[cma-l] CMA draft response to community radio consultation

[Jaqui Devereux]

Dear Member

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


Join the CMA now for discounts, networking,
workshops, streaming, information, support
and a voice for community media

www.commedia.org.uk

Access to the media for people and communities