7(1)During the interim period the programmes broadcast by the Welsh Authority on S4C for reception in the area of any TV programme contractor may, so long as the provisions of the 1981 Act (as applied by this Part of this Schedule) are complied with in relation thereto, include advertisements provided for insertion therein by that contractor in consideration of payments to him.U.K.
(2)Any such TV programme contractor shall have the right to provide advertisements for inclusion in the programmes broadcast on S4C for reception in his area so long as—
(a)he makes the required payments to the Commission, and
(b)the provisions of the 1981 Act (as applied by this Part of this Schedule) are complied with in relation to such advertisements.
(3)In sub-paragraph (2) “the required payments” means such payments as are required to be paid by the programme contractor by virtue of any provision of his contract included in pursuance of section 13(2) of the 1981 Act.
(4)For any period in which programmes are to be broadcast on S4C for reception in the area of a TV programme contractor it shall be the duty of the Welsh Authority to make suitable arrangements—
(a)for the contractor to receive advance information about the programmes other than advertisements which are to be so broadcast in that period and about the periods which will be available for the broadcasting of advertisements; and
(b)for the inclusion, in the programmes so broadcast in that period, of advertisements provided for the purpose by the contractor in the exercise of his right to do so under sub-paragraph (2).
(5)No period allocated by the Welsh Authority to the broadcasting of advertisements on S4C shall be located—
(a)in any break in any programme supplied to them by the BBC; or
(b)without the consent of the BBC, at the beginning or end of any such programme.
(6)Orders for the inclusion by a TV programme contractor of advertisements among those provided by him for insertion in the programmes broadcast on S4C may be received either through advertising or other agents or direct from the advertiser.
(7)During the interim period—
(a)section 8(5) of the 1981 Act shall apply in relation to the programmes broadcast by the Welsh Authority on S4C as that provision applies, in accordance with this Part of this Schedule, in relation to the programmes broadcast by the Commission on ITV;
(b)the Commission shall do all that they can to secure that the provisions of—
(i)Schedule 2 to the 1981 Act (as it applies in accordance with this Part of this Schedule), and
(ii)the code under section 9 of that Act,
are complied with in relation to the advertisements broadcast by the Welsh Authority on S4C and in relation to the sponsorship of programmes so broadcast;
(c)section 9(2) and (3) of that Act shall apply accordingly in relation to advertisements and other programmes so broadcast; and
(d)(except in the case of any programme to which the Welsh Authority determine that this paragraph is not to apply) S4C shall not contain any programme which is sponsored by any person whose business consists, wholly or mainly—
(i)in the manufacture or supply of a product, or
(ii)in the provision of a service,
the advertising of which on ITV is prohibited by virtue of any provision of that Act or of the code under section 9 of that Act.
(8)So long as any directions given under section 9(4) of the 1981 Act (whether by the IBA or by the Commission) remain in force, the Welsh Authority shall, in broadcasting advertisements on S4C, give effect to the provisions of the directions as if they were provisions regulating the times when advertisements are to be allowed to be broadcast on S4C.
(9)Section 60(1) to (4) and (6) of this Act shall not have effect in relation to the Welsh Authority during the interim period.