Office of Public Sector Information
PART I continued CHAPTER II continued
(1) The function of the Corporation shall be to secure the continued provision (subject to and in accordance with the provisions of this Part) of the television broadcasting service known as Channel 4.
(2) All the shares in the body corporate referred to in section 12(2) of the 1981 Act (activities to be carried on by subsidiary of Independent Broadcasting Authority) shall vest in the Corporation on 1st January 1993.
(3) Channel 4 shall be provided by the Corporation under a licence granted to them by the Commission, and shall be so provided for so much of England, Scotland and Northern Ireland as may from time to time be reasonably practicable.
(4) The licence to be granted to the Corporation by the Commission in pursuance of subsection (3) shall continue in force for a period of ten years beginning with 1st January 1993, and may be renewed by the Commission on one or more occasions for a period of ten years beginning with the date of renewal.
(1) The licence granted to the Corporation in pursuance of section 24(3) shall include such conditions as appear to the Commission to be appropriate for securing not only that Channel 4 complies with the requirements specified in subsection (2) but also—
(a) that Channel 4 programmes contain a suitable proportion of matter calculated to appeal to tastes and interests not generally catered for by Channel 3, and
(b) that innovation and experiment in the form and content of those programmes are encouraged,
and generally that Channel 4 is given a distinctive character of its own.
(2) The requirements referred to in subsection (1) are—
(a) that Channel 4 is provided as a public service for disseminating information, education and entertainment;
(b) that Channel 4 programmes maintain—
(i) a high general standard in all respects (and, in particular, in respect of their content and quality), and
(ii) a wide range in their subject matter, having regard both to the programmes as a whole and also to the days of the week on which, and the times of the day at which, the programmes are broadcast;
(c) (without prejudice to so much of paragraph (a) as relates to the dissemination of education) that a suitable proportion of Channel 4 programmes are of an educational nature;
(d) that a sufficient amount of time is given in Channel 4 programmes to news programmes and current affairs programmes which are of high quality;
(e) that a proper proportion of the matter included in Channel 4 programmes is of European origin; and
(f) that in each year not less than the prescribed percentage of the total amount of time allocated to the broadcasting of qualifying programmes on Channel 4 is allocated to the broadcasting of a range and diversity of independent productions.
(3) In applying subsection (2)(e) the Commission shall have regard to such of the international obligations of the United Kingdom as the Secretary of State may notify to them for the purposes of this subsection.
(4) In subsection (2)(f)—
(a) “qualifying programmes” and “independent productions” have the same meaning as in section 16(2)(h), and “the prescribed percentage” means the percentage for the time being specified in section 16(2)(h); and
(b) the reference to a range of independent productions is a reference to a range of such productions in terms of cost of acquisition as well as in terms of the types of programme involved.
(5) The licence referred to in subsection (1) shall also include conditions requiring the Corporation not to be involved in the making of programmes to be broadcast on Channel 4 except to such extent as the Commission may allow.
(6) In this section “programme” does not include an advertisement.
(1) The Commission shall, before the beginning of the year 1993 and each subsequent year—
(a) estimate the amount of the Corporation’s qualifying revenue for that year;
(b) estimate the amount of the total television revenues for that year; and
(c) estimate the Corporation’s prescribed minimum income for that year;
and the Commission may, on one or more occasions, revise any estimate made by them under this subsection.
(2) For the purposes of this section—
(a) the Corporation’s prescribed minimum income for any year shall be 14 per cent. of the total television revenues for that year; and
(b) “total television revenues” means, in relation to any year, the aggregate of the qualifying revenues for that year of the following, namely—
(i) all holders of Channel 3 or Channel 5 licences;
(ii) the Welsh Authority; and
(iii) the Corporation itself.
(3) If, in the case of any year, the aggregate of the following amounts, namely—
(a) the amount of the Corporation’s qualifying revenue for that year as estimated by the Commission under subsection (1), and
(b) any amount which, at the beginning of that year, is for the time being standing to the credit of any such reserve fund as is mentioned in section 27(3),
is less than the amount of the Corporation’s prescribed minimum income for that year as estimated by the Commission under subsection (1), then (subject to subsection (4)) the amount of the difference shall be raised by the Commission by means of a levy imposed on all persons who are for the time being holders of Channel 3 licences.
