Broadcasting Act 1990

9

• (1) The Corporation shall appoint a chief executive of the Corporation, and may appoint such other employees as they may determine.

• (2) If the Corporation determine to do so in the case of any of their employees, the Corporation shall pay to or in respect of those employees such pensions, allowances or gratuities, or provide and maintain for them such pension schemes (whether contributory or not), as the Corporation may determine.

• (3) If any employee of the Corporation—

• (a) is a participant in any pension scheme applicable to his employment, and

• (b) becomes a member of the Corporation other than an ex-officio member,

he may, if OFCOM so determine, be treated for the purposes of the pension scheme as if his service as a member of the Corporation were service as an employee of the Corporation.

Authentication of Corporation’s seal

10

The application of the seal of the Corporation shall be authenticated by the signature of the chairman or of some other person authorised for the purpose.

Presumption of authenticity of documents issued by Corporation

11

Any document purporting to be an instrument issued by the Corporation and to be duly executed under the seal of the Corporation or to be signed on behalf of the Corporation shall be received in evidence and shall be deemed to be such an instrument unless the contrary is shown.

Accounts and audit

12

• (1) The Corporation shall keep proper accounts and proper records in relation to the accounts, and shall prepare in respect of each financial year a statement of accounts in such form as the Secretary of State may direct with the approval of the Treasury.

• (2) The accounts of the Corporation shall be audited by auditors to be appointed by the Corporation with the approval of the Secretary of State.

• (3) A person shall not be qualified to be appointed as a auditor in pursuance of sub-paragraph (2) unless he is eligible for appointment as a statutory auditor under Part 42 of the Companies Act 2006.

• (4) The Corporation shall at all reasonable times upon demand made by the Secretary of State or by any persons authorised by him in that behalf—

• (a) afford to him or them full liberty to examine the accounts of the Corporation; and

• (b) furnish him or them with all forecasts, estimates, information and documents which he or they may require with respect to the financial transactions and commitments of the Corporation.

Annual reports

13

• (1) As soon as possible after the end of every financial year, the Corporation shall prepare a general report of their proceedings during that year, and transmit it to the Secretary of State who shall lay copies of it before each House of Parliament.

• (1A) The report must include a report on the discharge by the Corporation of their duty under section 23A (sustainability duty of Corporation).

• (2) The report shall have attached to it the statement of accounts for the year and a copy of any report made by the auditors on that statement, and shall include such information (including information relating to the financial position of the Corporation) as the Secretary of State may from time to time direct.

SCHEDULE 4

Report by OFT on reference under s. 39

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The competition test

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duty to modify arrangements in consequence of OFT’s report

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

References to Monopolies and Mergers CommissionMMC

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Report by Monopolies and Mergers CommissionMMC on reference under paragraph 4

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duty to modify arrangements in consequence of Monopolies and Mergers CommissionMMC’s report

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power of OFT to review previous decision with respect to arrangements

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power to obtain information

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duty of OFT to assist Monopolies and Mergers CommissionMMC

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 5

The relevant service

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Applications for licence to provide the relevant service

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Consideration of applications and award of licence

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Conditions requiring licence holder to deliver promised service

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Failure to begin providing licensed service and financial penalties on revocation of licence

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Renewal of licence to provide relevant service

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Additional methods of enforcement of licence to provide relevant service

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 6

Status and capacity

1

• (1) S4C shall not be treated for the purposes of the enactments and rules of law relating to the privileges of the Crown as a body exercising functions on behalf of the Crown.

• (2) S4C may do anything which appears to them to be incidental or conducive to the carrying out of their functions.

• (3) In carrying out its functions S4C may carry on activities in any way whatever, including—

• (a) through or with other persons;

• (b) anywhere in the United Kingdom or elsewhere;

• (c) with a view to making a profit;

• (d) for a charge.

Appointment of members

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tenure of office

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Remuneration and pensions of members

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disqualification of members of Authority for House of Commons

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Proceedings

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Employees of S4C

9

• (1) S4C shall appoint a secretary and may appoint such other employees as they may determine.

• (2) If S4C determine to do so in the case of any of their employees, S4C shall pay to or in respect of those employees such pensions, allowances or gratuities, or provide and maintain for them such pension schemes (whether contributory or not), as S4C may determine.

• (3) If a person—

• (a) participates in a pension scheme as an employee of S4C, and

• (b) on or after ceasing to be an employee of S4C, becomes a non-executive member of the S4C Board,

the person’s service as a non-executive member of the S4C Board may, if the Secretary of State so determines, be treated for the purposes of the pension scheme as if it were service as an employee of S4C.

Authentication of S4C’s seal

10

The application of the seal of S4C shall be authenticated by the signature of the chairman or of some other person authorised for the purpose.

Presumption of authenticity of documents issued by S4C

11

Any document purporting to be an instrument issued by S4C and to be duly executed under the seal of S4C or to be signed on behalf of S4C shall be received in evidence and shall be deemed to be such an instrument unless the contrary is shown.

Accounts and audit

12

• (1) S4C shall keep proper accounts and proper records in relation to the accounts, and shall prepare in respect of each financial year a statement of accounts in such form as the Secretary of State may direct with the approval of the Treasury.

• (1A) The statement of accounts must deal separately with the public service fund referred to in section 61A of this Act and with the assets of S4C that are not comprised in that fund; and accordingly, the statement must deal with liabilities separately according to whether they fall to be met from that fund or from those assets.

• (2A) S4C must send a copy of its statement of accounts to the Comptroller and Auditor General as soon as possible after the end of the financial year to which the statement relates.

• (2B) The Comptroller and Auditor General must—

• (a) examine, certify and report on each statement of accounts of S4C, and

• (b) send a copy of the report and certified statement of accounts to the Secretary of State.

• (2C) The Secretary of State must lay before Parliament a copy of each such report and certified statement.

• (2D) As soon as possible after the Secretary of State lays copies of the report and statement of accounts before Parliament, S4C must arrange for the report and certified statement to be laid before Senedd Cymru.

• (2E) S4C must ensure that each S4C subsidiary undertaking appoints the Comptroller and Auditor General as auditor, unless the S4C subsidiary undertaking requests the Comptroller and Auditor General’s permission to appoint another person and the Comptroller and Auditor General permits the appointment of that person as auditor.

• (2F) The Comptroller and Auditor General may inspect the accounts of any S4C subsidiary undertaking (regardless of who is appointed as auditor).

• (4) S4C shall at all reasonable times upon demand made by the Secretary of State or by any persons authorised by him in that behalf—

• (a) afford to him or them full liberty to examine the accounts of S4C; and

• (b) furnish him or them with all forecasts, estimates, information and documents which he or they may require with respect to the financial transactions and commitments of S4C.

• (5) S4C must ensure that an S4C subsidiary undertaking, if told to do so by the Secretary of State or any person authorised by the Secretary of State, grants the Secretary of State or authorised person access to—

• (a) that undertaking’s accounts;

• (b) information and documents relating to that undertaking’s financial transactions and commitments.

• (6) In this paragraph “S4C subsidiary undertaking” means an undertaking which, for the purposes of the Companies Act 2006, is a subsidiary undertaking of S4C (see section 1162 of that Act).

Annual reports

13

• (1) As soon as possible after the end of every financial year, S4C shall prepare a general report of their proceedings during that year, and transmit it to the Secretary of State who shall lay copies of it before each House of Parliament.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) The report shall also—

• (a) set out every contravention notification given by OFCOM to S4C during the year; and

• (b) include such other information (including information relating to S4C’s financial position) as the Secretary of State may from time to time direct.

• (4) In sub-paragraph (3), “contravention notification” means a notification of a determination by OFCOM of a contravention by S4C of any obligation imposed by or under this Act, the 1996 Act or Part 3 of the Communications Act 2003.

Advisory committees

14

S4C may appoint, or arrange for the assistance of, advisory committees to give advice to them on such matters relating to S4C’s functions as S4C may determine.

SCHEDULE 7

Part I — Qualifying Revenue for purposes of Part I or II of this Act

Computation of qualifying revenue

1

• (1) It shall be the duty of OFCOM to draw up, and from time to time review, a statement setting out the principles to be followed in ascertaining the qualifying revenue in relation to a person—

• (a) for any accounting period of his, or

• (b) for any year,

for the purposes of any provision of Part I or Part II of this Act.

