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2004 No. 1975

CONTRACTING OUT

BROADCASTING

The Contracting Out (Functions relating to Broadcast Advertising) and Specification of Relevant Functions Order 2004

  Made 19th July 2004 
  Coming into force 20th July 2004 

Whereas, by virtue of section 1(7) of the Communications Act 2003[1], Part 2 of the Deregulation and Contracting Out Act 1994[2] is to have effect in relation to the functions conferred on the Office of Communications[3] by or under any enactment as if the Office of Communications were an office holder within the meaning of that Part and a power of the Office of Communications to make subordinate legislation were excluded from section 69 of that Act to the extent only that it is exercisable by statutory instrument;

     And whereas the Secretary of State has consulted the Office of Communications as required by section 69(3) of the Deregulation and Contracting Out Act 1994;

     And whereas section 393(4) of the Communications Act 2003 authorises the Secretary of State to specify by order relevant functions for the purposes of that subsection;

     Now therefore the Secretary of State, in exercise of the powers conferred upon her by section 69 and section 77(1) of the Deregulation and Contracting Out Act 1994 and section 393(4) of the Communications Act 2003, hereby makes the following Order, a draft of which has been laid before Parliament in accordance with section 77(2) of the 1994 Act and section 393(11) of the 2003 Act respectively and approved by a resolution of each House of Parliament:

Citation and commencement
     1. This Order may be cited as the Contracting Out (Functions relating to Broadcast Advertising) and Specification of Relevant Functions Order 2004 and shall come into force on the day after the day on which it is made.

Interpretation
    
2.  - (1) In this Order-

    (2) Except where an indication to the contrary appears, expressions used in this Order have the same meaning in this Order as they do in the 2003 Act.

Contracting out functions relating to advertising in the Communications Act 2003
     3.  - (1) Subject to article 5, any function relating to advertising may be exercised by, or by employees of, such persons (if any) as may be authorised in that behalf by OFCOM - 

    (2) In this Order, a "function relating to advertising" means a function which is a function of OFCOM and which is - 

     4.  - (1) Any function relating to advertising described in Part 2 of the Schedule may be exercised by a person authorised by virtue of article 3 where he considers that a contravention of OFCOM's standards code (in so far as it relates to the regulation of standards and practice in advertising) in relation to a service to which that Part of the Schedule applies can be appropriately remedied by the inclusion of a correction or statement of findings (or both) in that service.

    (2) Any function relating to advertising described in Part 3 of the Schedule may be exercised by a person authorised by virtue of article 3 only so far as to determine that no such notice as is mentioned in that Part should be served on the holder of a Broadcasting Act licence or the Welsh Authority.

    
5. Nothing in this Order allows OFCOM to authorise the exercise by a person of any function relating to advertising for the purposes of or in connection with - 

Contracting out functions relating to advertising in the Control of Misleading Advertisements Regulations 1988
    
6.  - (1) Any function relating to the control of misleading advertising in the 1988 Regulations may be exercised by, or by employees of, such persons (if any) as may be authorised in that behalf by OFCOM - 

    (2) In this article, a "function relating to the control of misleading advertising" means a function conferred on OFCOM by or under the 1988 Regulations in connection with the following provisions of those Regulations - 

Contracting out functions relating to advertising in the Medicines (Monitoring of Advertising) Regulations 1994
    
7.  - (1) Any function relating to medicines advertising in the 1994 Regulations may be exercised by, or by employees of, such persons (if any) as may be authorised in that behalf by OFCOM - 

    (2) In this article, a "function relating to medicines advertising" means a function conferred on OFCOM by or under the 1994 Regulations in connection with the following provisions of those Regulations - 

Exercise of functions by an authorised person
     8.  - (1) Where any provision of the enactments listed in paragraph (3) authorises or requires anything to be done by OFCOM in connection with or for the purposes of a function which may also be exercised by an authorised person, each such enactment shall have effect in any case where that function is so exercised by that person as if a reference to OFCOM included a reference to the authorised person.

    (2) In the enactments listed in paragraph (3) any reference to a thing done by OFCOM shall have effect where it is done by an authorised person as though it included a reference to a thing done by that person.

    (3) The enactments are - 

Production and retention of recordings
    
9.  - (1) The modifications made by this article have effect in relation to any time at which an authorisation given by OFCOM by virtue of article 3 has effect.

    (2) In relation to any such time, section 69 of the Copyright, Designs and Patents Act 1988[
9] (no infringement of copyright by use of recordings for certain supervisory purposes) shall have effect as if - 

    (3) In relation to any such time, paragraph 17 of Schedule 2 to that Act of 1988 (no infringement of rights in performances by use of recordings for certain supervisory purposes) shall have effect as if - 

Provision of information
     10.  - (1) Where OFCOM have authorised any person to exercise any function relating to advertising by virtue of article 3 (the relevant function) - 

    (2) The provisions are - 

Disclosure of information
    
11.  - (1) Section 393 of the 2003 Act (general restrictions on disclosure of information) shall apply to a person authorised by virtue of article 3 who obtains information with respect to a particular business in exercise of a power mentioned in subsection (1) of that section as it would apply to OFCOM in exercise of the same such power.

