adminZvamaida Murwira Harare Bureau
THE Government is mulling putting on hold the issuance of additional radio licences in the wake of failure to go on air by those granted authority to do so due to the harsh economic environment, Parliament heard yesterday.
Information, Media and Broadcasting Services Minister Christopher Mushohwe said two out of eight recently licenced local commercial radio stations were operational while those that were licenced four years ago were struggling to get advertisements.
He said this has forced Government to reconsider the continued issuance of broadcasting licences to radio stations.
Minister Mushohwe was giving oral evidence before a parliamentary portfolio committee on Media, Information and Broadcasting Services chaired by Umzingwane MP Cde William Dhewa (Zanu-PF).
“Furthermore, radio stations are going to face stiffer competition for advertising revenue from television when more television stations come on board after completion of digitalisation. This scenario may necessitate taking a deliberate policy decision not to issue more radio licences in order to ensure the market sustains the few stations that are already in the market. As the economy improves, more and more players will be licenced,” said Minister Mushohwe.
He said experience had shown them that only one radio station was making profit while others were struggling.
On communal radio stations, Minister Mushohwe said it was unfair for Government to continue issuing licences to areas that were already receiving broadcasting signal when places like Binga had never received such reception since independence.
He said Government’s view was that the issuance of community radio stations be done upon the completion of the digitalisation programme.
Appearing before the same committee, Finance and Economic Development Minister Patrick Chinamasa said funding of the digitalisation programme could only be raised through sale of dividend spectrum.
He said while it was Treasury’s desire to bankroll the programme from the fiscus, it was unfortunate that Government was grappling with other issues like payment of salaries for civil servants.
Several MPs, however, asked whether there was no contingent plans to fund the programme.
Makonde MP Cde Kindness Paradza (Zanu-PF) said the delay in completing the digitalisation programme would result in the escalation of costs to the project while some equipment would be made redundant.
Other legislators asked if Government could look for bridging finance while it was waiting to sell the spectrum.
Minister Chinamasa said he had since nullified the intended sale of dividend spectrum to NetOne after realising some challenges.
“It was never envisaged that the project would be paid from Treasury. Selling of dividend spectrum remains Plan One, Plan Two and Plan Three,” he said.
Minister Chinamamasa said he was, however, agreeable to other plans.
“I agree that any delay to any project costs money and such costs are unavoidable,” he said.
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