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Statutory Instrument 2004 No. 1944The Community Radio Order 2004(The document as of February, 2008) STATUTORY INSTRUMENTS2004 No. 1944BROADCASTINGThe Community Radio Order 2004
The Secretary of State, in exercise of the powers conferred upon her by sections 262 and 402(3) of, and paragraphs 11 and 13 of Schedule 14 to, the Communications Act 2003[1], considering that the provision of services of the description set out in this Order would confer significant benefits on the public or on the communities for which they are provided[2] and having consulted the Office of Communications as regards the provisions of this Order made under the said Schedule 14[3], hereby makes the following Order, a draft of which has been laid before Parliament in accordance with section 262(5) of, and paragraph 17(2) of Schedule 14 to, that Act and approved by a resolution of each House of Parliament: Citation and commencement 1. - (1) This Order may be cited as the Community Radio Order 2004. (2) This Order shall come into force on the day after the day on which it is made. Interpretation 2. - (1) In this Order -
(b) persons who (whether or not they fall within paragraph (a)) have one or more interests or characteristics in common;
(2) In relation to a community radio service, "social gain" means the achievement, in respect of individuals or groups of individuals in the community that the service is intended to serve, or in respect of other members of the public, of the following objectives -
(b) the facilitation of discussion and the expression of opinion, (c) the provision (whether by means of programmes included in the service or otherwise) of education or training to individuals not employed by the person providing the service, and (d) the better understanding of the particular community and the strengthening of links within it, and may also include the achievement of other objectives of a social nature and, in particular, those mentioned in paragraph (3).
(b) the promotion of economic development and of social enterprises; (c) the promotion of employment; (d) the provision of opportunities for the gaining of work experience; (e) the promotion of social inclusion; (f) the promotion of cultural and linguistic diversity; (g) the promotion of civic participation and volunteering. (4) For the purposes of this Order, two local sound broadcasting licences overlap if (but only if) the potential audience of the service provided under either of those licences includes 50 per cent. or more of the potential audience of the service provided under the other licence.
(b) in order to deliver social gain, rather than primarily for commercial reasons or for the financial or other material gain of the individuals involved in providing the service.
(b) uses any profit that is produced in the provision of the service wholly and exclusively for securing or improving the future provision of the service, or for the delivery of social gain to members of the public or the community that the service is intended to serve. (4) It is a characteristic of every community radio service that members of the community it is intended to serve are given opportunities to participate in the operation and management of the service.
2A.Nothing in this Order shall apply in respect of -
(b) any licence to provide such a service.". Disqualified persons
(b) any body corporate falling within paragraph (3); and (c) any C4 company or S4C company that would not otherwise be a disqualified person by virtue of paragraph (3). (3) A body corporate falls within this paragraph if -
(b) that body is connected with a person who holds one or more such licences. (4) In this article, a relevant Broadcasting Act licence is a Broadcasting Act licence which is not a licence to provide one of the following services -
(b) a digital sound programme service; (c) a restricted service; (d) a radio licensable content service; (e) a restricted television service; (f) a television licensable content service. Restrictions on holding of community radio licences 1.The modifications to the Broadcasting Act 1990 referred to in article 4 are the modifications set out in this Part. 2.Section 86(3)[10](which makes provision as to the duration of certain licences) shall have effect as if, for the words "local or national service or to provide an additional service", there were substituted the words "community radio service", and as if, for the word "twelve", there was substituted the word "five". 3.Section104[11] (which makes provision as to the giving of notice of proposals to grant licences, and as to the content of applications) shall have effect as if -
(b) in subsection (2)(b) -
(ii) in sub-paragraph (ii), for the words "living in that area or locality;" there were substituted the words "comprising that community,"; and (iii) after sub-paragraph (ii), there was added -
(iv) be of a nature or have a content distinct from that of any local service the licence for which would overlap with that for the proposed service;"; (c) after subsection (2)(b), there was added -
(d) in subsection (2)(c) -
(ii) in sub-paragraph (ii), after the word "service", there was added -
(iii) as to the effect that the provision of the service would be likely to have on the economic viability of any other local service;"; (e) in subsection (3) after the words "subsection (2)(b)," there was added "(ba),"; and
(ii) for the word "local" there were substituted the words "community radio". 4.Sections 104A[12] (renewal of local licences) and 104B[13] (special application procedure) shall not have effect. 5. - (1) Section 105[14] (which makes provision as to the matters to which OFCOM are required to have regard in determining whether, and to whom, to grant local licences) shall have effect as if the provision made by that section were re-numbered as subsection (1) of that section, and as if, in that provision -
(b) in paragraph (b), for the words from "living in the area or locality for which the service would be provided" there were substituted the words "comprising the relevant community"; (c) in paragraph (c), for the word "for", in the first place where it occurs, there was substituted the word "in", and for the words "cater for tastes" to the end there were substituted the words "be of a nature or have a content distinct from that of any other local service the licence for which would overlap with the licence for the proposed service"; (d) the word "and" immediately before paragraph (d) was omitted, and after the word "service" in that paragraph there were added the following paragraphs -
(f) the provision that each of the applicants proposes to make in order to render himself accountable to the relevant community in respect of the provision of the proposed service; (g) the provision that each of the applicants proposes to make to allow for access by members of the relevant community to the facilities to be used for the provision of the service and for their training in the use of those facilities". (2) Also, that section shall have effect as if the following subsections were added at the end -
(b) from any one person and any other persons connected with him, taken together, more than 50 per cent. of the income that would be required in each financial year of the applicant to provide the proposed service in that year.
