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WEDNESDAY, MAY 14, 1980
IN THE MATTER OF SHAREHOLDINGS, THE TELEVISION ADVISORY BOARD HAD CONCLUDED THAT SOME CHANGES WERE NECESSARY.
+UNDER SECTION 11 OF THE ORDINANCE THERE IS REQUIREMENT ON THE LICENCES TO MAKE AVAILABLE TO THE PUBLIC NOT LESS THAN 25 PER CENT OF THEIR VOTING SHARES WITHIN A SPECIFIED PERIOD,+ MR FORD SAID.
THIS OBLIGATION, HE ADDED, HAD ALREADY BEEN POSTPONED BY THE GOVERNMENT UNTIL DECEMBER 1980 BECAUSE IT WAS FELT THAT IT WOULD NOT BE IN THE BEST PUBLIC INTERESTS TO REQUIRE THE COMPANIES TO FLOAT THE IR SHARES.
+AS ONE NEWSPAPER COMMENTED THIS MORNING, A TELEVISION LICENCE IS NO LONGER A PERMIT TO PRINT MONEY, HE POINTED OUT.
HE SAID THE BOARD HAD NOTED THAT FROM INFORMATION AVAILABLE TO MEMBERS IT HAD APPEARED THAT TOTAL REVENUES FROM TELEVISION ADVERTISING WERE, ON THE MOST OPTIMISTIC CALCULATIONS, ONLY MARGINALLY GREATER THAN THE COMBINED OPERATIONAL COSTS OF BOTH STATIONS.
IT WAS THE BOARD'S VIEW THAT IT WAS UNABLE TO LOOK FORWARD TO ANY IMPROVEMENT IN THIS SITUATION, MR FORD SAID.
+ THE BOARD RECOMMENDS THEREFORE THAT THE OBLIGATION WHICH REQUIRES THE COMPANIES TO FLOAT THEIR SHARES BE REMOVED BUT THEY WOULD BE ALLOWED TO RETAIN THE RIGHT TO GO PUBLIC IF THEY WISH TO DO SO.+
HE SAID THE TWO LICENSEES WERE GENERALLY IN AGREEMENT WITH AND ACCEPT THE BOARD'S RECOMMENDATIONS.
MR FORD SAID THAT IN ADDITION TO THE BOARD'S RECOMMENDATION THE GOVERNMENT IS CONSIDERING MEASURES TO AMEND THE CONDITIONS OF LICENCES UNDER SECTION 10 OF THE ORDINANCE TO CONTROL THE APPOINTMENT OF PERSONS WITH CRIMINAL RECORDS TO IMPORTANT MANAGERIAL POSITIONS WITH THE STATIONS AND TO STREAMLINE THE APPEALS PROCEDURE IN RESPECT OF PROGRAMME STANDARDS.
+WAYS OF IMPLEMENTING THESE PROPOSALS ARE BEING EXAMINED AND WILL BE OUTLINED IN MORE DETAIL WHEN THE AMENDMENTS ARE INTRODUCED INTO THIS COUNCIL LATER IN THE YEAR, HE SAID.
EARLIER, MR FORD SAID THE MOST SIGNIFICANT RECOMMENDATION BY THE BOARD WAS THAT THE LICENCES HELD BY HONG KONG TELEVISION BROADCASTS LTD (TVB) AND REDIFFUSION TELEVISION LTD (RTV) SHOULD BE RENEWED WITH EFFECT FROM DECEMBER 31, 1980, FOR A FURTHER EIGHT YEARS, SUBJECT TO CERTAIN TERMS AND CONDITIONS.
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