RADIO AND TV LICENCE FEES (Abolition)

The following question stood in the name of Mr Charles Chong -

Mr Charles Chong: To ask the Minister for Communications and Information whether the Singapore Broadcasting Corporation can remain viable without the revenue from radio and television licence fees and, if so, whether the SBC will consider the eventual abolition of such fees.

Mr Loh Meng See (Kampong Glam): Question 6, Sir.

The Minister of State for Communications and Information (Mr Mah Bow Tan) (for the Minister for Communications and Information): Mr Speaker, Sir, in FY 89/90, licence fees are expected to account for about 34% of SBC's operating expenditure. If licence fees were to be reduced or abolished, SBC's viability will be affected. Either SBC will have to cut back on its range or quality of programmes, or the income will have to be made good by the Government from other general revenues.

As a matter of principle, the Government prefers that SBC be funded as much as possible out of licence fees and other operating income, such as advertising revenue. Licence fees mean that viewers of TV programmes pay directly for the service that SBC provides them. This is much fairer than charging the cost of SBC to taxpayers in general. It also enables SBC to operate as a self-financing body, with greater flexibility and autonomy than a Government-funded statutory board, and also with greater responsibility to make sure that it remains financially viable. This means better programmes, better scheduling, better marketing; in other words, better service to the viewers.