• (2) A statement under this paragraph may set out different principles for persons holding different kinds of licences.

• (3) Before drawing up or revising a statement under this paragraph OFCOM shall consult the Secretary of State and the Treasury.

• (4) OFCOM shall—

• (a) publish the statement drawn up under this paragraph and every revision of that statement; and

• (b) transmit a copy of that statement, and every revision of it, to the Secretary of State;

and the Secretary of State shall lay copies of the statement and of every such revision before each House of Parliament.

• (5) This paragraph does not apply in relation to such part of a person’s qualifying revenue as falls to be ascertained in accordance with section 368J of the Communications Act 2003 (see section 18A(1)(b) and (3) of this Act).

Disputes

2

• (1) For the purposes of any provision of Part I or Part II of this Act—

• (a) the amount of the qualifying revenue in relation to any person for any accounting period of his, or (as the case may be) for any year, or

• (b) the amount of any payment to be made to OFCOM by any person in respect of any such revenue, or of an instalment of any such payment,

shall, in the event of a disagreement between OFCOM and that person, be the amount determined by OFCOM .

• (2) No determination of OFCOM under this paragraph shall be called in question in any court of law, or be the subject of any arbitration; but nothing in this sub-paragraph shall prevent the bringing of proceedings for judicial review.

Part II — Qualifying Revenue for purposes of Part III of this Act

Computation of qualifying revenue

1

• (1) It shall be the duty of OFCOM to draw up, and from time to time review, a statement setting out the principles to be followed in ascertaining the qualifying revenue for any accounting period of a licence holder for the purposes of any provision of Part III of this Act.

• (2) A statement under this paragraph may set out different principles for persons holding different kinds of licences.

• (3) Before drawing up or revising a statement under this paragraph OFCOM shall consult the Secretary of State and the Treasury.

• (4) OFCOM shall—

• (a) publish the statement drawn up under this paragraph and every revision of that statement; and

• (b) transmit a copy of that statement, and every revision of it, to the Secretary of State;

and the Secretary of State shall lay copies of the statement and of every such revision before each House of Parliament.

Disputes

2

• (1) For the purposes of any provision of Part III of this Act—

• (a) the amount of the qualifying revenue for any accounting period of a person, or

• (b) the amount of any payment to be made to OFCOM by any person in respect of any such revenue, or of an instalment of any such payment,

shall, in the event of a disagreement between OFCOM and that person, be the amount determined by OFCOM .

• (2) No determination of OFCOM under this paragraph shall be called in question in any court of law, or be the subject of any arbitration; but nothing in this sub-paragraph shall prevent the bringing of proceedings for judicial review.

SCHEDULE 8

Status and capacity

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Appointment of members

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tenure of office

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Remuneration and pensions of members

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disqualification of members of Authority for House of Commons and Northern Ireland Assembly

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Proceedings

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Employees of the Authority

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Authentication of Authority’s seal

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Presumption of authenticity of documents issued by Authority

11

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Finances of Authority

12

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Advances to Authority

13

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Accounts and audit

14

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annual reports

15

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Advisory committees

16

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 9

Preliminary

1

In this Schedule—

• “relevant transferee” shall be construed in accordance with paragraph 2(1) below; and

• “transfer scheme” means a scheme under this Schedule made either by the IBA under paragraph 2(1) below or by the Secretary of State under paragraph 2(4) below.

Making and modification of transfer scheme

2

• (1) The IBA shall make a scheme under this Schedule for the division of all their property, rights and liabilities between—

• (a) the Commission,

• (b) the Radio Authority, and

• (c) the nominated company;

and references in this Schedule to the relevant transferees are references to the bodies specified in paragraphs (a) to (c) above.

• (2) Where such a scheme is made by the IBA, it shall not be capable of coming into force in accordance with section 127(1) of this Act unless it is approved by the Secretary of State.

• (3) Where such a scheme is submitted to the Secretary of State for his approval, he may modify the scheme before approving it.

• (4) If—

• (a) the IBA have not, before such time as the Secretary of State may notify to them as the latest time for the submission of such a scheme, submitted such a scheme for his approval, or

• (b) the Secretary of State decides not to approve (either with or without modifications) a scheme that has been submitted to him by the IBA,

the Secretary of State may himself make a scheme for the division of the IBA’s property, rights and liabilities between the relevant transferees.

• (5) If, at any time after the Secretary of State has either—

• (a) approved (either with or without modifications) a scheme under this Schedule made by the IBA, or

• (b) himself made such a scheme,

but before the scheme has come into force in accordance with section 127(1) of this Act, the Secretary of State considers it appropriate to do so, he may determine that the scheme shall, on its so coming into force, come into force with such modifications as may be specified in his determination; and, in any such case, the scheme shall accordingly, on its coming into force, come into force with those modifications.

• (6) If at any time after a transfer scheme has come into force—

• (a) the Secretary of State considers it appropriate to make an order under this sub-paragraph, and

• (b) every relevant transferee who would be affected by the order either—

• (i) (in a case where any such transferee is the nominated company and that company has ceased to be wholly owned by the Crown) has consented to the making of the order, or

• (ii) (in any other case) has been consulted by the Secretary of State,

the Secretary of State may by order provide that the scheme shall for all purposes be deemed to have come into force with such modifications as may be specified in the order.

• (7) Any power to modify a transfer scheme which is conferred on the Secretary of State by this paragraph may be so exercised as to make any such provision as could have been made by the scheme, and an order under sub-paragraph (6) above may provide for any of its provisions to have effect as from the coming into force of the scheme to which it relates.

• (8) In determining whether and in what manner to exercise any power conferred on him by this paragraph the Secretary of State shall have regard to the need to ensure that the division of property, rights and liabilities between the relevant transferees which is effected under this Schedule allocates property, rights and liabilities to those transferees in such a manner as appears to him to be appropriate—

• (a) in the case of the Commission and the Radio Authority, in the light of the functions conferred on those bodies by this Act; and

• (b) in the case of the nominated company, with a view to the carrying on by that company of a business consisting of—

• (i) the provision of broadcasting transmission services and services related to such services, and

• (ii) the carrying out of research and development work relating to broadcasting.

• (9) It shall be the duty of the IBA and each of the relevant transferees to provide the Secretary of State with all such information and other assistance as he may reasonably require for the purposes of, or in connection with, the exercise of any power conferred on him by this paragraph.

• (10) Nothing in this paragraph shall require a scheme under this Schedule to make provision—

• (a) with respect to any equipment or other asset which the IBA have agreed to dispose of in pursuance of section 132(1) or 133(6) of this Act, or

• (b) with respect to any liabilities of the IBA which—

• (i) have not yet become enforceable against the IBA, and

• (ii) are not specifically and exclusively referable to any particular part or parts of the undertaking of the IBA which is or are transferred in accordance with any such scheme to one or more of the relevant transferees, or

• (c) with respect to any such rights or liabilities as are mentioned in sub-paragraph (11).

• (11) Those rights and liabilities are rights and liabilities acquired by the IBA in connection with the sharing by the IBA and the BBC of the use of facilities (of whatever description) in connection with the transmission of television programmes or local sound broadcasts.

Content of transfer scheme

3

• (1) A transfer scheme may—

• (a) define the property, rights and liabilities to be allocated to a particular relevant transferee—

• (i) by specifying or describing the property, rights and liabilities in question,

• (ii) by referring to all the property, rights and liabilities comprised in a specified part of the IBA’s undertaking, or

• (iii) partly in the one way and partly in the other;

• (b) provide that any rights or liabilities specified or described in the scheme shall be enforceable either by or against either or any, or by or against both or all, of two or more relevant transferees;

• (c) impose on any relevant transferee an obligation to enter into such written agreements with, or execute such instruments in favour of, such other relevant transferee as may be specified in the scheme;

• (d) create for any of the relevant transferees an interest in or right over property transferred in accordance with the scheme to any other of those transferees;

• (e) in connection with any provision made by virtue of paragraph (d), make incidental provision as to the interests, rights and liabilities of other persons with respect to the property in question.

