section 48(1)(b) and (2)(b) in such manner as he considers appropriate to take account of this subsection.
(4) An additional services licence may relate to the use of spare capacity within more than one frequency; and two or more additional services licences may relate to the use of spare capacity within the same frequency where it is to be used at different times, or in different areas, in the case of each of those licences.
(5) An additional services licence may include provisions enabling the licence holder, subject to and in accordance with such conditions as the Commission may impose, to authorise any person to whom this subsection applies to provide any additional service on the spare capacity allocated by the licence.
(6) Subsection (5) applies to any person who is not a disqualified person in relation to an additional services licence by virtue of Part II of Schedule 2 to this Act.
(7) Any conditions included in an additional services licence shall apply in relation to the provision of additional services by a person authorised as mentioned in subsection (5) as they apply in relation to the provision of such services by the licence holder; and any failure by such a person to comply with any such conditions shall be treated for the purposes of this Part as a failure on the part of the licence holder to comply with those conditions.
(8) Every licence under this Part to provide a television broadcasting service shall include such conditions as appear to the Commission to be appropriate for securing that the licence holder grants—
(a) to any person who holds a licence to provide additional services on the frequency on which that broadcasting service is provided, and
(b) to any person who is authorised by any such person as mentioned in subsection (5) to provide additional services on that frequency,
access to facilities reasonably required by that person for the purposes of, or in connection with, the provision of any such additional services.
(9) Any person who grants to any other person access to facilities in accordance with conditions imposed under subsection (8) may require that other person to pay a reasonable charge in respect thereof; and any dispute as to the amount of any such charge shall be determined by the Commission.
(10) In this Part “additional services licence” means a licence to provide additional services.
(1) Where the Commission propose to grant a licence to provide additional services they shall publish, in such manner as they consider appropriate, a notice—
(a) stating that they propose to grant such a licence;
(b) specifying—
(i) the television broadcasting service or services on whose frequency or frequencies the services are to be provided, and
(ii) (subject to the approval of the Secretary of State) the extent and nature of the spare capacity which is to be allocated by the licence;
(c) inviting applications for the licence and specifying the closing date for such applications; and
(d) specifying—
(i) the fee payable on any application made in pursuance of the notice, and
(ii) the percentage of qualifying revenue for each accounting period that would be payable by an applicant in pursuance of section 52(1)(c) if he were granted the licence.
(2) The Commission may, if they think fit, specify under subsection (1)(d)(ii)—
(a) different percentages in relation to different accounting periods falling within the period for which the licence would be in force;
(b) a nil percentage in relation to any accounting period so falling.
(3) Any application made in pursuance of a notice under this section must be in writing and accompanied by—
(a) the fee specified in the notice under subsection (1)(d)(i);
(b) a technical plan indicating—
(i) the nature of any additional services which the applicant proposes to provide, and
(ii) so far as known to the applicant, the nature of any additional services which any other person proposes to provide in accordance with section 49(5);
(c) the applicant’s cash bid in respect of the licence; and
(d) such information as the Commission may reasonably require as to the applicant’s present financial position and his projected financial position during the period for which the licence would be in force.
(4) At any time after receiving such an application and before determining it the Commission may require the applicant to furnish additional information under subsection (3)(b) or (d).
(5) Any information to be furnished to the Commission under this section shall, if they so require, be in such form or verified in such manner as they may specify.
(6) The Commission shall, as soon as reasonably practicable after the date specified in a notice under this section as the closing date for applications, publish in such manner as they consider appropriate—
(a) the name of every person who has made an application to them in pursuance of the notice;
(b) particulars of the technical plan submitted by him under subsection (3)(b); and
(c) such other information connected with his application as the Commission consider appropriate.
(7) The provisions of this section and sections 51 and 53 shall, in relation to the teletext service referred to in section 49(2), have effect subject to the provisions of Schedule 5 to this Act.
(1) Where a person has made an application for an additional services licence in accordance with section 50, the Commission shall not proceed to consider whether to award him the licence on the basis of his cash bid in accordance with subsections (3) and (4) below unless it appears to them—
(a) that the technical plan submitted under section 50(3)(b) is, so far as it involves the use of any telecommunication system, acceptable to the relevant licensing authorities; and
(b) that the services proposed to be provided under the licence would be capable of being maintained throughout the period for which the licence would be in force;
and any reference to an applicant in section 17 (as applied by subsection (3) below) is accordingly a reference to an applicant in whose case it appears to the Commission that the requirements of paragraphs (a) and (b) above are satisfied.
