Article 5 Amendment of the Community Radio Order 2004

(1)

Paragraph 5(2)^f1 (which adds subsections (2) to (8) in section 105 of the Broadcasting Act 1990 as it has effect in relation to a community radio service) is amended as follows.

(2)

In the subsection (3) added to that section—

(a)

after “provide a community radio service,” insert “or where OFCOM is considering a variation of such a licence under section 86(5) to include conditions set out in subsection (5),”;

(b)

in paragraph (a) after “in question” insert “(or, as the case may be, whether to vary the licence in question pursuant to section 86(5)),”;

(c)

in paragraph (b) after “it is granted” insert “(or, as the case may be, the terms of the variation of the licence in question pursuant to section 86(5)),”.

(3)

In paragraph (b) of subsection (4) added to that section—

(a)

at the start of that paragraph insert “subject to paragraph (c)”; and

(b)

for “prohibiting—” to “included in that service;” substitute—

“ensuring that the relevant income for that community radio licence as is attributable to any arrangements for—

(i)
the inclusion in that service of any remunerated advertisement, and

(ii)
the sponsorship of any programmes included in that service,

does not, in any financial year of the licence holder, exceed £15,000;”;

(4)

For the subsection (4)(c) added to that section substitute—

“(c)
every licence to provide the services listed below must contain the conditions mentioned in subsection (5)—

(i)
a community radio service that overlaps with any other local licence for a service, other than a community radio service, the potential audience of which includes no more than 150,000 persons who have attained the age of 15 years, where that local licence has at any time been varied pursuant to section 106(1A)(e)^f2, or

(ii)
a community radio service, other than a licence to provide a service such as falls within paragraph (b)”.

(5)

For the subsection (5) added to that section substitute—

“(5)
Subject to subsection (6), the conditions referred to in subsection (4) are those that appear to OFCOM to be appropriate, in the case of the community radio licence in question, for—

(a)
permitting the relevant income for that licence to include up to £15,000 per financial year of the licence holder attributable to any arrangements for—

(i)
the inclusion in the service provided under that licence of any remunerated advertisement, or

(ii)
the sponsorship of any programmes included in that service; and

(b)
ensuring that the amount of such of the relevant income for that licence as is attributable to any arrangements for—

(i)
the inclusion in the service provided under that licence of any remunerated advertisement, or

(ii)
the sponsorship of any programmes included in that service,

does not, in any financial year of the licence holder, exceed 50% of the total relevant income (disregarding the £15,000 maximum specified in paragraph (a)) for that licence in that year.”

(6)

After the subsection (5) added to that section insert—

“(5A)
The Secretary of State may, from time to time, request OFCOM to review whether the £15,000 figure in subsections (4)(b) and (5) remains appropriate.”

(7)

For subsection (6) added to that section substitute—

“(6)
OFCOM may include conditions in a licence to provide community radio services falling within subsection (4)(c), which modify the percentage of the total relevant income referred to in subsection (5), if it appears necessary to secure the result that—

(a)
the inclusion in any community radio service of remunerated advertising; or

(b)
the sponsorship of programmes included in that service,

do not prejudice unduly the economic viability of any other local service (other than a community radio service).”

Annotations

Footnotes

f1: Paragraph 5(2) was amended by S.I. 2010/118. Article 3(2) of that SI also omitted subsection (2) which was added to section 105 as it applies to community radio.
f2: Section 106(1A) was inserted by the Communications Act 2003 section 312(1) and (3), and paragraph (e) of subsection (1A) was inserted by section 34(1) of the Digital Economy Act 2010.