• (2) Without prejudice to the generality of sub-paragraph (1)(a), a transfer scheme may, in connection with any transfer to be made in accordance with the scheme, exclude from the transfer any rights and liabilities falling within paragraph 2(11) above and described in the scheme.

• (3) A transfer scheme may also allocate to any of the relevant transferees such property, rights and liabilities to which the IBA may become entitled or subject after the making of the scheme and before the transfer date as may be described in the scheme.

• (4) The property, rights and liabilities of the IBA that are capable of being transferred in accordance with a transfer scheme include—

• (a) property, rights and liabilities that would not otherwise be capable of being transferred or assigned by the IBA;

• (b) property situated anywhere in the United Kingdom or elsewhere; and

• (c) rights and liabilities under the law of any part of the United Kingdom or of any country or territory outside the United Kingdom.

• (5) It is hereby declared for the avoidance of doubt that the rights and liabilities capable of being so transferred include rights and liabilities of the IBA under any agreement or arrangement for the payment of pensions, allowances or gratuities.

• (6) An obligation imposed by a provision included in a transfer scheme by virtue of sub-paragraph (1)(c) shall be enforceable by civil proceedings brought by the other relevant transferee in question for an injunction or interdict or for any other appropriate relief.

Effect of transfer scheme

4

• (1) Where a transfer scheme comes into force on the transfer date, this sub-paragraph shall have effect on that date so as to transfer to each of the relevant transferees, in accordance with the scheme’s provisions and without further assurance, such of the property, rights and liabilities of the IBA as are allocated to that transferee by the scheme.

• (2) A transaction of any description which is effected in pursuance of any provision included in a transfer scheme in accordance with this Schedule shall be binding on all persons, notwithstanding that it would, apart from this sub-paragraph, have required the consent or concurrence of any person other than the IBA or any relevant transferee.

• (3) Where apart from this sub-paragraph any person would have power, in consequence of anything done or likely to be done by or under this Act, to terminate or modify an interest or right which is vested in the IBA at the passing of this Act, then—

• (a) for the purposes of the transfer of the interest or right in accordance with a transfer scheme, that power shall not be exercisable in relation to the interest or right at any time before its transfer in accordance with the scheme; and

• (b) without prejudice to any other provision of this Schedule, that power shall be exercisable in relation to the interest or right after its transfer only in so far as the scheme provides for it to be transferred subject to the power.

• (4) Where, in consequence of any transfer made in accordance with a transfer scheme, all the property, rights and liabilities comprised in a particular part of the IBA’s undertaking are transferred to a relevant transferee—

• (a) the Transfer of Undertakings (Protection of Employment) Regulations 1981 shall apply to the transfer, whether or not they would otherwise so apply, and

• (b) that undertaking shall accordingly (whether or not it would otherwise be so regarded) be regarded for the purposes of those Regulations as an undertaking in the nature of a commercial venture.

Third parties affected by transfer scheme

5

• (1) This paragraph applies where—

• (a) in consequence of any transfer made in accordance with a transfer scheme, any right or liability of a person (other than the IBA or any relevant transferee) which was enforceable against or by the IBA becomes enforceable against or by one or more relevant transferees; and

• (b) apart from this Schedule that person’s consent or concurrence would have been required for that right or liability to become so enforceable;

and in this paragraph references to a third party are references to any such person.

• (2) Subject to sub-paragraph (3), the IBA shall take reasonable steps to identify any third party and to notify him of the effect of the transfer in question on any right or liability of his falling within sub-paragraph (1), and of the effect of sub-paragraph (4).

• (3) A transfer scheme may provide that the duties imposed on the IBA by sub-paragraph (2) in relation to a transfer shall be imposed instead on such one of the relevant transferees as may be specified in the scheme.

• (4) Where—

• (a) any right or liability of a third party has become enforceable against or by more than one relevant transferee, and

• (b) the value of any property or interest of the third party is diminished thereby,

such compensation as is just shall be paid to the third party by one or more of the relevant transferees.

• (5) Any dispute as to whether, and if so how much, compensation is payable under sub-paragraph (4), or as to the person to or by whom it shall be paid, shall be referred to and determined by—

• (a) an arbitrator appointed by the Lord Chancellor; or

• (b) where the proceedings are to be held in Scotland, an arbiter appointed by the Lord President of the Court of Session.

Supplemental provisions of scheme

6

• (1) A transfer scheme may contain supplemental, consequential and transitional provisions for the purposes of, or in connection with, the division effected or any other provision made by the scheme.

• (2) Without prejudice to the generality of sub-paragraph (1) above, a transfer scheme may provide—

• (a) that for purposes connected with any transfer made in accordance with the scheme a relevant transferee to whom anything is transferred in accordance with the scheme is to be treated as the same person in law as the IBA;

• (b) that, so far as may be necessary for the purposes of or in connection with any such transfer, agreements made, transactions effected and other things done by or in relation to the IBA are to be treated as made, effected or done by or in relation to the relevant transferee to whom the transfer is made;

• (c) that, so far as may be necessary for the purposes of or in connection with any such transfer, references in any agreement (whether or not in writing) or in any deed, bond, instrument or other document to, or to any member or officer of, the IBA are to have effect with such modifications as are specified in the scheme;

• (d) that proceedings commenced by or against the IBA are to be continued by or against such one of the relevant transferees as the scheme may provide in relation to any circumstances specified or described in it;

• (e) that the effect of any transfer made in accordance with the scheme in relation to contracts of employment with the IBA is not to be to terminate any such contracts but is to be that periods of employment with the IBA are to count for all purposes as periods of employment with the relevant transferee to whom the transfer is made;

• (f) that disputes as to the effect of the scheme between any of the relevant transferees are to be referred to such arbitration as may be specified in or determined under the scheme;

• (g) that determinations on such arbitrations, and certificates given jointly by all or any two of the relevant transferees as to the effect of the scheme as between the transferees concerned, are to be conclusive for all purposes.

Vesting of IBA’s property after coming into force of scheme

7

• (1) A transfer scheme may provide for the imposition of duties—

• (a) on the IBA, and

• (b) on all or any of the relevant transferees,

to take all such steps as may be requisite to secure that the vesting in any of those transferees, by virtue of the scheme, of any foreign property, right or liability is effective under the relevant foreign law.

• (2) The provisions of a transfer scheme may require the IBA to comply with any directions of any of the relevant transferees in performing any duty imposed on the IBA by virtue of a provision included in the scheme by virtue of sub-paragraph (1).

• (3) A transfer scheme may provide that, until the vesting of any foreign property, right or liability of the IBA in a relevant transferee is effective under the relevant foreign law, it shall be the duty of the IBA to hold that property or right for the benefit of, or to discharge that liability on behalf of, that transferee.

• (4) Nothing in any provision included in a transfer scheme by virtue of this paragraph shall be taken as prejudicing the effect under the law of any part of the United Kingdom of the vesting in a relevant transferee, by virtue of the scheme, of any foreign property, right or liability.

• (5) The IBA shall have all such powers as may be requisite for the performance of any duty imposed on them by any provision included in a transfer scheme by virtue of this paragraph; but such a scheme may require a relevant transferee to act on behalf of the IBA (so far as possible) for the purposes of, or in connection with, the performance of any such duty in relation to any property, right or liability vested in the transferee by virtue of the scheme.

• (6) A transfer scheme may provide that any foreign property, rights or liabilities that are acquired or incurred by the IBA after the scheme comes into force are immediately to become property, rights or liabilities of such one of the relevant transferees as is specified in the scheme; and such a scheme may make the same provision in relation to any such property, rights or liabilities as can be made, by virtue of the preceding provisions of this paragraph, in relation to foreign property, rights and liabilities vested in the IBA when the scheme comes into force.

• (7) References in this paragraph to any foreign property, right or liability are references to any property, right or liability as respects which any issue arising in any proceedings would have to be determined (in accordance with the rules of private international law) by reference to the law of a country or territory outside the United Kingdom.

• (8) Any expenses incurred by the IBA in consequence of any provision included in a transfer scheme by virtue of this paragraph shall be met by the relevant transferees in such proportions as may be determined by or under the scheme.

Certificate of Secretary of State as to vesting of property etc.

