for unfair practices through abuse of corporate links. The Government is anyhow reluctant to be thought to be
penalising commercial success.
The Government
therefore proposes that the structure, ownership and
control of TV licensees should continue to be governed
by existing policies and the spirit of existing
legislation. But in addition, the Government will
bring to this Council a proposal to amend the
Ordinance to give the Broadcasting Authority a right
of access to the books and accounts of the related
companies of TV licensees. It is believed that this
will enable the future Broadcasting Authority to
monitor the practices of commercial licensees through
a cross checking of the accounts of the licensee and
its related companies.
Furthermore, when the new TV licences are
offer, the Government proposes that royalties payable
by the TV stations will be changed from a system based
on net profit to one based on gross receipt, as
recommended by the BRB. Since TV stations use air
waves which are community facilities, it is right that
they should be required to pay for their use
irrespective of whether a profit is made.
However,
the new system will be so designed that the royalty to
be collected by the Government will approximately be
at the current level.