Clause 340 — Modification of Disqualification Provisions

Part of Communications Bill – in the House of Commons at 8:45 pm on 14 July 2003.

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Photo of Tessa Jowell Tessa Jowell The Secretary of State for Culture, Media and Sport 8:45, 14 July 2003

I want to make some progress.

The case for restriction is especially relevant in the case of national analogue radio licences. In their case, Ofcom's discretion is limited as such licences are normally awarded to the highest bidder unless exceptional circumstances apply.

Given the evidence of the limited appeal of religious stations, we do not think it would be right to allow a well-financed religious organisation to buy one of only three national analogue licences and run it as a subsidised minority-interest service when the primary purpose of the broadcasting legislation is to ensure that services are calculated to appeal to a wide variety of tastes and interests; but without a ban, that could happen. A well-funded religious organisation could outbid all other organisations, including other religious organisations, to broadcast religious material.

The rationale for the bidding system for national licences is that it enables the market to deliver a popular and sustainable service. The highest bid is thus a proxy for wide appeal. But the system will not work if people act in a way that is not market-oriented. A well-funded religious body could run its national service on a non-commercial basis through subsidy and subscriptions.