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present at the meetings from time to time.

24. The Broadcasting Committee pointed out (paragraph 523 of their Report) that in respect of the Home Service the Regional Controller has now constitutionally all but complete programme autonomy. The Government understand that, since the Broadcasting Committee reported, the Governors have devolved authority to the Directors of the various Services and that the Regional Controllers are soon to be put in a similar position.

MINISTERIAL RESPONSIBILITY

25. The Government agree that there should be no Minister for Broad- casting as such. The Postmaster General will continue to be responsible for the exercise of the Government's powers. It is proposed that the Prime Minister shall designate a Senior Minister to deal with major matters of broad- casting policy on his behalf, unless the matter at issue is clearly within the province of one of his Ministerial colleagues.

II. OTHER RECOMMENDATIONS FOR ACTION BY HER MAJESTY'S GOVERNMENT

FINANCIAL QUESTIONS

26. The Government agree broadly with their predecessors' views on financial questions affecting the B.B.C. In summary these are:-

(a) the licence fee system will be continued to meet the cost of home

broadcasting;

(b) the B.B.C. will receive a definite percentage of the net licence revenue, and this percentage will not be changed without adequate notice. The Licence will continue to leave the B.B.C. free to make representations to the Postmaster General at any time that the percentage should be increased;

(c) the Corporation will receive 85 per cent. of the net licence revenue

for the first three years of the new Charter;

(d) the Corporation will be authorised, with the consent of the Postmaster

General, to borrow up to £10,000,000 for capital expenditure;

(e) the cost of the Overseas Services (revenue and capital expenditure) will continue to be borne by a Grant in Aid from the Exchequer. The cost will be calculated as the definable additional expenditure incurred on account of the Overseas Services;

(f) the B.B.C. Annual Report and Accounts should include information on such matters, financial or otherwise, as may be prescribed by the Government after consultation with the Corporation. The Charter will also provide for the furnishing of reports by the Broadcasting Councils for Scotland, Wales and Northern Ireland.

27. The present division of responsibility between the Government and the Corporation for the Overseas Services will continue.

B.B.C. TELEVISION SERVICE

28. The new Licence will be modified to ensure that within the sphere of programmes and general administration the Corporation will be in the

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same position of independence in regard to television for the home as is in respect of sound broadcasting. The Government will seek advice on technical questions generally and on the development of the B.B.C. television service age 3000 Committee. Page 30 of 200

TELEVISION FOR PUBLIC SHOWING

29. The Government agree with their predecessors that at this stage it is not possible to reach any final or detailed conclusions about television for public showing. Since the Broadcasting Committee reported, the cinema interests have indicated that, although they no longer feel that a plan on a co-operative basis is practicable, they hope to comply with the Committee's main recommendation that any scheme for publicly shown television should be fair to the competing interests concerned. They are, however, opposed to the recommendation that programmes for public showing should be avail- able to the B.B.C., as of right, on terms approved by the Postmaster General. The Government consider that, subject to adequate safeguards for the interests affected, the development in its proper sphere of television for public showing to paying audiences should not be impeded by a refusal to grant the necessary wireless licences.

30. The sort of safeguards which the Government have in mind are:-

(a) neither the television service for viewers in the home nor those for public showing should have access, as of right, to one another's pro- grammes and films. It is nevertheless desirable, especially in regard to those public spectacles and sporting events which are of over- whelming public interest, that the arrangements should offer reasonable safeguards, so that neither the viewers in the home nor those in places of entertainment would be deprived of programmes of such events by reason of any exclusive arrangements, and any licence granted by the Postmaster General must take this into account. When the cinemas are licensed to use television they should also be prepared, subject to proper safeguards for their interests, to make films more readily available to the B.B.C.;

(b) the arrangements must be fair to all the interests concerned and avoid the introduction into the home (except by arrangement with the service for viewers at home) of television programmes intended for showing to audiences in public places;

(c) any one branch of the entertainment industry would not be given an

exclusive licence to use television for public showing;

(d) if the transmissions were to be by radio, the frequencies would have to be allocated with regard to the needs of television for the home and of the other radio services.

31. The cinema industry will no doubt wish to re-examine the position and the Government feel that the industry should address themselves to preparing a detailed scheme for consideration by the Government's Advisory Committee. It must be recognised that the rate of development of television for public showing, like that for viewers in the home, must inevitably take account of the national economic position and the prior calls upon resources.

VERY HIGH FREQUENCY SOUND BROADCASTING

32. The rate of development of very high frequency sound broadcasting must necessarily be subject to economic circumstances and the control of capital investment. An Advisory Committee, covering also television, will be asked to consider the best methods of introducing higher frequency sound