§ Sir John WheelerTo ask the Secretary of State for the Home Department if he has any plans too change the ITV levy rates; and if he will make a statement.
§ Mr. Kenneth BakerThe mixed levy on advertising revenue and profits is intended in the 1990–92 ITV contract extension period to yield broadly the same revenue, other things being equal, as would have arisen if the pre-1986 profits-based structure still applied.
Meeting this objective depends on accurate forecasting of advertising revenue. In practice this has been lower, and thus the levy yield has so far been higher than was 256W expected. But it is not clear for how long present trends will persist, and the Government are committed to avoiding further under-recoveries of levy. I therefore plan to re-examine the position in the autumn. If any changes to the levy rates are justified they would be introduced by early 1992.