(b) if they grant it, the terms on which it is granted, have regard to the need to ensure that any service provided under that licence does not prejudice unduly the economic viability of any other local service.
(b) every licence to provide a community radio service that overlaps with any other local licence the potential audience of which includes more than 50,000 persons who have attained the age of 15 years, but no more than 150,000 such persons, must contain such conditions as appear to OFCOM to be appropriate for prohibiting -
(ii) the sponsorship of any programmes included in that service; and (c) every licence to provide a community radio service, other than a licence to provide a service such as falls within paragraph (b) above, must contain the conditions mentioned in subsection (5). (5) Subject to subsection (6), the conditions are those that appear to OFCOM to be appropriate, in the case of the community radio licence in question, for ensuring that the amount of such of the relevant income for that licence as is attributable to any arrangements for -
(b) the sponsorship of any programmes included in that service, does not, in any financial year of the licence holder, exceed such proportion of the total relevant income for that licence in that year as may be specified in those conditions.
(ii) the sponsorship of programmes included in that service, do not prejudice unduly the economic viability of any other local service; and (7) In this section -
(8) Any reference in this section to sponsorship does not include a reference to any payment made, or other financial benefit (whether direct or indirect) conferred, by a person for purposes that are wholly or mainly philanthropic in nature.". 6.Section 106 (requirements as to character and coverage of national and local services) shall have effect as if -
(b) in subsection (1A)[16] -
(ii) paragraph (c) and the word "or" following it were omitted; (iii) in paragraph (d), the words ", in the case of a local licence," were omitted and for the words "living in that area or locality" there were substituted the words "comprising that community"; and (iv) after the word "departure" in that paragraph there were added -
(e) that the departure would not be prejudicial to the access by members of that community to the facilities used for the provision of the service and for training in the use of those facilities; or (f) that the departure would not be prejudicial to the delivery of social gain resulting from the provision of the service provided under that licence"; (c) in subsection (1B)[17], for the word "local" there were substituted the words "community radio", and after that subsection there were added -
(1C) Without prejudice to the generality of subsection (1), a community radio licence shall include such conditions as appear to OFCOM to be appropriate for securing that the holder of the licence does not enter into, or remain subject to, any arrangement if an effect of that arrangement is to allow another holder of a Broadcasting Act licence or the BBC or the Welsh Authority to exercise an undue influence over the nature and content of the programmes included in the service provided under that licence.
