§ Mr. Ensorasked the President of the Board of Trade what arrangements have been made for the collection and distribution of a levy in respect of cinema films shown on pay television during the period of the pay television experiment.
§ Mr. JayRepresentatives of the pay television operator, the film producers and the film distributors have established a non-statutory scheme under which the pay television operator has undertaken to contribute, throughout the period of the experiment, a levy to a pool which will be distributed to the makers of British films in proportion to their earnings from pay television. The levy is payable on films shown on pay television which have already been shown in a public cinema and on films which are so shown within a period of six months following their showing on pay television; it is at the rate of 6 per cent. of the gross takings of these films.
A company, The Pay Television Levy Ltd., has been formed to operate the scheme. Under the Articles of Association the Chairman of the Company must be an independent person and his appointment requires the approval of the Board of Trade. I have approved the appointment of Mr. S. J. Campling, C.B.E., as the first Chairman. Mr. Campling is also a member of the British Film Fund Agency.
Copies of the Memorandum of Agreement and of the Memorandum and Articles of Association of the new company have been placed in the Library.