WEDNESDAY, NOVEMBER 26, 1986'
ON THE CORPORATE STRUCTURE OF THE BROADCASTING LICENSEES, MR THOMAS SAID THE BUSINESS COMMUNITY OPPOSED THE BRB'S PROPOSAL THAT LEGISLATIVE CHANGES SHOULD BE MADE TO ENSURE THAT IN FUTURE, BROADCASTING COMPANIES SHOULD BE SOLELY CONCERNED WITH THE BUSINESS OF BROADCASTING AND SHOULD NOT BE ASSOCIATED WITH OTHER COMPANIES ACTIVE IN RELATED FIELDS. THE PROPOSAL HAD RECEIVED SUPPORT FROM EDUCATIONAL, SOCIAL SERVICE AND OTHER GRASS ROOT ORGANISATIONS.
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IT HAS BEEN POINTED OUT THAT THE LEGISLATIVE CHANGES PROPOSED WILL NOT BE SUFFICIENT TO ELIMINATE THE SCOPE FOR UNFAIR PRACTICES THROUGH ABUSE OF CORPORATE LINKS. THE GOVERNMENT IS ANYHOW RELUCTANT TO BE THOUGHT TO BE PENALISING COMMERCIAL SUCCESS, + HE SAID.
THE GOVERNMENT THEREFORE PROPOSED 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 WOULD PUT BEFORE LEGCO 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, + HE SAID.
FURTHERMORE, WHEN THE NEW TV LICENCES WERE ON OFFER, THE GOVERNMENT PROPOSED THAT ROYALTIES PAYABLE BY THE TV STATIONS WOULD ECHANGED 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, HE SAID.
+HOWEVER, THE NEW SYSTEM WILL BE SO DESIGNED THAT THE ROYALTY TO BE COLLECTED BY THE GOVERNMENT WILL APPROXIMATELY BE AT THE CURRENT LEVEL.+
DEALING WITH CABLE TELEVISION, MR THOMAS NOTED THAT THE GOVERNMENT HAD ALREADY ANNOUNCED IN JULY ITS ACCEPTANCE IN PRINCIPLE OF THE INTRODUCTION OF CABLE TV SERVICES IN HONG KONG. AN INVITATION CALLING FOR EXPRESSIONS OF INTEREST TO DEVELOP A CABLE SERVICE HAD RESULTED IN THE RECEIPT OF EIGHT SUBMISSIONS BEFORE THE END OF SEPTEMBER.
/+THESE SUBMISSIONS