(f) in subsections (4), (5)[19] and (6), for the words "locality for which", wherever they occur, there were substituted the words "locality in which"; (g) in subsection (7)[20], for the word "local" there were substituted the words "community radio", and for the words "living and working in the area or locality" there were substituted the words "comprising the relevant community". 7.Section 126[21] (interpretation of Part 3) shall have effect as if -
(b) persons who (whether or not they fall within paragraph (a)) have one or more interests or characteristics in common;
8. - (1) In Part 2 of Schedule 2 (persons who are disqualified from holding certain Broadcasting Act licences), paragraphs 1(1)(f) (individual who is an officer of a political body etc.) and 3 (certain publicly-funded bodies) shall not have effect. (2) In paragraph 4 of that Part of that Schedule (persons disqualified on grounds that they are subject to undue influence), sub-paragraph (1)(a)[22] shall have effect as if for the words "relevant body" there were substituted "person", and sub-paragraph (2) (meaning of "relevant body") were omitted. 9.The modifications to the Communications Act 2003 referred to in article 4 are the modifications set out in this Part. 10.Section 245 shall have effect as if, in subsection (4)(b), after the words "United Kingdom;" the following paragraph was added -
11.Sections 314 (character and content of services), 355 and 356 (variation of licences following change of control) shall not have effect. (This note is not part of the Order) This Order, made under section 262 of the Communications Act 2003 ("the 2003 Act "), contains provision to create a special regulatory framework for a new category of radio broadcasting services, to be known as "community radio services". The provision includes modifications to the Broadcasting Act 1990 ("the 1990 Act") and the 2003 Act. Article 2(1) defines a community radio service as a form of local sound broadcasting service having the characteristics set out in article 3. The first such characteristic is that all community radio services are provided primarily for the good of members of the public or of particular communities (a community being defined by article 2(1)) rather than primarily for commercial reasons. This is pursuant to the requirement in section 262(2)(a) of the 2003 Act. In addition, a service must be provided in order to deliver social gain (article 3(1)(b)). Social gain is defined in article 2 as the achievement of the four objectives set out in paragraph (2) of that article together with the achievement of any other objectives of a social nature, which may include those listed in paragraph (3). Further characteristics of a community radio service are that it must be provided primarily to serve one or more communities (article 3(2)), it must be run on a not-for-profit or non profit-distributing basis (article 3(3)), that members of the community or communities that it is intended to serve are given opportunities to help run the service (article 3(4)), and that arrangements are made to make the provider of the service accountable for its provision to the community or communities it is intended to serve (article 3(5)). Article 5 amends the Media Ownership (Local Radio and Appointed News Provider) Order 2003 (S.I. 2003/3299) so that it does not apply to community radio services or the licences to provide them. Amongst other things, that Order imposes restrictions on the number of local sound broadcasting licences that any person may hold. This Order imposes alternative arrangements. In relation to community radio licences, ownership is restricted by Part 2 of Schedule 2 to the 1990 Act, as modified by this Order, and by the provisions set out in articles 6 and 7. The Schedule to the Order, which is introduced by article 4, sets out the modifications with which the provisions in the 1990 Act and the 2003 Act have effect in relation to community radio services. Paragraph 2 modifies section 86(3)(a) of the 1990 Act (which makes provision as to the duration of local radio licences) to provide for community radio licences to last for a maximum of five years, rather than the maximum of twelve years that local licences usually last for. Paragraph 3 modifies the effect of section 104 of the 1990 Act by adapting the existing requirements relating to the publication by OFCOM of proposals for new licences to provide services including local sound broadcasting services, and for applications for such licences. The paragraph makes modifications to reflect the fact that community radio services will be provided to serve specified communities rather than particular areas (paragraph 3(a), (b)(i) and (ii) and (f)(ii)). In addition, paragraph 3(b)(iii) and (c) add to the matters that an application for a community radio licence must address. Paragraph 3(d)(i) and (ii) modify the requirements relating to the information that OFCOM may demand from the applicant. Paragraph 5 modifies the effect of section 105 of the 1990 Act, which sets out special requirements relating to the