(2) Before forming any view as to whether the requirement specified in subsection (1)(a) is satisfied in the case of an applicant the Commission shall consult the relevant licensing authorities.
(3) Subject to subsection (4), section 17 shall apply in relation to an additional services licence as it applies in relation to a Channel 3 licence.
(4) In the application of section 17 in relation to an additional services licence—
(a) the provisions of subsection (4) down to the end of paragraph (b) shall be omitted;
(b) in subsection (7)(a), the reference to section 19(1) shall be construed as a reference to section 52(1); and
(c) subsection (12) shall have effect with the substitution of the following paragraph for paragraph (b)—
“(b) the name of every other applicant in whose case it appeared to the Commission that the requirement specified in section 51(1)(a) was satisfied;”.
(5) If at any time after an additional services licence has been granted to any person but before the licence has come into force—
(a) that person indicates to the Commission that none of the services in question will be provided once the licence has come into force, or
(b) the Commission for any other reason have reasonable grounds for believing that none of those services will be so provided,
then, subject to subsection (6)—
(i) the Commission shall serve on him a notice revoking the licence as from the time the notice is served on him, and
(ii) section 17 (as applied by subsection (3) above) shall, subject to section 17(14), have effect as if he had not made an application for the licence.
(6) Subsection (5) shall not apply in the case of any person by virtue of paragraph (b) of that subsection unless the Commission have served on him a notice stating their grounds for believing that none of the services in question will be provided once his licence has come into force; and they shall not serve such a notice on him unless they have given him a reasonable opportunity of making representations to them about the matters complained of.
(7) In this section “the relevant licensing authorities” means the Secretary of State and the Director General of Telecommunications.
(1) An additional services licence shall include conditions requiring the licence holder to pay to the Commission (in addition to any fees required to be so paid by virtue of section 4(1)(b))—
(a) in respect of the first complete calendar year falling within the period for which the licence is in force, the amount specified in his cash bid;
(b) in respect of each subsequent year falling wholly or partly within that period, the amount so specified as increased by the appropriate percentage; and
(c) in respect of each accounting period of his falling within the period referred to in paragraph (a), an amount representing such percentage of the qualifying revenue for that accounting period as was specified in relation to the licence under section 50(1)(d)(ii).
(2) For the purposes of subsection (1)(c) the qualifying revenue for any accounting period of the licence holder shall consist of all amounts which are received or to be received by him or by any connected person and are referable to the right under his licence to use, or to authorise any other person to use, in that period the spare capacity allocated by the licence.
(3) An additional services licence may include conditions—
(a) enabling the Commission to estimate before the beginning of an accounting period the amount due for that period by virtue of subsection (1)(c); and
(b) requiring the licence holder to pay the estimated amount by monthly instalments throughout that period.
(4) Such a licence may in particular include conditions—
(a) authorising the Commission to revise any estimate on one or more occasions, and to adjust the instalments payable by the licence holder to take account of the revised estimate;
(b) providing for the adjustment of any overpayment or underpayment.
(5) Where—
(a) the first complete accounting period of the licence holder falling within the period referred to in subsection (1)(a) (“the licence period”) does not begin at the same time as that period, or
(b) the last complete accounting period of his falling within the licence period does not end at the same time as that period,
any reference in subsection (1)(c) to an accounting period of his shall include a reference to such part of the accounting period preceding that first complete accounting period, or (as the case may be) following that last complete accounting period, as falls within the licence period; and other references to accounting periods in this Part shall be construed accordingly.
(1) A licence for the provision of additional services on a frequency notified to the Commission under section 48(1)(b) shall not continue in force beyond such date as may be specified by the Secretary of State in relation to that frequency under section 48(5); and a licence for the provision of such services on a frequency assigned under section 65(1)—
(a) shall, subject to the provisions of this Part, continue in force for a period of ten years, and
(b) may (subject to the following provisions of this section) be renewed on one or more occasions for a period of ten years beginning with the date of renewal.
(2) An application for the renewal of a licence under subsection (1) may be made by the licence holder not earlier than four years before the date on which it would otherwise cease to be in force and not later than the relevant date.
(3) In its application to a licence for the provision of additional services on a frequency used for the broadcasting of a domestic satellite service—
(a) subsection (1) shall have effect with the substitution of “fifteen years” for “ten years” in both places where those words occur; and
(b) subsection (2) shall have effect with the substitution of “five years” for “four years”.
