Terms and Conditions for Regional and Community Radio and Television Broadcasting Licences
Principles
1. The policy underpinning the allocation of regional and community radio and television broadcasting licences is the Government’s Regional and Community Broadcasting Policy Framework published in November 2006.
2. As a general principle, “non-commercial” licences will only be issued to operators of radio or television broadcasting stations which:
- demonstrate a strong geographic, social demographic or community of interest connection with the target audience, with programming focused on the needs and interests of the audiences they serve; and
- locate the offices and studios of the station operating under the licence within the coverage area.
If the station is part of a service in the nature of a network, it will need to meet the other requirements of a non-commercial licence (as detailed in the eligibility section below) to qualify.
3. Where there is any doubt as to interpretation of these principles or of the Terms and Conditions set out below, the decision of the Chief Executive of the Ministry for Culture and Heritage will be final.
Eligibility
4. Only in special circumstances would an applicant for a non-commercial radio or television broadcast frequency be permitted to hold the licence rights to another frequency in the same location which could be used for the purpose.
5. The broadcaster must be able to demonstrate that the broadcasts fulfil a priority community need (or needs), as defined in the Regional and Community Broadcasting Policy Framework, and do not duplicate existing formats available in the region, ie. the format the broadcaster is offering is not operated by other stations on a “for profit” basis but increases the diversity of programme choice for viewers or listeners by complementing and providing alternative services to those offered by existing broadcasters.
6. The broadcaster must be able to demonstrate that the broadcast operation provides access for local and regional programme makers to the airwaves, and/or for relevant stakeholders identified.
7. The broadcaster must be a company, or an incorporated society or charitable trust or other entity, any of which must be operated on a charitable or 'not-for-profit' basis. Members of the governing body may not directly profit from the enterprise.
8. Staff may not be paid any more than the industry standard for work of a similar nature.
9. The broadcast operation is not to be primarily used to raise funds for charity.
10. The broadcaster must be able to demonstrate that it has the technical and financial capacity available to it to fulfil the broadcasting outcomes in the proposal.
11. The broadcaster must be able to confirm it has a fundraising mechanism which allows it to function with no more than six minutes of commercials per clock hour and no more than 50% of revenue derived from advertising. Other income may include sponsorship (as defined by the Ministry for Culture and Heritage in 2006).
12. The Broadcaster should be able to demonstrate an understanding of the future broadcasting environment of the local community, including possible multi-media applications and the impact of the future transition of television or radio services to digital transmission.
Process
13. When an available frequency or network of frequencies has become available and identified as non-commercial:-
- The frequency or frequencies will be advertised via a Public Notice and those on the Ministry for Culture and Heritage database of interested persons will be advised.
- An on-line application form will be made available on the MCH website.
- After the closing date, all applications will be considered by a panel of four, which will include a representative of NZ On Air and an independent assessor.
- Applications will be assessed according to the criteria outlined in the Eligibility and Compliance sections of these Terms and Conditions.
- The frequency or frequencies will be awarded to the applicant who best meets the criteria. All unsuccessful applicants will be advised of the outcome.
Compliance
14. All non-commercial radio and television licences will be subject to a licence agreement entered into by the broadcaster with the Ministry for Culture and Heritage and Ministry of Economic Development. Conditions will include, but may not necessarily be limited to, those outlined as follows.
15. A local broadcaster’s office and studio operations are to be located in the physical area within the coverage of the licence.
16. The service must operate for a minimum of 12 hours daily (unless otherwise negotiated).
17. The service should feature locally generated programming designed to attract a wide range of audiences in the coverage area with a focus on previously unmet needs and interests of viewers or listeners, and include some or all of the following content broadcast from within the coverage area:
- local news, information, stories and history;
- discussion of community issues, including political processes;
- programming aimed to inform, entertain and involve a specified or under-served local community or communities of interest.
