A seven-year rule barring political parties, government agencies and the military from investing in TV media companies could soon end as a new revision makes its way through the Executive Yuan.
The move could revive public debate on just how large a role the government and political parties should play in the media and spark concerns over the independence of satellite TV.
An early copy of the amendment, which still needs to be passed by an Executive Yuan committee and the legislature, states that current regulations barring the three groups from holding stakes in satellite broadcasters will be scrapped.
It would be replaced by a clause prohibiting public officials from holding management posts in the industry, but allowing each of the groups to indirectly hold up to a 10 percent ownership share in media companies.
The Chinese-language United Daily News yesterday reported that the amendment had already passed a preliminary review by the Executive Yuan, headed by Minister Without Portfolio Chang Chin-fu (張進福).
Speaking to the Taipei Times, a senior official at the National Communications Commission (NCC) said that while there were public concerns, the revisions were made for “practical purposes.”
At present, the Satellite Broadcasting Act (衛星廣播電視法) prevents companies receiving investments from the government or political parties from branching into TV media companies because of the rule banning indirect shares.
State-run Chunghwa Telecom (中華電信) was forced to forgo its shares in HD channel provider ELTA TV because one-third of the telecom carrier’s shares were owned by the Ministry of Transportation and Communications.
The act also led to mobile operator Taiwan Mobile Co (台灣大哥大) being placed under scrutiny as one of its major investors was Taipei Fubon Bank (台北富邦銀行), partly owned by the Taipei City Government through a merger between city-owned Bank of Taipei (大台北銀行) and Fubon Bank in 2005.
The original act, passed in 2003 by the then-Democratic Progressive Party (DPP) administration, “is well-intentioned, but unfortunately has its problems,” said Kao Fu-yao (高福堯), director of the NCC’s legal department.
On the 10 percent limit, he said that it was the maximum threshold before the investors would be able to wield undue influence on media companies based on information acquired from industry representatives.
“Let me be clear, the intent of the revisions was never to make it easier for political parties or the government; it’s to aid businesses,” he said, adding that the NCC was committed to preventing a politicized media.
He also denied allegations of a loophole whereby multiple political parties would be able to jointly buy out a satellite broadcaster by pooling their shares. He could not say whether the revision would have concrete measures preventing this from happening.
“We will be on guard to prevent this from happening. Every transaction will have to be looked over before they go through,” he said, declining to elaborate.
Kao nevertheless said the Executive Yuan could send the proposal back to the NCC for further revisions in the coming week.
“We have received information that … the Executive Yuan feels we might need to make a few changes,” he said.
The DPP spoke out against the amendment, saying it would compromise media neutrality and was an example of growing government control in broadcasting. Opposition party lawmakers have vowed to block the amendment when it reaches legislative review.
DPP spokesperson Tsai Chi-chang (蔡其昌) said the party could not support the amendment because it was a “dangerous setback” for media reforms and press freedoms.
If passed, it would remove any semblance of fair competition
between the KMT and the DPP, he said.
“The only political party in Taiwan capable of taking advantage of the revision is the KMT … President Ma Ying-jeou’s (馬英九) administration seems intent on once again extending the KMT’s influence in the media,” he said.
It was unclear how the amendment would be received by international watchdog organizations Freedom House and Reporters without Borders. Both have released reports alleging that Taiwan’s media is increasingly subject to government interference.
In an assessment of media freedom in Taiwan released earlier this month, the Washington-based Freedom House identified government appointments in public media outlets and information placement by the government as two major problems.
Premier Wu Den-yih (吳敦義) yesterday denied the KMT had any intention of re-entering the media, saying in a press statement that political parties should not directly or indirectly run or hold shares in a satellite broadcaster.
On the Cabinet’s screening of the amendment, he said: “There is no more need for consideration on the part for political parties; the government will not be walking backwards.”
Wu said Chang should think carefully before deciding to lift the ban on investment and should not allow political parties to invest in media companies.
“The government will never go back to the old days. No political party should operate broadcasting or television companies or possess their shares, either directly or indirectly,” Wu said.
Chang said the amendments were initiated by the NCC and were still under deliberation.
Asked for comment, the KMT said it had never changed its position on objectivity of the media, adding that political parties should steer clear of managing or investing in media outlets.
KMT spokesman Su Jun-pin (蘇俊賓) said that political parties, government and the military were different in nature and could not be lumped together pertaining to their investment and management of media outlets.
The position of his party on the matter was clear, Su said. Political parties should not manage or invest in media outlets to maintain the independence of the journalistic profession, he said.
“The position of the KMT on the matter is evident,” he said. “There is no room for obscurity.”
However, KMT Legislator Justin Chou (周守訓) voiced support for relaxing the regulations
“This is more flexible and pragmatic,” Chou said when approached for comment. “Making reasonable adjustment to the ban will have a positive effect on corporate development.”
Chou also dismissed concerns that the proposed relaxation would affect the impartiality of the media, saying any company that attempts to interfere in the operations of newsrooms through investment in the media would be criticized by the public.
A Cabinet official told the Taipei Times there had been some cases where a company that is partly owned by a government fund has invested in a media firm because it is profitable, but this situation is not allowed by the acts.
He gave the example of Delta Electronics (台達電) being forced to sell its shares in EVTA Television (愛爾達電視) because the Civil Service Pension Fund (退撫基金), a public fund, owned part of Delta.
ADDITIONAL REPORTING BY BY SHIH HSIU-CHUAN, KO SHU-LING AND FLORA WANG
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