(4) Where an application is made for the renewal of a licence under subsection (1) before the relevant date, the Commission may postpone the consideration of it by them for as long as they think appropriate having regard to subsection (9).
(5) Where an application for the renewal of an additional services licence has been duly made to the Commission, they may only (subject to subsection (6)) refuse the application if—
(a) they are not satisfied that any additional service specified in the technical plan submitted under section 50(3)(b) would, if the licence were renewed, be provided as proposed in that plan, or
(b) they propose to grant a fresh additional services licence for the provision of any additional service which would differ in any material respect from any such service authorised to be provided under the applicant’s licence, or
(c) they propose to determine that all or part of the spare capacity allocated by the licence is to cease to be available for the provision of additional services in order that it may be used by any relevant person for the purpose of enhancing the technical quality of his television broadcasting service;
and in paragraph (c) “relevant person” means the person providing a television broadcasting service on whose frequency the licensed service has been provided.
(6) Section 17(5) to (7) shall apply in relation to an applicant for the renewal of an additional services licence as those provisions apply in relation to such an applicant as is mentioned in section 17(5), but as if—
(a) any reference to the awarding of a Channel 3 licence to the applicant were a reference to the renewal of the applicant’s licence under this section; and
(b) in section 17(7), the reference to section 19(1) were a reference to section 52(1).
(7) On the grant of any such application the Commission—
(a) shall determine an amount which is to be payable to the Commission by the licence holder in respect of the first complete calendar year falling within the period for which the licence is to be renewed; and
(b) may specify a different percentage from that specified under section 50(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 52(1)(c) during the period for which the licence is to be renewed;
and the Commission may specify under paragraph (b) either of the things mentioned in section 50(2).
(8) The amount determined by the Commission under subsection (7)(a) 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 52(1)(a) if they were granting a fresh licence to provide the additional services in question.
(9) Where the Commission 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, as soon after that date as is reasonably practicable; and they shall not so renew his licence unless they have notified him of—
(a) the amount determined by them under subsection (7)(a), and
(b) any percentage specified by them under subsection (7)(b),
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.
(10) Where an additional services licence is renewed under this section—
(a) any conditions included in it in pursuance of section 52 shall have effect during the period for which the licence has been renewed—
(i) as if the amount determined by the Commission under subsection (7)(a) above were an amount specified in a cash bid submitted by the licence holder, and
(ii) subject to any determination made under subsection (7)(b) above; and
(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 an additional services licence is originally in force.
(11) In this section “the relevant date”, in relation to an additional services licence, means the date which the Commission determine to be that by which they would need to publish a notice under section 50 if they were to grant, as from the date on which that licence would expire if not renewed, a fresh licence to provide the additional services formerly provided under that licence.
(1) An additional services licence may include such conditions as the Commission consider appropriate for securing that the provision of any additional service under the licence does not cause any interference with—
(a) the television broadcasting service or services on whose frequency or frequencies it is provided, or
(b) any other wireless telegraphy transmissions.
(2) Before imposing any conditions in pursuance of subsection (1) the Commission shall consult the relevant licensing authorities (within the meaning of section 51).
(1) If the Commission are satisfied that the holder of an additional services licence has failed to comply with any condition of the licence or with any direction given by the Commission under or by virtue of any provision of this Part, they may (subject to subsection (3)) serve on him a notice requiring him to pay, within a specified period, a specified financial penalty to the Commission.
(2) The amount of any financial penalty imposed on any person in pursuance of subsection (1)—
(a) shall, if such a penalty has not previously been so imposed on that person during any period for which his licence has been in force (“the relevant period”), not exceed 3 per cent. of the qualifying revenue for his last complete accounting period falling within the relevant period (as determined in accordance with section 52(2)); and
(b) shall, in any other case, not exceed 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).
(3) The Commission shall not serve on any person a notice under subsection (1) unless they have given him a reasonable opportunity of making representations to them about the matters complained of.
(4) Section 42 shall apply in relation to an additional services licence as it applies in relation to a licence to provide a Channel 3 service, but with the omission of subsection (7).
(1) The authority which at the commencement of this section is called the Welsh Fourth Channel Authority shall continue in existence as a body corporate but—
(a) shall be known as Sianel Pedwar Cymru (or S4C); and
(b) shall be constituted in accordance with, and have the functions conferred by, this Act;
and in this Act references to the Welsh Authority are references to that authority.
