§ Sir Geoffrey Johnson Smithasked the Secretary of State for the Home Department what further progress has been made on the introduction of direct broadcasting by satellite; and if he will make a statement.
§ Mr. WhitelawThe BBC is continuing with its plans to have two DBS services in operation by September 1986. It has signed heads of agreement with Unisat for the provision of two DBS channels, and contracts are due to be signed shortly. Substantial investment will be required before the introduction and during the period of take-up of the new services, and this will be financed by borrowing. The BBC's existing borrowing powers are insufficient, and should in any case remain available if necessary for the existing Home Services. A supplemental Royal Charter is therefore being prepared which would allow the corporation to borrow for the provision of satellite services up to £150 million, with the possibility of an increase to a maximum of £225 million with the permission of the Secretary of State. A draft of the supplemental Royal Charter has been placed in the Library of the House.
The IBA has now submitted proposals for DBS broadcasting by independent companies in the latter half of this decade. I am considering these, and will bring forward proposals as soon as I am able.