§ Mrs. OrganTo ask the Secretary of State for Culture, Media and Sport when he expects to announce the results of his consultation on the restrictions on participation in companies holding local radio multiplex licences; and if he will make a statement. [68537]
§ Janet AndersonThe Government consulted on proposed changes to the restrictions on shareholdings in companies which hold local multiplex licences last 323W November. Having reviewed the responses, we accept that there is a clear case for changing the limits at paragraph 11(4) of part III of Schedule 2 to the Broadcasting Act 1990 (as amended).
Although we still need restrictions in the interests of plurality of ownership, and the diversity of content which such plurality can bring, we accept that larger radio groups must be allowed more freedom to invest across the country if digital is to be a success. We must also ensure that local companies have the opportunity to invest in companies or consortia holding local multiplex licences.
The Government therefore intend to lay an order under paragraph 11(5) of part III of Schedule 2 to the 1990 Act (as amended) before Easter. This will allow investors to hold unlimited shareholdings in up to five companies or consortia holding digital licences. In addition we intend to increase the percentage limit on holdings over and above that limit from 10 per cent. to 20 per cent.
We believe that these changes will address the needs of all parts of the radio industry—both larger radio groups and those companies wishing to make small but meaningful investments in a wide range of digital licences. We will look very closely at the effects of the revised restrictions as more multiplex licences are advertised by the Radio Authority.