POLITICS

SABC licence fee a regressive tax - DA

Natasha Michael to present private members bill to amend existing legislation

Public Broadcasting: DA to submit Private Members Bill to amend existing legislation

The withdrawal of Public Service Broadcasting Bill (PSB) by the Minister of Communications yesterday effectively means that the current legislation governing the South African Broadcasting Corporation (SABC), the Broadcasting Act of 1999, will remain in force.

The Democratic Alliance (DA) believes that although the Broadcasting Act needs to continue to govern the SABC - as it restricts the involvement of members of the executive in the management of the SABC and does not contain sections imposing personal taxation on South Africans - it could do with certain amendments. We will therefore shortly be submitting a Private Members Bill to propose two significant changes to the Bill.

These are as follows:

Amendment #1: The licence fee regime

In order to give effect to the central proviso of the Broadcasting Act to ensure that the ‘South African broadcasting system is owned and controlled by South Africans' our Private Members Bill will propose an amendment to the current license fee regime.

The current system renders license fees as essentially a regressive tax, as they cost poorer citizens far more as a percentage of household income than they do those with a higher income. This could be addressed by introducing a scaled license fee regime, which takes into account the financial resources of the majority of our people.

In reality, the SABC ought to reach a stage where it is able to stay afloat without constant support from the state, but in the absence of this, a scaled license fee regime is, we believe, a fairer alternative to the status quo.

An amendment to section 40(1)(c) of the Broadcasting Act is necessary in order to reflect a scaled license fee.

Amendment #2: Performance managing the SABC board

A further amendment to the Act that the DA will propose is aimed at ensuring that the SABC board is adequately performance managed. The crisis that the SABC has found itself in over the past few years is as a direct result of the lack of sound management and financial systems. The Broadcasting Act lists the SABC board as responsible for controlling the affairs of the SABC. However, no sanctions are listed in the Act to be imposed should the board fail to ensure that the SABC is properly managed.

As such, we will be recommending amendment of Section 15 of the Act, to remedy this.

The DA will table this Bill when Parliament rises early next year, and release the full details of our proposal ahead of the first session of the Portfolio Committee on Communications next year.

These proposals will not only ensure that all South Africans are able to gain ownership of the SABC, but also that those given the responsibility to manage the SABC do so to an excellent standard.

Statement issued by Natasha Michael, MP, Democratic Alliance Shadow Minister of Communications, November 23 2010

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