Broadcasting Act 1981

• (a) an account showing the additional payments received under all their contracts with programme contractors for the provision of television programmes and of the sums paid into the Consolidated Funds of the United Kingdom and Northern Ireland respectively under subsection (3) in respect of those payments, and

• (b) an account showing the additional payments received under all their contracts with programme contractors for the provision of local sound broadcasts and of the sums paid as mentioned in paragraph (a) in respect of those payments;

and shall send those accounts to the Comptroller and Auditor General not later than the end of November following the year ; and the Comptroller and Auditor General shall examine, certify and report on each of those accounts and lay copies of it, together with his report, before each House of Parliament.

Instalments payable on account by programme contractors in respect of additional payments

34

• (1) It shall be the duty of the Authority in framing the contracts with the various programme contractors to include terms enabling the Authority to estimate before the beginning of an accounting period the additional payments due for that accounting period, and requiring the programme contractor to pay the estimated amount by monthly instalments throughout the accounting period.

• (2) The Authority shall in particular include terms—

• (a) authorising the Authority to revise any estimate on one or more occasions, and to adjust the instalments payable by the programme contractor to take account of the revised estimate ;

• (b) providing for the adjustment of any overpayment or underpayment when the amount due from the programme contractor for the accounting period has been finally ascertained;

• (c) ensuring that any amount due under the contract is paid promptly and in full.

• (3) Where any amount falls to be paid to a programme contractor to adjust an overpayment made by him, that amount shall be paid to the programme contractor out of the Consolidated Fund of the United Kingdom or, if the contract is for the supply of programmes to be broadcast from stations all of which are in Northern Ireland, out of the Consolidated Fund of Northern Ireland.

• (4) Any reference in section 33 to additional payments shall be construed as including any sum payable in pursuance of this section as being an instalment or unpaid balance of any additional payments.

• (5) The accounts to be prepared under paragraphs (a) and (b) of section 33(4) shall show any sums paid in pursuance of subsection (3) of this section in respect of the financial year in question and relating to the additional payments mentioned in those paragraphs respectively.

Provision for supplementing additional payments

35

• (1) Where the Secretary of State is advised by the Authority, or after consultation with the Authority is of the opinion, that (apart from the provisions of this section)—

• (a) the aggregate amount of the additional payments to be made for an accounting period of a programme contractor in accordance with section 32 by virtue of subsection (1)(b) or (as the case may be) (2)(b) of that section is likely to be deficient, and

• (b) the deficiency would be wholly or mainly attributable to excessive expenditure forming part of the relevant expenditure by reference to which those additional payments fall to be calculated,

the Secretary of State, with the consent of the Treasury, may make an order prescribing the minimum amount of additional payments to be made by the programme contractor for that accounting period.

• (2) In determining, for the purposes of subsection (1) of this section, whether in the case of a programme contractor any particular expenditure is excessive, the Authority or the Secretary of State, as the case may be, shall have regard to such considerations as they or he may consider relevant in the circumstances, and in particular to—

• (a) the scale (if any) on which any comparable expenditure has formed part of the relevant expenditure by reference to which the additional payments of that programme contractor for any previous accounting period have fallen to be calculated, and

• (b) the scale (if any) on which any comparable expenditure has formed or is expected to form part of the relevant expenditure by reference to which the additional payments of any other programme contractor for the provision of television programmes or (as the case may be) local sound broadcasts for any current accounting period of his have fallen or are expected to fall to be calculated.

For the purposes of paragraph (b) of this subsection, an accounting period of another programme contractor shall be treated as current if the whole or a part of it is comprised in the accounting period referred to in subsection (1) of this section.

• (3) Any order made under subsection (1) of this section in respect of an accounting period may, by a further order made by the Secretary of State after consultation with the Authority, and with the consent of the Treasury—

• (a) be revoked, or

• (b) be varied by substituting a greater or lesser amount for the amount specified in the order (whether as originally made or as previously varied under this subsection).

• (4) No order shall be made under this section after the end of the accounting period to which it relates.

• (5) In making their contracts with the various programme contractors, it shall be the duty of the Authority to require those contracts to include such provisions as in the opinion of the Authority will ensure that the Authority will be in a position to comply with any order made under this section.

• (6) Any order under this section shall be made by statutory instrument; but no such order shall be made unless a draft of it has been laid before Parliament and approved by a resolution of each House.

• (7) An order under this section shall, notwithstanding that it makes different provision in relation to one programme contractor from the provision made by any order under this section in relation to any other programme contractor, proceed in Parliament as if its provisions would, apart from this section, require to be enacted by a public Bill which cannot be committed to a Select or other Committee of either House under the Standing Orders of either House relating to Private Bills.

Finances of Authority

Television and sound broadcasting to be separately financed by Authority

36

• (1) The provision by the Authority of television broadcasting services, and the provision by them of local sound broadcasting services, shall for financial purposes constitute separate branches of their undertaking; and references in this Act to a branch of the Authority's undertaking shall be construed accordingly.

• (2) For each branch of their undertaking it shall be the duty of the Authority so to conduct their affairs as to secure that their revenues from that branch become at the earliest possible date, and thereafter continue, at least sufficient—

• (a) to meet all sums properly chargeable to revenue account in respect of that branch of their undertaking (including sums which, for the purposes of that branch, are required for the repayment of loans and interest thereon, for provision for depreciation and for the establishment and maintenance of the reserve fund for that branch); and

• (b) to make provision towards, and as soon as practicable for, necessary capital expenditure for the purposes of that branch of their undertaking.

• (3) For each branch of their undertaking the Authority shall establish and maintain a reserve fund; and, subject to the following provisions of this section, the management of that fund, the sums to be carried from time to time to the credit of the fund, and the application of the fund, shall be as the Authority may determine.

• (4) No part of either of those funds shall be applied otherwise than for the purposes of the branch of the Authority's undertaking for which the fund was established.

• (5) The Secretary of State may, with the approval of the Treasury, give to the Authority such directions as he may think fit as to any matter relating to the establishment or management of either of those funds, to the carrying of sums to the credit thereof, or to the application thereof; and the Authority shall comply with the directions.

Application of any excess of revenues over expenditure

37

• (1) In the case of each branch of the Authority's undertaking any excess of the revenues of the Authority for any financial year over the total sums properly chargeable by the Authority to revenue account for that year, including in such sums (without prejudice to the generality of that expression) sums credited under section 36(3) to the reserve fund established for that branch, shall be applied by the Authority in such manner as the Secretary of State, with the approval of the Treasury after consultation with the Chairman (or in his absence the Deputy Chairman) of the Authority, may direct.

• (2) A direction under subsection (1) of this section may require the whole or any part of any excess of the revenues of the Authority to be paid into the Consolidated Fund.

• (3) A direction under subsection (1) of this section shall not require any part of any excess of the revenues of the Authority attributable to one branch of their undertaking to be applied for the purposes of the other branch of their undertaking.

Advances to Authority for purposes of local sound broadcasting

38

• (1) For the purpose of enabling the Authority to defray expenditure properly attributable to capital account in respect of the provision of local sound broadcasting services, and for the purpose of furnishing the Authority with working capital in connection with those services, the Secretary of State may with the consent of the Treasury make advances to the Authority out of money provided by Parliament.

• (2) The aggregate amount outstanding by way of principal in respect of sums advanced to the Authority under this section shall not at any time exceed £2 million.

• (3) Any sums advanced under this section shall be repaid to the Secretary of State at such times and by such methods, and interest on those sums shall be paid to him at such times and at such rates, as he may from time to time direct with the consent of the Treasury.

• (4) All sums received by the Secretary of State in pursuance of subsection (3) shall be paid into the Consolidated Fund.

Payments by Authority

Payments by Authority to Welsh Authority

39

• (1) For each financial year the Authority shall pay to the Welsh Fourth Channel Authority such sum or sums as may be agreed between them to be appropriate for enabling the Welsh Authority to meet their reasonable outgoings or, in default of such agreement, such sum or sums as the Secretary of State may determine to be appropriate for that purpose.

• (2) All sums paid by the Authority to the Welsh Authority in pursuance of subsection (1) shall be treated for the purposes of section 36(2) as sums properly chargeable to revenue account in respect of the branch of their undertaking which consists of the provision of television broadcasting services.