(4) The aggregate amount payable by virtue of any levy under subsection (3) shall not exceed 2 per cent. of the amount estimated by the Commission for the year in question under subsection (1)(b); and the amount to be paid by each of the persons subject to the levy shall be such proportion of that aggregate amount as is determined by the Commission in relation to him (and different proportions may be so determined in relation to different persons).
(5) Every Channel 3 licence shall include conditions—
(a) requiring the holder of the licence to pay to the Commission, by monthly instalments, any amount which he is liable to pay by virtue of subsections (3) and (4);
(b) authorising the Commission to adjust the instalments payable by the holder of the licence to take account of any revised estimate made by them under subsection (1); and
(c) providing for the adjustment of any overpayment or underpayment.
(6) Any amount received by the Commission by virtue of subsection (5)(a) shall be transmitted by them to the Corporation.
(7) Where, in respect of any year—
(a) the Commission have imposed a levy under subsection (3), and
(b) the aggregate amount transmitted by them to the Corporation under subsection (6) exceeds the relevant amount,
the Commission shall notify the Corporation of that fact; and the Corporation shall, as soon as reasonably practicable after receiving such a notification, repay to the Commission the amount of that excess.
(8) In subsection (7) “the relevant amount” means the amount by which the aggregate of the following amounts, namely—
(a) the Corporation’s qualifying revenue for the year in question, and
(b) any such amount as is mentioned in subsection (3)(b),
is less than the Corporation’s prescribed minimum income for that year.
(9) Section 19(2) to (6) shall have effect, with any necessary modifications, for the purpose of enabling the Commission to estimate or determine a person’s qualifying revenue for any year for the purposes of this section.
(10) The Secretary of State may by order amend subsection (2) or (4) above by substituting a different percentage for the percentage for the time being specified there; but no such order may be made before the end of the year 1997.
(11) An order shall not be made under subsection (10) unless a draft of it has been laid before and approved by a resolution of each House of Parliament.
(1) Where the qualifying revenue of the Corporation for any year exceeds the Corporation’s prescribed minimum income for that year, the Corporation shall—
(a) pay one half of the excess to the Commission; and
(b) apply the other half in accordance with subsection (3).
(2) Where the Commission receive any amount under subsection (1)(a) in respect of any year, they shall distribute that amount (“the relevant amount”) between the holders of Channel 3 licences in such a way that each of them receives such proportion of the relevant amount as corresponds to the proportion of the aggregate amount referred to in subsection (4) of section 26 which he would, in the opinion of the Commission, have been required to pay if a levy had been imposed for that year under subsection (3) of that section.
(3) Where subsection (1)(b) has effect in relation to any amount—
(a) half of that amount shall be carried by the Corporation to the credit of a reserve fund established by them under this subsection, and
(b) the other half may be applied by the Corporation towards meeting current expenditure incurred by them in connection with the provision of Channel 4, but to the extent that it is not so applied shall be carried to the credit of that fund;
and (subject to the following provisions of this section) the management and application of that fund shall be as the Corporation may determine.
(4) Subject to subsection (5), no part of that fund shall be applied otherwise than for the purposes of Channel 4; and no direction may be given by the Secretary of State under that subsection with respect to the application of any amount for the time being standing to the credit of that fund which has been taken into account by the Commission for the purposes of section 26(3)(b) or (8)(b).
(5) The Secretary of State may, with the approval of the Treasury, give to the Corporation such directions as he thinks fit with respect to the management and application of that fund (including directions requiring the whole or part of it to be paid into the Consolidated Fund); and the Corporation shall comply with any such directions.
(6) In subsection (1) above the reference to the Corporation’s prescribed minimum income for any year shall be construed in accordance with section 26(2); and subsections (2) to (6) of section 19 shall have effect for determining the Corporation’s qualifying revenue for any year for the purposes of subsection (1) above as they have effect for determining a person’s qualifying revenue for any accounting period of his for the purposes of subsection (1)(c) of that section.