grant of local licences. Paragraph 5(1) makes modifications reflecting those made by paragraph 3(a), (b)(i) and (ii) and (f)(ii) to section 104 (paragraph 5(1)(a) to (c)). The modifications also reflect the characteristics of a community radio service set out in article 3 (paragraph 5(1)(d)). Paragraph 5(2) inserts additional provisions into section 105 relating to the circumstances in which OFCOM may grant a community radio licence and the conditions that they must include in such a licence, if granted. The new subsection (2) states that a community radio licence may not be granted to an applicant who proposes to receive more than 50 per cent. of the income he needs to provide his proposed service from any one source. The new subsections (3) to (6) impose requirements to ensure that the grant of a community radio licence does not unduly prejudice the economic viability of any other local sound broadcasting service. These requirements relate, in particular, to the proportion of his income that any holder of a community radio licence may receive in respect of advertisements or sponsorship. Section 262(3) of the 2003 Act enables an Order such as this to impose prohibitions or limitations on the inclusion of advertisements and sponsored programmes in community radio services. The effect of new subsection (8) is that the restrictions do not apply to sponsorship that is made available for purposes that are mainly philanthropic in nature. Paragraph 6 modifies the effect of section 106 of the 1990 Act, which sets out requirements as to the character and coverage of national and local services. Paragraph 6(a), (b)(i) to (iii) and (e) to (g) make modifications similar to those made to section 104 by paragraph 3(a), (b)(i) and (ii) and (f)(ii), whilst those made by paragraph 6(b)(iv) relate to characteristics of community radio services. Paragraph 6(c) makes modifications designed to ensure that other broadcasters are not able to exercise an undue influence over providers of community radio services, whilst paragraph 6(d) allows OFCOM to impose licence conditions to ensure that the holder of any community radio licence provides the service that he proposed to provide in his application for that licence. Paragraph 7 modifies section 126 of the 1990 Act, which supplies various definitions for the purposes of Part 3 of that Act. Paragraph 8 modifies the effect of Part 2 of Schedule 2 to the 1990 Act, which makes provision relating to restrictions on the holding of licences. In particular, paragraph 8(1) disapplies paragraph 3 of that Part of that Schedule, which would otherwise have the effect that community radio licence holders could receive no more than half their annual income from public funds. Paragraph 8(2) modifies paragraph 4 of the same Part so that a person will be treated as a disqualified person, in relation to a community radio licence, if it appears to OFCOM that any other person is exerting an influence over him that is, or would be, contrary to the public interest. Paragraph 10 makes a consequential modification to section 245 of the 2003 Act (which, amongst other things, defines certain kinds of radio service), whilst paragraph 11 disapplies sections 314, 355 and 356 of that Act (which make provision as to the character and content of local services and as to the variation of local licences after a change of control). A full regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of business. Notes: [1] 2003 c. 21.back [2] Section 262(2) of the 2003 Act provides that the Secretary of State is not to make an order under section 262 in relation to a description of services unless the description is of services to be provided primarily for the good of members of the public or of a particular community (rather than for commercial reasons), and she considers that the provision of services of that description confer, or would confer, significant benefits on the public or on the communities for which they are provided.back [3] Such consultation is required by paragraph 17(1) of Schedule 14 to the Communications Act 2003 in the case of any order under that Schedule other than one that is confined to giving effect to recommendations made by OFCOM in a report of a review under section 391 of that Act.back [4] 1990 c. 42.back [5] S.I. 2003/3299.back [6] The definition of "local authority" in paragraph 1(1) of Part 1 of Schedule 2 to the Broadcasting Act 1990 was amended by section 66(6) of, and paragraph 89 of Schedule 16 to, the Local Government (Wales) Act 1994 (c. 19) and was repealed in part by section 66(8) of, and Schedule 18 to, that Act. It was also amended by section 180(1) of, and paragraph 166 of Schedule 13 to, the Local Government etc. (Scotland) Act 1994 (c. 39).back [7] Paragraph 3 of Part 1 of Schedule 2 to the Broadcasting Act 1990 sets out which persons are to be treated as being connected with a particular person, for the purposes of that Schedule. This paragraph was substituted by section 73 of, and paragraph 3, Part 1, of Schedule 2 to, the Broadcasting Act 1996 (c. 55). Paragraph 3 of Part 