• (3) In deciding from time to time whether to make any, and if so what, use of his power under subsection (8) of section 32 to amend by order subsections (4) and (5) of that section the Secretary of State may have regard to any increase in the aggregate amount of the payments to be made by programme contractors under the head described in subsection (l)(a) of that section which is attributable to the provisions of this section and Part II.

Contributions towards cost of Broadcasting Complaints Commission

40

• (1) For the financial year in which the Broadcasting Complaints Commission is established and each subsequent financial year the Secretary of State shall notify to the Authority the total sum which he considers to be the appropriate contribution of the programme contractors towards the expenses of the Commission.

• (2) The contracts between the Authority and the various programme contractors shall contain such provisions as the Authority consider necessary for securing that the programme contractors make to the Authority in respect of every financial year payments (additional to those required by section 32) representing what appear to the Authority to be the appropriate contributions of the respective programme contractors towards meeting the sum notified to the Authority for that year under subsection (1).

• (3) The payments made to the Authority by virtue of subsection (2) shall not form part of the revenue of the Authority and, when received by the Authority, shall be paid to the Secretary of State.

• (4) All sums received by the Secretary of State under subsection (3) shall be paid into the Consolidated Fund.

• (5) Any payment made by a programme contractor to the Authority by virtue of subsection (2) in any accounting period shall be treated as relevant expenditure for the purposes of Schedule 4.

Grants by Authority to local sound programme contractors

41

• (1) If, in the case of any local sound programme contractor, the Authority consider it necessary or expedient to do so for the purpose of enabling the Authority to discharge more fully the duties mentioned in subsection (2), they may make to that contractor a grant of such amount as they think fit.

• (2) Those duties are the duties of the Authority under subsections (1) and (2) of section 2 in relation to local sound broadcasting services, and in particular their duties under subsection (2)(b) and (c) of that section to ensure that the programmes broadcast in each area maintain a high general standard in respect of their content and quality, and to secure a wide hearing for programmes of merit.

• (3) A grant made to a local sound programme contractor under this section may be made on such conditions as the Authority think appropriate for securing that it is used only for specified purposes, being purposes which in the opinion of the Authority will be conducive to the achievement of the purpose mentioned in subsection (1).

• (4) Any number of grants may be made to the same local sound programme contractor under this section.

• (5) In this section "local sound programme contractor" means a person who is a programme contractor by virtue of a contract for the provision of local sound broadcasts.

Accounts, audit and annual reports

Accounts and audit

42

• (1) The Authority shall keep proper accounts and proper records in relation to the accounts, and shall prepare in respect of each financial year a statement of accounts in such form as the Secretary of State with the approval of the Treasury may direct, being a form which shall conform with the best commercial standards.

• (2) The accounts of the Authority shall be audited by auditors to be appointed by the Authority with the approval of the Secretary of State, and a person shall not be qualified to be so appointed unless he is a member of one or more of the following bodies—

• the Institute of Chartered Accountants in England and Wales;

• the Institute of Chartered Accountants of Scotland ;

• the Association of Certified Accountants ;

• the Institute of Chartered Accountants in Ireland ;

• any other body of accountants established in the United Kingdom and for the time being recognised for the purposes of section 161(1) (a) of the Companies Act 1948 by the Secretary of State.

• (3) The Authority shall at all reasonable times upon demand made by the Secretary of State or by any person authorised by him in that behalf—

• (a) afford to him or them full liberty to examine the accounts of the Authority, and

• (b) furnish him or them with all forecasts, estimates, information and documents which he or they may require with respect to the financial transactions and engagements of the Authority.

Annual reports

43

• (1) As soon as may be after the end of every financial year, the Authority shall prepare a general report of their proceedings during that year, and transmit it to the Secretary of State who shall consider it and lay copies of it before each House of Parliament.

• (2) The report shall have attached to it the statement of accounts for the year and a copy of any report made by the auditor on that statement, and shall also include such information relating to the plans, and past and present activities, of the Authority, and to the financial position of the Authority, as the Secretary of State may from time to time direct.

• (3) The report for any financial year shall also include—

• (a) an account of the way in which the power to make grants under section 41 has been exercised during that year; and

• (b) a description of the provision made by the various programme contractors for the training of persons employed by them in the preparation or making of programmes.

• (4) The report for any financial year in which the Authority provide both ITV and the Fourth Channel shall include the following information—

• (a) a general description of the programmes broadcast on ITV and the Fourth Channel respectively, with particular reference to programmes containing news or news features and programmes of an educational nature, and a general account of how the programmes broadcast on the Fourth Channel differed from those broadcast on ITV, with particular reference as aforesaid ;

• (b) an account of the way in which the Authority have discharged their duty under section l1(l)(c) as regards the encouragement of innovation and experiment in the form and content of programmes for broadcasting on the Fourth Channel;

• (c) a description of the sources from which the programmes broadcast on ITV and the Fourth Channel respectively were obtained, and an account of the extent to which the Authority have discharged their duty under section 12(3)(b) as regards the sources of programmes broadcast on the Fourth Channel;

• (d) a description of the arrangements made by the Authority with respect to the broadcasting of advertisements on ITV and the Fourth Channel respectively, and a general account of—

• (i) any complaints received by the Authority about those arrangements or about the conduct of TV programme contractors in connection with the sale of advertising time in those services respectively ; and

• (ii) the action taken by the Authority in relation to those complaints.

In this subsection " programmes " means programmes other than advertisements.

• (5) Subsection (4) does not apply in relation to programmes broadcast by the Authority, whether on ITV or otherwise, for reception in Wales.

• (6) Subsections (3) and (4) are without prejudice to the power of the Secretary of State under subsection (2) to give directions as to the information to be included in any report under this section; and that power shall include power to direct the Authority to include in any such report such information relating to any matter required by subsection (3) or (4) to be dealt with in the report as may be specified in the directions.

Miscellaneous

Machinery for settling terms and conditions of employment of Authority's staff, etc.

44

• (1) Except so far as the Authority are satisfied that adequate machinery exists for achieving the purposes of this section, it shall be the duty of the Authority to seek consultation with any organisation appearing to them to be appropriate with a view to the conclusion between the Authority and that organisation of such agreements as appear to the parties to be desirable with respect to the establishment and maintenance of machinery for—

• (a) the settlement by negotiation of terms and conditions of employment of persons employed by the Authority, with provision for reference to arbitration, in default of such settlement, of such cases as may be determined by or under the agreements; and

• (b) the promotion and encouragement of measures affecting the safety, health, training and welfare of persons employed by the Authority, and the discussion of other matters of mutual interest to the Authority and such persons.

• (2) The Authority shall send to the Secretary of State copies of any such agreement and of any instrument varying the terms of any such agreement.

• (3) In relation to any agreement affecting employment in Northern Ireland, the reference in subsection (2) to the Secretary of State includes a reference to the Department of Manpower Services for Northern Ireland.

Audience research

45

• (1) The functions of the Authority shall include the making of arrangements for brmging the programmes broadcast by the Authority and the other activities of the Authority under constant and effective review, and in particular for ascertaining the state of public opinion concerning the programmes broadcast by the Authority and for encouraging the making of useful comments and suggestions by members of the public.

• (2) Those arrangements shall include provision for full consideration by the Authority of the facts, comments and suggestions so obtained.

• (3) In this section " programmes " includes advertisements.

PART II — The Fourth Channel in Wales

The Welsh Fourth Channel Authority

46

• (1) The authority called the Welsh Fourth Channel Authority shall continue in existence as a body corporate.

• (2) The Welsh Authority shall consist of—

• (a) a Chairman appointed by the Secretary of State; and

• (b) four other members so appointed.

• (3) The Welsh Authority, unless previously dissolved, shall cease to function if and when the IBA cease to function under section 2(1).

• (4) Schedule 5 shall have effect with respect to the Welsh Authority.

Function, powers and duties of Welsh Authority

47

• (1) The function of the Welsh Authority shall be—

• (a) to provide television programmes (other than advertisements) of high quality for broadcasting by the IBA on the Fourth Channel in Wales; and

• (b) to provide the IBA with programme schedules for those programmes;

and, subject to the provisions of this Act so far as they apply in relation to the Fourth Channel in Wales, it shall be the duty of the IBA to broadcast on that Channel the programmes provided by the Welsh Authority, and to do so in accordance with the programme schedules so provided.

• (2) In this Part " the Fourth Channel in Wales " means the Fourth Channel so far as it consists of programmes (other than advertisements) broadcast for reception in Wales.