8

• (1) Subject to sub-paragraph (2), a certificate issued by the Secretary of State to the effect that any property, right or liability of the IBA vested at a particular time by virtue of this Schedule in one or more of the relevant transferees shall be conclusive evidence of the matters stated in the certificate.

• (2) Nothing in any such certificate shall prejudice the operation of a certificate issued by virtue of a provision included in a transfer scheme by virtue of paragraph 6(2)(g) above.

Power of Secretary of State to control division of IBA’s pension fund

9

• (1) If the Secretary of State so determines, the trustees of the Independent Broadcasting Authority Staff Pensions Plan shall refer to him, before such date as he may specify, the division and distribution of the relevant assets which is to be made by them for the purpose of making a transfer payment to a pension scheme established by the nominated company for its employees; and, if he does so, any such division and distribution of those assets and liabilities shall not be made by the trustees except—

• (a) with his consent, or

• (b) in accordance with an order made by him under sub-paragraph (2).

• (2) Where any such division and distribution is referred to the Secretary of State under sub-paragraph (1), he may by order direct that the relevant assets shall be divided and distributed by the trustees in such manner, and at such time, as is specified in the order; and any provision of—

• (a) the Plan referred to in sub-paragraph (1), or

• (b) any enactment relating to occupational pension schemes, including any enactment relating to transfer values,

shall not have effect to the extent that it is inconsistent with the division and distribution of those assets in accordance with any such order.

• (3) When making an order under sub-paragraph (2) the Secretary of State shall have regard to the interests of all classes of persons who are for the time being beneficiaries or potential beneficiaries under the Plan referred to in sub-paragraph (1).

• (4) In this paragraph—

• “the relevant assets” means the assets held by or on behalf of the trustees; and

• “the trustees” means the trustees of the Plan referred to in sub-paragraph (1).

• (5) An order under sub-paragraph (2) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Discharge by IBA of contingent etc. liabilities

10

• (1) This paragraph applies to any liabilities to which the IBA are subject on or after the transfer date, being liabilities which—

• (a) had not become enforceable against the IBA before that date, and

• (b) are not specifically and exclusively referable to any particular part or parts of the undertaking of the IBA which has or have been transferred in accordance with a transfer scheme to one or more of the relevant transferees.

• (2) Any sums required by the IBA for the purpose of discharging any liabilities to which this paragraph applies shall be paid to them by the Secretary of State out of money provided by Parliament.

• (3) Any payments made to the IBA under sub-paragraph (2) may be so made subject to such conditions as the Secretary of State may determine with the approval of the Treasury.

Final accounts and annual report of IBA

11

• (1) The IBA shall, as soon as possible after the transfer date, prepare such a statement of accounts as is mentioned in subsection (1) of section 42 of the Act 1981 (accounts and audit) in respect of the period between—

• (a) the end of the financial year for which the last statement of accounts was prepared by them under that section, and

• (b) the transfer date,

whether that period is a financial year or not; and that section shall continue to apply on and after that date in relation to the auditing of accounts kept in accordance with that subsection in respect of that period.

• (2) The IBA shall, as soon as possible after the transfer date, prepare and transmit to the Secretary of State, in accordance with section 43 of that Act (annual reports), such a report as is mentioned in subsection (1) of that section in respect of the period between—

• (a) the end of the financial year for which the last such report was prepared by them under that section, and

• (b) the transfer date,

whether that period is a financial year or not.

• (3) Subsection (2) of that section shall apply to any such report as if the references to the statement of accounts for the year in question included references to the statement of accounts prepared in accordance with sub-paragraph (1) above.

• (4) The Secretary of State shall lay copies of any such report before each House of Parliament.

• (5) Any expenses incurred by the IBA under this paragraph shall be met by such one or more of the relevant transferees, and (if more than one) in such proportions, as may be determined by or under a transfer scheme.

SCHEDULE 10

Provisions as to vesting of property etc. of Cable Authority

1

• (1) Sub-paragraph (2) below shall have effect for the purposes of, or in connection with, the vesting in the Commission by virtue of section 128(1) of this Act of property, rights or liabilities of the Cable Authority.

• (2) Any agreement made, transaction effected or other thing done by or in relation to the Cable Authority which is in force or effective immediately before the transfer date shall have effect as from that date as if made, effected or done by or in relation to the Commission, in all respects as if the Commission were the same person, in law, as the Cable Authority; and accordingly references to the Cable Authority—

• (a) in any agreement (whether or not in writing) and in any deed, bond or instrument,

• (b) in any process or other document issued, prepared or employed for the purpose of any proceeding before any court or other tribunal or authority, and

• (c) in any other document whatever (other than an enactment),

shall be taken as from the transfer date as referring to the Commission.

2

• (1) Where immediately before the transfer date there is in force an agreement which—

• (a) confers or imposes on the Cable Authority any rights or liabilities which vest in the Commission by virtue of section 128(1), and

• (b) refers (in whatever terms and whether expressly or by implication) to a member or officer of the Cable Authority,

the agreement shall have effect, in relation to anything falling to be done on or after the transfer date, as if for that reference there were substituted a reference to such person as the Commission may appoint or, in default of appointment, to the member or employee of the Commission who corresponds as nearly as possible to the member or officer of the Authority in question.

• (2) References in this paragraph to an agreement include references to a deed, bond or other instrument.

Transfer of employees

3

• (1) It is hereby declared for the avoidance of doubt that—

• (a) the effect of section 128(1) in relation to any contract of employment with the Cable Authority in force immediately before the transfer date is merely to modify that contract (as from that date) by substituting the Commission as the employer (and not to terminate the contract or vary it in any other way); and

• (b) that provision is effective to vest the rights and liabilities of the Cable Authority under any agreement or arrangement for the payment of pensions, allowances or gratuities in the Commission along with all the other rights and liabilities of the Authority.

• (2) Accordingly, for the purposes of any such agreement or arrangement as it has effect as from the transfer date, any period of employment with the Cable Authority shall count as employment with the Commission.

• (3) The Transfer of Undertakings (Protection of Employment) Regulations 1981 shall apply to the transfer to the Commission, by virtue of section 128(1), of the undertaking of the Cable Authority, whether or not they would otherwise so apply; and that undertaking shall accordingly (whether or not it would otherwise be so regarded) be regarded for the purposes of those Regulations as an undertaking in the nature of a commercial venture.

Final accounts and annual report of Cable Authority

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 11

Part I — General

In this Schedule—

Part II — Television Broadcasting Services to be provided by Commission

IBA’s television broadcasting services to be provided by Commission during interim period

1

• (1) During the period beginning with the transfer date and ending with 31st December 1992 (referred to in this Schedule as “the interim period”) the following television broadcasting services, namely—

• (a) ITV,

• (b) Channel 4,

• (c) any teletext service provided by the IBA down to the transfer date, and

• (d) any DBS services so provided,

shall be provided by the Commission in accordance with this Part of this Schedule.

• (2) The services provided by the Commission as mentioned in sub-paragraph (1) shall be of high quality both as to the transmission and as to the matter transmitted and (subject to paragraph 3(1) below) shall be provided by the Commission for so much of the United Kingdom as may from time to time be reasonably practicable.

• (3) During the interim period the following provisions of the 1981 Act, namely—

• (a) section 2(2),

• (b) sections 3 to 9,

• (c) sections 14(3) and 15,

• (d) sections 28 and 29, and

• (e) Schedule 2,

shall (subject to the provisions of this Part of this Schedule) have effect in connection with the provision of those services by the Commission as they had effect, immediately before the transfer date, in connection with the provision of those services by the IBA.

• (4) The provisions specified in sub-paragraph (3) above shall have effect in accordance with that sub-paragraph with the following general modifications, namely—

• (a) any reference to the IBA shall (subject to paragraph (b) and sub-paragraph (8) below) be construed as a reference to the Commission; and

• (b) any reference to any of the broadcasting stations used by the IBA shall be construed as a reference to any of the broadcasting stations used in the provision of any of the services provided by the Commission as mentioned in sub-paragraph (1) above.

• (5) Section 3(2)(b) of the 1981 Act shall have effect in accordance with sub-paragraph (3) above with the substitution of the following sub-paragraph for sub-paragraph (ii)—

(ii) by reason of the termination of any contract with a programme contractor;

and.

