Broadcasting Act 1996

Part IIIU.K. Amendments of the Broadcasting Act 1990

Restrictions on holding of licencesU.K.

73 Restrictions on holding of licences.U.K.

Schedule 2 (which makes amendments of the 1990 Act relating to restrictions on the holding of licences under that Act or under Part I or II) shall have effect.

Regional Channel 3 servicesU.K.

F174 Provision of news programmes by holders of regional Channel 3 licences.U.K.

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F175 Appointment of news provider by holders of regional Channel 3 licences.U.K.

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F176 Nomination by Commission for purposes of section 31(2) of Broadcasting Act 1990.U.K.

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77 Modification of Restrictive Trade Practices Act 1976 in its application to agreements relating to Channel 3 news provision.U.K.

(1)After section 194 of the 1990 Act there is inserted—

“194A Modification of Restrictive Trade Practices Act 1976 in its application to agreements relating to Channel 3 news provision.

(1)In this section a “relevant agreement” means an agreement—

(a)which is made between all holders of regional Channel 3 licences for securing the appointment by them, in accordance with conditions included in their licences by virtue of section 31A(a), of a single body corporate to be the appointed news provider for the purposes of section 31(2), or

(b)which is made between them and the body corporate appointed to be the appointed news provider for the purposes of section 31(2) for purposes connected with the appointment.

(2)If a relevant agreement is registered under the M1Restrictive Trade Practices Act 1976 (“the 1976 Act”), the Director General of Fair Trading shall report to the Secretary of State as to whether it appears to the Director that the agreement falls within subsection (4).

(3)If, on receiving a report under subsection (2), it appears to the Secretary of State that the agreement falls within subsection (4), he may give a direction to the Director requiring him not to make an application to the Restrictive Practices Court under Part I of the 1976 Act in respect of the relevant agreement.

(4)A relevant agreement falls within this subsection if—

(a)those provisions of the agreement by virtue of which the 1976 Act applies to the agreement do not have, and are not intended or likely to have, to any significant extent the effect of restricting, distorting or preventing competition, or

(b)all or any of those provisions have, or are intended or likely to have, that effect to a significant extent, but that the effect is not greater than is necessary—

(i)in the case of a relevant agreement falling within subsection (1)(a), for securing the appointment by holders of regional Channel 3 licences of a single body corporate to be the appointed news provider for the purposes of section 31(2), or

(ii)in the case of a relevant agreement falling within subsection (1)(b), for compliance by them with conditions included in their licences by virtue of section 31(1) and (2).

(5)The Secretary of State may vary or revoke any direction given under subsection (3) above if he satisfied that there has been a material change of circumstances such that—

(a)the grounds for the direction have ceased to exist, or

(b)there are grounds for giving a different direction;

and where the Secretary of State so varies or revokes any direction, he shall give notice of the variation or revocation to the Director.

(6)In this section—

(a)“agreement” and “Director” have the same meaning as in the 1976 Act, and

(b)“regional Channel 3 licence” has the same meaning as in Part I.”

F2(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F378 Variation of regional Channel 3 licence following change of control.U.K.

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F479 Powers of Commission in relation to modification or replacement of networking arrangements.U.K.

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Channel 4 and S4CU.K.

80 Funding of Sianel Pedwar Cymru.U.K.

(1)For section 61 of the 1990 Act there is substituted—

“61 Funding of Welsh Authority.

(1)The Secretary of State shall, in the year 1998 and in each subsequent year, pay to the Welsh Authority the prescribed amount as increased by the appropriate percentage.

(2)In this section “the prescribed amount” means the 1997 amount or such amount as may from time to time be prescribed under subsection (4).

(3)In this section “the 1997 amount” means the amount paid by the Secretary of State to the Welsh Authority by way of interim payment for the year 1997 (under this section as originally enacted).

(4)The Secretary of State may, if he is satisfied that it is appropriate to do so having regard to the cost to the Welsh Authority of transmitting S4C and the service referred to in section 57(1A)(a), by order provide that the prescribed amount is to be an amount which is greater than the 1997 amount and is specified in the order.

(5)Before making an order under subsection (4) the Secretary of State shall consult the Welsh Authority.

(6)In this section “the appropriate percentage”, in relation to any year (“the relevant year”), means the percentage which corresponds to the percentage increase between—

(a)the retail prices index for November 1996, and

(b)the retail prices index for the month of November in the year preceding the relevant year;

and for this purpose “the retail prices index” has the same meaning as in section 19(10).