• (3) A substantial proportion of the programmes included in the programme schedules provided by the Welsh Authority shall be in Welsh; and the programme schedules shall be drawn up so as to secure that the programmes broadcast on the Fourth Channel in Wales between the hours of 6.30 p.m. and 10.00 p.m. consist mainly of programmes in Welsh.

• (4) Subject to subsection (3), the programme schedules provided by the Welsh Authority shall be drawn up with a view to securing that, for any period allocated to the broadcasting of a programme not in Welsh, the programme broadcast is normally the same as the programme (or one of the programmes) broadcast on the Fourth Channel in that period for reception otherwise than in Wales.

• (5) It shall be the duty of the Welsh Authority—

• (a) to discharge their function under subsection (1) so as to secure that the Fourth Channel in Wales is a public service for disseminating information, education and entertainment; and

• (b) to ensure that the programmes provided by them maintain a high general standard in all respects, and in particular in respect of their content and quality, and that the programmes in Welsh so provided maintain a proper balance and wide range in their subject matter, having regard both to the programmes as a whole and also to the days of the week on which, and the times of the day at which, the programmes are broadcast.

• (6) The Welsh Authority shall, subject to the provisions of this Act so far as they apply in relation to the Fourth Channel in Wales, have power to do all such things as are in their opinion necessary for, or conducive to, the proper discharge of their function under subsection (1).

Sources of programmes (other than advertisements) in Welsh

48

• (1) It shall be the duty of the BBC to supply to the Welsh Authority a proportion of the television programmes in Welsh which that Authority need for compliance with section 47(3), and to do so in a way which meets the reasonable requirements of that Authority.

• (2) The aggregate duration of the television programmes in Welsh supplied by the BBC under subsection (1) for inclusion in the Welsh Authority's programme schedules for any period shall be not less than the aggregate duration of the television programmes in Welsh which, if this Part were not in force, would have been broadcast by the BBC in that period for reception in Wales.

• (3) The contract between the IBA and the TV programme contractor whose duty it is to provide programmes for broadcasting on ITV for reception in Wales shall contain all such provisions as the IBA think necessary or expedient to ensure that, while the IBA are providing both ITV and the Fourth Channel in Wales, the programme contractor is under a duty to supply to the Welsh Authority (on commercial terms) a reasonable proportion of the television programmes in Welsh which the Welsh Authority need for compliance with section 47(3), and to do so in a way which meets the reasonable requirements of the Welsh Authority.

• (4) Nothing in this section shall be taken to preclude the Welsh Authority from obtaining television programmes in Welsh from sources other than the BBC and the TV programme contractor referred to in subsection (3).

Advertisements on the Fourth Channel in Wales

49

• (1) The programme schedules provided by the Welsh Authority under section 47(1)(b) shall include periods available for the broadcasting of advertisements ; and it shall be the duty of the Welsh Authority to provide those programme schedules far enough in advance to enable the IBA to operate the arrangements required by section 13(3)(a).

• (2) In any programme schedule so provided, no period available for the broadcasting of advertisements shall be located in any break in or, without the consent of the BBC, at the beginning or end of any programme supplied or to be supplied to the Welsh Authority by the BBC.

Modification of certain provisions relating to the IBA

50

• (1) The provisions mentioned in subsection (2) shall, in their operation in relation to the Fourth Channel in Wales, have effect subject to the modifications specified in Schedule 6 (being modifications for substituting the Welsh Authority for the IBA in those provisions and for other purposes arising out of the special arrangements for that Channel); but nothing in this section or that Schedule affects those provisions in their operation in relation to the Fourth Channel so far as it consists of advertisements broadcast for reception in Wales.

• (2) Those provisions are—

• (a) section 2(1) and (2) (function and duties of IBA);

• (b) section 4 (general provisions as to content of programmes) ;

• (c) section 5 (code for programmes other than advertisements) ;

• (d) section 7 (programme prizes);

• (e) section 45 (audience research).

• (3) So long as the Fourth Channel is being provided in Wales, so much of section 4(1)(d) as relates to cases where another language as well as English is in common use among persons served by the station or stations in question, shall, in the case of programmes broadcast on ITV for reception in Wales, apply only to languages other than Welsh.

Advisory bodies

51

• (1) The Welsh Authority may appoint, or arrange for the assistance of, advisory bodies to give advice to that Authority on such matters as that Authority may determine ; and a general advisory council may be appointed under this section.

• (2) Without prejudice to the generality of subsection (1), the Welsh Authority shall in particular appoint, or arrange for the assistance of committees of the kinds mentioned in paragraphs (a) and (c) of section 16(2) respectively (committees to advise in the fields of religion and education).

• (3) The advisory bodies for whose assistance the Welsh Authority may arrange under this section include—

• (a) any general advisory council appointed by the IBA under section 16(1);

• (b) the advisory committee for Wales so appointed under section 17 ;

• (c) any advisory committee whose function is to give to the IBA such advice as is mentioned in section 16(2) (a) or (c);

• (d) the Broadcasting Council for Wales appointed by the BBC; and

• (e) any other advisory council or committee appointed by the BBC;

but the Welsh Authority shall not arrange for the assistance of an advisory body appointed by the IBA or by the BBC without the consent of the IBA or the BBC, as the case may be.

Finances of Welsh Authority and accounts, audit and reports

52

• (1) By virtue of section 39(1) sums are payable by the IBA to the Welsh Authority for enabling the Welsh Authority to meet their reasonable outgoings.

• (2) Sections 42 and 43(1) and (2) (accounts, audit and reports) shall apply in relation to the Welsh Authority as they apply in relation to the IBA.

PART III — The Broadcasting Complaints Commission

The Broadcasting Complaints Commission

53

• (1) The commission named the Broadcasting Complaints Commission shall continue in existence as a body corporate.

• (2) The Commission shall consist of not less than three members appointed by the Secretary of State.

• (3) A person shall be disqualified for being appointed, or being, a member of the Commission so long as he is—

• (a) a governor, officer or employee of the BBC or a member, officer or employee of the IBA ; or

• (b) a person not within paragraph (a) who appears to the Secretary of State to be concerned with, or to have an interest in, the preparation or provision of programmes for broadcasting by the BBC or the IBA (including, in the case of the IBA, programmes consisting of advertisements).

• (4) The Secretary of State shall appoint one member of the Commission to be chairman, and may appoint another to be deputy chairman.

• (5) Schedule 7 shall have effect with respect to the Commission.

Function of Commission

54

• (1) Subject to the provisions of this Part, the function of the Commission shall be to consider and adjudicate upon complaints of—

• (a) unjust or unfair treatment in sound or television programmes actually broadcast by a broadcasting body on or after 1st June 1981 ; or

• (b) unwarranted infringement of privacy in, or in connection with the obtaining of material included in, sound or television programmes actually so broadcast.

• (2) The Commission shall not entertain complaints not falling within subsection (1).

• (3) In this Part—

• " broadcasting body " means the BBC or the IBA ;

• " complaint" means a complaint to the Commission of any such unjust or unfair treatment or unwarranted infringement of privacy as is mentioned in subsection (1);

• " participant " means— in the case of a sound programme, a person whose voice was heard in the programme ; in the case of a television programme, a person who appeared, or whose voice was heard, in the programme;

• " the person affected "— in relation to any such unjust or unfair treatment as is mentioned in subsection (1), means a participant in the programme in question who was the subject of that treatment or a person who, whether such a participant or not, had a direct interest in the subject-matter of that treatment; in relation to any such unwarranted infringement of privacy as is so mentioned, means a person whose privacy was infringed ;

• " the relevant programme", in relation to a complaint, means the programme in which the alleged unjust or unfair treatment occurred or in which, or in connection with the obtaining of material included in which, the alleged unwarranted infringement of privacy occurred;

• " unjust or unfair treatment" includes treatment which is unjust or unfair because of the way in which material included in a programme has been selected or arranged;

and references in this Part to television programmes and programme contractors include references to teletext transmissions and teletext contractors respectively.

Making and entertaining of complaints

55

• (1) Complaints must be made in writing.

• (2) A complaint may be made by an individual or by a body of persons, whether incorporated or not, but, subject to subsection (3), shall not be entertained by the Commission unless made by the person affected or by a person authorised by him to make the complaint for him.