• (6) Section 8 of the 1981 Act shall have effect in accordance with sub-paragraph (3) above with the omission of subsections (6) to (9) of that section; but (except in the case of any programme to which the Commission determine that the following prohibition is not to apply) none of the broadcasting services provided by the Commission as mentioned in sub-paragraph (1) above shall include a programme which is sponsored by any person whose business consists, wholly or mainly—

• (a) in the manufacture or supply of a product, or

• (b) in the provision of a service,

the advertising of which in any such broadcasting service is prohibited by virtue of any provision of that Act (as applied by this paragraph) or of the code under section 9 of that Act (as so applied).

• (7) Section 9 of the 1981 Act shall have effect in accordance with sub-paragraph (3) above as if—

• (a) in subsection (1)(a), after “standards and practice in advertising” there were inserted “ and in the sponsoring of programmes ”;

• (b) in subsection (1)(b), there were inserted at the end “ and as regards the sponsoring of programmes so broadcast ”; and

• (c) after “methods of advertising” (wherever occurring) there were inserted “ or sponsorship ”;

and the Commission may give effect to paragraph (a) above by making modifications to the code in force under section 9 immediately before the transfer date.

• (8) Section 29(5) of the 1981 Act shall have effect in accordance with sub-paragraph (3) above as if the reference to requiring the IBA by notice in writing to do, or not to do, anything mentioned in that provision were a reference to requiring the Commission by notice in writing to direct any programme contractor specified in the notice—

• (a) to do, or not to do, that thing, or

• (b) (if the context so requires) to secure that that thing is or is not done.

• (9) Without prejudice to the generality of sub-paragraph (5) of paragraph 2 below, the Commission may make such variations of a contract to which sub-paragraph (1) of that paragraph applies as appear to them to be appropriate for facilitating or ensuring compliance with any direction or notice given to or served on them under section 28 or 29 of the 1981 Act (as applied by this paragraph).

General provisions about programme contracts and programme contractors

2

• (1) Sections 2(3) and 14(2) of the 1981 Act shall have effect in relation to the Commission and the programmes and teletext transmissions broadcast by them in the services provided by them as mentioned in paragraph 1(1) above as they had effect immediately before the transfer date in relation to the IBA and the programmes and teletext transmissions broadcast by them in the services mentioned in paragraph 1(1); and where a contract between the IBA and a programme contractor or a teletext contractor is effective immediately before that date—

• (a) the contract shall continue to have effect on and after that date (subject to and in accordance with this Part of this Schedule) as a contract between the Commission and that contractor and any other party to it, and

• (b) any reference in the contract to the IBA shall accordingly be construed, in relation to any time falling on or after that date, as a reference to the Commission.

• (2) During the interim period the following provisions of the 1981 Act, namely—

• (a) sections 19(1) to (2B) and 20(2) to (9),

• (b) sections 21 to 25,

• (c) sections 32 to 35, and

• (d) Schedule 4,

shall have effect in relation to any contract to which sub-paragraph (1) applies, or (as the case may be) in relation to the programme contractor or teletext contractor under any such contract, subject to the modifications specified in sub-paragraph (3) and subject also to paragraphs 4 and 5 below.

• (3) The modifications of the provisions specified in sub-paragraph (2) are as follows—

• (a) any reference in those provisions to the IBA shall (subject to paragraphs (b) and (c) below) be construed as a reference to the Commission;

• (b) sections 21 and 23 shall have effect as if any reference to the IBA’s obligation to transmit the programmes supplied by a programme contractor were a reference to the right and the duty of the programme contractor under his contract to provide programmes for broadcasting in one of the services provided by the Commission as mentioned in paragraph 1(1) above;

• (c) section 22 shall have effect as if any reference to the programmes, or television programmes, supplied to the IBA were a reference to the programmes, or television programmes, supplied for broadcasting in one of those services; and

• (d) section 32(1)(a) shall have effect as if—

• (i) for “the branch” there were substituted “ the part ”, and

• (ii) for “section 36(2) in relation to that branch” there were substituted “ paragraph 12(1) of Schedule 1 to the Broadcasting Act 1990 in relation to that part ”.

• (4) The Commission shall do all that they can to secure that during the interim period no person who is, or is an associate of, a TV programme contractor—

• (a) holds any local licence, or

• (b) controls any body which holds any such licence, or

• (c) is a participant with more than a 20 per cent. interest in a body corporate which holds any such licence,

in a case where the area or locality for which the licensed service is to be provided is to a significant extent the same as the area for which television programmes are to be provided under the TV programme contractor’s contract; and this sub-paragraph shall be construed in accordance with Part I of Schedule 2 to this Act.

• (5) The Commission may make such variations of a contract to which sub-paragraph (1) applies as appear to them to be appropriate in consequence of any of the provisions of this Part of this Schedule.

Provisions relating to Channel 4

3

• (1) Channel 4 shall be provided by the Commission during the interim period for so much of England, Scotland and Northern Ireland as may from time to time be reasonably practicable.

• (2) The programmes (other than advertisements) broadcast by the Commission on Channel 4 shall (without prejudice to section 12(2) of the 1981 Act, as applied by this paragraph) be provided by the Commission.

• (3) In consequence of sub-paragraph (2), sections 3(2) and 6 of the 1981 Act (as applied by paragraph 1 above) do not apply in the case of Channel 4.

• (4) Subject to the modifications specified in sub-paragraph (5), sections 11 to 13 of the 1981 Act shall have effect in connection with the provision of Channel 4 by the Commission during the interim period as they had effect immediately before the transfer date in connection with the provision of that service by the IBA.

• (5) The modifications of the provisions specified in sub-paragraph (4) are as follows—

• (a) any reference in those provisions to the IBA shall (subject to paragraph (c) below) be construed as a reference to the Commission;

• (b) section 12(1) shall have effect as if for the reference to paragraph 4(1) of Schedule 1 to the 1981 Act there were substituted a reference to paragraph 1(3) of Schedule 1 to this Act;

• (c) section 12(2) shall have effect as if for the reference to a subsidiary of the IBA formed by them for the purpose there were substituted a reference to a subsidiary of the Commission (being the body corporate formed by the IBA in pursuance of that provision); and

• (d) in section 13, subsection (4) shall (in consequence of paragraph 1(6) above) have effect with the omission of paragraph (c).

Provisions relating to teletext services

4

• (1) For the purposes of—

• (a) this Part of this Schedule, and

• (b) the provisions of the 1981 Act which have effect in accordance with this Part of this Schedule,

teletext transmissions shall not be treated as programmes; but this is subject to sub-paragraph (2) and to any of those provisions of the 1981 Act which expressly requires such transmissions to be so treated for the purposes of any particular provision.

• (2) In paragraphs 1(8) and 2(3)(b) above and 10 below and in the provisions specified in Part I of Schedule 3 to the 1981 Act (as they have effect in accordance with this Part of this Schedule)—

• (a) references to programmes or to television programmes shall be read as including references to teletext transmissions; and

• (b) references to programme contractors shall be read as including references to teletext contractors.

• (3) In section 3(2) of the 1981 Act, in its application to teletext transmissions or teletext contractors by virtue of sub-paragraph (2), the reference to section 2(3) of that Act shall be read as a reference to section 14(2) of that Act (as it has effect by virtue of paragraph 2(1) above).

• (4) The following provisions of the 1981 Act, namely—

• (a) section 20(2)(b) and (3), and

• (b) section 22,

shall not have effect by virtue of paragraph 2(2) above in relation to teletext contractors or their contracts.

Provisions relating to DBS services

5

• (1) The following provisions of the 1981 Act, namely—

• (a) in section 2(2), paragraph (c) and in paragraph (b) the words “and a proper balance and wide range in their subject matter”,

• (b) in section 4(1), paragraph (d) and so much of paragraph (b) as relates to the giving of a sufficient amount of time in the programmes to news and news features,

• (c) section 20(2)(b) and (3),

• (d) section 22, and

• (e) section 24,

shall not have effect by virtue of paragraph 1(3) or 2(2) above in connection with the provision of DBS services by the Commission or (as the case may be) in relation to DBS contractors or their contracts.

• (2) Every contract between the Commission and a DBS programme contractor shall contain all such provisions as the Commission think necessary or expedient to ensure that the financial and other arrangements for the provision of the satellite transponder are made by the contractor.

