XN000022-1989-07-25 — Page 8

TUESDAY, JULY 25, 1989

7

"THE NEW LICENCE RESTRICTS COMMERICAL RADIO'S BUSINESSES TO RADIO BROADCASTING AND DIRECTLY CONNECTED OR ASSOCIATED BUSINESSES APPROVED BY THE BROADCASTING AUTHORITY." HE SAID.

ti

COMMERCIAL RADIO MAY NOT HOLD INTERESTS IN OTHER COMPANIES UNLESS THE HOLDING IS APPROVED BY THE BROADCASTING AUTHORITY AND SUBJECT TO THE BUSINESSES OF THOSE COMPANIES BEING DIRECTLY CONNECTED OR ASSOCIATED WITH RADIO BROADCASTING AND TO THE LICENSEE (OR A SUBSIDIARY) HOLDING AT LEAST 51 PER CENT OF THE VOTING SHARES OF THOSE COMPANIES AND TO THE LICENSEE HAVING CONTROL OVER THEIR MANAGEMENT.

"THE LICENCE REQUIRES COMMERCIAL RADIO ΤΟ BROADCAST ONE ENGLISH SERVICE AND TWO CHINESE SERVICES. COMMERCIAL RADIO IS ALSO REQUIRED TO IMPLEMENT THE SIX-YEAR PLAN FOR PROGRAMME DEVELOPMENT AND CAPITAL INVESTMENT WHICH FORMED PART OF ITS APPLICATION FOR A NEW LICENCE.

"THE PURPOSE OF THE PLAN, TOGETHER WITH OTHER LICENCE CONDITIONS, IS TO ENSURE AN ACCEPTABLE STANDARD OF BROADCASTING IN FUTURE.

"COMMERCIAL RADIO IS REQUIRED UNDER THE NEW LICENCE TO LIMIT ADVERTISING TO 12 PER CENT OF DAILY BROADCAST TIME.

"COMMERCIAL RADIO IS ALSO DIRECTED TO IMPLEMENT A COMPLAINTS PROCEDURE AND KEEP A RECORD OF ALL COMPLAINTS.

"WITH EFFECT FROM AUGUST 26, 1989, TOBACCO ADVERTISEMENTS AND SPONSORSHIP WILL BE PROHIBITED BETWEEN THE HOURS OF 4 PM AND 10.30 PM.

"THERE

WILL

BE

A

TOTAL

BAN

ON

TOBACCO ADVERTISEMENTS/SPONSORSHIP COMMENCING DECEMBER 1. 1990. CONSISTENT WITH RULES APPLICABLE ΤΟ THE TELEVISION LICENSEES, ALCOHOL ADVERTISEMENTS/SPONSORSHIP WILL ALSO BE PROHIBITED ON RADIO BETWEEN THE HOURS OF 4 PM AND 8.30 PM.

+

FOR ITS PRIVILEGED USE OF THE AIRWAVES, THE SPOKESMAN SAID, COMMERCIAL RADIO IS REQUIRED TO PAY A ROYALTY ON ITS GROSS RECEIPTS FROM ADVERTISING ACCORDING TO THE FOLLOWING SCALE:

GROSS RECEIPTS FROM ADVERTISING

RATE

ON THE FIRST $20 MILLION

ON THE NEXT $20 MILLION ON THE NEXT $20 MILLION ON THE NEXT $20 MILLION EXCEEDING $80 MILLION

1 PER CENT

2 PER CENT

3 PER CENT

4 PER CENT

5 PER CENT

SUBJECT TO A CEILING RATE OF 4 PER CENT OF THE OVERALL GROSS RECEIPTS FROM ADVERTISING.

"AFTER THE TELECOMMUNICATION (AMENDMENT} ORDINANCE 1989 HAS COMMENCED (SCHEDULED FOR MID-AUGUST 19891 AND COMMERCIAL RADIO INDICATED COMPLIANCE WITH CERTAIN PROVISIONS OF THE ORDINANCE, GOVERNOR IN COUNCIL WILL BE FORMALLY ASKED IN AUGUST TO GRANT THE LICENCE TO COMMERCIAL RADIO." THE SPOKESMAN ADDED.

HAS

THE

NEW

18