THE Secretary for Recreation and Culture, Mr James So Yiu-cho, has conceded that next year's budget for Radio Television Hongkong (RTHK) does not take into account plans to corporatise the station. He told legislators that, should a decision to corporatise the station be made in the next financial year, the Government would need to go to the Legislative Council Finance Committee for further funds. The Government-owned station has been allocated $303 million for 1993-94, an increase of 2.1 per cent over this year's revised estimate of $297 million. The corporatisation plan, put forward eight years ago, has met strong opposition from China. At yesterday's special session, the Director of Broadcasting, Miss Cheung Man-yee, said the station's establishment had been maintained at 709 over the past three years. She agreed RTHK had hesitated to take on more civil servants because of the corporatisation plan. Miss Cheung said the staff union had expressed a high degree of dissatisfaction on the matter but morale remained high. But, she added, if there was still no decision in the coming year, the Government would have to review the structure and financial arrangements for RTHK. On pay-TV, Mr So denied the Government had ever said it would go ahead with the licensing in April, regardless of China's response. He reiterated that the date for the granting of the licence depended on the legislative process and the mainland's attitude. But Mr So said even if there was a delay in the launch of pay-TV, the ban on Cantonese programmes on satellite television would be relaxed at the end of October as originally planned. The terrestrial broadcasters' royalty payments would also be cut from October, he said. Mr So also revealed that results of the Government's arts policy review would be released for consultation next month. The consultation was expected to last until June and the administration would be able to implement necessary policy changes by the summer, he said.