[cma-l] DCMS consultation closes 25th August - URGENT

[Jaqui Devereux]

Dear all

Please find below the CMA responses to the DCMS consultation on 
potential changes for the community radio sector - including making 
provision for licence extensions etc.

NB a few of you have told me you did not respond to the DCMS as you 
agreed with our response.  We urge you to respond directly to DCMS as 
they need to know the depth of feeling and concern in the sector re the 
future legal arrangements.

You can send them an online response from our website if that is easier 
for you.

Best wishes

Jaqui



Dear all

DCMS Consultation on Amendments to the Community Radio Licensing Regime

I am writing to remind you that the DCMS is currently consulting on
proposed changes to community radio legislation.  Full details of the
consultation can be found on the CMA website:

www.commedia.org.uk

The DCMS is asking for responses to three questions.  The closing date
for responses to the DCMS is 25th August 2009.  The draft CMA response
to these questions would be as follows, please let us know if you
agree/disagree, and if there is anything else we should mention in our
response:


1.    Do you agree with the proposed criteria for Ofcom to apply when
considering a 5 year extension?


1    The CMA agrees that there needs to be provision in law for the
extension of community radio licences.  We believe that where a station
has demonstrated clearly its performance on delivering social gain and
meeting all other aspects of its key commitments, it should be able to
apply for a licence extension after five years, and then again at the
end of the next five year period rather than as a one off.  If the
government does not accept this, then there needs to be a clear, timely
and transparent process for reapplication in place for stations that
have already had one five year extension as they need to be able to plan
for the future.


2.    Do you think the 50% funding restriction from any one source should
be lifted?

The CMA strongly believes that the 50% funding restriction from any one
source should be lifted, particularly where grant and Service Level
Agreement funding is concerned.  Stations would need to take care that
the funder does not exert undue influence over the station, particularly
its editorial independence especially when the community might voice
opinions and views the funder does not like.  However we think that
would be a matter for the station, in ensuring that it meets its key
commitments, rather than something to be enshrined in law, as this
funding restriction does.

Re the 50% rules on on air advertising and sponsorship, we reiterate our
response to the 2007 consultation on the Future of Radio:

We recognise the necessity that community radio delivers on all its
social gain/community benefit criteria and maintains editorial
independence.  We would urge the government to explore ways of measuring
this, regardless of the sources of income a station receives.  There are
many arguments for retaining in statute a fixed percentage limit on
income from on air advertising and sponsorship as currently exists.
However, any such limit is by nature arbitrary.  Therefore we would
advocate a change in approach, whereby there is no fixed limit, but a
requirement to ensure and demonstrate that there is more than one source
of income and that no particular source of funding exerts undue
influence on the character of a particular community radio station and
accountability to its community.  Many stations are affected by the
current rules, either because they have to turn away small, very local
advertisers (who would not otherwise advertise on commercial radio), or
because they are unable under the rules to accept grant funding because
it would form more than fifty percent of the station?s income.  The
viability of the sector depends on this rule being changed, to allow
greater flexibility while not compromising independence and
accountability.  We also think that further guidance on the current
rules would be helpful, to enable stations to clearly distinguish what
sources of income fall under the fifty percent rules.


3.    i) Do you think that the rule prohibiting a community radio station
from being licensed if it would overlap with an existing local radio
service whose MCA is no more than 50,000 adults, should be lifted?
ii) If so, should the advertising and sponsorship restriction be applied
to community radio stations that overlap with local radio services of up
to 150,000 adults?

We do think that the rule prohibiting the licensing of a station whose
MCA is less than 50,000 should be lifted.

However, we cannot agree with the further restriction on stations whose
MCA is up to 150,000, preventing them either partly or entirely from
receiving on air advertising and sponsorship.  In our view this amounts
to restraint of trade and unfair competition rules.  Therefore we would
propose that the rules governing the level of on air advertising and
sponsorship, whatever they may be, apply equally to all community radio
stations, whatever their MCA and regardless of any other businesses that
exist in their locality.

We also urge you to respond directly to the DCMS consultation, please do
copy us in as we really do care what our members think.

Yours sincerely

Jaqui
-- 
Jaqui Devereux

Director
Community Media Association

15 Paternoster Row
Sheffield
S1 2BX

+44 114 279 5219


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