Cut In B.B. C. Income Suggested

Press, Volume XCIV, Issue 28053, 22 August 1956, Page 10

Cut In B.B. C. Income Suggested

(Special Correspondent N.Z.P.A.) LONDON. The British Broadcasting Corporation is getting too much money from radio and television licence fees, says a report by the Committee of Public Accounts. The report says that payments from the licence revenue are “considerably in excess of requirements.” and suggests a complete review of the present system under which the 8.8. C. is financed. At present, under a three-year agreement made in 1954, the Treasury takes a fixed sum from the total cash paid for licences; the Post Office gets expenses for collecting this money, and the 8.8. C. gets the rest. In the year ended March. 1956. the total licence revenue was £26.000,000: the fixed sum paid to the Government was £2.750,000. the Post Office got £2,000,000, and the 8.8. C. £21,250,000. Thus the 8.8. C. got nearly eight times the amount which went to the Treasury. On top of this it received Government grants for external services' amounting to £5,000,000. The report suggests that all licence money should go to the Treasury as tax, and then Parliament could allot the B.B.C’s. share according to the corporation’s requirements. It adds that if the present finance system is not changed, the 8.8. C. would continue to build up reserves considerably bigger than current requirements.