CHANNEL FOUR FUNDING

That this House congratulates Channel 4 on achieving an 11 per cent. audience share in 1993, which was higher than BBC 2's, whilst maintaining the remit, and on increasing advertising revenues by 35 per cent. in its first year of selling its airtime in competition with ITV; notes that through the funding formula in the 1990 Broadcasting Act Channel 4 has to pay ú38 million to ITV in respect of 1993 and is projected to pay up to ú500 million to ITV over the 10 year licence period; notes that the ITV companies projected no more than ú100 million to income from Channel 4 over their licence period and that that expectation will already have been met by 1995; notes the recent ITV companies have cut their programme investment against a background of rising profitability; believes that it is perverse for Channel 4 to subsidize its more commercial competitor which has almost three times as much to spend on programmes; notes that independent sources, such as the Henley Centre, do not believe Channel 4 will at any time have to call upon the Government to introduce proposals to abolish the Channel 4 funding formula so as to strengthen the Channel's ability to carry out its remit, to invest in more original drama, children's programmes and British films such as The Crying Game and Four Weddings and a Funeral.