[cma-l] Community Radio (Amendment) Order 2015, 2:30pm Tuesday 17th March, Consideration in Grand Committee - Lord Gardiner of Kimble

Wed Mar 18 12:16:47 GMT 2015

It is possible to watch it again here from 16:09:

http://www.parliamentlive.tv/Event/Index/7bc71488-225d-409e-b1f8-8bc009cc6dad

Regards

Bill
-- 
Operations Manager
Community Media Association
http://www.commedia.org.uk/
https://twitter.com/community_media
http://www.facebook.com/CommunityMediaAssociation

Canstream Internet Radio & Video
http://www.canstream.co.uk/
https://twitter.com/canstream

On 18 March 2015 at 12:07, Richard Berry <richard.berry at sunderland.ac.uk>
wrote:

>  Hansard have now published the transcript of the debate here
>
>
>
> *17 Mar 2015 : Column GC243*
>
> *Community Radio (Amendment) Order 2015*
>
> Community Radio (Amendment) Order 2015
> <http://www.legislation.gov.uk/ukdsi/2015/9780111130681>25th Report from
> the Joint Committee on Statutory Instruments
> <http://www.publications.parliament.uk/pa/jt201415/jtselect/jtstatin/138/138.pdf>
>
> *Motion to Consider*
>
> *4.09 pm*
>
> *Moved by* *Lord Gardiner of Kimble*
>
> That the Grand Committee do consider the Community Radio (Amendment) Order
> 2015.
>
> *Relevant document: 25th Report from the Joint Committee on Statutory*
> *Instruments*
>
> *Lord Gardiner of Kimble (Con):* My Lords, the Government are committed
> to a strong and vibrant community radio sector. Since the sector’s
> establishment in 2004, it has developed into an important and integral part
> of the modern radio landscape—valued by the communities that it serves and
> reflecting a diverse mix of cultures and interests.
>
> Stations range from those targeted at a particular community, those run
> for our forces and those targeted at students and hospitals to stations
> serving small and rural communities. Community radio stations are required,
> by legislation, to be run by not-for-profit organisations and to provide
> original, distinctive and, crucially, local output. Two hundred and
> twenty-three stations are currently on air. This is made possible by the
> huge amount of effort and support that stations receive from their army of
> volunteers—on average, the equivalent of 214 volunteering hours per week,
> every week. Community radio also attracts young volunteers, who gain really
> valuable skills.
>
> Although demand for community radio licences up and down the country has
> remained high, the position for existing licences has not been easy. We
> have received representations that community stations have had to turn down
> sponsorship—not advertising—from local businesses. For the 19 stations not
> allowed to take any income from sponsorship or advertising, such as Swindon
> 105.5, the issues are particularly acute.
>
> The other concern expressed was the position of stations launched in 2005,
> whose licences would, under the current law, start to expire from October
> this year. Quite rightly, community radio stations wanted to know whether
> they would be able to renew their licences or whether they would need to go
> through an open competition for a new licence.
>
> In the *Connectivity, Content and Consumers* strategy paper, published in
> July 2013, the Government said that they would consult on possible changes
> to the restriction on commercial funding of community stations. We also
> said that we would look at whether there was a case to allow community
> stations that continued to fulfil their remit to have licences renewed for
> a third five-year period. We carried out this consultation between February
> and April last year and received more than 100 responses. We published our
> response to the consultation in January this year. It is fair to say that
> there was strong support from community radio stations for the changes,
> although some were concerned that the changes might affect the
> characteristics of community stations. RadioCentre and commercial radio
> stations were, overall, opposed to the changes. In essence, they
>
> *17 Mar 2015 : Column GC244*
>
> wanted to maintain the precautionary approach taken when the Community
> Radio Order was adopted in 2004.
>
> Given the lack of common ground, we took further soundings from both
> RadioCentre and the Community Media Association before publishing the
> conclusions to the consultation. I acknowledge the frustrations of the
> community radio sector about the delay, but it was important that we should
> make sure that, in setting the new arrangements, we got the absolutely
> right balance between the legitimate needs of both sides.
>
> We need to ensure that there remain protections for the smallest
> independently run commercial stations, and we have reflected that in our
> conclusions. We therefore believe that the so-called “absolute rule”, which
> enables Ofcom to place restrictions on some community stations, preventing
> them receiving any income from sponsorship or advertising, should be
> modified but not removed entirely. Instead, the order introduces a new
> arrangement allowing all community radio stations, including the 19
> stations currently subject to the “absolute rule”, as a minimum to raise up
> to £15,000 per year from those commercial sources. This figure represents a
> quarter of the average revenues for community stations. Stations not
> subject to restrictions will be able to raise 50% of income above that
> level from commercial sources. This increases the headroom for all
> community stations, but helps most those community stations with smaller
> average revenues.
>
> *4.15 pm*
>
> The final aspect is that those stations that were subject to restrictions
> due to being in the same area as a small commercial station where that
> commercial station is now part of a larger group will also be able to raise
