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as well as the adverse effects of disruption of service to the public. In addition, there should be a prescribed maximum period of suspension of, say, one month. If the offence is so serious that a longer suspension might be warranted, consideration should be given to revocation.
Royalty Payments
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On 14 October 1986, the Governor in Council, after considering the recommendations of the Broadcasting Review Board (BRB) relating to the regulation of the
the broadcasting industry, directed that BRB's recommendation to calculate royalty payable by the
the television licensees on the basis of gross receipts should be adopted in the new licence period after December 1988, subject to review in 1994.
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BRB was of the view that the current formula of calculating royalty payments at 25% of net profit was satisfactory. The main shortcomings are
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gross
(a)
(b)
one
of the licensees, by
by not making any profits, has not made any royalty payments since its licence was awarded 14 years ago; and
since royalty is calculated on net profit, it is possible for a licensee, in particular one which is part of a group of companies, to use legitimate accounting methods to reduce the amount of its net profit liable to royalty payments.
not
BRB's proposal to calculate royalty payments on the the licensee was based on the receipts of
following
principles
(a) frequencies are limited
(b)
resources belonging
to the community, the use of which by a television licensee should be regarded as a privilege for which royalty should be irrespective of the performance of licensee;
paid
the
since the two licensees are using the same number of frequencies, thereby enjoying franchises Of theoretically equal value this should be reflected in the system of calculating royalty payments;
as
the
(c) royalty payments are also regarded
public's share in the financial benefits enjoyed by the franchise holder; and
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