BILL TO ESTABLISH A MEDIA DEVELOPMENT AND DIVERSITY AGENCY
BRIEFING TO THE SELECT COMMITTEE ON LABOUR AND PUBLIC ENTERPRISES (NATIONAL COUNCIL OF PROVINCES)

21 May 2002

The Bill to establish a Media Development and Diversity Agency (MDDA) is the product of a process that reaches back to our founding constitution and before. It is a critical stage on the path towards an agency that will help ensure that the constitutional rights of freedom of expression and information are enjoyed in practice by all South Africans.

It has emerged from a broad consensus that it is in the interest of our democracy that we act together to redress the imbalances of our past with respect to access to the media, whether as consumers, writers, managers, owners or as citizens who find their own experience reflected in the media.

It comes out of a broad agreement, whatever the differences in detail and approach, on the need for such an intervention to help address the legacy of these imbalances if that is to happen in a reasonable time; and on the fact that the endeavour can succeed only if founded on a partnership of government and the stakeholders.

It has drawn on the experience of earlier attempts to promote the same objectives which could not be sustained, because of their informal character.

The need for such an initiative is highlighted by the reality in which millions of South Africans do not have access to the media, for a variety of reasons. Some of the statistics were cited by the Minister in the National Assembly during the debate on the Second Reading of the Bill: "barely half of South Africans read newspapers or magazines, in rural; areas less than a third. Only three quarters of South Africans watch television and millions are still beyond the reach of FM radio."

This context informed the recommendation of Comtask that such an agency should be established in order to promote media development and diversity, a task assigned by Cabinet to GCIS.

There has been extensive consultation over the past three years, as well as much research and comparative study. Initial consultations were followed by the publication of a Draft Position Paper in November 2000. Further consultations including Public Hearings organised by the Portfolio Committee on Communications led to the final position paper and a draft bill adopted by Cabinet. The Bill benefited from the legislative experience of the Portfolio Committee.

The complexity of the media sector has made consensus-building a long process, perhaps frustrating to those who hope to benefit from the establishment of an MDDA. The interaction has been comprehensive, focussing at different times on different stakeholder constituencies: community media as potential beneficiaries; government departments; the industry as potential source of funding; and all stakeholders together in public hearings facilitated by the Portfolio Committee.

The Bill provides for the establishment of an independent Agency that is rooted in a partnership between government, the media industry and the community media sector. It gives practical expression to the common interest amongst all those in the media sector in serving a citizenry that is informed, articulate and engaged in changing their country for the better.

There are a number of principles that have informed the initiative from the start, and which are reflected in the Bill.

The ultimate goals and values that will inform the establishment and the work of the agency are captured in Section 3 of the Bill - promotion of development and diversity in the media in South Africa as part of realising the rights to freedom of the media and of the right to receive and impart information and ideas.

Fundamental to the philosophy of the MDDA is that it will not involve itself in content. It aims rather at overcoming the barriers to media development that have helped preserve the imbalances that still exist lack of access to resources; training; education; literacy; amongst others. Helping to overcome barriers to media development should promote a climate conducive to greater media diversity. That principal is expressed in Section 2(5) of the Bill which says that the agency will not interfere in the editorial content of the media.

In any case the MDDA has no regulatory powers Where the legislation refers to "regulations" these are guidelines that the MDDA will follow in its own operations in the exercise of its functions, relating to the assessment of projects for the allocation of support. They are not regulations governing the opinions of others.

Where such regulations or guidelines are to be made, the Bill provides for a joint determination or duality of authority, and for the regulations to be made by "the Minister in consultation with the Board". It requires concurrence in the prescribing and making of regulations.

Transparency and good governance are important principles for a body promoting the rights of freedom of expression and information. The MDDA is therefore required to conduct its operations and provide assistance on the basis of criteria and guidelines set out for all to see. This includes the way in which it will divide the funds for support to community media; small commercial media; research; and administration.

Given the nature of these regulations the MDDA cannot encroach on the authority of the regulatory bodies that do operate in the media sector, such as ICASA and the Competitions Commission. The Bill requires the MDDA to work with such agencies. Indeed ICASA and other such bodies were involved in the process of consultation.