• (3) For the purpose of enabling a DBS programme or teletext contractor to make charges for the reception of programmes provided by him or transmissions containing material so provided, the Commission may, notwithstanding anything in the 1981 Act as it has effect in accordance with this Part of this Schedule, broadcast the programmes or transmissions in such a form (whether scrambled, encoded or otherwise) as will prevent persons from receiving them unless they obtain from the contractor the means of doing so.

• (4) Where under the power conferred by sub-paragraph (3) the Commission broadcast programmes or transmissions in such a form as is mentioned in that sub-paragraph, nothing in the 1981 Act (as it so has effect) shall be taken as requiring the Commission to permit advertisements to be included in the programmes or transmissions.

• (5) Where any service falling within section 46(1) of this Act is provided during the interim period on any of the spare capacity within the frequencies on which any DBS services are provided by the Commission in accordance with this Part of this Schedule, that service is licensable under section 47 of this Act as a licensable programme service, and not otherwise.

General provisions relating to S4C

6

• (1) Subject to the provisions of this paragraph and paragraph 7 below, S4C shall be provided during the interim period by the Welsh Authority in accordance with Chapter VI of Part I of this Act.

• (2) During that period—

• (a) any reference in section 57(3) or 58(2) or (4) of this Act to Channel 4 shall be construed as a reference to the Channel 4 service provided by the Commission in accordance with paragraph 1 above; and

• (b) the reference in section 58(2) to the Channel Four Television Corporation shall be construed as a reference to the Commission.

• (3) So much of section 4(1)(d) of the 1981 Act (as applied by paragraph 1 above) as relates to cases where another language as well as English is in common use among persons served by the station or stations in question, shall, in the case of programmes broadcast by the Commission on ITV for reception wholly or mainly in Wales, apply only to languages other than Welsh.

Broadcasting of advertisements on S4C

7

• (1) During the interim period the programmes broadcast by the Welsh Authority on S4C for reception in the area of any TV programme contractor may, so long as the provisions of the 1981 Act (as applied by this Part of this Schedule) are complied with in relation thereto, include advertisements provided for insertion therein by that contractor in consideration of payments to him.

• (2) Any such TV programme contractor shall have the right to provide advertisements for inclusion in the programmes broadcast on S4C for reception in his area so long as—

• (a) he makes the required payments to the Commission, and

• (b) the provisions of the 1981 Act (as applied by this Part of this Schedule) are complied with in relation to such advertisements.

• (3) In sub-paragraph (2) “the required payments” means such payments as are required to be paid by the programme contractor by virtue of any provision of his contract included in pursuance of section 13(2) of the 1981 Act.

• (4) For any period in which programmes are to be broadcast on S4C for reception in the area of a TV programme contractor it shall be the duty of the Welsh Authority to make suitable arrangements—

• (a) for the contractor to receive advance information about the programmes other than advertisements which are to be so broadcast in that period and about the periods which will be available for the broadcasting of advertisements; and

• (b) for the inclusion, in the programmes so broadcast in that period, of advertisements provided for the purpose by the contractor in the exercise of his right to do so under sub-paragraph (2).

• (5) No period allocated by the Welsh Authority to the broadcasting of advertisements on S4C shall be located—

• (a) in any break in any programme supplied to them by the BBC; or

• (b) without the consent of the BBC, at the beginning or end of any such programme.

• (6) Orders for the inclusion by a TV programme contractor of advertisements among those provided by him for insertion in the programmes broadcast on S4C may be received either through advertising or other agents or direct from the advertiser.

• (7) During the interim period—

• (a) section 8(5) of the 1981 Act shall apply in relation to the programmes broadcast by the Welsh Authority on S4C as that provision applies, in accordance with this Part of this Schedule, in relation to the programmes broadcast by the Commission on ITV;

• (b) the Commission shall do all that they can to secure that the provisions of—

• (i) Schedule 2 to the 1981 Act (as it applies in accordance with this Part of this Schedule), and

• (ii) the code under section 9 of that Act,

are complied with in relation to the advertisements broadcast by the Welsh Authority on S4C and in relation to the sponsorship of programmes so broadcast;

• (c) section 9(2) and (3) of that Act shall apply accordingly in relation to advertisements and other programmes so broadcast; and

• (d) (except in the case of any programme to which the Welsh Authority determine that this paragraph is not to apply) S4C shall not contain any programme which is sponsored by any person whose business consists, wholly or mainly—

• (i) in the manufacture or supply of a product, or

• (ii) in the provision of a service,

the advertising of which on ITV is prohibited by virtue of any provision of that Act or of the code under section 9 of that Act.

• (8) So long as any directions given under section 9(4) of the 1981 Act (whether by the IBA or by the Commission) remain in force, the Welsh Authority shall, in broadcasting advertisements on S4C, give effect to the provisions of the directions as if they were provisions regulating the times when advertisements are to be allowed to be broadcast on S4C.

• (9) Section 60(1) to (4) and (6) of this Act shall not have effect in relation to the Welsh Authority during the interim period.

Financing of S4C during interim period

8

• (1) For each financial year, or part of a financial year, falling within the interim period the Commission shall (unless any payment has already been made in respect of it under section 39(1) of the 1981 Act) pay to the Welsh Authority—

• (a) such sum or sums as may be agreed between them to be appropriate for enabling the Welsh Authority to meet their reasonable outgoings, or

• (b) in default of such agreement, such sum or sums as the Secretary of State may determine to be appropriate for that purpose.

• (2) For the purposes of section 32(1)(a) of the 1981 Act (as applied by paragraph 2 above) all sums paid by the Commission to the Welsh Authority in pursuance of sub-paragraph (1) above shall be treated as expenditure properly incurred in respect of the part of the Commission’s undertaking which consists of the provision of television broadcasting services.

• (3) In deciding from time to time whether to make any, and if so what, use of his power under subsection (8) of section 32 of the 1981 Act (as so applied) to amend by order subsections (4) and (5) of that section the Secretary of State may have regard to any increase in the aggregate amount of the payments to be made under the head described in subsection (1)(a) of that section which is attributable to the provisions of sub-paragraph (1).

• (4) The provisions applied to the Welsh Authority by section 52(2) of the 1981 Act shall continue to apply to them on and after the transfer date in relation to any financial year ending before that date; and paragraphs 12 and 13 of Schedule 6 to this Act shall accordingly apply in relation to any subsequent financial year.

Delivery of programmes by means of local delivery services

9

Part II of this Act shall have effect as if section 72(2) of this Act included a reference to any television broadcasting service provided by the Commission in accordance with this Part of this Schedule.

Provisions relating to Broadcasting Complaints Commission

10

• (1) Part V of this Act shall have effect as if—

• (a) section 143(2) of this Act included a reference to any television programme broadcast by the Commission during the interim period;

• (b) (subject to sub-paragraph (2)) the Commission were—

• (i) in relation to the provision by them of television broadcasting services in accordance with this Part of this Schedule, and

• (ii) in relation to the broadcasting of advertisements on S4C during the interim period,

a broadcasting body within the meaning of that Part of this Act; and

• (c) the Welsh Authority accordingly were not a broadcasting body within the meaning of that Part of this Act in relation to any such broadcasting of advertisements on S4C.

• (2) Sub-paragraph (1)(b) shall not have effect for the purposes of section 145(5) of this Act; and the Commission shall make such variations of any contract to which paragraph 2(1) above applies as appear to them to be appropriate—

• (a) for requiring the programme contractor under that contract—

• (i) in the case of every programme provided by him which is broadcast by the Commission during the interim period, to retain a recording of that programme for the period of 90 days beginning with the broadcast,

• (ii) if requested to do so by the Commission for the purpose of enabling them to comply with any requirement imposed on them in pursuance of section 145(4), 155(3) or 167(1) of this Act, to produce any such recording to them, and

• (iii) if requested to do so by the Commission for the purpose of enabling them to comply with any requirement imposed on them in pursuance of section 145(4) or 155(3) of this Act, to produce to them any transcript of any such programme which he is able to produce to them; and

• (b) for ensuring compliance by the programme contractor with any request to which section 145(7) of this Act applies which may be made to him by the BCC.

