Published: Thursday | January 22, 2009
Daraine Luton, Staff Reporter
GOVERNMENT HAS defended as prudent, Cabinet's move to lease the spectrum which was reserved for public broadcasting, to a private enterprise.
Opposition Spokesperson on Information, Lisa Hanna, had questioned the rationale behind the lease of FM 90 to Nationwide News Network. She has charged that the arrangement was untidy and resembled a sweetheart deal.
But responding to questions in the House of Representatives on Tuesday, Grange said the decision to grant a lease to Nationwide came out of a legitimate business proposal from the media entity.
"The submission was unique, unsolicited and was considered to be meritorious since it proposed enhancing the scope of public broadcasting by the addition of an independent, privately operated radio dimension to the existing television offering and the conversion of Kool FM to public-service radio," Grange said.
Business proposal
Grange said that Nationwide approached the Ministry of Information with a proposal to use FM 90 for its programming, following which an arrangement was worked out.
Hanna questioned why the arrangement was not open to tender but Grange said it would have been unfair to Nationwide to open up their business proposal to competition.
According to Grange, the matter was submitted to the National Contracts Commission for consideration and that body determined that "the proposal is an economic opportunity and not a procurement" and recommended that the matter be referred to the Cabinet, which gave the agreement its blessings.
Under the terms of the lease, Nationwide is to pay the Public Broadcasting Corporation of Jamaica (PBCJ) $5 million and then a subsequent annual payment of $5 million or five per cent of net annual revenues, whichever is greater," Grange said.
The information minister said that Nationwide will be responsible for the editorial content of the programming. She also said that Nationwide's programming will be monitored by the PBCJ. Meanwhile, Grange failed to respond to questions about possible sanctions if Nationwide fails to abide by programming guidelines.
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