(1) The Commission shall do all that they can to secure the provision of a television broadcasting service for any such minimum area of the United Kingdom as may be determined by them in accordance with subsection (2); and any such service shall be known as Channel 5.
(2) In determining the minimum area of the United Kingdom for which Channel 5 is to be provided the Commission shall have regard to the following consideration, namely that the service should, so far as is reasonably practicable, make the most effective use of the frequencies on which it is to be provided.
(3) If the Commission so determine, Channel 5 shall be provided under a particular licence only between such times of the day or on such days of the week (or both) as they may determine.
(4) Where the Commission have granted a licence to provide Channel 5, they may, if it appears to them to be appropriate to do so in view of any lack of facilities available for transmitting the service, dispense with any requirement to provide the service for such part of the area referred to in subsection (2) as they may determine; and any such dispensation shall have effect for such period as they may determine.
(1) Subject to subsections (2) and (3), sections 15 to 21 shall apply in relation to a Channel 5 licence as they apply in relation to a regional Channel 3 licence.
(2) In its application in relation to a Channel 5 licence—
(a) section 15(1)(b)(i) shall be read as referring to any such minimum area of the United Kingdom as is determined by the Commission in accordance with section 28(2); and
(b) section 16(2) shall (except where subsection (3) below applies) have effect with the omission of paragraphs (c) and (d).
(3) Where the Commission make a determination under section 28(3), section 16(2) shall, in its application in relation to each Channel 5 licence, have effect to such extent as they may determine to be appropriate having regard to the nature of the service to be provided under that licence.
(1) A Channel 5 licence which is in force at the commencement of the provision of Channel 5 shall include conditions—
(a) requiring the holder of the licence to make arrangements for any relevant equipment to be retuned or otherwise modified—
(i) at the request of the person by whom the equipment is kept (being a request made before such date as is specified in the conditions), and
(ii) without charge to that person,
so far as is necessary to prevent the equipment from suffering interference caused by the transmission of Channel 5;
(b) requiring all work falling to be carried out under the arrangements—
(i) to be carried out in a proper manner, and
(ii) to be completed within such period as is specified in the conditions; and
(c) enabling the Commission to determine whether work carried out under the arrangements is carried out in a proper manner.
(2) Any such Channel 5 licence shall also include conditions requiring the holder of the licence to publicise, in such manner as may be approved by the Commission, information with respect to—
(a) the likelihood of different kinds of equipment suffering interference caused by the transmission of Channel 5;
(b) the arrangements which the holder of the licence is required to make by virtue of conditions imposed in pursuance of subsection (1); and
(c) the kinds of equipment in relation to which those arrangements are to be so made.
(3) The holder of a Channel 5 licence shall not be required, by virtue of conditions imposed in pursuance of subsection (1), to make any such arrangements as are mentioned in that subsection in relation to any relevant equipment—
(a) unless the equipment—
(i) is, on the date of the making of such a request as is referred to in paragraph (a)(i) of that subsection, kept by the person in question wholly or mainly for domestic purposes, and
(ii) was so kept by that person on the commencement date (if that date occurred before the date mentioned in sub-paragraph (i) above); or
(b) if the equipment would not be liable to suffer interference caused by the transmission of Channel 5 but for the installation at the place where the equipment is kept of any apparatus for enabling that service to be received there;
and, where any relevant equipment has been retuned or otherwise modified in accordance with any such conditions, the holder of such a licence shall not be required by virtue of any such conditions to make arrangements on any subsequent occasion for the retuning or other modification of that equipment.
(4) Any dispute as to when the commencement date occurred in the case of any relevant equipment shall be determined by the Commission.
(5) Where—
(a) in accordance with section 28(3), more than one Channel 5 licence is in force at the same time, and
(b) each of the licences includes such conditions as are mentioned in subsections (1) and (2),
the holders of the licences shall each comply with those conditions to such extent as the Commission may determine in relation to him.
(6) Where the holder of a Channel 5 licence is required, by virtue of conditions imposed in pursuance of subsection (1), to make any such arrangements as are mentioned in that subsection in relation to any relevant equipment, those conditions shall be taken as requiring him in addition to make arrangements for any television set connected to that equipment to be retuned—
(a) at the request of the person by whom the equipment is kept, and
(b) without charge to that person,
so far as is necessary to enable it to be used in conjunction with the equipment (as retuned or otherwise modified); and subsections (1)(b) and (c) and (2)(b) shall have effect in relation to those arrangements as they have effect in relation to any such arrangements as are mentioned in subsection (1)(a).