• (3) Where the person affected is an individual who has died or is for any other reason both unable to make a complaint himself and unable to authorise another person to do so for him, a complaint may be made by the personal representative of the person affected, or by a member of his family, or by some other person or body closely connected with him (whether as his employer, or as a body of which he is or was at his death a member, or in any other way).

• (4) The Commission shall not entertain, or proceed with the consideration of, a complaint if it appears to them—

• (a) that the complaint relates to the broadcasting of the relevant programme on an occasion more than five years after the death of the person affected ; or

• (b) that the unjust or unfair treatment or unwarranted infringement of privacy complained of is the subject of proceedings in a court of law in the United Kingdom ; or

• (c) that the unjust or unfair treatment or unwarranted infringement of privacy complained of is a matter in respect of which the person affected has a remedy by way of proceedings in a court of law in the United Kingdom, and that in the particular circumstances it is not appropriate for the Commission to consider a complaint about it; or

• (d) that the complaint is frivolous ;

or if it appears to them for any other reason inappropriate for them to entertain, or proceed with the consideration of, the complaint.

• (5) The Commission may refuse to entertain a complaint if it appears to them not to have been made within a reasonable time after the last occasion on which the relevant programme was broadcast by a broadcasting body.

• (6) Where, in the case of a complaint, the relevant programme was broadcast within five years after the death of the person affected, subsection (5) shall apply as if at the end there were added " within five years after the death of the person affected ".

• (7) The Commission may refuse to entertain—

• (a) a complaint of unjust or unfair treatment if the person named as the person affected was not himself the subject of the treatment complained of and it appears to the Commission that he did not have a sufficiently direct interest in the subject-matter thereof to justify the making of a complaint with him as the person affected; or

• (b) a complaint made under subsection (3) by a person other than the person affected or a person authorised by him, if it appears to the Commission that the complainant's connection with the person affected is not sufficiently close to justify the making of the complaint by him.

Consideration of complaints

56

• (1) Subject to the provisions of section 55, every complaint made to the Commission shall be considered by them either at a hearing or, if they think fit, without a hearing.

• (2) Hearings under this section shall be held in private; and where such a hearing is held in respect of a complaint, each of the following persons shall be given an opportunity to attend and be heard, namely—

• (a) the complainant;

• (b) the broadcasting body by whom the relevant programme was broadcast; and

• (c) any person not within paragraph (a) or (b) who appears to the Commission to have been responsible for the making or provision of that programme.

• (3) Before they proceed to consider a complaint the Commission shall send a copy of it to the broadcasting body by whom the relevant programme was broadcast.

• (4) Where a broadcasting body receive from the Commission a copy of a complaint, it shall be the duty of that body, if so required by the Commission—

• (a) to make suitable arrangements for enabling the complainant and any member or officer of the Commission to view or hear the relevant programme, or any specified part of it, if and so far as that body have in their possession a visual or sound record of it;

• (b) to provide the Commission and the complainant with a transcript of so much of the relevant programme, or of any specified part of it, as consisted of speech, if and so far as that body are able to do so;

• (c) to provide the Commission and the complainant with copies of any documents in the possession of that body being the originals or copies of any correspondence between that body and the person affected or the complainant in connection with the complaint;

• (d) to furnish to the Commission and the complainant a written statement in answer to the complaint.

• (5) Where the Commission propose to consider a complaint, it shall be the duty of the broadcasting body by whom the relevant programme was broadcast, if so required by the Commission, to arrange for one or more of the governors, members or officers of that body to attend and assist the Commission in their consideration of the complaint.

• (6) Where, in connection with a complaint received by them, the Commission have made to any person (other than the broadcasting body by whom the relevant programme was broadcast) who appears to them to have been responsible for the making or provision of the relevant programme a request to which this subsection applies, it shall be the duty of that broadcasting body to take such steps as they reasonably can to ensure that title request is complied with.

• (7) Subsection (6) applies to the following requests by the Commission to any such person as is there mentioned, namely—

• (a) a request to make suitable arrangements for enabling the complainant and any member or officer of the Commission to view or hear the relevant programme, or any specified part of it, if and so far as the person requested has in his possession a visual or sound record of it;

• (b) a request to provide the Commission and the complainant with a transcript of so much of the relevant programme, or of any specified part of it, as consisted of speech, if and so far as the person requested is able to do so;

• (c) a request to provide the Commission and the complainant with copies of any documents in the possession of the person requested being the originals or copies of any correspondence between that person and the person affected or the complainant in connection with the complaint;

• (d) a request to furnish to the Commission and the complainant a written statement in answer to the complaint ;

• (e) a request to attend or, where the person requested is not an individual, to arrange for a representative to attend and assist the Commission in their consideration of the complaint.

• (8) The Commission may, if they think fit, make to any person who attends them in connection with a complaint such payments as they think fit by way of travelling allowance or subsistence allowance where expenditure on travelling or, as the case may be, on subsistence is necessarily incurred by him for the purpose of enabling him so to attend.

Publication of Commission's findings

57

• (1) Where the Commission have considered and adjudicated upon a complaint, they may give to the broadcasting body by whom the relevant programme was broadcast directions requiring them to publish, in any manner specified in the directions, and within such period as may be so specified—

• (a) a summary of the complaint approved for the purpose by the Commission ; and

• (b) the Commission's findings on the complaint or a summary thereof so approved.

• (2) A broadcasting body shall comply with any directions given to them under subsection (1).

• (3) The Commission shall publish, at such intervals and in such manner as they think fit, reports each containing, as regards every complaint within this subsection dealt with by them in the period covered by the report, a summary of the complaint and of the action taken by them on it and, where they have adjudicated upon it, a summary of their findings.

• (4) A complaint made to the Commission is within subsection (3) unless it is one which they are precluded from entertaining by section 54(2) or 55(2).

• (5) The Commission may, if they think fit, omit from any summary included in a report under subsection (3) any information which could lead to the disclosure of the identity of any person connected with the complaint in question other than a broadcasting body or programme contractor.

Duty to publicise Commission

58

It shall be the duty of each broadcasting body to publish (by means of broadcasts or otherwise) regular announcements publicising the Commission and their function of considering and adjudicating upon complaints.

Annual reports of Commission

59

• (1) As soon as may be after the end of every financial year, the Commission shall prepare a report of their proceedings during that year, and transmit it to the Secretary of State who shall consider it, lay copies of it before each House of Parliament, and cause it to be published.

• (2) The said report shall have attached to it the statement of accounts prepared under paragraph 8 of Schedule 7 for the year and a copy of any report made by the auditor on that statement.

• (3) The Commission shall send a copy of the said report to each broadcasting body and every programme contractor.

Power to modify Part III in relation to programmes broadcast on the Fourth Channel in Wales

60

• (1) The Secretary of State may by regulations provide for all or any of the provisions of this Part to apply, with such exceptions, additions or other modifications as may be specified in the regulations, in relation to complaints in cases where the relevant programme was broadcast by the IBA on the Fourth Channel in Wales (and was therefore provided by the Welsh Authority and not by the IBA).

• (2) In this section—

• (a) the reference to this Part does not include section 53, this section or Schedule 7 but includes sections 21(7) and 40; and

• (b) " the Fourth Channel in Wales " has the meaning given by section 47(2).

• (3) Regulations under this section may make different provision for different circumstances.

• (4) Any regulations under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

PART IV — General

Approvals by Authority

61

The Authority may—

• (a) for the purposes of any provision in this Act which makes anything subject to the approval of the Authority, or

• (b) for the purposes of provisions included in the contracts between the Authority and the various programme contractors in pursuance of section 24(2),

give an approval in general terms applying to all cases within the terms in which the approval is given.

Variation and revocation of directions and notices

62

Any direction or notice given by the Secretary of State or by the Authority under any provision in this Act may be varied or revoked by a subsequent direction or notice under that provision.

