IT-TLETTAX-IL LEĠIŻLATURA P.L. 6408 Dokument imqiegħed fuq il-Mejda tal-Kamra tad-Deputati fis-Seduta Numru 450 tal-20 ta’ April 2021 mill-Ministru fl-Uffiċċju tal-Prim Ministru. ___________________________ Raymond Scicluna Skrivan tal-Kamra PUBLIC BROADCASTING SERVICES LTD – PUBLIC SERVICE OBLIGATION AGREEMENT *20520. L-ONOR JOSEPH ELLIS staqsa lill-Ministru fl-Uffiċċju tal-Prim Ministru: B'referenza għar-risposta għall-mistoqsija parlamentari 20380, jista' l-Ministru jpoġġi kopja tal-ftehim tal-Public Service Obligation Agreement konkluż mal-Public Broadcasting Services Ltd fuq il-Mejda tal-Kamra kif kien mitlub f'dik il-mistoqsija? Jista' jpoġġi wkoll kopja tad- deċiżjoni tal-Bord ta’ Sorveljanza fuq Għajnuna Mogħtija mill-Istat fir-rigward ta' dan il- ftehim? 16/04/2021 ONOR. CARMELO ABELA: Qed inpoġġi fuq il-mejda tal-Kamra l-ftehim tal-PSO. Dwar it-tieni mistoqsija ninforma lill-Onor. Interpellant li din hija proċedura interna. Seduta Numru 450 20/04/2021 Mistoqsija Parlamentari 20520 Seduta 450 PUBLIC SERVICE OBLIGATION AGREEMENT (the "Agreement") AN AGREEMENT entered into this 1sr day of September 2020 BETWEEN (A) Of the one part THE GOVERNMENT OF MALTA, hereon represented by Mr Mario Cutajar in his capacity as Principal Permanent Secretary (hereinafter referred to as the "Government"); AND (B) Of the other part PUBLIC BROADCASTING SERVICES LIMITED, a duly established broadcast service provider having its registered office at No. 75, St. Luke's Road, G'Mangia, Pieta, Malta, bearing compan)' registration number Cl3140 hereon represented by Dott. Toniu Portughese, in his capacity as Chairman of the said company, (hereinafter referred to as "PBS"). (The Government and PBS are hereinafter collectively referred to as the "Parties" or separately as "Party") WHEREBY IT IS BEING PREMISED THAT: i. The Government declares that an independent public broadcasting service is essential to a democracy, and the Government recognizes PBS as the sole company catering for public broadcasting, which guarantees that its programmes are presented in a balanced and impartial manner as provided for by the Constitution of Malta. PBS should, as the national broadcaster, represent and fairly treat different views and values present in society. PBS should also carry programmes that fulfil a public service obligation, and Government shall support PBS in this regard, and for this end is entering into this Public Service Obligation Agreement; ii. Considering that the obligation of PBS to broadcast public service obligation programmes emanates also from the Broadcasting Act, and other rules and regulations currently in force, as well as from applicable European and international covenants; iii. The Parties agree that all the above-mentioned should be institutionally safeguarded by the setting up of and through this Public Service Obligation Agreement; iv. PBS shall not receive any subsidies for its public service obligations, other than these stipulated in this Agreement; v. Since it is unlikely that PBS will be able to provide on a profitable basis its public service obligation, and the Government acknowledges the risk that same might not be provided at all, or might be commenced and then terminated based on normal commercial considerations, Government hereby therefore agrees to secure a stable and efficient provision of such services from a well-established and economically stable provider. Such services must be based upon minimum obligations required to fulfil the social, democratic and cultural needs of Maltese society, but which would not be acceptable to a commercial operator operating on a normal commercial basis; In order for any service provider to undertake the public service obligations as provided for in this Agreement, the Government recognises the need of the service provider to be compensated for any economic loss and a reasonable profit as a result of operating such public service remit under the public service obligations placed upon it by Government; lofl6 r vii. The Govenunent has therefore identified PBS as a well-established and economically stable provider of the public service obligations required, both through its past working relationship with PBS and through business and financial information provided to the Government by PBS; viii. PBS is willing to provide the services, and to accept the public service obligations, as provided for in this Agreement. tx. This Agreement is drawn up in line with the provisions of Commission Decision 2012/21/EU of 20 December 2011 on the Application of Article 106(2) ofthe Treaty on the Functioning of the European Union to State aid in the form of Public Service Compensation granted to certain undertakings entrusted with the operation of services of general economic interest (OJ L 7, 11.1.20 12, page 3 ). THEREFORE, PURSUANT TO THE ABOVE, THE PARTIES HEREBY AGREE THAT: 1. Definitions and Interpretation 1.1 In this Agreement, unless the context otherwise requires and unless otherwise agreed to in writing by the Parties, the following interpretation is to be attributed to