(7) In this section—
“the commencement date”, in relation to any relevant equipment, means the date when Channel 5 began to be provided for reception in an area which includes the place where the equipment is kept on the date of the making of such a request as is referred to in subsection (1)(a)(i); and
“relevant equipment” means any equipment which is capable of transmitting self-generated electromagnetic signals for reception by a television set connected to it and which is liable, if used without being retuned or otherwise modified, to suffer interference caused by the transmission of Channel 5.
(1) A Channel 3 or Channel 5 licence shall include conditions requiring the licence holder—
(a) to broadcast in the licensed service news programmes of high quality dealing with national and international matters; and
(b) to broadcast such programmes in that service at intervals throughout the period for which the service is provided, and in particular (except in the case of a national Channel 3 licence) at peak viewing times.
(2) A regional Channel 3 licence shall, in addition, include conditions requiring the news programmes broadcast by the licence holder in compliance with conditions imposed in pursuance of subsection (1) to be programmes provided by a nominated news provider which are—
(a) presented live, and
(b) broadcast simultaneously with the broadcasts of news programmes provided by the same nominated news provider which are made by other holders of regional Channel 3 licences in compliance with conditions so imposed.
(3) In subsection (2) “nominated news provider” means a body corporate for the time being nominated for the purposes of that subsection under section 32.
(1) With a view to enabling them to nominate bodies corporate as nominated news providers for the purposes of section 31(2), the Commission shall invite bodies corporate appearing to them to be qualified for nomination to make applications to be so nominated; and any such invitations shall be issued at a time that is, in their opinion, appropriate for securing that at least one such body is so nominated by the time the first notice is published by them under section 15(1).
(2) Where a body corporate—
(a) applies to the Commission (whether in pursuance of any such invitation or not) to be nominated under this section as a nominated news provider, and
(b) appears to the Commission to be qualified for nomination,
the Commission shall so nominate that body unless they are satisfied that to do so would be likely, in view of the number of bodies already so nominated, to be prejudicial to the provision of high quality news programmes for broadcasting in regional Channel 3 services (taken as a whole).
(3) Subject to subsections (4) and (5), any nomination made by the Commission under this section shall remain in force for a period of ten years, and at the end of that period may be renewed by the Commission for a further period of ten years.
(4) Where the Commission have refused to nominate a body corporate under this section on the ground that they are satisfied as mentioned in subsection (2), the Commission shall from time to time thereafter, at such intervals as they may determine, review the performance as nominated news providers of all of the bodies for the time being nominated under this section; and if on any such review they are satisfied, in the case of such body so nominated as they may determine, that another body corporate which—
(a) is not a nominated news provider, but
(b) appears to them to be qualified for nomination,
would offer a better service than the first-mentioned body as respects the provision of high quality news programmes for broadcasting in regional Channel 3 services, they shall (subject to subsection (6)) by notice terminate that body’s nomination, and shall nominate the other body under this section in its place.
(5) If at any time the Commission—
(a) are for any reason dissatisfied in the case of any nominated news provider with the performance of that body as a nominated news provider, and
(b) are satisfied that to terminate that body’s nomination would not be prejudicial to the provision of high quality news programmes for broadcasting in regional Channel 3 services (taken as a whole),
they shall (subject to subsection (6)) by notice terminate that body’s nomination.
(6) The Commission shall not terminate a body’s nomination under subsection (4) unless they have given the body a reasonable opportunity of making representations to them about the proposed termination of its nomination; and they shall not terminate a body’s nomination under subsection (5) unless they have given the body a reasonable opportunity of making representations to them about the matters complained of.
(7) Before nominating, or terminating the nomination of, any body under this section the Commission shall consult every person who is the holder of a licence to provide a regional Channel 3 service.
