<div dir="ltr"><div><div><b>Q.1 To lift the restriction preventing some community radio stations from taking any income from on-air advertising or sponsorship if they overlap with a commercial radio licence whose coverage area includes 150,000 adults or fewer.</b></div></div><div><br></div><div><b>Government Response:</b></div><div>The Government believes that the “absolute rule” in its current form is overly restrictive on community radio stations and should be modified to allow stations subject to the “absolute rule” to raise up to £15,000 per year in commercial revenue whether through sponsorship, advertising or other commercial activities. The Government also believes the restriction should no longer apply to licences whose coverage area covers 150,000 or fewer adults where these licences have benefited from sharing premises or programmes under section 34 of the Digital Economy Act 2010.<br></div><div><br></div><div><div><b>Q.2 If the funding restrictions on advertising were to be reduced ought the requirement on Ofcom to look at potential economic impact need also to be reviewed. We welcome your views on this.</b></div></div><div><b><br></b></div><div><div><b>Government Response:</b></div><div>As the absolute rule will be modified, but we will retain the provisions requiring Ofcom, when making licensing decisions, to have regard to the need to ensure that any new community radio service will not prejudice unduly the economic viability of local analogue commercial radio services. However, in view of the changes proposed, Ofcom may want to consider, whether there is scope for these assessments to be carried out on a lighter touch basis.</div></div><div><br></div><div><div><b>Q.3. Should there be a relaxation of the restriction preventing stations from taking more than 50% of their income from advertising and sponsorship. If your answer to this question is yes, then what should the new restriction be. How should it be determined? For example, set in regulation or set by Ofcom following consultation and reviewing periodically.</b></div></div><div><br></div><div><div>The majority of responses (63%) supported a relaxation of the current 50% restriction however there was no clear consensus to the level this should be increased to. Only 9 responses gave any indication of what an increase ought to be, and this ranged from 60%-100% (1 x 60%, 4 x 75%, 3 x 80% & 1x 100%). Two responses suggested that whatever the level of increase this ought to be determined by Ofcom following further consultation, and scope for annual reviews.</div></div><div><br></div><div><div><b>Q.4 Of the two options noted which do you support and why. Include reasons why you dismiss the alternative option. We invite you to provide details on other approaches. </b></div></div><div><b><br></b></div><div><div><b>Government Response:</b></div><div>In reviewing the comments received, there was a clear consensus from community stations for introducing a fixed allowance before applying the 50% rule, as this would be the simplest to operate and give clarity to stations and to Ofcom in terms of enforcing the new requirements. Having considered the representations made by commercial stations, the Government believes the fixed allowance should be set at £15,000 per year. </div></div><div><br></div><div><div><b>Q.5 – What way/s could a Fixed Revenue Allowance be fairly determined if this was to be set by Ofcom. Should this be set by Ofcom? What facts would Ofcom need to take into account in setting an appropriate level of allowance?</b></div><div><b><br></b></div></div><div><div><b>Government Response:</b></div><div>Having considered the representations made by commercial stations, the Government believes the fixed allowance should be set at a relatively low figure of £15,000. This equates to around 25% of the mean average income reported by community radio stations in 2013. This approach favours smaller community stations. We will ensure that Ofcom is able to review the level of disregard, following a request by DCMS. </div></div><div><br></div><div><div><b>Q.6 – Would you support a further 5 year extension of a licence beyond the second 5-year period. If you do not agree, please provide reasons why this should not happen. </b></div></div><div><b><br></b></div><div><div><b>Government Response: </b></div><div>The Government believes that the arguments for a further five-year licence term for community radio is compelling and that Ofcom to be afforded power to extend licence for a third term, for a period up to 5 years. The requisite for an extension Ofcom satisfied the community radio station continues to meet current licencing conditions and the format and programming commitments made in its licence application.</div></div><div><br></div><div><div class="gmail_signature">Community Media Association</div><div class="gmail_signature">-- <br><a href="http://www.commedia.org.uk/" target="_blank">http://www.commedia.org.uk/</a><br><a href="http://twitter.com/community_media" target="_blank">http://twitter.com/community_media</a><br><a href="https://www.facebook.com/CommunityMediaAssociation" target="_blank">https://www.facebook.com/CommunityMediaAssociation</a><br><br>Canstream Internet Radio & Video<br><a href="http://www.canstream.co.uk/" target="_blank">http://www.canstream.co.uk/</a><br><a href="https://twitter.com/canstream" target="_blank">https://twitter.com/canstream</a></div></div>
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