§ 2.34 p.m.
§ LORD SHACKLETONMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether the term "Advertising agent" has been considered by the courts and what meaning Her Majesty's Government attach thereto.]
§ THE LORD CHANCELLOR (VISCOUNT KILMUIR)My Lords, I assume that the noble Lord has in mind Section 5 (1) of the Television Act, 1954. This Section has not been considered by the Courts. My own view, after consulting the Law Officers, is that the provision applies to a person or company who buys advertising space or time for a third party. It was the intention of the Government, when asking Parliament to enact the section, that it should bear this meaning, and I understand that the Independent Television Authority, which is charged by Parliament with the duty of enforcing the provision, attaches the same meaning to it.
§ LORD SHACKLETONMy Lords, while I accept that that may have been the intention of the Government, I am sure the noble and learned Viscount will agree that, whatever was said in introducing the clause, or whatever the intention may be, it does not decide what is the law. Would he not now think, in view of the concern that has genuinely been felt, that the matter ought to be clarified, possibly by some Amendment of the Act?
§ THE LORD CHANCELLORMy Lords, I entirely agree with the noble Lord that the intention of the Government is not relevant to construing the 100 section; that is why I was careful to give my own view before mentioning that fact. I think it is rather early to discuss the terms of the next Television Act, but I am anxious that this point should be clear and I realise that the noble Lord wishes to clarify it. I think that part of the difficulty, as I am sure he will agree, is that the term "advertising agent" is misleading because, as a general rule, an advertising agent contracts as a principal and not as an agent. I think it is from that that some of the difficulty has arisen. Therefore, if the noble Lord will allow me, I should like to make that as clear as I can.
Advertising agents buy space or time for their clients, the advertisers. In doing so, they are wholly independent of the medium or media in which they place the advertisements. In short, as my noble friend Lord St. Oswald said, the distinction is between the organisation whose function it is to sell space which it owns or otherwise has the right to dispose of, and that whose function it is to place advertisements in media in which it has no such right. The latter alone is considered to be an advertising agent. That is as clear as I can make it, but I will certainly convey to my right honourable friend the Postmaster General what the noble Lord has said, with a view to his having it in mind for future developments.