(8) Any instrument by which a body is nominated under this section shall include conditions—
(a) imposing limits on the extent to which persons of any specified class or description may be participants in the nominated news provider;
(b) requiring that body to provide the Commission with such information as they may reasonably require for the purpose of determining whether any of those limits has been exceeded; and
(c) enabling the Commission to terminate that body’s nomination if satisfied that any of those limits has been exceeded;
and any such instrument may provide for any of those limits to apply only after the expiry of a specified period.
(9) The limits imposed in pursuance of subsection (8) shall secure—
(a) that no person is a participant with more than a 20 per cent. interest in the nominated news provider; and
(b) that any participants in the nominated news provider who are holders of licences to provide regional Channel 3 services, when taken together—
(i) hold or are beneficially entitled to less than 50 per cent. of the shares in that body; and
(ii) possess less than 50 per cent. of the voting power in it.
(10) Any limit imposed in accordance with subsection (9)(a) shall have effect in relation to a particular participant as if he and every person connected with him were one person; and for this purpose the following persons shall be treated as connected with a particular participant, namely—
(a) a person who controls the participant;
(b) an associate of the participant or of a person falling within paragraph (a); and
(c) a body which is controlled by the participant or by any associate of the participant.
(11) Subject to the provisions of subsections (9) and (10), the limits imposed in pursuance of subsection (8) shall be such as the Commission may determine.
(12) A body corporate shall be disqualified for being nominated under this section if, by virtue of any provision in Part II of Schedule 2 to this Act, it would be a disqualified person in relation to any description of licence granted by the Commission; and any reference in this section to a body corporate appearing to the Commission to be qualified for nomination is a reference to a body corporate appearing to them to be both—
(a) effectively equipped and adequately financed to provide high quality news programmes for broadcasting in regional Channel 3 services; and
(b) not disqualified for being nominated under this section by virtue of this subsection.
(13) In this section—
(a) references to a nominated news provider are references to a body corporate for the time being nominated under this section; and
(b) references to nomination under this section are references to nomination under this section for the purposes of section 31(2);
and subsections (8) to (10) shall be construed in accordance with Part I of Schedule 2 to this Act.
(1) Any Channel 3 or Channel 5 licence shall include such conditions as appear to the Commission to be appropriate for securing—
(a) that the service provided under the licence accords with the proposals submitted by the licence holder under subsection (3)(b) of section 15; and
(b) the implementation of the proposals submitted by him under subsection (3)(c) and (d), or (as the case may) subsection (3)(c) to (e), of that section.
(2) In subsection (1) the reference to section 15 is, in relation to a Channel 5 licence, a reference to that section as applied by section 29.
(3) Any conditions imposed in pursuance of subsection (1) may be varied by the Commission with the consent of the licence holder (and section 3(4)(b) shall accordingly not apply to any such variation).
(1) The Commission shall do all that they can to secure that a suitable proportion of the programmes which are included in Channel 3 services and Channels 4 and 5 (taken as a whole) are schools programmes.
(2) Accordingly, any Channel 3 licence or licence to provide Channel 4 or 5 may include—
(a) conditions requiring the licence holder to produce, or finance the production of, schools programmes;
(b) conditions requiring the licence holder to acquire schools programmes provided by other persons;
(c) conditions requiring the licence holder to ensure that schools programmes included in the licensed service—
(i) are of high quality, and
(ii) are suitable to meet the needs of schools in the area or areas in the United Kingdom for which the service is provided;
(d) conditions specifying the minimum number of hours in term time or within normal school hours that are to be allocated to the broadcasting of schools programmes in the licensed service;
(e) conditions requiring the licence holder to provide such material for use in connection with the schools programmes broadcast by him as may be necessary to secure that effective use is made of those programmes in schools; and
(f) conditions requiring the licence holder from time to time to consult such bodies or other persons who are concerned with, or have an interest in, schools or the production of schools programmes as the Commission think fit.
(3) In this section “schools programmes” means programmes which are intended for use in schools.
(1) A Channel 3 or Channel 5 licence shall include—
(a) conditions—
(i) specifying the relevant minimum number of hours in a week for the purposes of this section, and
(ii) requiring programmes with subtitling to be broadcast in the licensed service during not less than that number of hours in each week; and
(b) conditions requiring the holder of the licence to attain such technical standards relating to the provision of subtitling as are specified in the conditions.