Interpretation

63

• (1) In this Act, unless the context otherwise requires—

• " associate ", in relation to a body corporate (including a programme contractor which is a body corporate), means a body corporate which is a member of the same group as that body corporate, and for this purpose any two bodies corporate are to be treated as members of the same group if one of them is a body corporate of which the other is a subsidiary (within the meaning of section 154 of the Companies Act 1948) or if both of them are subsidiaries (within the meaning of that section) of one and the same body corporate ;

• " the Authority " and " the IBA " mean the Independent Broadcasting Authority;

• " the BBC " means the British Broadcasting Corporation ;

• "broadcast relay station" means a station for the re-transmission by cable or wire, to the customers of the persons maintaining the station, of broadcast programmes which those persons receive either by cable or wire or by wireless from the persons who broadcast the programmes;

• " the Commission" means the Broadcasting Complaints Commission;

• " control ", in relation to a body corporate, means the power of a person to secure, by means of the holding of shares or the possession of voting power in or in relation to that or any other body corporate, or by virtue of any powers conferred by the articles of association or other document regulating that or any other body corporate, that the affairs of the first-mentioned body corporate are conducted in accordance with the wishes of that person;

• " financial year" means the twelve months ending with 31st March;

• " the Fourth Channel", and references to programmes broadcast thereon, shall be construed in accordance with section 10(2);

• " for reception in Wales " means for reception wholly or mainly in Wales;

• " ITV ", and references to programmes broadcast thereon, shall be construed in accordance with section 10(2);

• " local sound broadcast" means a programme which is broadcast (otherwise than as part of a television broadcast) from a station so constructed and operated as to have a range of transmission limited to that which is sufficient, in normal circumstances, to ensure adequate reception throughout a particular locality, or from two or more stations so constructed and operated as to have collectively such a range of transmission, and " local sound broadcasting services" means services consisting of programmes so broadcast; and, where a programme is so broadcast, the fact that— as so broadcast it is received outside that particular locality, or it is also broadcast (whether simultaneously or not) from one or more other stations for reception in other localities, shall not prevent it from being regarded as a local sound broadcast within the meaning of this Act;

• " programme contractor" has the meaning given by section 2(3);

• " teletext contractor" has the meaning given by section 14(2);

• " teletext transmission " and " teletext service " have the meaning given by section 14(6);

• " TV programme contractor " has the meaning given by section 10(2);

• " the Welsh Authority " means the Welsh Fourth Channel Authority;

• " wireless telegraphy ", " station for wireless telegraphy " and " apparatus for wireless telegraphy" have the same meaning as in the Wireless Telegraphy Act 1949.

• (2) Any reference in this Act to a contract for the provision by a programme contractor of local sound broadcasts shall be construed as including a reference to a contract which is—

• (a) partly for the provision by that contractor of local sound broadcasts for reception in a particular locality, and

• (b) partly for the provision of news, information, music or other material to be supplied to other programme contractors for the purposes of local sound broadcasts to be provided by them ;

but, in relation to any such contract, the locality, where the reference is to the provision of local sound broadcasts for reception in a particular locality, shall be taken to be the locality referred to in paragraph (a).

• (3) For the purposes of this Act—

• (a) a person shall not be regarded as carrying on business as an advertising agent, or as acting as such an agent, unless he carries on a business involving the selection and purchase of advertising space or time for persons wishing to advertise;

• (b) a person who carries on such a business shall be regarded as carrying on business as an advertising agent irrespective of whether he is in law the agent of those for whom he acts ;

• (c) a person who is the proprietor of a newspaper shall not be regarded as carrying on business as an advertising agent by reason only that he makes arrangements on behalf of advertisers whereby advertisements appearing in the newspapers are also to appear in one or more other newspapers ; and

• (d) a company or other body corporate shall not be regarded as carrying on business as an advertising agent by reason only that its objects or powers include or authorise that activity;

and any reference in this Act to an advertising agency shall be construed accordingly.

• (4) References in this Act to programmes or television programmes or to programme contractors have effect in relation to teletext transmissions and teletext contractors respectively subject to the provisions of section 14(4) and (5) and Schedule 3.

Power to repeal or modify provisions of Act which relate to television in Wales

64

• (1) The Secretary of State may by order—

• (a) repeal as from a specified date so much of this Act as re-enacts Part III of the Broadcasting Act 1980 (including Schedules 1 and 2 of that Act); and

• (b) make such modifications of so much of this Act as re enacts Parts II and V of that Act as he thinks appropriate for securing that as from that date there are suitable arrangements for the broadcasting of television programmes for reception in Wales, and in particular of television programmes in Welsh.

• (2) Without prejudice to the generality of subsection (1)(b), an order under this section may modify so much of this Act as is there mentioned by the addition of provisions whose purpose is—

• (a) to require the Authority to ensure that the programmes broadcast on the Fourth Channel for reception in Wales contain a suitable proportion of matter in Welsh ;

• (b) to make provision corresponding to that made by section 50(3) of this Act;

• (c) to provide for consultation between the BBC and the Authority with a view to ensuring that their respective arrangements for broadcasting television programmes in Welsh for reception in Wales are such as will together best serve the interests of persons residing in Wales ;

• (d) to provide for the appointment of a person to advise the BBC and the Authority on matters of programme scheduling arising out of such consultation as is mentioned in paragraph (c);

• (e) to secure that, so far as is practicable, the television programmes in Welsh broadcast by the BBC and the Authority for reception in Wales, taken together, maintain a proper balance and wide range in their subject-matter and that, as between the television programmes in Welsh so broadcast by them respectively, a proper balance of subject-matter is maintained, having regard as mentioned in section 2(2)(b) of this Act;

• (f) to establish a committee to keep under review, and report to the Secretary of State on, the extent to which the arrangements for the broadcasting by the BBC and the Authority respectively of television programmes in Welsh for reception in Wales are serving the interests of persons residing in Wales.

• (3) An order under this section may include such incidental, supplemental and transitional provisions as the Secretary of State thinks fit (including provisions involving the payment by the Secretary of State out of money provided by Parliament of such fees and allowances as he may, with the approval of the Minister for the Civil Service, determine), and in particular may make provision for keeping the Welsh Authority temporarily in existence for purposes connected with their activities and finances prior to the repeal of so much of this Act as is mentioned in subsection (l)(a) of this section and for winding up the affairs of, and dissolving, that Authority.

• (4) An order under this section shall be made by statutory instrument; but no such order shall be made unless a draft of it has been laid before Parliament and approved by a resolution of each House.

• (5) In this section " modifications " includes additions, omissions and alterations, and related expressions shall be construed accordingly.

Consequential and transitional provisions and savings

65

• (1) At the end of paragraph 8 of Part I of Schedule 7 to the Fair Trading Act 1973, there shall be added " (including, by virtue of section 14(5) of the Broadcasting Act 1981, the provision by teletext contractors of teletext transmissions for transmission by that Authority). "

• (2) In subsection (11) of each of section 9 of the Industry Act 1975 and section 19 of the Welsh Development Agency Act 1975, for "the Independent Broadcasting Authority Act 1973 " there shall be substituted " the Broadcasting Act 1981, but also includes, by virtue of section 14(5) of that Act, teletext contractors as defined in section 14(2) of that Act. "

• (3) This Act shall have effect subject to the transitional provisions and savings contained in Schedule 8.

• (4) The enactments mentioned in Schedule 9 are hereby repealed to the extent specified in the third column of that Schedule.

• (5) Nothing in this section is to be taken as prejudicing the operation of the provisions of the Interpretation Act 1978 as respects the effect of repeals.

Short title, extent and commencement

66

• (1) This Act may be cited as the Broadcasting Act 1981.

• (2) It is hereby declared that this Act extends to Northern Ireland.

• (3) Her Majesty may by Order in Council direct that all or any of the provisions of this Act shall extend to the Isle of Man or any of the Channel Islands with such adaptations and modifications, if any, as may be specified in the Order.

• (4) This Act shall come into force immediately after the coming into force of the last of the provisions of the Broadcasting Act 1980.

SCHEDULE 1

Appointment of members

1

• (1) All the members of the Authority (including the Chairman and Deputy Chairman who shall be appointed as such) shall be appointed by the Secretary of State from among persons appearing to him to be qualified for the office.

• (2) Three out of the members of the Authority other than the Chairman and Deputy Chairman shall be persons who appear to the Secretary of State to be suited to make the interests of Scotland, Wales and Northern Ireland, respectively, their special care.

• (3) A person shall be disqualified for being appointed, or being, a member of the Authority so long as he is a Governor of the BBC.

• (4) Before appointing a person to be a member of the Authority, the Secretary of State shall satisfy himself that that person will have no such financial or other interest (and, in particular, no such financial or other interest in any advertising agency or in any business concerned with the manufacture or sale of apparatus for wireless telegraphy or other telegraphic equipment or in any business consisting or intended to consist in whole or in part in entering into or carrying out contracts with the Authority for the provision of programmes or parts of programmes) as is likely to affect prejudicially the discharge by him of his functions as member of the Authority ; and the Secretary of State shall also satisfy himself from time to time with respect to every member of the Authority that he has no such interest.

