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To: Peter V who wrote (42394)6/24/1999 12:38:00 PM
From: DiViT  Read Replies (2) | Respond to of 50808
 
Fury at TV tax plan on digital boxes [grub:42400]

06/22/1999 Scottish Daily Record
Scottish Daily Record & Sunday Mail Ltd.
Streets
Page 4 (Copyright 1999)

CULTURE Secretary Chris Smith was under pressure last night to veto a pounds 30 "tax" on TV viewers who subscribe to the new digital channels.

An inquiry into BBC funding is set to recommend the hike in licence fees.

But ITV and satellite firms are protesting about the cash levy, which would go to the BBC.

The review panel, headed by millionaire City economist Gavyn Davies, will report next month.

Sources close to the panel said it is considering a rise of around pounds 30 on the pounds 101 colour licence for viewers with digital decoder boxes.

The cash would be used to finance new BBC channels to compete with giants BSkyB and ONdigital.

Mr Smith's aides said he had "not made his mind up" and is waiting for the report.

But he will face intense presssure not to put up the cost of new TV channels for householders.

Digital companies fear a higher licence fee could put off viewers who must already pay for extra channels and better quality pictures.

Digital operators are offering free boxes to receive their channels by monthly subscription, and the number of households taking the service is expected to double within three years to 3,500,000.

The BBC has already built up a pounds 232million war chest to finance digital channels by selling its transmission network and cutting costs.

But BBC chiefs believe it needs even more to compete with commercial firms.

BSkyB chief Tony Ball said: "The pounds 30 additional licence fee for anybody taking digital services would a digital poll tax.

"It would be a mandatory flat fee for everyone, rich or poor, who chooses to take up digital services from any source, whether or not the viewer wants to watch the BBC's digital channels."