PARIS, Nov 19 (Reuters) - French deputies from the ruling
UMP party voted late on Wednesday to reduce by as much as half a
proposed tax on private television advertising revenue intended
to help fund public broadcasters.
In an amendment to a broadcasting bill due to be presented
in parliament, the deputies from the centre-right UMP also
backed a proposal to replace a planned 0.9 percent tax on
telecom operators intended for the same purpose with a sliding
levy of 0.5-0.9 percent.
The amendment said the private television tax, originally
set at 3 percent of advertising revenues, would be set at no
less than 1.5 percent.
The deputies also agreed the total amount from the proposed
tax "could not exceed half the annual growth in revenues of a
station".
Although the bill must still be voted in parliament, the
UMP's majority means it will almost certainly be adopted.
The levies were agreed earlier this year after President
Nicolas Sarkozy announced that publicly owned France Televisions
would lose the right to carry advertising.
That decision was criticised by the opposition and by many
press commentators who said it amounted to a present to private
broadcasters like TF1, controlled by Sarkozy's close friend
Martin Bouygues.
Advertising on public television will not be allowed after
8:00 p.m. from January, 2009, and is due to be banned entirely
from December 2011.
The move will create a significant funding gap for the four
main channels controlled by France Televisions, which raised 834
million euros ($1.05 billion) from advertising and sponsorship
in 2006, almost one-third of its total revenue.
Jean-Francois Cope, head of the UMP parliamentary party said
the cuts were necessary given the sharply worsening economic
climate but any shortfall for public television would be made up
by the government.
"Of course, private broadcasters will be taxed when they
have more advertising revenue linked to the abolition of
advertising on public television," he told reporters.
"But of course, in a depressed advertising market, they
shouldn't have to pay a tax if they are not making any
additional revenues," he said.
"Obviously the state will compensate public television
broadcasters entirely," he said. "There will be no loss for
public television."
The 3 percent tax on private broadcasters had been estimated
to raise around 80 million euros, while revenues from the 0.9
percent levy on telecoms companies had been reckoned at up to
380 million euros.
As well as reforming the funding of public television, the
bill would also give the government the power to appoint the
head of France Televisions, who has previously been appointed by
the CSA, an independent audiovisual supervisory body.
(Writing by James Mackenzie; Editing by Matthew Jones)
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