§ Lord Orr-Ewingasked Her Majesty's Government:
What action they propose to take on the report of the review of the Independent Broadcasting Authority into the further developments of plans for direct broadcasting by satellite.
808WA
§ Lord GlenarthurOn 31st July 1985, I announced that we had asked the Independent Broadcasting Authority to carry out a review of the prospects for launching a viable DBS project under Sections 37–41 of the Cable and Broadcasting Act 1984.
The Chairman of the IBA has now reported to my right honourable friend the Home Secretary the outcome of that review. On the basis of the various submissions made to it, the authority has concluded that, in spite of financial and other uncertainties which inevitably exist in a high-risk enterprise of this kind, there is sufficient potential commercial interest in developing a DBS service in this country to justify bringing into force the relevant provisions of the Cable and Broadcasting Act.
The Government welcome this conclusion. The Government's role is not to provide a public subsidy but to apply the regulatory framework already set up by Parliament, which gives the opportunity for potential participants to proceed with a service.
Accordingly, in the light of the IBA's advice that there is commercial interest, my right honourable friend the Home Secretary has now decided to bring into force Sections 37–41 of the Cable and Broadcasting Act 1984. He is inviting the IBA to advertise for programme contractors for three DBS channels under the arrangements agreed in 1977 by the World Administrative Radio Conference. As to the source of satellite provision, it will be open to potential contractors to consider proposals from suppliers either in this country or overseas. We envisage that, in assessing the applications for a DBS contract, the IBA will take account of the overall economic implications for the United Kingdom.