A NEW proposal to ditch the SABC’s TV licences for a ring-fenced tax collected by the SA Revenue Service (Sars) is on the cards as less than a fifth of viewers are paying.
According to the Department of Communications and Digital Technologies’ draft White Paper on audio and audiovisual media services and online content safety, which is dated July 2023, the government is considering these proposals to help the public broadcaster better fulfil its mandate.
In addition, the draft White Paper also has on the cards a comprehensive overhaul of the SABC’s funding model based on international best practices to ensure that the public broadcaster has adequate funds to meet its public mandate.
Satellite television provider MultiChoice is proposing an overhaul of the SABC’s funding model to phase out TV licences and introduce a ring-fenced public broadcasting service (PBS) levy to be collected by the revenue service.
This is the so-called Nordic model, which is usually a reference to countries such as Denmark, Finland, Iceland, Norway and Sweden.
The department has indicated that this proposed funding model is being considered in the SABC Bill.
In the 2021/22 financial year, the SABC only collected R815 million in TV licence revenue, which is just above 18% of the nearly R4.45 billion it billed viewers in the same period, which is a shortfall of over R3.6bn.
The SABC also paid R73m to collect the TV licence revenue, according to its latest annual report.
Communications and Digital Technologies Minister Mondli Gungubele revealed recently that there were a total of 9.2 million accounts with R44.2bn in outstanding balances.
“These balances comprise unpaid invoices and penalties levied for non-payment over several years. At least 5.6 million accounts have been handed over for external debt collection,” said Gungubele, in response to EFF MP Sinawo Tambo’s parliamentary questions.
Gungubele said his department proposed that the television licence model be replaced with the household fee model in terms of the SABC Bill that was approved by the Cabinet in November last year for submission to Parliament for processing.
”Pending the legislative changes, the Department of Communications and Digital Technologies will continuously engage with the SABC and National Treasury to examine the options for the necessary reform and enhancement required of the current TV licence system to properly provide for the funding requirements of the SABC and the most appropriate collection, enforcement systems and a time frame for implementation,” he said.
It is also hoped that the proposed amendments to the TV licence fee section will broaden the definition and the collection system for television licences and strengthen enforcement mechanisms and penalties for non-payment.
Other proposals contained in the draft White Paper include having the SABC’s public commercial division with a new commercial board and to be solely purposed to generate revenue to sustain the SABC and continue to fund its public service mandate.
It is expected that the public broadcaster will also have a mandate in legislation to operate international satellite television, radio and internet services under the name SABC international broadcast service or SABC foreign broadcasting service, which will include Channel Africa radio services and the Department of International Relations and Co-operation’s 24-hour internet-based radio station, Ubuntu Radio.
Kagiso Media warned that any state financial aid or support of the SABC’s public mandate as proposed in the draft White Paper must be achieved in a responsible and fair manner so as not to distort competition between the public broadcaster and its commercial radio broadcasting competitors.
However, its fears were allayed and described as contrary to the international best practices as public broadcasters such as the BBC have commercial arms selling its channels as well as the over-the-top (offerings to users over the internet without traditional cable or satellite TV) platforms and commercialising its content.