John Biffen

“ I am sure we all expect the Fourth Channel to be commercially successful. Most of us also believe that there is sufficient buoyancy in the advertising industry to provide revenue to ensure this. But this is essentially an act of faith. Advertising may be discouraged by the minority appeal of the Channel, particularly in Wales, and the revenue may not build up fast enough to sustain a successful new channel. ”

“ The argument that a profits-based levy does nothing to check waste and inefficiency on the part of the TV companies is a familiar one. After paying levy at its present rate, and corporation tax, a company only retains 17 per cent of any marginal surplus of revenue over expenditure. ”

“ The PAC asked the Government to consider whether final statutory authority for levy assessments should continue to rest with the IBA alone, or whether this should be changed in the new legislation - which could require the Authority to consult the Home Office and the Treasury. Given that the levy is a form of tax payable to the Consolidated Fund, I think there is a strong case for making this change ”