• (5) Any person who is, or whom the Secretary of State proposes to appoint to be, a member of the Authority shall, whenever requested by the Secretary of State to do so, furnish to him such information as the Secretary of State considers necessary for the performance by him of his duties under sub-paragraph (4).

Tenure of office

2

• (1) Subject to sub-paragraphs (2) and (3), every member of the Authority shall hold office for such period, not exceeding five years, as may be fixed at the time of his appointment, and shall, on ceasing to be a member, be eligible for re-appointment.

• (2) The Secretary of State may at any time direct by notice in writing, a copy of which shall be laid before each House of Parliament, that any member of the Authority shall cease to hold office; and any member of the Authority may at any time resign his office by notice in writing to the Secretary of State.

• (3) If any member of the Authority dies or ceases to hold office before the expiry of the term for which he was appointed, the term of office of his successor shall be so fixed as to expire at the end of the former term, but the Secretary of State may, if he thinks fit to do so, defer the making of an appointment until the expiry of the former term.

Remuneration and pensions of members

3

• (1) The Authority shall pay to each of their members, in respect of his office as such, such remuneration (whether by way of salary or fees) and such allowances as the Secretary of State may determine in the case of those members respectively; and in determining the remuneration and allowances to be paid under this sub-paragraph, different provision may be made as regards the Chairman, the Deputy Chairman and the other members.

• (2) If any member of the Authority, other than the Chairman, is employed about the affairs of the Authority otherwise than as a member of the Authority, the Authority shall pay to that member (in addition to any remuneration to which he may be entitled in respect of his office as a member) such remuneration, if any, as the Secretary of State may determine.

• (3) The Authority may pay or make provision for paying to or in respect of any of their members such pensions, allowances or gratuities as the Secretary of State may determine in the case of those members respectively.

• (4) Where a person ceases to be a member of the Authority otherwise than on the expiry of his term of office and it appears to the Secretary of State that there are special circumstances which make it right for him to receive compensation, the Authority may make to him a payment of such amount as the Secretary of State may determine.

• (5) The approval of the Minister for the Civil Service shall be required for any determination under this paragraph.

• (6) As soon as possible after making a determination under this paragraph, the Secretary of State shall lay a statement thereof before each House of Parliament.

Capacity and status of Authority

4

• (1) It shall be within the capacity of the Authority as a statutory corporation to do such things and enter into such transactions as are incidental or conducive to the exercise and performance of their powers and duties under this Act, including the borrowing of money.

• (2) It is declared that the Authority are not to be treated for the purposes of the enactments and rules of law relating to the privileges of the Crown as a body exercising functions on behalf of the Crown.

Proceedings

5

• (1) The quorum of the Authority shall be four or such number not being less than four as the Authority may from time to time determine.

• (2) The Authority may act notwithstanding a vacancy among their members.

6

• (1) A member of the Authority who is in any way directly or indirectly interested in a contract made or proposed to be made by the Authority shall, as soon as possible after the relevant circumstances have come to his knowledge, disclose the nature of his interest at a meeting of the Authority.

• (2) Any disclosure made under sub-paragraph (1) shall be recorded in the minutes of the Authority, and the member—

• (a) shall not take part after the disclosure in any deliberation or decision of the Authority with respect to that contract, and

• (b) shall be disregarded for the purpose of constituting a quorum of the Authority for any such deliberation or decision.

7

Subject to paragraphs 5 and 6, the Authority may regulate their own procedure.

Officers and employees of Authority

8

• (1) The Authority may appoint a secretary and such other officers, and take into their employment such other persons, as they may determine.

• (2) The Authority shall, as regards any officers or persons employed in whose case it may be determined by the Authority so to do, pay to or in respect of them such pensions, allowances or gratuities, or provide and maintain for them such pension schemes (whether contributory or not), as may be so determined.

• (3) If any officer of or other person employed by the Authority, being a participant in any pension scheme applicable to his office or employment, becomes a member of the Authority, he may, if the Secretary of State so determines, be treated for the purposes of the pension scheme as if his service as a member of the Authority were service as an officer of or person employed by the Authority.

Authentication of Authority's seal

9

The application of the seal of the Authority shall be authenticated by—

• (a) the signature of the Chairman or Deputy Chairman of the Authority or some other member of the Authority authorised by the Authority to authenticate the application of their seal, and

• (b) the signature of the secretary of the Authority or some other officer of the Authority authorised by the Authority to act in that behalf.

Presumption of authenticity of documents issued by Authority

10

Any document purporting to be an instrument issued by the Authority and to be sealed as aforesaid or to be signed on behalf of the Authority shall be received in evidence and shall be deemed to be such an instrument without further proof unless the contrary is shown.

SCHEDULE 2

1

• (1) The advertisements must be clearly distinguishable as such and recognisably separate from the rest of the programme.

• (2) Successive advertisements must be recognisably separate.

• (3) Advertisements must not be arranged or presented in such a way that any separate advertisement appears to be part of a continuous feature.

• (4) Audible matter in advertisements must not be excessively noisy or strident.

2

The standards and practice to be observed in carrying out the requirements of the preceding paragraph shall be such as the Authority may determine either generally or in particular cases.

3

The amount of time given to advertising in the programmes shall not be so great as to detract from the value of the programmes as a medium of information, education and entertainment.

4

Advertisements shall not be inserted otherwise than at the beginning or the end of the programme or in natural breaks therein.

5

• (1) Rules (to be agreed upon from time to time between the Authority and the Secretary of State, or settled by the Secretary of State in default of such agreement) shall be observed as to the classes of broadcasts (which shall in particular include the broadcast of any religious service) in which advertisements may not be inserted, and the interval which must elapse between any such broadcast and any previous or subsequent period given over to advertisements.

• (2) The Secretary of State may, after consultation with the Authority, impose rules as to the minimum interval which must elapse between any two periods given over to advertisements, and the rules may make different provision for different circumstances.

6

In the acceptance of advertisements there must be no unreasonable discrimination either against or in favour of any particular advertiser.

7

• (1) The charges made by any programme contractor for advertisements shall be in accordance with tariffs fixed by him from time to time, being tariffs drawn up in such detail and published in such form and manner as the Authority may determine.

• (2) Any such tariffs may make provision for different circumstances, and. in particular, may provide, in such detail as the Authority may determine, for the making, in special circumstances, of additional special charges.

8

No advertisement shall be permitted which is inserted by of on behalf of any body whose objects are wholly or mainly of a religious or political nature, and no advertisement shall be permitted which is directed towards any religious or political end or has any relation to any industrial dispute.

9

If, in the case of any of the broadcasting stations used by the Authority, there appears to the Authority to be a sufficient local demand to justify that course, provision shall be made for a reasonable allocation of time for local advertisements, of which a suitable proportion shall be short local advertisements.

SCHEDULE 3

PART I — Provisions of Act Applied by Section 14(5)

PART II — Other Provisions Applied by Section 14(5)

SCHEDULE 4

Advertising receipts

1

• (1) In the principal sections and this Schedule " advertising receipts" means, in relation to a programme contrator, and in relation to any period, the payments received or to be received by the programme contractor in consideration of the insertion of advertisements in programmes provided by the programme contractor and broadcast in the United Kingdom by the Authority in the period.

• (2) If, in connection with the insertion of advertisements which are paid for by payments constituting advertising receipts, any payments are made to the programme contractor to meet any additional payments, those payments shall be regarded as made in consideration of the insertion of the advertisements in question.

• (3) In the case of an advertisement inserted in a programme under arrangements made between a programme contractor and a person acting as advertising agent, the amount of any receipt by the programme contractor which represents a payment by the advertiser from which the advertising agent has deducted any amount by way of commission shall be the amount of the payment by the advertiser after the deduction of the commission, so, however, that if the amount so deducted exceeds 15 per cent, of the payment by the advertiser, the amount of the receipt shall be the amount of that payment less 15 per cent.

• (4) Any contract shall provide that where for any insertion of an advertisement a programme contractor receives or is entitled to an entire consideration not solely referable to that insertion, the advertising receipts shall be calculated by reference to so much only of the consideration as is referable to that insertion according to an apportionment made in such manner as the contract may provide.