(2) The Welsh Authority shall consist of—
(a) a chairman appointed by the Secretary of State; and
(b) such number of other members appointed by the Secretary of State, not being less than four nor more than eight, as he may from time to time determine.
(3) Schedule 6 to this Act shall have effect with respect to the Welsh Authority.
(1) The function of the Welsh Authority shall be to provide a television broadcasting service of high quality for reception wholly or mainly in Wales to be known as Sianel Pedwar Cymru (or S4C); and in this Part references to S4C are references to that service.
(2) It shall be the duty of the Welsh Authority—
(a) to provide S4C as a public service for disseminating information, education and entertainment;
(b) to ensure that a substantial proportion of the programmes broadcast on S4C are in Welsh and that the programmes broadcast on S4C between 6.30 pm and 10 pm consist mainly of programmes in Welsh; and
(c) to ensure that the programmes in Welsh which are broadcast on S4C maintain—
(i) a high general standard in all respects (and, in particular, in respect of their content and quality), and
(ii) a wide range in their subject matter, having regard both to the programmes as a whole and also to the days of the week on which, and the times of the day at which, the programmes are broadcast.
(3) The Welsh Authority shall secure that, during any period allocated by them to the broadcasting of a programme not in Welsh, the programme broadcast by them on S4C is normally a programme which is being, has been or is to be broadcast on Channel 4.
(4) The Welsh Authority may use part of the signals carrying S4C to provide—
(a) subtitling in connection with programmes on S4C, and
(b) other services which are ancillary to such programmes and directly related to their contents;
and in this subsection “subtitling” means any subtitling provided by means of a teletext service.
(5) In this section and section 58 “programme” does not include an advertisement.
(1) For the purpose of enabling the Welsh Authority to comply with their duty under section 57(2)(b) it shall be the duty of the BBC to provide the Authority (free of charge) with sufficient television programmes in Welsh to occupy not less than ten hours' transmission time per week, and to do so in a way which meets the reasonable requirements of the Authority.
(2) It shall be the duty of the Channel Four Television Corporation—
(a) to provide the Welsh Authority with programme schedules for the programmes broadcast on Channel 4, including information as to the periods available for the broadcasting of advertisements, far enough in advance to enable the Welsh Authority to comply with section 57(3); and
(b) to provide the Welsh Authority (free of charge) with any programmes which are required by the Authority for the purpose of complying with that provision.
(3) The programmes broadcast on S4C may, to the extent that they are not provided under subsection (1) or (2), be obtained by the Welsh Authority from such persons as they think fit.
(4) Where any programmes provided under subsection (2) each form part of a series of programmes, the Welsh Authority shall ensure that the intervals between those programmes when broadcast on S4C normally correspond to the intervals between them when broadcast on Channel 4.
(5) The Welsh Authority shall publish, in such manner as they consider appropriate, advance notice of the programme schedules for the programmes to be broadcast on S4C.
(1) The Welsh Authority shall ensure that the following requirements are complied with in relation to S4C, namely—
(a) that nothing is included in its programmes which offends against good taste or decency or is likely to encourage or incite to crime or to lead to disorder or to be offensive to public feeling;
(b) that any news given (in whatever form) in its programmes is presented with due accuracy and impartiality;
(c) that due impartiality is preserved on the part of the Authority as respects matters of political or industrial controversy or relating to current public policy;
(d) that due responsibility is exercised with respect to the content of any of its programmes which are religious programmes, and that in particular any such programmes do not involve—
(i) any improper exploitation of any susceptibilities of those watching the programmes, or
(ii) any abusive treatment of the religious views and beliefs of those belonging to a particular religion or religious denomination; and
(e) that its programmes do not include any technical device which, by using images of very brief duration or by any other means, exploits the possibility of conveying a message to, or otherwise influencing the minds of, persons watching the programmes without their being aware, or fully aware, of what has occurred.
(2) In applying subsection (1)(c) a series of programmes may be considered as a whole.
(3) Without prejudice to the generality of subsection (1), the Welsh Authority shall ensure that there are excluded from the programmes broadcast on S4C all expressions of the views and opinions of the Authority on matters (other than broadcasting) which are of political or industrial controversy or relate to current public policy.
(4) The code referred to in section 6(3) shall have effect in relation to the application of subsection (1)(c) above in relation to S4C as it has effect in relation to the application of section 6(1)(c) in relation to a licensed service; and the code referred to in section 7 shall have effect in relation to S4C as it has effect in relation to a licensed service.
