The SABC has noted that it will continue to push for the adoption of a compulsory household levy for households. Moreover, the national broadcaster has asked that the SA Revenue Service and MultiChoice help in enforcing revenue collection.
THE SOUTH African Broadcasting Corporation (SABC) has noted that it will continue to push for the adoption of a compulsory household levy for households.
Moreover, the SABC has asked that the South African Revenue Service (Sars) and MultiChoice help in enforcing revenue collection.
These comments were made by the SABC head of policy and regulatory affairs, Philly Moilwa, during a public hearing by Parliament’s Portfolio Committee on Communications and Digital Technologies last week.
This public hearing is part of the process to allow government to introduce the SABC Bill, which will introduce a new TV licence regime and funding model.
Moilwa made it clear that the organisation wants to move away from the failing TV licence business model.
“We have moved far ahead of accessing the SABC from a TV, you can access it across devices. We have identified Sars as the most effective collector for the levies, as it already does so for taxes. This can assist us in the collection,“ Moilwa explained.
“Another mode that can be used is a pro-competitive licence condition where the dominant subscription broadcaster can assist by using its own billing system. If they say that you cannot subscribe to us without having a licence, that would assist us,” he added.
The SABC said that the TV licence model was useless and unenforceable due to non-compliance. Recent reports indicate that a mere 13% of households pay their licences.
URGENT FUNDING FOR THE SABC
During the public hearing, SABC’s Group CEO Nomsa Chabeli told members of Parliament that the company required urgent interim relief through possible government grants.
Furthermore, she noted that the SABC needed to determine an effective funding model and said that over the next two years the SABC required an additional R2.5 billion in funding.
“We want to introduce an interim measure while the bill is under development for a funding model framework. We believe that this three-year period should be expedited,” Chabeli said.
“A funding model is critical for the SABC, is a burning issue and we need to ensure there is interim viability with the bill,” she added.
Moliwa also noted that European public broadcasters have used government grants to fund their functions, and wanted the SABC to do the same.
“In European countries, their economy can carry the public broadcaster. With the SABC being dependent on commercial revenue, there are constraints to our ability to invest in content, which has an effect on creative industries. Government needs to provide grants from 3% to something substantial,” he concluded.
