EXPLANATORY NOTE
(This note is not part of the Order)
This Order amends two previous Orders:
the Local Digital Television Programme Services Order 2012 (“the Local Television Order”), which provides that specified provisions of Part 1 of the Broadcasting Act 1996 (“the 1996 Act”) and Part 3 of the Communications Act 2003 (“the 2003 Act”) are to have effect with modifications in relation to the provision of local digital television programme services in the UK; and
the Broadcasting (Independent Productions) Order 1991 (“the 1991 Order”), which defines “qualifying programmes” and “independent productions” for the purposes of sections 277 and 309 of, and paragraphs 1 and 7 of Schedule 12 to, the 2003 Act.
Articles 2 to 4 of the Order amend the Schedule to the Local Television Order, which specifies the modifications with which Part 1 of the 1996 Act and Part 3 of the 2003 Act are to have effect in relation to local digital television programme services.
Article 3 further modifies section 19 of the 1996 Act, inserting a new paragraph (k) into the subsection (3A) treated as inserted into that section. This new paragraph enables the Office of Communications (“Ofcom”) to include, in a licence to provide a local digital television programme service which is held by a producer, such conditions as appear to it to be appropriate to secure that the licence holder provides Ofcom with information to be used for the purpose of determining whether that licence holder is an independent producer.
Article 4 further modifies Part 3 of the 2003 Act so that section 309 of that Act (quotas for independent programmes) does not have effect in relation to the provision of local digital television programme services.
Articles 5 to 8 of the Order are concerned with making changes to the description of the persons who may be regarded as an “independent producer” for the purposes of Article 3 of the 1991 Order. Article 7 inserts new paragraphs (4B) to (4E) into article 3 of the 1991 Order, so that, in certain circumstances, the limits on share ownership referred to in article 3(4)(b) of the 1991 Order do not apply where a producer holds a share in a local television broadcaster (inserted paragraph (4B)).
The limits on share ownership in article 3(4)(b) continue to apply to a producer who holds a share in a local television broadcaster if the provision of relevant regulated television services (as defined by section 13(1A) of the Broadcasting Act 1990) is the main activity of the producer (inserted paragraph (4C)). Additionally, inserted paragraph (4D) provides that those limits continue to apply where a producer has a shareholding in a person who is connected (within the meaning of article 3(5) of the 1991 Order) to a local television broadcaster, and where the person in whom the producer has the shareholding either
is a broadcaster other than a local television broadcaster, or
is connected with a broadcaster who is not a local television broadcaster.
Article 8 amends paragraph (5) of article 3 of the 1991 Order so that the provision made by that paragraph in relation to connected persons also applies to inserted paragraph (4B).
A full regulatory impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector is available from the website of the Department for Culture, Media and Sport (www.culture.gov.uk) and is annexed to the Explanatory Memorandum which is available alongside the instrument at www.legislation.gov.uk.