Barry Streek
The government has scrapped plans to impose a levy on the advertising industry to finance the proposed Media Development and Diversity Agency, which will now be funded by the media industry and government.
The print and broadcast media have agreed to provide one-third of the agency’s five-year budget of R256-million R85-million over five years and the government will provide the rest of the funding.
Devan Pillay, of the government’s communication service (GCIS), said the agency’s budget had been pared down from the original estimate of R300-million. “We are also hoping to save most if not all of the administrative costs by using the expertise of the Development Bank of Southern Africa.”
Pillay said following extensive negotiations, all the major media houses had agreed to guarantee voluntary contributions to the agency for five years. The media industry will have two seats on the agency’s board, one for broadcast media and one for print media, while the GCIS will nominate one member and community media will also have one representative.
The other five members of the board will be nominated by the public and selected by an open parliamentary process.
In the original draft proposals it was controversially recommended that the agency should be funded by a levy on advertising. This was dropped from the draft Bill, which has now been approved by the Cabinet, Pillay said.
The Bill provides for the establishment of an independent agency that will, through its support, facilitation and research functions help create an enabling environment for media development. Funding and other support will in particular be directed at community media and, to some extent, small commercial media.
The agency is expected to be operational towards the end of next year, after legislation has been passed by Parliament.