> up to 50% of their annual income from those sources. The effect is that,
> where restrictions are no longer needed because of consolidation with
> commercial radio groups that are taking advantage of the ability to share
> premises and network content, those community stations should be treated
> the same as community stations with no restrictions.
>
> Finally, the order recognises that many community stations need a 15-year
> rather than a 10-year window to establish themselves fully, given a
> station’s set-up cost and the effort involved in creating and establishing
> services. In recognising this problem, the Government have decided to
> address this concern by giving Ofcom the power to renew licences. Licences
> are currently awarded for up to five years with one further period of up to
> five years, making a total of 10 years. This order permits Ofcom to renew
> licences for one further period of up to five years, allowing community
> radio stations to operate for up to 15 years, provided licensees meet their
> licence conditions. The order also permits holders of local TV licences
> also to hold a community radio licence.
>
> The purpose of the order is to give community radio stations more scope to
> raise funding from commercial sources while protecting the characteristics
> of community radio. The changes are quite modest. There are no changes to
> the basic requirement that community stations must be run by not-for-profit
> organisations for social gain and we have retained
>
> *17 Mar 2015 : Column GC245*
>
> protections for smaller independent commercial radio stations. We believe
> that there will be minimal impacts on small commercial stations, but we
> will keep the position under review. The changes also allow the longest
> established community stations, which are valued by their communities, to
> apply for a further five-year renewal of their licences—something strongly
> welcomed by community radio stations. I commend the order to your Lordships.
>
> *Baroness Thornton (Lab):* I thank the Minister for that extremely clear
> introduction to the issue. By and large, we welcome the order. The Minister
> is quite right to say that it is modest. I would like to press him on the
> fact that it perhaps needs to be less modest.
>
> I come at this partly from having been an activist in the 1980s on
> community radio, where I worked with the sociologist Michael Young, who
> believed that there was great scope for community-controlled radio stations
> in tower blocks with common aerials. He was technically right: getting a
> licence from the Home Office, as was the case then, was impossible. It took
> a very long time from then, until about 10 or 15 years ago, for community
> radio to become truly accepted.
>
> Community radio is a great thing and we should be helping it to happen. It
> is clear that Article 5(5) is the important one: it gives provision for
> holders of community radio licences to extend their licences twice;
> provision to allow one organisation to be the holder of a local digital
> television programme licence, as well as a community radio licence; and
> provision to allow certain community radio stations to receive income from
> the takings of advertising and sponsorship of their programme output, when
> they were previously prevented from doing so. I remember when this
> legislation went through your Lordships’ House; I thought it was
> restrictive then and I think it is still restrictive.
>
> I point the noble Lord to the Government’s notes—the Explanatory
> Memorandum. Paragraph 7.2 states:
>
> “Notwithstanding this apparent success”—
>
> of community radio stations under the current regime—
>
> “many community radio stations are struggling to build a long term
> sustainable business model”.
>
> The question that we need to ask is: will the £15,000 limit help to make
> community radio stations more sustainable? Was there an examination of the
> business case for this? How will that help them?
>
> The Community Media Association believes that this is a modest step
> forward but not necessarily one that will provide community radio stations
> with sufficient. Why is there a limit of £15,000 and why set the level at
> 50% for community radio stations earning revenues through advertising and
> sponsorship? Back in 2003, the Everitt report recommended that there should
> be greater flexibility and I wonder why the Government have not picked up
> those recommendations and run with them. Those are my questions to the
> Minister but, as I say, they are within the context of supporting the order
> as a further step in recognising the important role that community radio
> plays in our local communities. In Bradford, we have Sunrise Radio, which
> is absolutely wonderful and brilliant.
>
> *17 Mar 2015 : Column GC246*
>
> *Lord Gardiner of Kimble:* My Lords, it is a pleasure to reply to the
> noble Baroness because she clearly knows very much more about these matters
> from her long-standing experience of activism, which always helps to colour
> the debates. I am delighted by her welcome, and I do identify the noble
> Baroness as an activist. From reading about the many community radio
> stations that exist up and down the country, I know that that activism has
> been of great benefit to the communities with which it has been seeking to
> communicate. On the point about tower blocks, one of the issues that we
> have always had is how to retain a sense of community and communicate well
> there. The arrival of community radio stations has been of great social
> benefit to those communities.
>
> In terms of building a sustainable business model, there have been
> discussions with the commercial sector and the Community Media Association
