advertising, and whether such services should be provided by RTHK or by a commercial radio station. The Director of Broadcasting recommends that the start of local radio should not precede the introduction of the improved territory-wide VHF plan if the further studies, referred to in paragraph 21, prove that it can be safely implemented sufficiently fully. The reason for recommending that RTHK should operate local radio in the first instance lay in the fact that the main purpose of such a service is seen as community building in the new towns and it was felt this would be more effectively achieved by the Government radio station. Moreover as noted in paragraph 22 there could be security objections to a proliferation of local radio stations dependent on commercial financing.
Recommendations
25
Under the circumstances set out above, it is recommended that there should at present be no addition to Hong Kong's commercial broadcasting services. It is recommended that the existing pattern of radio broadcasting should continue and that no further commercial radio licences should be issued for the time being. In August 1989 Commercial Radio's present licence is due to expire and to allow sufficient time for thorough consideration, it would seem prudent to start a review in 1986. By then it is hoped the VHF/FM transmission plan will have been implemented and the situation can be examined within the context of the use of these additional frequencies. Moreover as part of that review a survey might usefully be conducted to ascertain public attitudes towards a possible increase in radio broadcasting.
Financial implications
26
As described in paragraph 10-11, the cost (to the owners) of running additional radio stations would likely result in a net across-the- board reduction in profits. Since the amount of royalties payable to the Government by the television and radio stations is based on a fixed percentage of the stations' net profits, any decline in net profits would result in decreased Government revenue.
Public reaction
27
The public is well served by current sound broadcasting services and there is no evidence of a significant demand for additional radio stations. Some who think of themselves as potential tenderers might complain if the present moratorium is extended, but it is unlikely that the general public will be critical of such a decision,
CONFIDENTIAL
No comments yet.
Private notes are available after approval.