There should be a tax on advertising to fund a new Welsh language broadcaster that would operate on radio, television and online, according to a discussion paper launched by Cymdeithas yr Iaith Gymraeg today.
The language group will publish a paper recommending raising hundreds of millions of pounds with a new tax on advertising and private sector broadcasters to fund a new Welsh language multi-platform broadcaster and other public interest channels. The campaigners say that the profits of companies like Sky and Google have shot up significantly over recent years, while the money available to public broadcasters has been cut severely.
Google paid only £11.2 million in corporation tax in 2012, on the back of revenues of £3.5 billion in the nations of Britain. BSkyB currently makes £1.3 billion a year in profit while the funding from government coffers for S4C has been cut by 92% since 2010.
The discussion paper will be formally launched at a meeting at the National Eisteddfod in Llanelli today - among the speakers are Professor Elin Haf Gruffydd Jones, Chief Executive of the Open Rights Group Jim Killock, Sian Gale from broadcasting union BECTU and Robin Owain from Wikimedia.
Speaking ahead of the Eisteddfod meeting, Robin Farrar, Chair of Cymdeithas yr Iaith Gymraeg said: “We need fresh thinking about the state of broadcasting in Wales. The way people use the media, and the nature of the “platforms” they use, is changing quickly, and we must ensure the Welsh language thrives in the digital age. We favour creating a new broadcaster - or more accurately a new provider - which will be ready for the multi-platform, converged age.”
With new tax powers going to the National Assembly, and devolving broadcasting is on the political agenda, the group says this type of taxation could be levied at a Welsh, UK or European level. They argue the new Welsh language provider, or multi-platform provider, could be of major benefit to S4C and Radio Cymru who are accused of trying to be all things to all people.
Greg Bevan, Chair of Cymdeithas yr Iaith’s digital group added: “The severe cuts, not only to S4C, but to the BBC and newspapers, are happening because of a combination of ideologically-driven decisions in London and technological changes. We have a duty as a society, not only to call for new and better Welsh language services, but also to offer new sources of funding. Several companies - like Google and Sky - are prominent examples of firms who contribute almost nothing in terms of original Welsh content, not to mention Welsh language content. At the same time public funding for S4C has been cut by 92%, and the license fee has been frozen.”
“With taxation powers being devolved to Wales, and a Westminster election on the horizon, I hope this paper will spark a discussion about the innovative use of taxes which could benefit minoritised languages and the public more generally. A number of public interest broadcasters across Europe have suffered because of austerity - innovative taxes could be an answer. In Wales, the money should be earmarked for Welsh language output and a new Welsh language provider. The new provider would be a big boost to S4C and Radio Cymru, because they’d be freed of the burden of being all things to all people.”
Speaking ahead of the Eisteddfod meeting, Jim Killock, Chief Executive of the Open Rights Group, commented: “People have the right to use their culture and that’s just as relevant to the internet as other places. The question is to find the best ways to support and encourage creativity and use of the Welsh language. In my opinion, this needs to include independent community services as much as official activities, funded well. It’s a challenge to create diversity from the top down, but it’s important the Welsh Government are supportive.”