“The over-the-top [streaming] platforms are basically eating the lunch of local broadcasters. It’s a matter we are seeking to intervene in both through the bill and other policy interventions,” Mapulane said.
The bill seeks to position the SABC to compete in the digital era where the broadcasting landscape has substantially changed.
It also seeks to address the issue of funding for the SABC, particularly its public funding mandate, and to address “regulatory impediments” facing the SABC, which competes with commercial broadcasters that don’t have regulations like the PFMA, said Mapulane.
While the bill does not necessarily propose a funding model, Mapulane said it was their view the TV licence funding of the SABC’s public mandate was not sustainable and a new mechanism is needed.
“We have made a proposal that using TV licence fees to fund the SABC is not viable, given the high evasion rate, and we have proposed the introduction of a household levy and a move away from the TV licence fee.”
The bill proposes the minister of communications should develop a funding model within three years of its enactment into law.
MPs heard the three years are meant to give the communications minister and National Treasury sufficient space to agree on an appropriate funding model.
Mapulane said raising revenue for the SABC was one of the sticking points with Treasury which led to the delay in drafting the bill.
“The three years is a compromise position to accommodate the views of Treasury that any revenue-raising measure doesn’t impact negatively on the economy,” he said.
Communications minister Mondli Gungubele told parliament in September that among the efforts to deal with the broadcaster’s financial woes, government was looking at creating a subsidiary through which the SABC could compete in the commercial environment.
He said this was partly because about 80% of the corporation’s revenue was dependent on advertising. However, for the SABC to be competitive in that space it has to be freed from certain regulatory measures.
TimesLIVE
Proposed SABC commercial arm to be exempt from PFMA provisions, says deputy minister
Introduction of household levy instead of TV licence fee suggested
Image: 123RF/SCYTHER5
The government wants the SABC’s proposed commercial arm to be excluded from the Public Finance Management Act (PFMA) so it is not bound by the transacting and reporting requirements of the legislation.
One proposal in the SABC bill is to separate the broadcaster’s public service mandate from its commercial mandate by establishing a commercial arm which will not be subject to the PFMA.
“The new entity won’t be subject to the PFMA,” deputy minister of communications and digital technologies Philly Mapulane said on Tuesday.
Presenting the bill to parliament’s portfolio committee on communications and digital technologies, Mapulane said the intention of creating a commercial arm is to exclude it from the PFMA so it can compete in the market without the constraints that come with the law.
Advertising in broadcasting has migrated to online platforms which don’t have any regulatory obligations.
“They do not have public or commercial mandates to fulfil but they are taking much-needed revenue from broadcasters.
Bankrupt SABC presents parliament with secret turnaround plan
“The over-the-top [streaming] platforms are basically eating the lunch of local broadcasters. It’s a matter we are seeking to intervene in both through the bill and other policy interventions,” Mapulane said.
The bill seeks to position the SABC to compete in the digital era where the broadcasting landscape has substantially changed.
It also seeks to address the issue of funding for the SABC, particularly its public funding mandate, and to address “regulatory impediments” facing the SABC, which competes with commercial broadcasters that don’t have regulations like the PFMA, said Mapulane.
While the bill does not necessarily propose a funding model, Mapulane said it was their view the TV licence funding of the SABC’s public mandate was not sustainable and a new mechanism is needed.
“We have made a proposal that using TV licence fees to fund the SABC is not viable, given the high evasion rate, and we have proposed the introduction of a household levy and a move away from the TV licence fee.”
The bill proposes the minister of communications should develop a funding model within three years of its enactment into law.
MPs heard the three years are meant to give the communications minister and National Treasury sufficient space to agree on an appropriate funding model.
Mapulane said raising revenue for the SABC was one of the sticking points with Treasury which led to the delay in drafting the bill.
“The three years is a compromise position to accommodate the views of Treasury that any revenue-raising measure doesn’t impact negatively on the economy,” he said.
Communications minister Mondli Gungubele told parliament in September that among the efforts to deal with the broadcaster’s financial woes, government was looking at creating a subsidiary through which the SABC could compete in the commercial environment.
He said this was partly because about 80% of the corporation’s revenue was dependent on advertising. However, for the SABC to be competitive in that space it has to be freed from certain regulatory measures.
TimesLIVE
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