(7)Any sums required by the Secretary of State under this section shall be paid out of money provided by Parliament.

(8)An order shall not be made under subsection (4) unless a draft of the order has been laid before and approved by a resolution of each House of Parliament.”

(2)In section 62 of the 1990 Act for “sections 26 and 61” there is substituted “ section 26 ”.

(3)Subsections (1) and (2) shall not have effect in relation to payments for any year before 1998.

(4)No payment shall be made to or by the Welsh Authority under subsection (3) or (4) of section 61 of the 1990 Act (as originally enacted) for the year 1997; and in this subsection “the Welsh Authority” has the same meaning as in the 1990 Act.

81 Public service fund of Sianel Pedwar Cymru.U.K.

(1)After section 61 of the 1990 Act there is inserted—

“61A Welsh Authority public service fund.

(1)The Welsh Authority shall not exercise their powers under section 57(1A)(b) before such date (in this section referred to as “the notified date”) as they may notify to the Secretary of State for the purposes of this section.

(2)All amounts received by the Welsh Authority under section 61 on or after the notified date shall be kept by the Authority in a separate fund (in this section referred to as “the public service fund”) which may be applied only for the purposes of their functions under section 57(1) or (1A)(a).

(3)No S4C company shall receive any direct or indirect subsidy from the public service fund.

(4)The Welsh Authority shall secure that no television programme which has been wholly or partly financed out of the public service fund is included in a television programme service provided by an S4C company before it is first broadcast on S4C or in the service referred to in section 57(1A)(a).

(5)On the notified date—

(a)all the assets then held by the Welsh Authority other than cash, together with the appropriate proportion of any cash then held by them, shall be taken to be comprised in the public service fund, and

(b)the remainder of any cash then held by the Authority shall be taken to be comprised in a general fund.

(6)In subsection (5)(a) “the appropriate proportion” means the proportion which, in the last financial year in respect of which a statement of accounts has been prepared under paragraph 12(1) of Schedule 6 before the notified date, the total amount received by the Welsh Authority under section 61 bears to the total amount of its income from all sources.”

(2)In paragraph 12 of Schedule 6 of the 1990 Act (accounts and audit) after sub-paragraph (1) there is inserted—

“(1A)The statement of accounts must deal separately with the public service fund referred to in section 61A of this Act and with the general fund referred to in subsection (5)(b) of that section.”.

F583 Application of excess revenues of Channel Four Television Corporation.U.K.

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F584 Extension of powers of Channel Four Television Corporation and Sianel Pedwar Cymru.U.K.

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Miscellaneous amendments relating to television broadcastingU.K.

85 Restricted television services.U.K.

After section 42 of the 1990 Act there is inserted—

“Chapter IIAU.K. Restricted services

42A Restricted services.

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.

42B Licensing etc. of restricted services.

(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).”

86 Award of certain licences subject to conditions.U.K.

(1)After section 17 of the 1990 Act there is inserted—

“17A Award of Channel 3 licence subject to conditions.

(1)The Commission may, when awarding a Channel 3 licence to any person, make the grant of the licence to him conditional on his compliance before the grant with such specified requirements relating to the financing of the service as appear to them to be appropriate, having regard to—

(a)any duties which are or may be imposed on them, or on the licence holder, by or under this Act, and

(b)any information provided to them under section 15(3)(g) by the person to whom the licence is awarded as to his projected financial position during the period for which the licence would be in force.

(2)Where the Commission determine that any condition imposed by them in relation to a Channel 3 licence in pursuance of subsection (1) has not been satisfied, section 17 shall (subject to subsection (3)) have effect as if the person to whom the licence was awarded had not made an application for it.

(3)Section 17 shall not so have effect if the Commission decide that it would be desirable to publish a fresh notice under section 15(1) in respect of the grant of the licence.”

(2)In section 51 of the 1990 Act (procedure to be followed by Commission in connection with consideration of applications for, and awarding of, licences to provide additional services), in subsection (3)—

(a)for “section 17” there is substituted “ sections 17 and 17A ”, and

(b)for “it applies” there is substituted “ they apply ”.

F6(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F787 Ancillary services.U.K.

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F788 Enforcement of licences to provide non-domestic satellite services.U.K.

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F789 Power of Independent Television Commission to suspend licence to provide non-domestic satellite service.U.K.

