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<div class=Section1>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>No more consultations please ……..
we all know what’s going on, there nothing more to discuss.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>By the way, there are no Grants available
for just running a Radio Station …. You run projects. The project gets
funded. The project takes up more resources and takes people away from the
Radio operation. So in effect, sometimes a grant for a project makes the ‘’’actual’’’
Radio Station worse off especially if they are not abound with a large group of
real volunteers.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>The monies we are talking about are so we
can run in a simple manner a Community Radio Station … once we are doing
that we can then support ourselves and our projects.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>It does show how poles apart we are
though, and that is worrying. There has been a small shift in favour of us and
the commercial chappies seem to be up in arms and we on the other hand from
what I am reading are saying it is disappointing yup we’re
poles apart.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Mmm ?<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Nick<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<div>
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face="Times New Roman"><span lang=EN-US style='font-size:12.0pt'>
<hr size=2 width="100%" align=center tabindex=-1>
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<p class=MsoNormal><b><font size=2 face=Tahoma><span lang=EN-US
style='font-size:10.0pt;font-family:Tahoma;font-weight:bold'>From:</span></font></b><font
size=2 face=Tahoma><span lang=EN-US style='font-size:10.0pt;font-family:Tahoma'>
<st1:PersonName w:st="on">cma-l-bounces@mailman.commedia.org.uk</st1:PersonName>
[mailto:<st1:PersonName w:st="on">cma-l-bounces@mailman.commedia.org.uk</st1:PersonName>]
<b><span style='font-weight:bold'>On Behalf Of </span></b>David Duffy<br>
<b><span style='font-weight:bold'>Sent:</span></b> 23 January 2015 11:09<br>
<b><span style='font-weight:bold'>To:</span></b> cma-l@mailman.commedia.org.uk<br>
<b><span style='font-weight:bold'>Subject:</span></b> [cma-l] Community Radio
Consultation</span></font><span lang=EN-US><o:p></o:p></span></p>
</div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoBodyText><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>It took almost 9 months but finally the Department for
Culture, Media and Sport’s Community Radio Consultation is published and
here is The Radio People's take on the recommendations:<o:p></o:p></span></font></p>
<p class=tableparagraph><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>The government has removed the ‘absolute
rule’ restriction. This prohibited some stations from taking <i><span
style='font-style:italic'>any</span></i> income from on-air advertising or
sponsorship, if they overlapped with a commercial radio licensee whose coverage
area included 150,000 adults or fewer.<o:p></o:p></span></font></p>
<p class=tableparagraph><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>The ‘absolute rule’ was always overly
restrictive and it’s good to see it abolished, albeit with conditions.
Why this wasn’t included in the Community Radio (Amendment) Order 2010
I’m not sure. What’s worrying is that the underlying principle of
applying funding restrictions to community radio was, to use the
government’s own words, ‘<i><span style='font-style:italic'>to
provide an appropriate level of protection to existing small commercial radio
stations at <u>a time when the impact of community radio stations could not be
quantified</u>’. </span></i>Does this mean that the government is
now able to quantify the impact of community on commercial and that impact is
minimal? Should that be taken as a comment on the strength of small-scale
commercial stations or the commercial-weakness of community radio? I’m
not sure.<o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'>With the abolition
of the ‘absolute’ rule the government has also said that Ofcom
‘may want to consider’ whether there is scope for the impact
assessments on commercial radio to be carried out on a lighter touch basis.
That will please the over worked and under resourced regulator I’m
sure. But Radio Centre members are clearly unimpressed.<o:p></o:p></span></font></p>
<p class=tableparagraph><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>The government also asked if there should be a
‘relaxation’ of the restriction preventing stations from taking
more than 50% of their income from on-air advertising and sponsorship.<o:p></o:p></span></font></p>
<p class=tableparagraph><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>Not surprisingly, the response from commercial radio
was to oppose any increase in the 50% limit. The Radio Centre said that
increasing the proportion of income a community station could take from
commercial sources would alter the nature of community radio. Amongst community
stations there was a clear consensus for introducing a Fixed Revenue Allowance
(FRA) before applying the 50% rule. This was a classic ‘alternative
close’ by the DCMS. By only putting two options on the table they predetermined
the outcome. A ‘schoolboy error’ by community radio stations
accepting one of these and not choosing the third option that the DCMS
didn’t even put on the table. <o:p></o:p></span></font></p>
<p class=tableparagraph><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>Nevertheless, the DCMS report goes on to say <i><span
style='font-style:italic'>‘Having considered the representations made by
commercial stations, the Government believes the fixed allowance should be set
at £15,000 per year’.</span></i> So that’s where the £15k has come
from! It equates to around 25% of the mean average income reported by community
radio stations in 2013.<o:p></o:p></span></font></p>
<p class=tableparagraph><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>We believe that the FRA and the £15,000 allowance are
both problematic, but first the context of that 50% rule.<o:p></o:p></span></font></p>
<p class=MsoBodyText><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>The legislators introduced the ’50% rule' in an
attempt to ensure that community stations don’t become
commercialised. At the same time, there are already a number of statutory
mechanisms in place to regulate this. In fact, there are still areas of
ownership, accountability and governance that need strengthening. So
don’t be under any illusion, even with the Fixed Revenue Allowance,
keeping the 50% rule is still a serious threat to community radio’s
survival.<o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'>The Fixed Revenue
Allowance introduces an income tax threshold-like system with a ‘tax-free
allowance’ of £15,000 and a flat 50% rate immediately thereafter.
It introduces a new layer of reporting for stations and compliance monitoring
for Ofcom. Not that Ofcom’s compliance monitoring is fool proof. We all
know of community stations that regularly and routinely apportion the income
from mixed media campaigns — advertising, sponsorship, outside broadcasts,
web advertising, etc. — in such a way that they don’t infringe the
’50% rule’. That doesn’t mean that less than 50% of their
income is from advertising & sponsorship. It just means they are
‘smart’ when it comes to creating campaigns and invoicing funders.
This Fixed Revenue Allowance will just give them a greater margin to play with.<o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'>And as for that
figure of £15,000 - if it grows at the same rate that the community radio fund
has grown over the last 12 years then it will be less meaningful with every
year.<o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'>The unique nature
of community radio is how it is expressed on air and how the listener
experiences it. The focus should be on creating a distinctive sound for the
sector not jeopardising its financial sustainability with increased levels of
regulation and financial control <o:p></o:p></span></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'>Maybe it’s
time for another Consultation?<o:p></o:p></span><u3:p class=""></u3:p></font></p>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>David & John<br>
<a href="http://www.theradiopeople.co.uk">The Radio People</a><o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal style='margin-bottom:12.0pt'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><a
href="http://www.twitter.com/theradiopeople">@TheRadioPeople</a><o:p></o:p></span></font></p>
</div>
<div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
</div>
<p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b><font
size=3 face=Arial><span style='font-size:12.0pt;font-family:Arial;font-weight:
bold'> </span></font></b><o:p></o:p></p>
</div>
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