1(1)Section 32 of the Broadcasting Act 1981 (rental payments by programme contractors) shall be amended as follows.
(2)The following Table shall be substituted for the Table in subsection (4)—
“TABLE
RATES OF ADDITIONAL PAYMENTS
| Rate for determining amount of additional payments | |
|---|---|
| First category profits | |
| For so much of the first category profits for the accounting period as does not exceed the free slice for those profits. | Nil. |
| For so much of the first category profits for the accounting period as exceeds the free slice for those profits. | The first category rate. |
| Second category profits | |
| For so much of the second category profits for the accounting period as does not exceed the free slice for those profits. | Nil. |
| For so much of the second category profits for the accounting period as exceeds the free slice for those profits. | The second category rate.” |
(3)After subsection (4) there shall be inserted the following subsection—
“(4A)For the purposes of this section—
"first category profits" and "second category profits" shall be determined in accordance with the provisions of Schedule 4 to this Act;
"first category rate" means—
(a)in relation to additional payments payable by virtue of subsection (1)(b)—
(i)nil, in the case of persons who are DBS programme contractors or DBS teletext contractors ; and
(ii)45 per cent, in any other case ; and
(b)in relation to additional payments payable by virtue of subsection (2)(b), nil;
"free slice" means—
(a)in relation to first category profits, £800,000 or 2-8 per cent, of the advertising receipts for the accounting period (whichever is the greater); and
(b)in relation to second category profits, the amount (if any) by which the free slice in relation to first category profits exceeds the first category profits for the accounting period ; and
"second category rate" means—
(a)in relation to additional payments payable by virtue of subsection (1)(b)—
(i)nil, in the case of persons who are DBS programme contractors or DBS teletext contractors ; and
(ii)22-5 per cent, in any other case ; and
(b)in relation to additional payments payable by virtue of subsection (2)(b), nil.”
(4)In subsection (5) for the words from "sum", where it first occurs, to "above" there shall be substituted the words "relevant sum mentioned in subsection (4A)".
(5)In subsection (8) for the words "subsections (4)" there shall be substituted the words "any of the provisions of subsections (4), (4A)".
(6)In subsection (9)—
(a)the words "to amend subsections (4) and (5)" shall be omitted;
(b)for the words "those subsections", where they first occur, there shall be substituted the words "the provisions in question";
(c)for the words "those subsections", where they next occur, there shall be substituted the words "those provisions"; and
(d)for paragraph (c) there shall be substituted the following paragraphs—
“(c)only in their application in relation to first category profits of all, or specified, kinds ;
(d)only in their application in relation to second category profits of all, or specified, kinds ; or
(e)differently in their application as mentioned in paragraphs (a) to (d) respectively”.