18. Where possible, the licensee should have established and maintained working relationships with such significant groups within the local community as territorial and regional government, emergency management, iwi and runanga, educational institutions, youth and community groups, and organisations for the disabled and will facilitate the provision of relevant content from such organisations.
19. The broadcaster must be able to demonstrate the extent to which the broadcast operation contains sufficient accountability mechanisms to ensure that it delivers on its undertakings to provide services. Such arrangements may include:
- Mechanisms for equitable allocation of air time among all interested users;
- Systems for ensuring efficient management of services;
- Provision of satisfactory services to the full variety of audience to be catered for;
- Mechanisms for ensuring compliance by all users on the frequency with broadcasting standards.
20. The licensee must agree to a compliance audit being conducted at any time to demonstrate that allocation conditions and terms of the licence agreement are being adhered to.
21. The licensee must respond in writing to individual complaints arising from the terms of the licence agreement (ie matters relating to airtime allocations, community involvement and not formal complaints processes involving the Broadcasting Standards Authority or the Advertising Standards Authority) received or referred to them within 21 days of receipt and shall provide copies of the complaint and response to the Ministry for Culture and Heritage as appropriate. The Chief Executive of the Ministry for Culture and Heritage may undertake further investigation, including a compliance audit, if seen as necessary.
22. All applications for renewals of a licence must be accompanied by sufficient evidence to verify that non-commercial licence agreement conditions have been met. In addition, the licensee will submit to the Chief Executive of the Ministry for Culture and Heritage, not less than three months before each anniversary of the granting of the licence, a compliance report demonstrating that licence conditions are being adhered to, including relevant financial and ownership information, with a full list of shareholders, directors, board members and/or trustees, as appropriate.
23. Unless the period is specifically extended by the Ministry for Culture and Heritage, an applicant for a broadcasting frequency must commence broadcasting services within one year of being allocated a frequency and, notwithstanding this provision, must commence broadcasting services within one year of uplifting a licence from the Ministry of Economic Development and shall maintain services or face revocation of the licence without refund of any relevant fees.
24. All licensees must comply with the requirements of the Broadcasting Act and Broadcasting Standards Authority regarding station identification, codes of broadcasting practice and complaints procedures.
25. A non-commercial licensee may not transfer, modify, lease or share the frequency, or otherwise surrender control of transmissions on the licence, without permission in writing from the Chief Executive of the Ministry for Culture and Heritage.
26. When an agreement has been reached with the Ministry which allows an entity other that the original licence holder to operate the licence, the original licence holder may still be required to maintain responsibility for the conduct and programming of the station to ensure adherence to the purposes and licence agreement for which the licence was issued in the first instance; and the penalties for failure to comply will be the same whoever is operating the frequency. If the infringement continues the license may be revoked 30 days after the original licence holder has been informed and fails to remedy the situation.
27. The Chief Executive of the Ministry of Economic Development will retain the right to modify, transfer, or revoke the licence in terms of the Radiocommunications Act 1989.
28. All licences are subject to the provisions of the Radiocommunications Act 1989 and the Radiocommunications Regulations 2001. Where a compliance issue can not be referenced directly to the Act or Regulations, these Terms and Conditions will apply. In all cases, the decision of the Chief Executive of the Ministry of Economic Development will be final.
29. The licensee may voluntarily relinquish the licence to the Crown if it is no longer able to meet the eligibility and operational criteria.
30. If found to be non-compliant, the licensee will be served with a written notice (warning) by the Chief Executive of the Ministry for Culture and Heritage, as appropriate, with a requirement to be compliant within a specified period.
31. For continuing non-compliance a licence may be revoked by the Chief Executive of the Ministry of Economic Development without financial compensation, and future licence applications from the same or any associated applicant refused.
For more information contact:
Rick Julian,
Manager Broadcasting Agencies
Ministry for Culture and Heritage
PO Box 5364
Wellington
email: rick.julian@mch.govt.nz