§ The Television Acts of 1963 and 1964 provided for two kinds of rental to be paid by programme contractors. Rentals in the first category were to cover the costs of the Independent Television Authority. Those in the second, known as "additional payments", were to provide a return by the contractors for the valuable public concessions which they enjoy. The additional payments were related to net advertising receipts, and the rates introduced in 1964 have remained unaltered ever since. These were: nil on the first £1½ million of advertising receipts; 25 per cent. on the next £6 million; and 45 per cent. on the remainder. The proceeds, currently about £26 million a year, are paid into the Consolidated Fund.
§ The Independent Television Authority has estimated that profits before tax in the past three years have averaged well 1014 over 40 per cent. on capital employed. In my view the community should have a bigger share in the value of these publicly created concessions. I therefore propose that the rates of levy should be increased from 1st July this year to provide an additional yield of about £3 million in the first full year.
§ My right hon. Friend the Postmaster-General will shortly be laying an Order to introduce the new rates. The Order will provide for the following rates of payment: nil on the first £500,000 of advertising revenue; 7 per cent. on the next £1 million; 25 per cent. on the next £2½ million; 35 per cent. on the next £6 million; and 47½ per cent. on the remainder.