In practice, a broadcasting project can only operate if ICASA gives it a licence and only ICASA has the right to grant licences, using its own criteria

But what has become very clear is that having a licence doesn't guarantee sustainability, just as receiving equipment or cash doesn't guarantee success. That is why the emphasis in the mix of support that will come from the MDDA is on capacity-building and training in all areas of media production and distribution.

The MDDA's primary function will be to provide and facilitate support to community media that serve the interests of various historically disadvantaged communities throughout the country. Although community media will be the primary focus, it will also provide some support to small commercial media, and it will fund research that is relevant to media development and diversity.

The principle of partnership is reflected in the approach to joint funding of the MDDA by government, media industry and donors.

The consultation and public hearings around the Draft Position Paper led to a change with regard to funding. A proposal to fund the MDDA through a levy on advertising expenditure gave way to a voluntary approach, and the target was lowered to R250m over five years or R50m a year. This represents about half, according to the research done, of the total needs for development of the small media sector over the next five years, the bulk for radio. The understanding is that developing media enterprises will find ways of raising the remainder from other sources. After five years when much of the backlog has been addressed, the total needs will fall sharply.

Regarding international donors, we have proceeded on the basis that they will want to be convinced that South Africans have the will and the capacity to make this initiative succeed before they provide assistance. But we are preparing to approach donor agencies now that a funding basis for the MDDA has been secured.

With little or no precedent, government and the media industry have together mobilised funding to provide a secure foundation for the MDDA to start its work over the next five years as an independent body. The significance of the industry's contribution is underlined by the current context of a difficult economic period for them.

Commitments by government and industry - which can only be formalised when the Agency exists and can, enter into agreements takes us beyond R40m a year.

This does not take into account resources that should become available as the operation of the MDDA makes further kinds of contribution feasible: for example provision of training; or supportive policies for the placement of advertising by both government and private sector. Account has not yet been taken of any contribution from the Universal Service Agency with its new mandate for multi-media services; nor of potential contributions of donors.

There have been cases in which it has taken years after legislation to set up an agency before the agency could start work, because funds were not available. In the case of the MDDA however the funds are there for it to begin its work by the end of this year, assuming no unforeseen delays.

The principle of partnership is reflected in the composition of the Board. Six members will be appointed through a parliamentary process, representative of the public and possessing collectively the relevant skills and interests. Three members will be appointed directly by the President taking into account the funding of the agency, including in particular one person each from the commercial print and broadcast media, so that there will be participation from the private sector funders.

The Bill leaves open whether or not the board includes someone from government, as a principal funder and the originator of this initiative aimed at promoting development and reconstruction.

One of the fundamental principles informing the MDDA initiative is that as a body promoting the rights to freedom of expression and information through support for media development, it should have an arms-length relationship with government, the media houses, public and private, as well as donors.

The Bill explicitly requires the Agency to be independent. In this regard, independence is approached as relating to the conduct of board members rather than to the composition of the board or where its members are drawn from. The Board is required to be impartial and to act "without fear, favour or prejudice and without any political or commercial interference". In addition there is a strong provision for dealing with or preventing any conflict of interest on the part of Board members, to ensure that it does not disburse funds in a way that furthers the interests of any member of the Board.

Once the legislation is passed by Parliament nominations for the Board will be called for, and it is envisaged that the MDDA will be operational towards the end of 2002.

Against the background of what is needed to fully address the legacy of imbalances in the field of the media, this initiative focused on the community media and small commercial media sector may be small. But there are good reasons for thinking that it will act as a powerful catalyst for promoting development and diversity in the media generally.

The community media sector has acted historically as a training ground from which journalists and other media workers, including management, have been drawn into the mainstream commercial and public media.

Promoting development in this sector will continue to enlarge the pool of communications and media skills in South Africa.

And promoting literacy and a reading culture will have an impact beyond the small media, with benefits for the whole of the South African media.

Together these changes will contribute towards making a living reality for all South Africans of the Constitutional rights to expression and information.