• (5) In the application of this Schedule in relation to the additional payments mentioned in section 32(1)(b), the reference in sub-paragraph (1) to the insertion of advertisements in programmes provided by the programme contractor and broadcast in the United Kingdom by the Authority in the period in question includes (except in the case of a teletext contractor who is not a TV programme contractor) a reference to the insertion of programmes consisting of advertisements provided by the programme contractor for broadcasting on the Fourth Channel and so broadcast in that period.

Profits

2

• (1) The profits of a programme contractor for an accounting period shall be computed in accordance with this paragraph.

• (2) The profits shall consist of the excess of relevant income over relevant expenditure.

• (3) " Relevant income " means—

• (a) income which accrues to the contractor in connection (dirrectly or indirectly) with the provision of programmes by him, and

• (b) where income accrues to a subsidiary of the contractor in connection (directly or indirectly) with the provision of programmes by the contractor such part of that income as, in the opinion of the Authority, should be attributed to the contractor as reflecting the contractor's financial interest in the subsidiary.

• (4) Without prejudice to the generality of sub-paragraph (3) " relevant income " includes all the contractor's advertising receipts for the accounting period in question.

• (5) " Relevant expenditure " means-

• (a) expenditure properly chargeable to revenue account which is incurred by the contractor in connection (directly or indirectly) with the provision of programmes by him, and

• (b) where a subsidiary of the contractor incurs expenditure properly chargeable to revenue account in connection (directly or indirectly) with the provision of programmes by the contractor, such part of that expenditure as, in the opinion of the Authority, should be attributed to the contractor as reflecting the contractor's financial interest in the subsidiary.

• (6) In ascertaining relevant income or relevant expenditure no account shall be taken of—

• (a) interest on a loan, or

• (b) so much of any receipt or expenditure as in the opinion of the Authority is attributable to the provision of programmes outside the United Kingdom.

• (7) Where relevant income consists of advertising receipts, the income shall be attributed to accounting periods in accordance with the provisions of paragraph 1 and the same principle should be followed in relating other items of income, and items of expenditure, to accounting periods.

• (8) In this paragraph " programmes " means—

• (a) in the application of this Schedule in relation to the additional payments mentioned in section 32(1)(6), television programmes, including (except in the case of a teletext contractor who is not a TV programme contractor and of sub-paragraph (6)(b)) advertisements or other programmes for broadcasting on the Fourth Channel;

• (b) in the application of this Schedule in relation to the additional payments mentioned in section 32(2)(b), local sound broadcasts.

Computation of profits of programme contractors

3

• (1) It shall be the duty of the Authority—

• (a) to draw up, and from time to time review, a statement setting out the principles to be followed in ascertaining relevant income and relevant expenditure for the purpose of computing under paragraph 2 the profits of a programme contractor for an accounting period ; and

• (b) in computing under that paragraph the profits of a programme contractor for any accounting period beginning on or after 13th November 1980, to take account of that statement (including any revision thereof which has taken effect before the end of that period).

• (2) A statement under this paragraph may set out different principles for TV programme contractors, programme contractors for the provision of local sound broadcasting and teletext contractors respectively.

• (3) Before drawing up or revising a statement under this paragraph the Authority shall consult the Secretary of State and the Treasury.

• (4) The Authority shall—

• (a) publish the statement drawn up under this paragraph and every revision of that statement; and

• (b) transmit a copy of the statement, and of every revision of it, to the Secretary of State ;

and the Secretary of State shall lay copies of the statement and of every such revision before each House of Parliament.

Disputes

4

• (1) For the purposes of the principal sections and this Schedule—

• (a) the amount of any advertising receipts, or

• (b) the amount of any profits, or

• (c) the amount of any additional payments, or of an instalment of additional payments,

shall, in the event of a disagreement between the Authority and the programme contractor, be the amount determined by the Authority.

• (2) No determination of the Authority under this paragraph shall be called in question in any court of law, or be the subject of any arbitration ; but nothing in this sub-paragraph shall prevent—

• (a) the bringing of proceedings in the High Court, or the High Court in Northern Ireland, for an order of certiorari; or

• (b) the exercise of the jurisdiction of the Court of Session to entertain an application for the reduction or suspension of the determination, or otherwise to consider the validity of the determination.

Accounting periods

5

• (1) Subject to the provisions of this Schedule, each period for which a body corporate which is a programme contractor makes up a profit and loss account which is laid before the body corporate in general meeting shall be an accounting period, whether that period is a year or not.

• (2) If part of the said period for which a profit and loss account is made up falls before, and part after—

• (a) the commencement of a relevant order under section 32, or

• (b) the time when the programme contractor begins or ceases to provide programmes for broadcasting by the Authority,

the two parts shall be treated as separate accounting periods.

In paragraph (a) " relevant order" means, in the application of this Schedule in relation to the additional payments mentioned in subsection (1)(b) or (as the case may be) subsection (2)(b) of section 32, an order having effect in relation to those payments.

• (3) If sub-paragraph (2) would produce an accounting period of three months or less, that period shall be added on to the accounting period (if any) which precedes or succeeds it (and which does not fall to be divided from it under sub-paragraph (2)).

• (4) A contract which varies another contract may modify the preceding provisions of this paragraph.

• (5) Nothing in this paragraph shall create an accounting period which is a period during which the programme contractor is not providing programmes for broadcasting by the Authority.

• (6) In the application of this Schedule in relation to the additional payments mentioned in section 32(2)(b)—

• (a) sub-paragraph (2) of this paragraph shall have effect as if there were inserted after sub-paragraph (2) (a)—

(aa) the commencement of section 26 of the Broadcasting Act 1980, or

; and

• (b) nothing in this paragraph shall create an accounting period falling before the commencement of the said section 26.

6

If the programme contractor is not a body corporate the contractor's accounting periods shall be such as the Authority may direct, or as may be provided in the contract.

Information

7

• (1) Every contract shall impose on the contractor such requirements with respect to the furnishing of information to the Authority as appear to the Authority, after consultation with the Secretary of State, to be requisite—

• (a) for enabling the Authority to perform their functions under the provisions of the principal sections and this Schedule, and

• (b) for enabling the Authority to furnish to the Secretary of State such information as he may require for the purpose of determining whether, and in what manner, to exercise his powers of making orders under the said provisions.

• (2) It shall be the duty of the Authority to furnish to the Secretary of State such information (whether obtained from contractors or otherwise) as is in their possession and is required by the Secretary of State for the purpose of determining whether, and in what manner, to exercise his powers of making orders under the said provisions.

8

It shall be the duty of the Authority in framing any contract to include terms ensuring that the Authority will have the right to inspect all accounts and records-

• (a) of the programme contractor, and

• (b) of any subsidiary of the programme contractor,

for the purpose of discharging their functions under the principal sections and this Schedule.

Interpretation

9

• (1) In this Schedule, and in the principal sections, except where the context otherwise requires—

• "accounting period" shall be construed in accordance with paragraph 5 ; " additional payments " and " contract "— in the application of this Schedule and the principal sections in relation to the additional payments mentioned in section 32(l)(b), mean respectively additional payments payable by virtue of that paragraph and a contract between the Authority and a programme contractor under which television programmes are to be provided by the programme contractor, and in their application in relation to the additional payments mentioned in section 32(2)(6), mean respectively additional payments payable by virtue of that paragraph and a contract between the Authority and a programme contractor under which local sound broadcasts are to be provided by the programme contractor;

• "subsidiary", in relation to any person, means a company in which that person holds, directly or indirectly, 10 per cent, or more of the equity share capital.

• (2) In this Schedule " payment" includes any valuable consideration, and references to receipts and expenditure shall be construed accordingly.

SCHEDULE 5

Tenure of office of members

1

• (1) Subject to sub-paragraphs (2) and (3), the Chairman and every other member of the Welsh Authority shall hold office for such period, not exceeding five years, as may be fixed at the time of his appointment, and shall, on ceasing to be a member, be eligible for re-appointment.

• (2) The Secretary of State may at any time direct by notice in writing, a copy of which shall be laid before each House of Parliament, that any member of the Welsh Authority shall cease to hold office; and any member of the Welsh Authority may at any time resign his office by notice in writing to the Secretary of State.

• (3) If any member of the Welsh Authority dies or ceases to hold office before the expiry of the term for which he was appointed, the term of office of his successor shall be so fixed as to expire at the end of the former term, but the Secretary of State may, if he thinks fit to do so, defer the making of an appointment until the expiry of the former term.

