TNAG-0350-FCO40-386-Future-of-broadcasting-in-Hong-Kong-1972 — Page 140

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CONFIDENTIAL

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XCC(72)14

Against this background the working party considers. in Chapter 4 of the report whether a proper standard of broadcasting in the public interest can be achieved under a continuation of the existing system of operation by commercial interests or whether it is desirable to introduce, in addition, a form of public service broadcasting operated either by a public corporation or by the Government and financed by ad- vertising revenue or from public funds or from both sources.

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An examination is made of the ability of both systems to provide a choice of programmes and to achieve satisfactory standards as well as the likely effects of financial pressures and the need for a government presence in television. The working party concludes that there is no justification for the expenditure of public funds on public service television broadcasting whether provided by Government or a public corporation and also considers that television should not be pro- vided by a government department dependent on advertising revenue. While the working party thinks, however, that in the long term there would be advantages in public service television operated by a public corporation financed by advertising revenue it does not consider these advantages are sufficiently cogent to justify a change in the existing system at this stage,

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A continuation of the present system of the provision of television by commercial interests is, therefore, recommended (re- commendation 1). However, the working party also recommends that the role of Government's Television Unit (Radio Hong Kong - Television) should be expanded to provide certain programmes of the public service type for broadcasting by the commercial operators in the Government's free air-time and that public funds should be devoted to this purpose (recommendation 2).

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One member of the working party, the Director of Broadcasting, strongly dissents from the recommendation that television should continue to be provided wholly by commercial interests. His reservation is at page 196 of the report. Citing the decision to retain Radio Hong Kong as a government financed public service radio station and the complementary nature of the public and commercial stations! output in this field be advocates the extension of this system to television arguing that only the co-existence of public service and commercial television can ensure the maintenance of high standards and the operation of television in the public interest.

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It is not considered appropriate that the Government should invest public funds in television that is, and should continue to be, oriented very largely towards the provision of entertainment. Nor is it thought advisable to establish a public corporation dependent on advertising revenue and limited by this source of income in its ability to move too far ahead of the demands of its audience in its aim to provide balanced pro- gramming. Unquestionably the Government has a responsibility to ensure that proper standards are maintained but it is considered that this respon- sibility can be satisfactorily discharged in the foreseeable future by the use of the Television Authority's powers under the Television Ordinance. It is considered, therefore, that the working party's recommendation that tele- vision should continue to be provided by commercial interests is, in all the circumstances, the proper course to adopt.

CONFIDENTIAL