1 of Schedule 2 to the Broadcasting Act 1990 must be read with the definition of "control" in paragraph 1(1) (taken with paragraph 1(3) and (3A)) of Part 1 of that Schedule. This definition was amended by section 73 of, and paragraph 1(1) and (2)(c), Part 1, of Schedule 2 to, the Broadcasting Act 1996. Paragraph 1(3) and (3A) were substituted for paragraph 1(3) by section 73 of, and paragraph 1(1) and (4), Part 1, of Schedule 2 to, the Broadcasting Act 1996 and paragraph 1(3)(b) was amended in part by section 357(1) of the Communications Act 2003. Paragraph 3 of Part 1 of Schedule 2 to the Broadcasting Act 1990 must also be read with the definitions of "associate" in paragraph 1(1A) and 1(2) of Part 1 of that Schedule. Paragraph 1(1A) was inserted by section 73 of, and paragraph 1(1) and (3), Part 1, of Schedule 2 to, the Broadcasting Act 1996.back [8] S.I. 2003/3299.back [9] In Part 2 of Schedule 2 to the Broadcasting Act 1990, paragraph 1(1) was amended by section 73 of, and paragraph 6(1) and (2), Part 2, of Schedule 2 to, the Broadcasting Act 1996 and by section 349(1)(a) and 360(3) of, and paragraph 69(1), (4) and (5), Part 1, of Schedule 15 to, the Communications Act 2003 and was repealed in part by sections 348(1) and 406(7) of, and Schedule 19(1) to, the Communications Act 2003. Paragraph 1(1A) was inserted by section 349(1)(b) of the Communications Act 2003. Paragraph 1(2) and (3) were repealed by section 406(7) of, and Schedule 19(1) to, the Communications Act 2003. Paragraph 2 was amended by section 348(2) and (3) of the Communications Act 2003. Paragraph 3(1) was amended by section 73 of, and paragraph 7, Part 2, of Schedule 2 to, the Broadcasting Act 1996 and by section 360(3) of, and paragraph 69(1) and (6), Part 1, of Schedule 15 to, the Communications Act 2003. Paragraph 4(1) was amended by section 360(3) of, and paragraph 69(1), (4) and (7), Part 1, of Schedule 15 to, the Communications Act 2003. Paragraph 4(2) was amended by sections 348(4) and 360(3) of, and paragraph 69(1), (8)(a) and (b), Part 1, of Schedule 15 to, the Communications Act 2003. Paragraph 5 was repealed in part by sections 73 and 148(2) of, and paragraph 8, Part 2, of Schedule 2 and Part 1 of Schedule 11 to, the Broadcasting Act 1996 and was amended by section 360(3) of, and paragraph 69(1) and (4), Part 1, of Schedule 15 to, the Communications Act 2003. Paragraph 5A was inserted by section 73 of, and paragraph 9, Part 2, of Schedule 2 to, the Broadcasting Act 1996 and was repealed in part by sections 360(3) and 406(7) of, and paragraph 69(1), (9)(a), (b) and (c), Part 1, of Schedule 15 and by Schedule 19(1) to the Communications Act 2003. Paragraph 6 was amended by section 360(3) of, and paragraph 69(1) and (4), Part 1, of Schedule 15 to, the Communications Act 2003.back [10] Section 86 was amended by section 136 of, and paragraph 5 of Schedule 8 to, the Broadcasting Act 1996 and by sections 252(1) and 360(3) of, and paragraph 33(1), (2) and (3), Part 1, of Schedule 15 to the Communications Act 2003. Section 86(3) was amended by section 252(2) of that Act.back [11] Section 104 was amended by section 360(3) of, and paragraph 45, Part 1, of Schedule 15 to the Communications Act 2003. Subsections (5) and (6)(a) were repealed by sections 94(2) and 148(2) of, and Part 1 of Schedule 11 to, the Broadcasting Act 1996.back [12] Section 104A was inserted by section 94(1) of the Broadcasting Act 1996.back [13] Section 104B was inserted by section 94(1) of the Broadcasting Act 1996.back [14] Section 105 was amended by section 360(3) of, and paragraph 48, Part 1, of Schedule 15 to, the Communications Act 2003.back [15] Section 106(1) was amended by section 360(3) of, and paragraph 49, Part 1, of Schedule 15 to, the Communications Act 2003. The words from ", except" onwards in section 106(1) were repealed by section 312(1) and (2) and 406(7) of, and Schedule 19(1) to, the Communications Act 2003.back [16] Section 106(1A) was inserted by section 312(1) and (3) of the Communications Act 2003.back [17] Section 106(1B) was inserted by section 312(1) and (3) of the Communications Act 2003.back [18] Section 106(4) and (6) were amended by section 360(3) of, and paragraph 49, Part 1, of Schedule 15 to, the Communications Act 2003.back [19] Section 106(5) was substituted by section 312(1) and (4) of the Communications Act 2003.back [20] Section 106(7) was inserted by section 312(1) and (5) of the Communications Act 2003.back [21] Section 126 was amended by section 148(1) of, and paragraph 9, Part 1, of Schedule 10 to, the Broadcasting Act 1996 and by sections 256(2) and (3) and 360(3) of, and paragraph 59, Part 1, of Schedule 15 to, the Communications Act 2003 and repealed in part by section 406(7) of, and Schedule 19(1) to, the Communications Act 2003.back [22] Paragraph 4(1)(a) of Part 2 of Schedule 2 to the Broadcasting Act 1990 was amended by section 360(3) of, and paragraph 69(1), (4), and (7), Part 1, of Schedule 15 to, the Communications Act 2003.back ISBN 0 11 049605 1 -- Back --
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