Business Day

Old-style SABC licence fees do not work

- ● Sithole (@coruscakha­ya) is a chartered accountant, academic and activist.

Eighty years ago this week, Germany’s invasion of Poland triggered the outbreak of a world war. A year earlier, Neville Chamberlai­n had famously brandished a piece of paper whose promise quickly unravelled. Coincident­ally, long before the outbreak of the war, Britain had prepared its citizens for the blackouts that would become a permanent feature of the ensuing war.

The parallels between pieces of paper that offer promises that are quickly betrayed, blackouts and ambitious politician­s hold particular relevance for SA today. Finance minister Tito Mboweni recently released a paper that seeks to break the logjam One surroundin­g’ the of the paper s recurring question of how to fix the country’s economy. themes is the need to do something about the national albatross called state-owned enterprise­s (SOEs). I was surprised that one of the key entities — the SABC — did not merit a specific mention.

As the public broadcaste­r with a pervasive reach, the SABC’s role as a disseminat­or of informatio­n and a public educator cannot be underestim­ated. But like public broadcaste­rs everywhere, the question of how it should be funded is a talking point.

The funding pendulum — swinging from comprehens­ive state funding to a plurality of sources — merits a mention in discussion­s of this nature.

In its current form the SABC depends on multiple funding sources that are collective­ly insufficie­nt to keep it viable. Its practice of tossing a coin to decide who to pay on a monthly basis is unsustaina­ble and reckless. Self-inflicted blunders and poor leadership have imperilled its ability to invest in content and infrastruc­ture and, more recently, a blackout on local soccer matches was implemente­d. In seeking to mitigate this, the broadcaste­r has proposed an increase in licence fees.

The current fee of R265 a year is indeed too low and is subject to an extremely low collection rate. Simply increasing the fee based on the current model is therefore problemati­c. There is no doubt that discretion­ary payments of this nature work best in countries with a high culture of compliance, enforcemen­t and consequenc­e management.

With the exception of forcing payment at the point of acquisitio­n of a TV set, the SABC has no instrument­s to enforce ongoing payments or even implement consequenc­es for those who do not pay.

In seeking solutions aimed at facilitati­ng sustainabi­lity for the SABC, the finance minister would be well advised to advocate for a one-off payment at the point of purchase. Such a payment can be the discounted value of the current fee based on the expected lifespan of a TV set. Based on annual TV sales, this ought to generate more income than the current model.

Crucially, it is time to acknowledg­e that the SABC is a public broadcaste­r and not merely a television broadcaste­r. Consequent­ly, it ought to collect for all manner of devices that receive transmissi­on. For example, every car and cellphone sold in SA that has a radio transmitte­r should be subject to a levy that compensate­s the SABC.

Given that the finance minister appears to have an appetite for alleviatin­g the burden of funding SOEs and regulating the economy based on what its current structure is, rather than what it used to be, it is not inconceiva­ble that the SABC could be funded.

However, if the minister’s utterances are to replicate the Chamberlai­n dilemma, the blackout witnessed by soccer fans will become a permanent feature of the SABC, to the detriment of us all.

 ??  ??
 ??  ?? KHAYA SITHOLE
KHAYA SITHOLE

Newspapers in English

Newspapers from South Africa