WEDNESDAY, MARCH 25, 1986

J

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ON ROYALTY PAYMENTS. HE BELIEVED THEY SHOULD BE ASSESSED PRIMARILY ON A LICENSEE'S ABILITY TO PAY THAT WAS TO SAY ON THE NET PROFITS ARISING FROM THE OPERATION OF THE BROADCASTING SERVICE AND DIRECTLY CONNECTED OR ASSOCIATED BUSINESS.

HE SAID IT SHOULD NOT BE DIFFICULT TO PRODUCE ACCURATE ACCOUNTS REFLECTING THE PROFITS THUS DERIVED.

HE ADDED THAT CORPORATE STRUCTURE WAS NOT RELEVANT TO THIS SITUATION AS IT WAS NOT BEYOND THE COMPETENCE OF ACCOUNTANTS TO PRODUCE THE NECESSARY ACCOUNTS BE THEY IN RESPECT OF A SOLE CORPORATE ENTITY OR A CONSOLIDATED GROUP OF COMPANIES.

+THE PRESENT PRINCIPLE OF ASSESSING ROYALTIES SHOULD CONTINUE WITH MORE CONTROL OVER THE DETERMINATION OF PROFITS ARISING FROM THE OPERATION OF THE LICENCE.

+THE FEE SHOULD PERHAPS BE DIVIDED INTO TWO PARTS FIRSTLY A FLAT FEE FOR THE USE OF THE AIRWAVES WHICH BELONG TO THE PUBLIC, AND SECONDLY, ROYALTIES ON PROFITS, + HE SAID.

TURNING TO THE PROPOSAL FOR A PUBLIC BROADCASTER,

MR CLYDESDALE BELIEVED THAT RTHK SHOULD BECOME THE LEGALLY ESTABLISHED PUBLIC BROADCASTER AS PROPOSED BY THE BRB AND BE GIVEN THE DEGREE OF INDEPENDENCE SUGGESTED.

HE SAID ITS FUNDING SHOULD COME FROM THE GOVERNMENT AND THIS SHOULD BE SUFFICIENT TO ALLOW IT TO EXPAND BOTH THE QUANTITY AND QUALITY OF ITS PRODUCTIONS.

HE SUGGESTED THAT ACCESS TO BROADCASTING TIME FOR THE PUBLIC BROADCASTER SHOULD BE SECURED THROUGH LICENCE CONDITIONS AND THE BOARD OF GOVERNORS SHOULD BE REQUIRED TO JUSTIFY EXPENDITURE AND THE CONTINUANCE OF PUBLIC FUNDING THROUGH REGULAR REVIEWS OF PERFORMANCE.

SUCH REVIEWS SHOULD BE CARRIED OUT PERIODICALLY BY THE BROADCASTING AUTHORITY, HE ADDED.

ON THE PROPOSED TOTAL BAN ON TOBACCO ADVERTISING. HE SAID HE AGREED THAT MOUNTING CONCERN OVER THE DANGERS OF SMOKING WAS REAL AND SERIOUS, BUT HE COULD NOT ACCEPT THE PROPOSAL THAT ADVERTISING ON TOBACCO PRODUCTS SHOULD BE BANNED FROM RADIO AND TELEVISION.

+WHILE THE GOVERNMENT CONTINUES TO DERIVE SUBSTANTIAL REVENUE FROM THE IMPORT AND MANUFACTURE OF TOBACCO AND TOBACCO PRODUCTS, I CANNOT IN ALL CONSCIENCE AGREE TO REMOVE THE RIGHT OF THE INDUSTRY TO PROMOTE THE SALE OF ITS PRODUCTS,+ HE SAID.

MR CLYDESDALE SAID HE DID NOT SMOKE PERSONALLY AND IN FACT DETESTED THE HABIT AND THAT HIS OBJECTION TO THIS PROPOSAL WAS BASED ON COMMON SENSE AND PRINCIPLE.

/LASTLY, HE

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