the terms listed below: 1.1.1 "Non-PSO Services" means those services listed in clause 3 hereof; 1.1.2 "PSC" or "Public Service Compensation" means the compensation to be granted by the Government to PBS in terms of this Agreement for the PSO Services carried out by PBS, as calculated in terms of clauses 10 and 11 hereof; · 1.1.3 "PSO" means the Public Service Obligation entrusted to PBS by the Government in terms of the arrangement to operate the Services in terms of this Agreement; 1.1.4 "PSO Services" means the Services, excluding Non-PSO Services; 1.1.5 "Public Service Obligation" means an arrangement whereby the Government entrusts an undertaking with a particular public service task for which the undertaking is compensated; 1.1.6 "Services" means the operating of a national media broadcasting service providing a wide range of programming and a balanced and varied broadcasting offer that serves the social, democratic and cultural needs ofMaltese society, to be carried out by PBS in terms of the PSO, as delineated in further detail in clause 2 hereof; 1.1.7 Significant New Audio-visual Service" means a service which: a. is provided for the first time by PBS, or a modification to an existing service; b.requires an annual expenditure by PBS in excess ofEuro (250,000); and c. will be financed, in part or in full, by the PSC. 2ofl6 r 2. Grant of PSO to Operate Services 2.1 The Government hereby provides PBS with a sole and exclusive PSO, and PBS hereby accepts the grant of such PSO: Provided that at all times, PBS shall act according to and in full compliance with its PSOas stipulated hereunder. 2.2 Pursuant to the Services, PBS shall operate and maintain the following: 2.2.1 Television channels: 2.2.1.1 TVM 2.2.1.2 TVM 2 2.2.2 Radio Stations: 2.2.2.1 Radju Malta 2.2.2.2 Radju Malta 2 2.2.2.3 Magic Malta 2.2.3 Online Services 2.2.3.1 Tvm.com.mt 2.3 The Parties agree that in order for PBS to satisfy its PSO, PBS shall at all times, during the period of this Agreement, satisfy at least all the following minimum criteria: 2.3.1 PBS shall ensure the transmission of the following: a. regular daily news bulletins in Maltese, with the main news bulletin not being of a lesser duration than 20 minutes and at least a once daily TV news bulletin in English. Furthermore at least one ofthe news bulletins in Maltese has to provide facilities for the hearing impaired. The main news bulletin shall include both local and international news; b. regular daily news bulletins on at least one of the radio stations that PBS operates with at least one bulletin thereof being in English; c. regular daily bulletins covering local sporting events of a current nature and at least one weekly programme covering local sports; d. sports competitions, particularly those that are hosted in Malta or in which Maltese athletes or teams participate; e. programmes in adherence with the Constitutional or legal requirements imposed on PBS; f. one-off parliamentary debates on TV; g. all parliamentary debates on radio; h. events of a national character as determined from time to time by Government; 3of16 ~ i. public service announcements according to such terms as may be established by the Government from time to time; j. current affairs programmes and discussion programmes dealing with topics of a social, cultural, educational, environmental, economical, industrial or political nature; k. programmes dealing with religious topics and the transmission of Mass on Sunday and certain Holy days of Obligation; I. programmes that have children as their principal audience; m. drama programmes in Maltese, with preference being given to original drama in Maltese; n. programmes that are cultural in nature but especially those that enhance the Maltese language, heritage, history, culture and the arts; o. programmes that are focused on Gozo and in particular that highlight Gozitan society, culture and way of life, p. programmes that focus on Maltese communities abroad; q. general information programmes; r. programmes that are educational in nature; s. programmes promoting information society. 2.3.2 PBS shall also provide online services in connection with its PSO Services, including for the avoidance of any doubt: a. information on the television and radio channels operated by PBS, and information on their schedule and programmes; b. daily news overviews, which shall consist of text and images, and may include audio and audio-visual elements, as well as the transmission of the daily TV news bulletin; c. an on-demand service for the programmes broadcast on the television and radio channels operated by PBS. 2.3.3 Subject to technical developments and current trends, PBS shall also provide further audio-visual services over the internet or other distribution platforms, provided that such services effectively contribute to fulfilling the PSO, including but not limited to the development of a software application to broadcast PSO content on mobile devices: Provided that in the case of a Significant New Audio-Visual Service, PBS shall seek the consent ofthe Government.