CONFIDENTIAL
XCC(93)148
Length of licences should therefore be flexible and we propose that they can range from three years to 12 years. This would be up to the broadcaster to propose in the first instance.
CHINA DIMENSION
17
The Chinese are likely to be concerned about major policy changes initiated by Government in the field of satellite television broadcasting. In particular, the Chinese are likely to be against any relaxation in existing restrictions on foreign ownership. They may also perceive the abolition of royalty-type payments as ending a potential source of income for the Government of the Hong Kong Special Administrative Region. The Chinese Government has always been suspicious of the role of the media and sensitive about its ownership.
18
Any new licences issued under the revamped licensing framework which straddle 1997 will require consultation in the Joint Liaison Group. Such consultation was carried out with regard to the Hutchvision licence. We believe we have a strong case for the need to change ownership restrictions. Subject to this Council's endorsement of the revamped framework, we propose to brief the Chinese on the proposals and undertake to consult them on individual licences before they are granted.
FINANCIAL AND STAFFING IMPLICATIONS
19
The proposed changes to the licensing framework for satellite television broadcasting may stimulate applications from broadcasters and result in more licences being issued, leading to an increase in workload for the Recreation and Culture Branch, the Television and Entertainment Licensing Authority, the Attorney General's Chambers, the Economic Services Branch and the Office of the Telecommunications Authority. The additional resource requirements, if any, will be met from within the global sum allocated to the relevant Policy Secretaries. The costs of regulating and monitoring the service provided will be recovered in full through the licence fee.
PUBLIC CONSULTATION
20
The Broadcasting Authority has been consulted and has endorsed the revamped licensing framework. The Authority feels that Government is moving in the right direction by proposing some deregulation, as a more