The principal disadvantages of a
of a full term renewal
the opportunity, however remote, of finding a more healthy competitor to TVB will be lost; and
the Government may face criticism from some quarters for rejecting a very basic recommendation of the BRB aimed at ensuring that the best possible candidates are awarded a licence.
Conclusion and Recommendation
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Having assessed the advantages and disadvantages of a competitive tender (with or without a short term extension) or a full term licence renewal, the Administration considers that on balance it would
would be preferable to renew the existing television licences for a full term. The Administration notes the recent improvements by ATV and the unlikelihood of any new licence applicant either appearing or being awarded a licence, and considers that a renewal of licences will be the best means to encourage ATV's further improvement and competitiveness, and to provide continuity to the industry in the face of impending changes. The Administration also recognises the practical difficulties of holding an open tender (paragraphs 44-46 above) and the risks associated with a short term licence renewal.
52
The Administration recognises too that the public is generally satisfied with the performance of the the existing television stations, and considers that if a Broadcasting Authority is created, and its powers under the proposed Broadcasting Ordinance enhanced, further improvements in programme standards and overall performance are likely to result. The Administration therefore recommends that a decision in principle be taken now for the existing TV licences to be renewed for a full term,
full term, subject to the advice of the TVAB nearer the date of renewal in accordance with the provisions of the Television Ordinance, Chapter 52.
53
The appropriate length of licence renewal considered below.
is
LENGTH OF LICENCE PERIOD
54
It has been proposed above that the licences of the existing television stations should be renewed for a full term (at present 15 years). The Broadcasting Review Board has
CONFIDENTIAL