HC Deb 16 March 1970 vol 798 cc21-4
33. Mr. Ron Lewis

asked the Minister of Posts and Telecommunications if he will now make a statement regarding the levy on the small independent television authorities.

29. Mr. Stratton Mills

asked the Minister of Posts and Telecommunications if he will now reduce the levy on independent television companies; and if he will make a statement.

49. Mr. McNamara

asked the Minister of Posts and Telecommunications what action he now proposes to take following the representations from the Independent Television Authority about the levy on independent television companies.

Mr. William Hamilton

asked the Minister of Posts and Telecommunications what action he is taking on the financial situation affecting Scottish television.

Mr. Probert

asked the Minister of Posts and Telecommunications if he will make a further statement on his policy regarding the levy affecting independent television.

Mr. Stonehouse

The Government have decided that the rate of the levy should be changed, with effect from 15 April, 1970, so as to reduce the yield in a full year by an estimated £6m. The authority has agreed with me that this reduction will give sufficient relief to those companies, including Scottish Television, in special need. I will, with permission, circulate the proposed scale in the OFFICIAL REPORT. The Order to give effect to the new scale will be brought before Parliament as soon as possible. My right hon. Friend the First Secretary of State and I propose to refer the costs and revenues of the independent television companies to the National Board for Prices and Incomes very shortly.

Mr. Lewis

May I assure my right hon. Friend that this reduction will be very much appreciated, as it will relieve smaller companies like the Border Television Company in my area, and enable them to proceed with local broadcasts?

Mr. Stonehouse

Yes. It is the case that a number of the smaller companies will be relieved altogether as a result of the decision that I have announced.

Mr. McNamara

Is my right hon. Friend aware that we appreciate the relative speed and dispatch with which the problem has been dealt, since it was causing great trouble to the smaller companies? Can he say, however, what are the principles on which he is referring this matter to the National Board for Prices and Incomes?

Mr. Stonehouse

I am grateful to my hon. Friend for those observations. We have dealt with it as expeditiously as possible. I am now consulting all those concerned about the reference to the National Board for Prices and Incomes, but I am not yet in a position to make any announcement.

Mr. Bryan

Is the right hon. Gentleman aware that we on this side of the House welcome the step that he has taken? However, does it not at the same time prove our point that the Government put up the levy at a time when they should have brought it down? Secondly, can he say exactly how he has come to this calculation? For instance, the profits of the companies as a whole were to be just about nil by July, 1970. What profits does he now expect for them? Finally, is he satisfied that no studios will have to be closed down?

Mr. Stonehouse

On the hon. Gentleman's last point, we are satisfied that this is a fair and reasonable decision after all the facts have been evaluated. I am glad to say that the I.T.A., with which I discussed it this morning, also agrees that it is a fair decision. I believe that it will be welcomed as such within the I.T.V. firms themselves.

The amounts have been arrived at as a result of a change in factors. Last year it was anticipated not only by the Ministers concerned but also by the firms themselves that their advertising income would be very much higher than has proved to be the case. It is now expected to be some £93 million this year, which is far below what was anticipated. It is for these reasons that the reduction has been allowed.

Mr. English

Does not my right hon. Friend think that we should have a debate on independent television as well as on the B.B.C.? Will he agree that he has not stated, although he said that he would in a written reply, the exact principle on which he has reduced the levy? Does not he agree that the real problems of the networks may or may not be solved by the basis on which he has reduced the levy, and not merely by the fact that he has reduced it, which we welcome?

Mr. Stonehouse

I believe that there will be an early arrangement for a debate on the Order which I shall have to bring in to give effect to this announcement. We shall then be in a position to debate the subject. As for my hon. Friend's point about the scale, that has been circulated. It is a very fair distribution.

Mr. Speaker

Mr. Alfred Morris. No. 34.

Mr. Hugh Jenkins

On a point of Order, Mr. Speaker. Is this not a very important subject, and should it not have been taken as a statement after Questions so that we might have a wider discussion than has been allowed? Would you not consider the possibility of allowing a few further supplementary questions on this matter?

Mr. Speaker

Order. This is my duty. I do it as best I can.

Following is the information:

Advertising receipts of each contractor for one year Rate
First £2 million … Nil
Next £4 million … 20 per cent
Next £3 million … 35 per cent
Next £3 million … 40 per cent
Next £4 million … 45 per cent
Over £16 million … 50 per cent