• (3) For the financial year which includes the commencement of section 149 of this Act, and each subsequent financial year falling wholly or partly within the interim period, the Secretary of State shall notify to the Commission the sum which he considers to be the appropriate contribution by that body, in respect of the programme contractors under contracts to which paragraph 2(1) above applies, towards the expenses of the BCC; and the Commission shall pay to the Secretary of State any sum notified to them under this sub-paragraph.

• (4) Paragraph 2(1)(g)(i) of Schedule 13 to this Act shall have effect during the interim period as if the reference to the BBC or the Welsh Authority included a reference to the Commission.

• (5) In this paragraph “the BCC” means the Broadcasting Complaints Commission.

Provisions relating to Broadcasting Standards Council

11

Part VI of this Act shall have effect during the interim period as if—

• (a) section 152(2) of this Act included a reference to any television programme broadcast by the Commission during that period;

• (b) the Commission were—

• (i) in relation to the provision by them of television broadcasting services in accordance with this Part of this Schedule, and

• (ii) in relation to the broadcasting of advertisements on S4C during the interim period,

a broadcasting body within the meaning of that Part of this Act; and

• (c) the Welsh Authority accordingly were not a broadcasting body within the meaning of that Part of this Act in relation to any such broadcasting of advertisements on S4C.

Supplementary provisions

12

• (1) Any code, notice, direction, approval or other thing drawn up, given or done by or in relation to the IBA—

• (a) in pursuance of a provision of the 1981 Act which has effect during the interim period in accordance with this Part of this Schedule, and

• (b) in connection with any of the IBA’s television broadcasting services,

shall, if in force or effective immediately before the transfer date, have effect as from that date for the relevant purposes as if drawn up, given or done by or in relation to the Commission.

• (2) Anything which immediately before that date was in the process of being done by or in relation to the IBA may, if it was being so done as mentioned in paragraphs (a) and (b) of sub-paragraph (1), be continued on or after that date by or in relation to the Commission.

• (3) Sections 61 and 62 of the 1981 Act shall have effect during the interim period for the relevant purposes as if any reference to the IBA were a reference to the Commission.

• (4) In this paragraph “the relevant purposes” means the purposes of the 1981 Act as it has effect during the interim period in accordance with this Part of this Schedule.

Part III — Replacement of DBS Contracts by Licences under Part I

Replacement of DBS programme contract by domestic satellite licence

1

• (1) Where any contract which, by virtue of paragraph 2(1) in Part II of this Schedule, has effect as a contract between the Commission and a DBS programme contractor is effective immediately before the relevant date—

• (a) the contract shall cease to have effect on that date; but

• (b) the contractor shall be granted by the Commission as from that date a licence under Part I of this Act to provide a domestic satellite service which, in accordance with section 44(2) of this Act, authorises the provision of a multichannel service on the frequencies on which any DBS services consisting of programmes provided by him under the contract were being provided by the Commission down to that date.

• (2) In sub-paragraph (1) “multichannel service” means a service which to any extent consists in the simultaneous transmission of different programmes on different frequencies.

• (3) Any licence granted in pursuance of sub-paragraph (1) shall be so granted notwithstanding anything in sections 15 to 17 of this Act (as applied by section 44 of this Act); and nothing in section 19 of this Act (as so applied) shall apply to any such licence until such time (if any) as it is renewed in accordance with sub-paragraph (4).

• (4) Section 20 of this Act (as so applied) shall apply to any such licence as if—

• (a) in subsection (1), the first reference to a period of fifteen years were a reference to the period beginning with the relevant date and ending with the date on which the contract referred to in sub-paragraph (1) would have expired apart from that sub-paragraph;

• (b) in subsection (6)(b), the words from “a different” to “as” were omitted; and

• (c) in subsection (9)(a), the reference to any conditions included in the licence in pursuance of section 19 were a reference to any conditions so included in accordance with sub-paragraph (5) below.

• (5) Where any such licence is to be renewed in accordance with sub-paragraph (4), the Commission shall (notwithstanding section 3(4) of this Act) by notice served on the licence holder vary the licence, as from the date of its renewal, by including in it such conditions as appear to them to be necessary or expedient in consequence of sub-paragraph (3).

• (6) Section 3(3) shall, in its application in relation to any such licence, have effect—

• (a) with the omission of paragraph (a), and

• (b) as if the reference to Part I of this Act included a reference to this Part of this Schedule.

• (7) Section 41 shall have effect in relation to any such licence with the omission of subsection (2); and the maximum amount which the holder of any such licence may be required to pay by way of a financial penalty imposed in pursuance of subsection (1)(a) of that section shall instead be the sum for the time being specified in section 45(6).

• (8) Except as provided in the preceding provisions of this paragraph, Part I of this Act applies to a licence granted in pursuance of this paragraph as it applies to any other licence to provide a domestic satellite service.

• (9) In this Part of this Schedule—

• (a) “the relevant date” means the day immediately following the end of the interim period; and

• (b) “additional services licence” and “domestic satellite licence” have the same meaning as in Part I of this Act.

Power to require licence holder to make additional payments under 1981 Act

2

• (1) The Secretary of State may by order provide for such of the provisions of sections 32 to 35 of, and Schedule 4 to, the 1981 Act as are specified in the order to have effect (subject to such modifications as are so specified)—

• (a) in relation to the holder of any licence granted in pursuance of paragraph 1 above, or

• (b) in relation to any such licence,

with a view to making provision for and in connection with the making by the holder of any such licence to the Commission of payments determined in accordance with section 32 of that Act in respect of profits or advertising revenue (or both) within the meaning of that section.

• (2) Any such order shall be so framed as to secure that, subject to such modifications as the Secretary of State considers appropriate and to sub-paragraph (4), the provisions of the 1981 Act applied by the order as mentioned in sub-paragraph (1)(a) and (b) so apply in a similar way to that in which they applied immediately before the relevant date in relation to a DBS programme contractor or (as the case may be) in relation to the contract of any such contractor.

• (3) Without prejudice to the generality of sub-paragraph (2), any such order shall provide for any excess of a DBS programme contractor’s relevant expenditure over his relevant income to be carried forward and treated as relevant expenditure for the purpose of computing his profits as the holder of a licence granted in pursuance of paragraph 1 above.

Expressions used in this sub-paragraph which are also used in Schedule 4 to the 1981 Act have the same meaning as in that Schedule.

• (4) The power of the Secretary of State to make an order under subsection (8) of section 32 of the 1981 Act shall include power to make an order amending any of the provisions of subsections (4) and (5) of that section in so far as they have effect, by virtue of sub-paragraph (1), in relation to the holder of a licence granted in pursuance of paragraph 1 above.

• (5) Where an order under sub-paragraph (1) comes into force at any time after the relevant date, the Commission shall (notwithstanding section 3(4) of this Act) by notice served on the licence holder vary any licence granted in pursuance of paragraph 1 above by including in it such conditions as appear to them to be necessary or expedient in consequence of the order.

• (6) Nothing in any such order shall impose on the holder of any such licence any liability to make any payment in respect of any time when any conditions included in the licence in accordance with paragraph 1(5) above are in force.

• (7) An order shall not be made by the Secretary of State under sub-paragraph (1) unless a draft of it has been laid before and approved by a resolution of each House of Parliament.

Replacement of DBS teletext contract by additional services licence

3

• (1) Where any contract which, by virtue of paragraph 2(1) in Part II of this Schedule, has effect as a contract between the Commission and a DBS teletext contractor is effective immediately before the relevant date—

• (a) the contract shall cease to have effect on that date; but

• (b) the contractor shall be granted by the Commission as from that date an additional services licence under Part I of this Act which allocates for use under the licence all of the spare capacity within the frequencies on which any DBS services consisting of programmes provided by him as a DBS programme contractor were provided by the Commission down to that date.

• (2) Any such licence shall be so granted notwithstanding anything in sections 50 and 51 of this Act; and nothing in section 52 of this Act shall apply to any such licence until such time (if any) as it is renewed in accordance with sub-paragraph (3).

