[cma-l] Funding Community Radio

[CMA-L]

---------- Forwarded message ----------
From: "Paul Crockett" <paul.crockett at thevoicefm.co.uk>

Hello all



I agree with most of the comments posted today, the whole 50% rule is both
morally wrong, and totally out of date in today’s financial climate when
grant funding and donations are very hard to come by, and where the vast
majority of commercial operators are at best regionalised.



Social Gain is a key element of Community Radio, and one we all embrace,
but it can be resource hungry to provide, both in terms of human and
financial resources.  I accept that some stations are well resourced for
fund raising but many aren’t.  Fund raising and the grant process is a
skill in itself and those skills have never been in such demand.  I am of
no doubt that there are small businesses who would welcome the opportunity
of advertising on their local community radio station, who would otherwise
not consider using their commercial operator, not just because of cost but
also the size of the stations MCA would not be relevant to the localness of
their business.  As Geoff rightly said, getting small local businesses
advertising on Community Radio does in itself provide social gain.  It
would also not only reduce the demand on already oversubscribed and ever
diminishing Grants, but would free up the sector to do what it’s there to
do, produce good, relevant local radio content, rather than spend most of
its time and energy looking for the next pound for the electric meter.



Controlling a particular sector in any industry by severely restricting its
ability to raise revenue just to protect another sector is totally wrong
and immoral. Why jeopardise the survival of one sector in favour of
another, surely this is counterproductive and potentially reduces choice.



Ideally the 50% rule should be scrapped, and every station should be
allowed the freedom to fund itself by whatever means (legal of course),
best suits their business and social model, many charities are run on a
commercial footing, why should CR be any different.



If a percentage has to remain, a Fixed Revenue Allowance is absolutely
crucial to the survival of CR, and the obvious benchmark for this should be
Ofcom's own figures produced from the sectors annual returns.  As Ofcom
admit that the Median Average is less accurate, then base it on the Mean
average, based on the latest available information this would give a
current FRA of between £50,000 and £60,000.



Any relaxation should have no impact on CR’s status of being ‘Not for
Profit’.  Surely the important issue should be not whether a station makes
a profit, or “surplus”, but WHAT it does with it and HOW it uses it. I
would love for us to have a surplus each year to put back into the
community !



I totally agree with Alan Coote when it comes to the Community Radio Fund.
If CR were allowed freedom in how it finances itself, the need and demand
on the fund would be greatly reduced if not eliminated.  As far as I am
aware the value of the fund has not increased since it was introduced, but
the number of CR stations has increased considerably, and so any award of
funding from it is only benefiting an increasingly smaller proportion of
the sector, and so its importance and relevance is already diminishing.
Let’s be honest in the current economic climate, if the fund manages to
survive the government cuts, which in itself will be a huge surprise, there
certainly won’t be any increase in the size of the fund available.



I accept that one size or model doesn’t fit all, and that some stations
don’t want to take on air advertising, but it is quite clear that the
majority of those who have responded would like to see the regulation
relaxed or scrapped.  If this were to happen, then stations would be free
to choose the funding route that best suits them.



Finally why are the new local TV services, the community radio stations of
the TV world, not shackled by the same demanding regulations as CR is?  I
am advised that they are not required to provide and prove social gain,
they do not have Key Commitments to abide by, they don’t have to be ‘Not
for Profit’, they have no restrictions on advertising or revenue raising in
general, and to add insult to injury, there is money available from the
licence fee to help them with setup costs !!!  We must have really hacked
somebody off somewhere !!!!!



*Paul Crockett*

*07779 321022*

*The Voice (North Devon) CIC*

1st Floor, 21 High Street, Barnstaple, EX31 1BG

*The Voice - Local Radio in North Devon *

Web: http://www.thevoicefm.co.uk

Email: paul.crockett at thevoicefm.co.uk

 Facebook : TheVoiceNorthDevon

Twitter : @thevoicefm

Office: 01271 410106

Studio Line: 01271 323010

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