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ATV, TVB to save $400m in royalties

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HONGKONG'S two commercial television stations TVB and ATV are set to achieve total savings of about $400 million in government royalties over the next 10 years as a result of the introduction of pay-TV.

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While revenue from royalties to be paid by the cable licensee would be dependent on its subscription and advertising income, the reduction in such payments from ATV and TVB was roughly estimated to be about $400 million, at 1991 prices, for the period 1993-2002, the Executive Council was told this week.

Exco endorsed the Television (Amendment) Bill 1993 which will be gazetted today.

Royalties aside, the proposed amendments to the television legislation also envisage greater restrictions on the Government's powers to ban programmes.

Noting the need for the administration to hold reserve powers to prohibit programmes in well-defined situations, the bill proposes that any such prohibition should be made by the Governor-in-Council, as recommended by the Broadcasting Authority, rather than the authority itself.

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It is understood the Attorney-General's Chambers also concedes that the existing criterion for banning programmes under the term for ''the peace and good order of Hongkong'', was too loose to be valid.

The bill also states that any person broadcasting prohibited material will be liable on conviction to heavy penalties because of the likely serious ramifications.

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