• (3) Section 53 of this Act shall apply to any such licence as if—

• (a) in subsection (1)(a), the reference to a period of ten years were a reference to the period beginning with the relevant date and ending with the date on which any contract to which paragraph 1(1) above applies and to which the DBS teletext contractor was a party immediately before the relevant date would have expired apart from that provision;

• (b) subsection (3) were omitted;

• (c) in subsection (5), paragraph (a) were omitted;

• (d) in subsection (7)(b), the words from “a different” to “as” were omitted; and

• (e) in subsection (10), the reference to any conditions included in the licence in pursuance of section 52 were a reference to any conditions so included in accordance with sub-paragraph (4) below.

• (4) Where any such licence is to be renewed in accordance with sub-paragraph (3), the Commission shall (notwithstanding section 3(4) of this Act) by notice served on the licence holder vary the licence, as from the date of its renewal, by including in it such conditions as appear to them to be necessary or expedient in consequence of sub-paragraph (2).

• (5) Section 3(3) shall, in its application in relation to any such licence, have effect—

• (a) with the omission of paragraph (a), and

• (b) as if the reference to Part I of this Act included a reference to this Part of this Schedule.

• (6) Section 55 shall have effect in relation to any such licence with the omission of subsection (2); and the maximum amount which the holder of any such licence may be required to pay by way of a financial penalty imposed in pursuance of subsection (1) of that section shall instead be the sum for the time being specified in section 45(6).

• (7) In sub-paragraph (1)(b) above the reference to spare capacity within the frequencies referred to in that provision includes a reference to spare capacity within those frequencies which (not being spare capacity within the signals carrying a television broadcasting service) is not spare capacity within the meaning of Part I of this Act; and references in that Part of this Act (however expressed) to the spare capacity authorised to be used under an additional services licence shall, in relation to any such licence as is mentioned in sub-paragraph (1)(b), accordingly be construed as including a reference to spare capacity within those frequencies which is not spare capacity within the meaning of that Part of this Act.

• (8) Except as provided in the preceding provisions of this paragraph, Part I of this Act applies to a licence granted in pursuance of this paragraph as it applies to any other additional services licence.

Part IV — Sound Broadcasting Services to be Provided by Radio Authority

Certain local sound broadcasting services of IBA to be provided by Radio Authority as from transfer date

1

• (1) So long as any contracts for the provision of local sound broadcasts continue in force on and after the transfer date by virtue of paragraph 2(1) below, the Authority shall provide, in accordance with this Part of this Schedule, local sound broadcasting services consisting in the broadcasting of programmes provided by the programme contractors under those contracts.

• (2) The services provided by the Authority as mentioned in sub-paragraph (1) shall be of high quality both as to the transmission and as to the matter transmitted, and shall be provided for the localities in the United Kingdom for which the programmes in question are to be provided by the programme contractors under their contracts.

• (3) As from the transfer date the following provisions of the 1981 Act, namely—

• (a) section 2(2),

• (b) sections 3 to 9,

• (c) sections 28 and 29, and

• (d) Schedule 2,

shall have effect in connection with the provision of those services by the Authority as they had effect, immediately before the transfer date, in connection with the provision of local sound broadcasting services by the IBA.

• (4) The provisions specified in sub-paragraph (3) above shall have effect in accordance with that sub-paragraph with the following general modifications, namely—

• (a) any reference to the IBA shall (subject to paragraph (b) and sub-paragraph (8) below) be construed as a reference to the Authority; and

• (b) any reference to any of the broadcasting stations used by the IBA shall be construed as a reference to any of the broadcasting stations used in the provision of any of the services provided by the Authority as mentioned in sub-paragraph (1) above.

• (5) Section 3(2)(b) of the 1981 Act shall have effect in accordance with sub-paragraph (3) above with the substitution of the following sub-paragraph for sub-paragraph (ii)—

(ii) by reason of the termination of any contract with a programme contractor; and

.

• (6) Section 8 of the 1981 Act shall have effect in accordance with sub-paragraph (3) above with the omission of subsections (6) to (9) of that section; but (except in the case of any programme to which the Authority determine that the following prohibition is not to apply) none of the broadcasting services provided by the Authority as mentioned in sub-paragraph (1) above shall include a programme which is sponsored by any person whose business consists, wholly or mainly—

• (a) in the manufacture or supply of a product, or

• (b) in the provision of a service,

the advertising of which in any such broadcasting service is prohibited by virtue of any provision of that Act (as applied by this paragraph) or of the code under section 9 of that Act (as so applied).

• (7) Section 9 of the 1981 Act shall have effect in accordance with sub-paragraph (3) above as if—

• (a) in subsection (1)(a), after “standards and practice in advertising” there were inserted “ and in the sponsoring of programmes ”;

• (b) in subsection (1)(b), there were inserted at the end “ and as regards the sponsoring of programmes so broadcast ”; and

• (c) after “methods of advertising” (wherever occurring) there were inserted “ or sponsorship ”;

and the Authority may give effect to paragraph (a) above by making modifications to the code in force under section 9 immediately before the transfer date.

• (8) Section 29(5) of the 1981 Act shall have effect in accordance with sub-paragraph (3) above as if the reference to requiring the IBA by notice in writing to do, or not to do, anything mentioned in that provision were a reference to requiring the Authority by notice in writing to direct any programme contractor specified in the notice—

• (a) to do, or not to do, that thing, or

• (b) (if the context so requires) to secure that that thing is or is not done.

• (9) Without prejudice to the generality of sub-paragraph (6) of paragraph 2 below, the Authority may make such variations of a contract to which sub-paragraph (1) of that paragraph applies as appear to them to be appropriate for facilitating or ensuring compliance with any direction or notice given to or served on them under section 28 or 29 of the 1981 Act (as applied by this paragraph).

Preservation of certain local sound broadcasting contracts

2

• (1) Where—

• (a) the IBA has, at any time before the transfer date, entered into a contract with a programme contractor for the provision by the contractor of local sound broadcasts in any locality, and

• (b) the contract is effective immediately before that date,

then, unless the contract is one to which paragraph 2 in Part V of this Schedule applies (and subject to paragraph 1 in that Part)—

• (i) the contract shall continue to have effect on and after that date (subject to and in accordance with this Part of this Schedule) as a contract between the Authority and that contractor and any other party to it, and

• (ii) any reference in the contract to the IBA shall accordingly be construed, in relation to any time falling on or after that date, as a reference to the Authority.

• (2) Section 2(3) of the 1981 Act shall have effect in relation to the programmes broadcast by the Authority in accordance with paragraph 1(1) above as if—

• (a) any reference in that subsection to the IBA were a reference to the Authority; and

• (b) the reference in that subsection to any such contracts as are there mentioned were a reference to contracts which continue in force by virtue of sub-paragraph (1) above.

• (3) As from the transfer date the following provisions of the 1981 Act, namely—

• (a) sections 19(1) to (2B) and 20(2) to (9),

• (b) sections 21 to 25,

• (c) sections 32 to 35, and

• (d) Schedule 4,

shall have effect in relation to any contract which continues in force by virtue of sub-paragraph (1), or (as the case may be) in relation to the programme contractor under any such contract, subject to the modifications specified in sub-paragraph (4).

• (4) The modifications of the provisions specified in sub-paragraph (3) are as follows—

• (a) any reference in those provisions to the IBA shall (subject to paragraphs (b) and (c) below) be construed as a reference to the Authority;

• (b) sections 21 and 23 shall have effect as if any reference to the IBA’s obligation to transmit the programmes supplied by a programme contractor were a reference to the right and the duty of the programme contractor under his contract to provide programmes for broadcasting in one of the services provided by the Authority as mentioned in paragraph 1(1) above;

• (c) section 22 shall have effect as if any reference to the programmes supplied to the IBA were a reference to the programmes supplied for broadcasting in one of those services; and

• (d) section 32(2)(a) shall have effect as if—

• (i) for “the branch” there were substituted “ the part ”, and

• (ii) for “section 36(2) in relation to that branch” there were substituted “ paragraph 12(1) of Schedule 8 to the Broadcasting Act 1990 in relation to that part ”.

• (5) The Authority shall do all that they can to secure that, so long as any contract continues in force by virtue of sub-paragraph (1), neither the programme contractor under the contract nor any associate of his—

• (a) holds any local licence, or

• (b) controls any body which holds any such licence, or

• (c) is a participant with more than a 20 per cent. interest in a body corporate which holds any such licence,