> about the £15,000 and the 50%, and about trying to get the balance right.
> Like all these things, in the end it is about where to strike the balance.
> The Government felt that we should move in a direction that we thought
> would not adversely impact on the commercial radio sector, but would very
> much help the community radio sector to prosper and enable it to raise
> funds. To answer the question: it was to try to keep some distinction of
> retaining this not-for-profit, for-social-gain community sector, but
> wanting it to prosper more and to have the ability for revenue generation.
> The £15,000 represents a quarter of the average revenue of a community
> radio station, and we thought that that was an appropriate level at this
> stage. No one wants to rule anything in or out; we have all moved since
> 2004 into thinking that we need to do a bit more to help the community
> radio sector. That is the Government’s move, and, as I say, I am most
> grateful to the noble Baroness for her welcome of the provisions.
>
> The main point is that I am sure that any future Government will want to
> keep these matters under review; that would be the appropriate response. We
> want to see how the provisions bed in. We want community radio to prosper.
> When I received my first brief on this matter, there were 219 community
> radio stations on air; by the time I had my final briefing, there were 223.
> That shows that this sector commands the attention of, and is of great
> interest to, the communities which they serve, and I wish it well. In the
> mean time, I commend the order.
>
> *Motion agreed.*
>
>
>
>
>
> *From:* cma-l-bounces at mailman.commedia.org.uk [mailto:
> cma-l-bounces at mailman.commedia.org.uk] *On Behalf Of *Bill Best
> *Sent:* 17 March 2015 17:38
> *To:* The Community Media Association Discussion List
> *Subject:* Re: [cma-l] Community Radio (Amendment) Order 2015, 2:30pm
> Tuesday 17th March, Consideration in Grand Committee - Lord Gardiner of
> Kimble
>
>
>
> Hi Phil
>
> Thanks for your message.
>
> We will look into the data that you are after.
>
> With best regards
>
> Bill
> --
>
> Operations Manager
> Community Media Association
> http://www.commedia.org.uk/
> https://twitter.com/community_media
> http://www.facebook.com/CommunityMediaAssociation
>
> Canstream Internet Radio & Video
> http://www.canstream.co.uk/
> https://twitter.com/canstream
>
>
>
> On 17 March 2015 at 17:14, Phil Edmonds <lists at philedmonds.info> wrote:
>
> Interesting reading the CMA's briefing note.
>
> A couple of observations, it says:
> "CMA analysis indicates there to be 88 commercial stations
> broadcasting to a population of fewer than 150,000). Out of these 88
> stations only 20 can be considered to be ‘genuinely independent’ "
>
> I'd concur almost. The last Ofcom published information on coverage areas
> I've seen (dated 9 May 2013) lists 89 'Analogue local' licences with MCA's
> under 150k. You need to discount Nevis FM who surrendered their
> 'commercial' licence when awarded a Community Radio licence. Furthermore
> recently Radio Hafren ceased operation, leaving 87 stations.
>
> However of these I'd classify eight of the small Scottish stations as
> "Community Radio stations with legacy 'ILR' licences". So that leaves only
> six small commercial radio stations who are 'independent" of a group.
>
>
>
> I also quote from the CMA document
> "The most significant change to previous restrictions on advertising and
> programme sponsorship revenue is the introduction of a threshold of £15,000
> commercial revenue, below which the restrictions will no longer apply. This
> has two important effects.
> First, it will allow 18 stations that were previously prevented from
> receiving such revenues, to receive up to £15,000."
>
> I'd like to have a list of these 18 stations, as it's something that
> doesn't appear to be published by Ofcom. I'm trying to do some research
> into the "real world" effects of a community station near a small
> commercial station, but struggling to find a full list of CR's with
> restrictions.
>
> Phil.
>
>
> On 17/03/2015 10:46, Bill Best wrote:
>
> Dear Members and Supporters
>
> The Lords debate on the Community Radio (Amendment) Order 2015 takes
> place today:
>
> *Tuesday 17 March at 2.30pm*
> Community Radio (Amendment) Order 2015 Consideration in Grand Committee
> [Lord Gardiner of Kimble
> <http://www.parliament.uk/biographies/lords/lord-gardiner-of-kimble/4161>]
> 25th Report from the Joint Committee on Statutory Instruments
>
> http://www.publications.parliament.uk/pa/ld/ldordpap.htm
>
> You might be able to watch it online here:
>
> http://www.parliamentlive.tv/Lords
>
> More specifically here:
>
>
> http://www.parliamentlive.tv/Event/Index/7bc71488-225d-409e-b1f8-8bc009cc6dad
>
> This is Part 1 of the debate; there is a fair chance that the Commons
> debate will be early the following week.
>
> The CMA has prepared a supporting briefing note that has been sent to a
> selection of Peers. You may download this briefing from here:
>
>
> http://www.commedia.org.uk/wp-content/uploads/2015/03/Community_Radio_Amendment_Order_2015-policy-briefing.pdf
>
> Best regards
>
> Bill Best
> --
> Operations Manager
> Community Media Association
> http://www.commedia.org.uk/
> https://twitter.com/community_media
> http://www.facebook.com/CommunityMediaAssociation
>
> Canstream Internet Radio & Video
> http://www.canstream.co.uk/
> https://twitter.com/canstream
>
>
>
>
> _______________________________________________
>
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>
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>
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>
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>
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