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In respect of cross-ownership, Clause 18 makes it clear that a television broadcasting licensee requires the Broadcasting Authority's permission before it may e acquire interests in a company which is the holder of a programme service licensee. It also removes the existing restrictions on investments by licensees in satellite television uplink and downlink licensees. This will allow a satellite television uplink and downlink licence to be issued to TVB in respect of its Galaxy venture.

To implement a recommendation arising from the pay TV review conducted earlier this year, Clause 3(1)(b) extends the definition of "disqualified person" to include a company which publishes a local newspaper or exercises control of such a company. We propose to exempt newspaper publishers who were already exercising control of a television broadcasting licensee before we announced our policy on 21 March 1996 and this is also provided for in this Clause.

To complete the legislative scheme, two important consequential amendments to the Broadcasting Authority Ordinance and the Telecommunication Ordinance are made in Clause 19. These empower the Broadcasting Authority to administer a programme service licence, and the Telecommunication Authority to direct an interconnection between a telecommunication system and a programme service licensee, and determine its terms and conditions where necessary.

Depending on how soon this Bill can be enacted and programme services licences granted thereafter, Hong Kong is likely to be the first place in the world where video-on-demand television services are provided on a commercial scale. This is an exciting prospect which will help to develop Hong Kong's technological base, as well as providing consumers with a wide range of choice.

Bill.

I therefore urge Honourable Members to accord priority to the scrutiny of this

Mr President, with these words, I commend the Bill to this Council.

End