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F790 Enforcement of licences to provide licensable programme services.U.K.

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F891 Certain delivery services to carry certain broadcasts.U.K.

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Sound broadcastingU.K.

92 Renewal of licences to provide national radio services.U.K.

After section 103 of the 1990 Act there is inserted—

“103A Renewal of national licences.

(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 41(2)(a) of the Broadcasting Act 1996 of his intention to provide a service for broadcasting in digital form, and

(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 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 48(3)(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 II 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.”

F993 Variation of local radio licence following change of control.U.K.

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94 Renewal of licences to provide local radio services.U.K.

(1)After section 104 of the 1990 Act there is inserted—

“104A Renewal of local licences.

(1)A local 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)No application for the renewal of a local licence under subsection (1) may be made before the Authority first publish a notice pursuant to section 50(2) of the Broadcasting Act 1996 inviting applications for a licence to provide a relevant local radio multiplex service.

(3)Subject to subsection (2), an application for the renewal of a local 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.

(4)The applicant must, in his application or at any time before the consideration of his application, nominate—

(a)a local digital sound programme service provided or to be provided by him, and

(b)a relevant local radio multiplex service,

but may not nominate together a local digital sound programme service and a local radio multiplex service if another local licence held by him includes a condition in pursuance of subsection (12) relating to the broadcasting of that local digital sound programme service by that local radio multiplex service.

(5)Where an application for the renewal of a local licence has been duly made to the Authority, they shall grant the application if—

(a)they are satisfied that the applicant would, if his licence were renewed, provide a local 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), and

(b)the nominated local digital sound programme service provided by the applicant is being broadcast by means of the nominated local radio multiplex service.

(6)Where the condition specified in subsection (5)(a) is satisfied, the Authority may grant the application even though the condition specified in subsection (5)(b) is not satisfied if—

(a)the applicant holds a licence to provide local digital sound programme services,

(b)a licence to provide the nominated local radio multiplex service has been awarded, and

(c)it appears to the Authority that, under a contract between the applicant and the person to whom that licence has been awarded, the applicant is obliged to provide the nominated local digital sound programme service for broadcasting by means of the nominated local radio multiplex service.

(7)The Authority may in any case postpone consideration of the application until the relevant date.

(8)If, at the relevant date, the condition specified in subsection (5)(b) is not satisfied, and any of the conditions specified in subsection (6) is not satisfied, the Authority may postpone consideration of the application for such period not exceeding twelve months as they think appropriate.

(9)Where the Authority postpone consideration of an application under this section for any period beyond the relevant date (the “postponement period”), they shall extend the period for which the licence is in force by a period equal to the postponement period; and section 86(3) shall not limit the powers of the Authority under this subsection.

(10)On the grant of any application under this section the Authority shall—

(a)where the nominated local digital sound programme service provided by the applicant is not being broadcast by means of the nominated local radio multiplex service, determine a date by which that service must have begun to be so broadcast; and

(b)specify a fee payable to the Authority in respect of the renewal.

(11)Where the Authority have granted a person’s application under this section they shall formally renew his licence as soon afterwards 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 (10)(a), and

(b)the renewal fee specified by them under subsection (10)(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.

(12)Where the Authority renew a licence under this section they shall include in the licence as renewed a condition requiring the licence holder to do all that he can to ensure that the nominated local digital sound programme service is broadcast by means of the nominated local radio multiplex service throughout the period beginning with whichever is the later of—

(a)the date on which the licence would expire if not renewed, and

(b)any date determined by them under subsection (10)(a),

and ending with the date on which the licence (as renewed) is to expire.

(13)In this section—

(a)“local digital sound programme service” has the same meaning as in Part II of the Broadcasting Act 1996;

(b)“nominated” means nominated by the applicant under subsection (4);

(c)“relevant date”, in relation to a local licence, means the date which the Authority determine to be that by which they would need to publish a notice under section 104(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 local service formerly provided under that licence; and

(d)“relevant local radio multiplex service”, in relation to a local licence, means a local radio multiplex service (within the meaning of Part II of the Broadcasting Act 1996) with a coverage area which to a significant extent includes the coverage area of the local service provided under the local licence; and for this purpose “coverage area”, in relation to a service, has the meaning given by paragraph 3A of Part I of Schedule 2.

104B Special application procedure for local licences.

