XN000022-1986-03-19 — Page 31

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WEDNESDAY, MARCH 19, 1986

MR LAI WENT ON: +THE SOCIAL EVIL OF 'PROGRAMME

COMMERCIALISATION' PRODUCED BY COMMERCIAL TELEVISION BROADCASTERS COULD WELL BE RECTIFIED BY THEIR PROVISION OF SOME NON-COMMERCIAL PROGRAMMES.

+IT IS THEREFORE FAIR AND REASONABLE FOR THEM TO FUND FROM THEIR ROYALTY PAYMENTS THE PRODUCTION OF NON-COMMERCIAL PROGRAMMES BY RTHK.

MR LAI SUGGESTED THAT THE GOVERNMENT SHOULD CONSIDER SETTING UP AN INDEPENDENT FUNDING AUTHORITY TO SUBSIDISE RTHK ANNUALLY ACCORDING TO ITS NEEDS.

SHOULD ITS INCOME FROM ADVERTISING AND GRANTS FROM ROYALTY PAYMENTS BE INSUFFICIENT TO DEFRAY EXPENSES, THE

FUNDING AUTHORITY COULD SUPPLY THE DIFFERENCE AND ENSURE STABLE AND SUFFICIENT INCOME, HE SAID.

REGARDING THE LEVYING OF ROYALTIES, DR LAI SAID HE SUPPORTED THE RECOMMENDATIONS OF THE REPORT.

HE SAID THAT BASING ROYALTIES ON TURNOVER WOULD ON THE ONE HAND INCREASE EFFICIENCY AND REDUCE THE OPPORTUNITIES FOR CUTTING DOWN PROFITS IN ORDER TO AVOID TAX WITH THE HELP OF ACCOUNTING METHODS BY THE LICENSEES, AND WOULD ON THE OTHER HAND AVOID THE SITUATION WHERE A BADLY-OPERATED OR UNPROFITABLE LICENSEE COULD BE EXEMPTED FROM ROYALTY PAYMENTS.

HE SUGGESTED THAT ROYALTIES SHOULD BE PAID ACCORDING TO

A SLIDING SCALE, WHICH WOULD BE FAIRER.

TURNING TO THE AIR-TIME ALLOCATED TO RTHK PROGRAMMES, HE URGED THE GOVERNMENT TO CONSIDER THE FOLLOWING TWO METHODS:

(1) RTHK SHOULD MAKE USE OF, OR MAKE MORE USE OF, IN

A MORE FLEXIBLE MANNER THE BROADCASTING TIME OF THE OTHER TWO BROADCASTERS;

(2) IT SHOULD BE MADE A CONDITION OF THE RENEWAL OF LICENCES

THAT MORE AIR-TIME SHOULD BE DESIGNATED OR A SPECIFIC PERIOD OF AIR-TIME SHOULD BE SET ASIDE FOR EDUCATIONAL OR INFORMATION PROGRAMMES.

ON THE QUESTION OF BANNING TOBACCO COMMERCIALS, MR LAI SAID HE HAD RESERVATIONS AS THE REPORT'S RECOMMENDATION SEEMED TO BE TOO STRICT AND ALSO UNFAIR TO THE COMPANIES THAT WOULD BE AFFECTED.

+ THE GOVERNMENT CANNOT ON THE ONE HAND ALLOW TOBACCO TO BE SOLD IN THE SHOPS AND ON THE OTHER HAND DEPRIVE THE DISTRIBUTORS OF THE RIGHT OF PROMOTION.

/+THOUGH VARIOUS