asked the Minister for Communications if he will specify the cable licence fees which are outstanding, overdue and unpaid, indicating (1) the names of the licensees concerned (2) the amount of the overdue fees in each case and (3) the length of time same have been overdue indicating (a) the legal proceedings, if any, which have been taken by his Department to recover these fees and (b) the departmental inspections of licensees records which have taken place; and if he will make a statement on the matter.
Written Answers. - Television Cable Licence Fees.
26.
The total estimated amount outstanding is of the order of £644,000. In all 24 licensees out of 40 are in arrears, ranging in amounts from £310 to some £366,000.
I would be reluctant at this time to list the names of the licensees because of the sensitive nature of negotiations which are taking place with a number of them regarding arrangements to pay off. In a number of instances such discussions are taking place in the context of possible sales of the systems. In other instances the possibility of legal action being taken exists and I am concerned that my Department's position should not be prejudiced.
In the majority of cases the amounts owing date from 1986-87 or later when all but three cable companies withheld payment of licence fees as a protest primarily against the undermining of their business by illegal rebroadcasting systems. The lion's share — £366,000 — is owed by one company. The company in question had initiated legal action seeking substantial damages as a result of alleged loss of business due to my Department's alleged failure to deal with illegal rebroadcasting systems in the licensed area of the cable company. The company in question has recently agreed to pay off the arrears over three years and have already made a substantial payment. Most of the other companies who are in arrears have entered into agreements with the Department to pay the arrears by instalment.
I am confident that the arrears situation on cable licence fees can be cleared up over the next few years through a combination of agreements and legal action. In the last two months the overall level of arrears has been reduced by £100,000. Over the years civil action has been taken in the courts against 13 licensees. I have asked the Chief State Solicitor to prepare a case against another licensee and my Department's experience in this case will determine tactics in the future against recalcitrant payers.
No inspections of records of cable systems have taken place due to lack of suitably qualified staff. As the information which cable companies are required to produce to my Department to enable their licence fee liability to be determined must be audited by a qualified professional there is little value in such inspections.