XN000022-1996-07-12 — Page 3

Charging royalty on advertising revenue appropriate

A spokesman for the Broadcasting, Culture and Sport Branch today (Friday) rejected TVB's claim that there was no longer any basis for charging royalty on advertising revenue earned by the commercial television broadcasters.

He said the privilege enjoyed by TVB and ATV of broadcasting directly to viewers made their licence far more valuable than those for other television services.

"Broadcast frequencies provide the most cost-effective way for television licensees to reach their viewers and generate advertising revenue.

"Since TVB and ATV enjoy the exclusive right to make use of the limited broadcast frequencies available, it is entirely appropriate that they should pay higher royalties than licensees who are not permitted to use broadcast frequencies," he added.

The spokesman further pointed out that the reduction in royalty rates proposed by the Government would result in a substantial reduction for both TVB and ATV, who had already benefited from a cut in 1993.

End

Criticism of Architectural Services Department not justified

In response to media enquiries concerning earlier criticism of the Architectural Services Department with regard to Urban Council capital projects, a department spokesman said today (Friday):

"The Architectural Services Department does not accept that there exists a lack of supervision or monitoring of contractors and consultants, or in the supervision of the progress of works under construction. The specific case of the Jordan Valley Swimming Pool project which was mentioned by councillors has proceeded more slowly than anticipated partly due to the main contractor's financial difficulties, and also because of inclement weather and variations to works after construction had started which were necessary and which are not abnormal during the course of construction of capital works.