(2) Subject to subsections (3) and (4), the relevant minimum number of hours in a week for the purposes of this section is—
(a) in relation to Channel 3 services—
(i) for the year which includes the commencement of this section, such number of hours in a week as the Commission shall determine in order to achieve an increase of at least ten per cent. over the average number of hours in a week during which programmes with subtitling were, during the year immediately preceding that year, broadcast on ITV (as defined by section 10(2) of the 1981 Act); and
(ii) for each successive year, such number of hours in a week as the Commission shall determine, being a number greater than that for the previous year; and
(b) in relation to Channel 5—
(i) for the year which includes the commencement of the provision of Channel 5, such number of hours in a week as the Commission shall determine in order to secure that the proportion of the programmes broadcast on Channel 5 in a week which is represented by programmes with subtitling is the same as that achieved in relation to Channel 3 services by virtue of paragraph (a)(i); and
(ii) for each successive year, such number of hours in a week as the Commission shall determine, being a number greater than that for the previous year.
(3) The Commission shall make such determinations under subsection (2) as are appropriate to secure that, subject to subsection (4), the relevant minimum number of hours in a week for the purposes of this section represents—
(a) in the case of Channel 3 services—
(i) for the year 1998, 50 per cent. of the average number of hours in a week during which programmes were, during the year 1997, broadcast on Channel 3; and
(ii) for the year 1999 and each successive year, the greatest number of hours in a week that appears to the Commission to be reasonably practicable; and
(b) in the case of Channel 5—
(i) for the year which includes the fifth anniversary of the date of the commencement of the provision of Channel 5, 50 per cent. of the average number of hours in a week during which programmes were, during the year preceding that year, broadcast on Channel 5; and
(ii) for the year following that year and each successive year, the greatest number of hours in a week that appears to the Commission to be reasonably practicable.
(4) In the case of—
(a) a Channel 3 service provided as mentioned in section 14(4) or (5), or
(b) a Channel 5 service provided as mentioned in section 28(3),
the relevant minimum number of hours in a week for the purposes of this section shall for any year be such number of hours in a week as the Commission shall determine, being such proportion of the number of hours in a week determined by the Commission for that year under subsection (2)(a) or (b) (as the case may be) as appears to them to be appropriate.
(5) As soon as the Commission have made any determination under this section (other than under subsection (2)(a)(i) or (b)(i))—
(a) they shall notify the holder of every licence to which the determination relates of the determination; and
(b) every such licence shall have effect as if for the number for the time being specified in the conditions included in the licence in pursuance of subsection (1)(a)(i) there were substituted the new number determined by the Commission.
(6) Where any week falls—
(a) partly within one year to which subsection (2)(a) or (b) applies, and
(b) partly within another such year,
that week shall be treated for the purposes of this section as falling wholly within the earlier of those years.
(7) The holder of a Channel 3 or Channel 5 licence shall not impose charges for providing subtitling in respect of any programme broadcast in his licensed service.
(8) In this section—
“on Channel 3” means in Channel 3 services taken as a whole;
“on Channel 5” means in the television broadcasting service referred to in section 28(1), taken as a whole;
“subtitling” means subtitling for the deaf, whether provided by means of a teletext service or otherwise.
(1) Subject to subsection (2), any regional Channel 3 licence or licence to provide Channel 4 or 5 shall include—
(a) conditions requiring the licence holder to include party political broadcasts in the licensed service; and
(b) conditions requiring the licence holder to observe such rules with respect to party political broadcasts as the Commission may determine.
(2) Where any determination under section 28(3) is in force, a licence to provide Channel 5 may (but need not) include any such conditions as are mentioned in subsection (1)(a) and (b).
(3) Without prejudice to the generality of paragraph (b) of subsection (1), the Commission may determine for the purposes of that subsection—
(a) the political parties on whose behalf party political broadcasts may be made; and
(b) in relation to any political party on whose behalf such broadcasts may be made, the length and frequency of such broadcasts.
(4) Any rules made by the Commission for the purposes of this section may make different provision for different cases or circumstances.
Broadcasting Act 1990