(1)Where—

(a)a local licence is due to expire (otherwise than by virtue of section 110),

(b)the local service provided under the licence falls within category B, C or D of the Table in paragraph 9 of Part III of Schedule 2, and

(c)the Authority propose to grant a further licence to provide the service in question,

the Authority may if they think fit publish a notice under subsection (2) instead of a notice under section 104(1).

(2)A notice under this subsection is a notice—

(a)stating that the Authority propose to grant a further licence to provide a specified local service,

(b)specifying the area or locality in the United Kingdom for which the service is to be provided,

(c)inviting declarations of intent to apply for a licence to provide the service,

(d)specifying the closing date for such declarations, and

(e)specifying—

(i)the application fee payable on any declaration made in pursuance of the notice, and

(ii)a deposit of such amount as the Authority may think fit.

(3)A declaration of intent made in pursuance of a notice under subsection (2) must be in writing and accompanied by the application fee and deposit specified under subsection (2)(e)(i) and (ii).

(4)Where the Authority receive a declaration of intent in accordance with the provisions of this section from a person other than the licence holder in relation to the service in question, they shall—

(a)publish a notice under section 104(1),

(b)specify—

(i)in relation to persons who have made a declaration of intent in accordance with the provisions of this section, no further application fee, and

(ii)in relation to all other applicants, an application fee of the same amount as the fee referred to in subsection (2)(e)(i), and

(c)repay the deposit referred to in subsection (2)(e)(ii) to every person—

(i)who has made a declaration of intent in accordance with the provisions of this section, and

(ii)who duly submits an application in pursuance of the notice referred to in paragraph (a).

(5)Where the Authority receive a declaration of intent in accordance with the provisions of this section from the licence holder in relation to the service in question, and no such declaration from any other person, they shall—

(a)invite the licence holder to apply for the licence in such manner as they may determine (but without requiring any further application fee), and

(b)on receiving an application duly made by him, repay to him the deposit referred to in subsection (2)(e)(ii).

(6)The Secretary of State may by order amend subsection (1) by removing any of the categories of local service for the time being specified in that subsection, or by substituting for any of such categories any one or more categories of local service set out in the Table in paragraph 9 of Part III of Schedule 2.

(7)Any order under subsection (6) shall be subject to annulment in pursuance of a resolution of either House of Parliament.”

(2)In section 104 of the 1990 Act (applications for licences other than national licences), subsections (5) and (6)(a) shall cease to have effect.

95 Financing of Gaelic sound programmes.U.K.

(1)Section 183 of the 1990 Act (financing of television programmes in Gaelic out of Gaelic Television Fund) is amended as mentioned in subsections (2) to (6).

(2)In subsection (2), for “Gaelic Television Fund” there is substituted “ Gaelic Broadcasting Fund ”.

F10(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

96 Power of Radio Authority to suspend licence to provide satellite service.U.K.

After section 111A of the 1990 Act there is inserted—

“111B Power to suspend licence to provide satellite service.

(1)If the Authority are satisfied—

(a)that the holder of a licence to provide a satellite service has included in the service one or more programmes containing material likely to encourage or incite to crime or to lead to disorder,

(b)that he has thereby failed to comply with the condition included in the licence in pursuance of section 90(1)(a), and

(c)that the failure is such as to justify the revocation of the licence,

they shall serve on the holder of the licence a notice under subsection (2).

(2)A notice under this subsection is a notice—

(a)stating that the Authority are satisfied as mentioned in subsection (1),

(b)specifying the respects in which, in their opinion, the licence holder has failed to comply with the condition mentioned in paragraph (b) of that subsection,

(c)stating that the Authority may revoke his licence after the end of the period of twenty-one days beginning with the date on which the notice is served on the licence holder,

(d)informing the licence holder of his right to make representations to the Authority within that period about the matters complained of, and

(e)suspending the licence as from the time when the notice is served on the licence holder until the revocation takes effect or the Authority decide not to revoke the licence.

(3)If the Authority, having considered any representations about the matters complained of made to them within the period referred to in subsection (2)(c) by the licence holder, are satisfied that it is necessary in the public interest to revoke the licence in question, they shall serve on the licence holder a notice revoking the licence.

(4)A notice under subsection (3) shall not take effect until the end of the period of twenty-eight days beginning with the day on which that notice was served on the licence holder.

(5)Section 111 shall not have effect in relation to the revocation of a licence in pursuance of a notice under subsection (1).”