Remuneration and pensions of members

2

• (1) The Welsh Authority shall pay to each of their members, in respect of his office as such, such remuneration (whether by way of salary or fees) and such allowances as the Secretary of State may determine in the case of those members respectively; and, in determining the remuneration and allowances to be paid under this sub-paragraph, different provision may be made as regards the Chairman and the other members.

• (2) If any member of the Welsh Authority, other than the Chairman, is employed about the affairs of the Welsh Authority otherwise than as a member of that Authority, the Welsh Authority shall pay to that member (in addition to any remuneration to which he may be entitled in respect of his office as a member) such remuneration, if any, as the Secretary of State may determine.

• (3) The Welsh Authority may pay or make provision for paying to or in respect of any of their members such pensions, allowances or gratuities as the Secretary of State may determine in the case of those members respectively.

• (4) Where a person ceases to be a member of the Welsh Authority otherwise than on the expiry of his term of office and it appears to the Secretary of State that there are special circumstances which make it right for him to receive compensation, the Welsh Authority may make to him a payment of such amount as the Secretary of State may determine.

• (5) The approval of the Minister for the Civil Service shall be required for any determination under this paragraph.

• (6) As soon as possible after making a determination under this paragraph, the Secretary of State shall lay a statement thereof before each House of Parliament.

Capacity and status of Welsh Authority

3

• (1) It shall be within the capacity of the Welsh Authority as a statutory corporation to do such things and enter into such transactions as are incidental or conducive to the exercise and performance of their powers and duties under this Act, including the borrowing of money.

• (2) It is declared that the Welsh Authority are not to be treated for the purposes of the enactment and rules of law relating to the privileges of the Crown as a body exercising functions on behalf of the Crown.

Proceedings

4

• (1) The quorum of the Welsh Authority shall be two or such number not less than two as that Authority may from time to time determine.

• (2) The Welsh Authority may act notwithstanding a vacancy among their members.

5

• (1) A member of the Welsh Authority who is in any way directly or indirectly interested in a contract made or proposed to be made by that Authority shall, as soon as possible after the relevant circumstances have come to his knowledge, disclose the nature of his interest at a meeting of that Authority.

• (2) Any disclosure made under sub-paragraph (1) shall be recorded in the minutes of the Welsh Authority, and the member—

• (a) shall not take part after the disclosure in any deliberation or decision of that Authority with respect to that contract, and

• (b) shall be disregarded for the purpose of constituting a quorum of that Authority for any such deliberation or decision.

6

Subject to paragraphs 4 and 5, the Welsh Authority may regulate their own procedure.

Officers and employees of Welsh Authority

7

• (1) The Welsh Authority may appoint a secretary and such other officers, and take into their employment such other persons, as they may determine.

• (2) The Welsh Authority shall, as regards any officers or persons employed in whose case it may be determined by that Authority so to do, pay to or in respect of them such pensions, allowances or gratuities, or provide and maintain for them such pension schemes (whether contributory or not), as may be so determined.

• (3) If any officer of or other person employed by the Welsh Authority, being a participant in any pension scheme applicable to his office or employment, becomes a member of the Welsh Authority, he may, if the Secretary of State so determines, be treated for the purposes of the pension scheme as if his service as a member of that Authority were service as an officer of or person employed by that Authority.

Machinery for settling terms and conditions of employment of Welsh Authority's staff etc.

8

• (1) Except so far as the Welsh Authority are satisfied that adequate machinery exists for achieving the purposes of this paragraph, it shall be the duty of the Welsh Authority to seek consultation with any organisation appearing to them to be appropriate with a view to the conclusion between the Welsh Authority and that organisation of such agreements as appear to the parties to be desirable with respect to the establishment and maintenance of machinery for—

• (a) the settlement by negotiation of terms and conditions of employment of persons employed by the Welsh Authority, with provision for reference to arbitration, in default of such settlement, of such cases as may be determined by or under the agreements; and

• (b) the promotion and encouragement of measures affecting the safety, health, training and welfare of persons employed by the Welsh Authority, and the discussion of other matters of mutual interest to that Authority and such persons.

• (2) The Welsh Authority shall send to the Secretary of State copies of any such agreement and of any instrument varying the terms of any such agreement.

Authentication of Welsh Authority's seal

9

The application of the seal of the Welsh Authority shall be authenticated by—

• (a) the signature of the Chairman of the Welsh Authority or some other member of the Welsh Authority authorised by that Authority to authenticate the application of their seal and

• (b) the signature of the secretary of the Welsh Authority or some other officer of the Welsh Authority authorised by that Authority to act in that behalf.

Presumption of authenticity of documents issued by Welsh Authority

10

Any document purporting to be an instrument issued by the Welsh Authority and to be sealed as aforesaid or to be signed on behalf of the Welsh Authority shall be received in evidence and shall be deemed to be such an instrument without further proof unless the contrary is shown.

SCHEDULE 6

Section 2

1

• (1) So much of section 2(1) as relates to the quality of the matter transmitted shall not apply.

• (2) Section 2(2) shall not apply.

Section 4

2

• (1) References in section 4 to programmes broadcast by the Authority shall be read as references to programmes provided by the Welsh Authority for broadcasting on the Fourth Channel in Wales.

• (2) In section 4(1)—

• (a) the first reference to the Authority shall be read as a reference to the Welsh Authority ; and

• (b) so much of paragraph (d) as relates to cases where another language as well as English is in common use among persons served by the station or stations in question shall not apply.

• (3) In section 4(2)—

• (a) the first reference to the Authority shall be read as a reference to the Welsh Authority ; and

• (b) after " opinion" insert " by the Welsh Fourth Channel Authority or the BBC, or ".

• (4) In section 4(3), the first reference to the Authority shall be read as a reference to the Welsh Authority.

• (5) In section 4(4), omit " , whether in an advertisement or not, ".

• (6) In section 4(5), the first reference to the Authority shall be read as a reference to the Welsh Authority and in paragraph (b) " , whether an advertisement or not," shall be omitted.

• (7) In section 4(7)—

• (a) for " (including advertisements) broadcast by them the Authority " substitute " provided by them the Welsh Fourth Channel Authority "; and

• (b) the subsequent reference to the Authority shall be read as a reference to the Welsh Authority.

Sections 5 and 7

3

In sections 5 and 7—

• (a) references to programmes broadcast by the Authority shall be read as references to programmes provided by the Welsh Authority for broadcasting on the Fourth Channel in Wales ;

• (b) other references to the Authority shall be read as references to the Welsh Authority.

Section 45

4

In section 45—

• (a) references to programmes broadcast by the Authority shall be read as references to programmes provided by the Welsh Authority for broadcasting on the Fourth Channel in Wales ;

• (b) other references to the Authority shall be read as references to the Welsh Authority ; and

• (c) subsection (3) shall be omitted.

SCHEDULE 7

Tenure of office

1

• (1) Subject to the following provisions of this Schedule, a person shall hold and vacate office as a member or as chairman or deputy chairman of the Commission in accordance with the terms of his appointment.

• (2) A person shall not be appointed as a member of the Commission for more than five years at a time.

• (3) A person may at any time resign his office as a member or as chairman or deputy chairman.

Remuneration and pensions of members

2

• (1) The Commission may pay to each member such remuneration and allowances as the Secretary of State may determine.

• (2) The Commission may pay or make provision for paying to or in respect of any member such sums by way of pensions, allowances or gratuities as the Secretary of State may determine.

• (3) Where a person ceases to be a member otherwise than on the expiry of his term of office and it appears to the Secretary of State that there are special circumstances which make it right for him to receive compensation, the Commission may make to him a payment of such amount as the Secretary of State may determine.

• (4) The approval of the Minister for the Civil Service shall be required for any determination under this paragraph.

Staff

3

• (1) The Commission may appoint such officers and servants as the Commission may determine with the consent of the Secretary of State as to numbers and terms of employment.

• (2) The Commission may pay or make provision for paying to or in respect of any of their employees such sums by way of pensions, allowances or gratuities as the Secretary of State may determine.

4

The Employers' Liability (Compulsory Insurance) Act 1969 shall not require insurance to be effected by the Commission.

Proceedings

5

• (1) Subject to the provisions of Part III of this Act, the arrangements for the proceedings of the Commission (including the quorum for meetings) shall be such as the Commission may determine.