HL Deb 31 July 1985 vol 467 cc328-9WA
Lord Morris

asked Her Majesty's Government:

What action they intend to pursue in the light of the reported abandonment of the DBS joint venture project.

The Parliamentary Under-Secretary of State, Home Office (Lord Glenarthur)

In bringing forward the provisions in the Cable and Broadcasting Bill last year for direct broadcasting by satellite, we explained that the Government's role was to provide the necessary legislative framework and an opportunity; but that, since no public money would be involved, it would be for the potential participants to decide whether or not to proceed.

The shadow Satellite Broadcasting Board, under Lord Thomson's chairmanship, has now reported to my right honourable friend the Home Secretary the outcome of the various feasibility studies undertaken by and on behalf of the proposed joint venture consortium. The consortium believes, in the light of these studies, that direct broadcasting by satellite would not provide a viable business for them at present and it has accordingly decided not to pursue the matter further.

We are grateful to Lord Thomson and his colleagues for their work on the shadow board but since there is now no early prospect of bringing into force Section 42 of the Cable and Broadcasting Act 1984, and related provisions, we are asking them to bring that work to an end.

It is, in our view, right that no public money should be put into the launch of DBS, and we remain convinced that DBS should proceed only if it is judged commercially viable without public subsidy. However, the Cable and Broadcasting Act 1984 contains the necessary statutory provisions not only for joint venture DBS, under Section 42, but also for DBS to be mounted by a contractor appointed by the IBA. The Government believe it right that other enterprises should now be given an opportunity to consider mounting DBS. Accordingly we have asked the IBA to carry out a review of the prospects for launching a viable DBS project under those provisions and of the degree of current commercial interest in providing such a service. In the light of that review, and of our consideration of other ways by which satellite broadcasting might be developed, we shall decide whether to bring the relevant provisions into force.