(5) The Welsh Authority shall observe the provisions of those codes (as they have effect in accordance with subsection (4)) in the provision of S4C.
(1) The Welsh Authority shall ensure that the following rules are complied with in relation to S4C, namely—
(a) S4C must not include—
(i) any advertisement which is inserted by or on behalf of any body whose objects are wholly or mainly of a political nature,
(ii) any advertisement which is directed towards any political end, or
(iii) any advertisement which has any relation to any industrial dispute (other than an advertisement of a public service nature inserted by, or on behalf of, a government department);
(b) in the acceptance of advertisements for inclusion in S4C there must be no unreasonable discrimination either against or in favour of any particular advertiser; and
(c) (except in the case of any programme to which the Welsh Authority determine that this paragraph is not to apply) S4C must not include a programme which is sponsored by any person whose business consists, wholly or mainly, in the manufacture or supply of a product, or in the provision of a service, which the Welsh Authority are prohibited from advertising by virtue of subsection (2) or (4) below.
(2) The code under section 9 shall have effect in relation to advertisements broadcast on S4C as it has effect in relation to advertisements broadcast on Channel 4; and the Welsh Authority shall observe the provisions of that code (as it so has effect) in the provision of S4C.
(3) Where the Commission give any directions under subsection (7) of that section to the Channel Four Television Corporation, they shall send a copy of those directions to the Welsh Authority; and, so long as the directions remain in force, the Welsh Authority shall, in broadcasting advertisements on S4C, give effect to the provisions of the directions as if they were provisions regulating the times when advertisements are to be allowed to be broadcast on S4C.
(4) The Welsh Authority shall—
(a) from time to time consult the Secretary of State as to the classes and descriptions of advertisements which must not be broadcast on S4C and the methods of advertising or sponsorship which must not be employed in, or in connection with, the provision of S4C; and
(b) carry out any directions which he may give to them in respect of such matters.
(5) The Welsh Authority shall not act as an advertising agent.
(6) After consultation with the Welsh Authority the Secretary of State may make regulations amending, repealing or adding to the rules specified in subsection (1); but no such regulations shall be made unless a draft of the regulations has been laid before and approved by a resolution of each House of Parliament.
(1) The Secretary of State shall, for the year 1993 and each subsequent year, pay to the Welsh Authority an amount representing 32 per cent. of the total television revenues for the preceding year.
(2) The Commission shall, before the beginning of each of those years (“the relevant year”)—
(a) estimate the amount of the total television revenues for the preceding year; and
(b) notify the Secretary of State of that estimated amount;
and the Secretary of State shall at the beginning of the relevant year pay to the Welsh Authority, by way of an interim payment for that year, an amount representing 32 per cent. of that estimated amount.
(3) Once the Commission have finally determined the amount of the total television revenues for a particular year, they shall notify the Secretary of State of the amount so determined by them; and on receiving any such notification the Secretary of State shall, in respect of the year following that year—
(a) pay to the Welsh Authority any amount payable by him by virtue of subsection (1), after taking into account the interim payment made for that year under subsection (2), or
(b) notify the Welsh Authority of the amount of any overpayment made by him by means of any such interim payment.
(4) The Welsh Authority shall, as soon as reasonably practicable after receiving any notification under subsection (3)(b), pay to the Secretary of State the amount specified in the notification.
(5) In this section “total television revenues”—
(a) in relation to the year 1992, means the aggregate of the qualifying revenues for that year of—
(i) the TV programme contractors (as defined by section 10(2) of the 1981 Act), and
(ii) the body corporate referred to in section 12(2) of that Act; and
(b) in relation to any subsequent year, has the meaning given by section 26(2);
and section 19(2) to (6) shall have effect, with any necessary modifications, for the purpose of enabling the Commission to estimate or determine a person’s qualifying revenue for any year for the purposes of this subsection.
(6) Any sums required by the Secretary of State under this section shall be paid out of money provided by Parliament.
(7) The Secretary of State may, after consulting the Commission and the Welsh Authority, by order amend each of subsections (1) and (2) by substituting a different percentage for the percentage for the time being specified there; but no such order may be made before the end of the year 1997 unless the Secretary of State is satisfied that it is necessary to make the order having regard to the cost to the Authority of transmitting S4C.
(8) An order shall not be made under subsection (7) unless a draft of it has been laid before and approved by a resolution of each House of Parliament.
Broadcasting Act 1990