HC Deb 14 May 1963 vol 677 cc1229-30

Question proposed, That the Clause stand part of the Bill.

Mr. Mitchison

Could we have a few words about Clause 5, which is a matter of some considerable public importance?

Mr. Barber

Yes. As the hon. and learned Member says, this is a matter of considerable public importance. It is probably the shortest Clause in the Finance Bill and it abolishes the duty of £1 per television broadcast receiving licence, which was imposed in 1957, as from 1st October, this year. The duty is only £1 out of a total of £4. The purpose of the abolition—I believe that I touched upon this when I moved the Second Reading—is to enable the B.B.C. to be given an increase in its income without an additional charge on the viewer at this stage. Accordingly, there will be a simultaneous increase of £1 per annum, from £3 to £4, in the basic licence fee.

The increase in the B.B.C.'s income is necessary because of the present and prospective rise in B.B.C. expenditure, mainly on the extension of services and new developments approved by the Government following the Pilkington Report, particularly the B.B.C. second television service which is due to start in the London area early next year. This proposal has been widely welcomed not only on both sides of the Committee, but in the country.

Mr. Mitchison

Is this proposal in accordance with the recommendations of the Pilkington Committee?

Mr. Barber

Of that I cannot be sure, but I can tell the hon. and learned Member that it certainly does not run counter to any of the proposals of the Pilkington Committee which were concerned with the financing of the B.B.C. Offhand, I cannot remember whether the Committee made any specific recommendation for the abolition of the television duty, but I rather think that it did not.

Question put and agreed to.

Clause ordered to stand part of the Bill.