    (2) For the purposes of section 393(4) of the 2003 Act (relevant functions for the purposes of restrictions on disclosure of information), the following function is specified, namely any function of the Health Ministers conferred by or under the 1994 Regulations.

    (3) In this article "the Health Ministers" means the Ministers specified in section 1(1)(a) of the Medicines Act 1968[
10] and in the case of anything falling to be done by them under the 1994 Regulations means any one of them acting alone or any two or more of them acting jointly.

Transitional provisions
     12.  - (1) In this article, references to an unresolved complaint are references to a complaint which - 

    (2) The provision that may be made by an authorisation given for the purposes of article 3, 6 or 7 includes provision authorising a person to dispose of unresolved complaints; and where, and to the extent that, a person is so authorised - 

    (3) In this article, references to disposing of a complaint are references to handling and resolving or (as the case may be) considering that complaint.


Andrew McIntosh
Parliamentary Under Secretary of State Department for Culture, Media and Sport

19th July 2004



SCHEDULE
Article 3


OFCOM FUNCTIONS RELATING TO ADVERTISING WHICH MAY BE CONTRACTED OUT




PART 1

     1. Functions conferred by or under the following provisions of the 2003 Act relating to programme standards for television and radio:



PART 2

     2. Functions conferred by or under the following provisions relating to directions to broadcast a correction or statement of findings:



PART 3

     3.  - (1) In the 1990 Act, functions conferred by or under - 

     4.  - (1) In the 1996 Act, functions conferred by or under - 

     5. In the 2003 Act, functions conferred by section 341(2).



EXPLANATORY NOTE

(This note is not part of the Order)


This Order permits the contracting out of functions of OFCOM relating to the regulation of broadcast advertising under the following legislation:

In the case of functions under the Communications Act 2003 which may be contracted out, the Order identifies certain matters in connection with those functions which cannot be contracted out (article 5).

Where a person is authorised to exercise any function by virtue of this Order, the legislation under which the function is exercised will have effect as though it authorised or required that person to do the same things as OFCOM would also be authorised or required to do in connection with the same function (article 8).

Where a person is authorised to carry out a function by virtue of article 3, the Order makes provision - 

Article 11 also provides, under the power in section 393 of the Communications Act 2003, to add functions conferred by the Medicines (Monitoring of Advertising) Regulations 1994 to the range of "relevant functions" pursuant to which the disclosure of information may be permitted under that Act.

There are transitional arrangements under which a person authorised to consider complaints by virtue of this Order can assume responsibility for relevant complaints which remained unresolved by OFCOM at the date on which his authorisation took effect (article 12).

A full regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of business.


Notes:

[1] 2003 c. 21.back

[2] 1994 c. 40.back

[3] The Office of Communications was established by the Office of Communications Act 2002 (c. 11).back

[4] S.I. 1988/915. Regulations 8-11 were amended by paragraph 51 of Schedule 20 to the 1990 Act, S.I. 2000/914 and S.I. 2003/3183.back

[5] 1990 c. 42.back

[6] S.I. 1994/1993. Regulations 9 and 11 were amended by S.I. 2003/3093.back

[7] 1996 c. 55.back

[8] S.I. 1994/1932. Regulation 9 was amended by S.I. 1994/3144.back

[9] 1988 c. 48. Section 69 was amended by paragraph 31 of Schedule 10 to the 1996 Act, by paragraph 91 of Schedule 17 to the 2003 Act and by paragraph 1 of Schedule 19 to that Act; and paragraph 17 of Schedule 2 was amended by paragraph 32 of Schedule 10 to the 1996 Act and by paragraph 93 of Schedule 17 to the 2003 Act.back

[10] 1968 c. 67. Section 1(1)(a) of the 1968 Act was amended by article 2(2) of and Schedule 1 to S.I. 1969/388 and by article 5 of and paragraph 1(1) of the Schedule to S.I. 1999/3142. By virtue of article 2(2) of and Schedule 1 to S.I. 1969/388 and article 2(1) and 5 of and paragraph 1(1) of the Schedule to S.I. 1999/3142, the functions of the Secretaries of State respectively concerned with health in Scotland and in Wales under the Medicines Act 1968 are exercised by the Secretary of State concerned with Health in England. The functions of the Minister of Health and Social Services for Northern Ireland are now exercised by the Department for Health, Social Services and Public Safety by virtue of section 1(8) of and paragraph 4(1)(b) of the Schedule to the Northern Ireland Act 2000 (c. 1).back

[11] In addition to Channels 3 and 5, section 40(1) (as amended by section 344 of the 2003 Act and paragraph 18 of Part 1 of Schedule 15 to that Act) applies to Channel 4 by virtue of section 40(5) of the 1990 Act; to a restricted service by virtue of section 42B(2) of the 1990 Act (as amended by paragraph 4(1) of Schedule 13 to the 2003 Act read with paragraph 4(4) of that Schedule); to a digital programme licence by virtue of section 23(8) of the 1996 Act (as amended by paragraph 92(6) of Part 2 of Schedule 15 to the 2003 Act); to a digital additional services licence by virtue of section 27(8) of the 1996 Act; and to the public teletext service by virtue of paragraph 8 of Part 2 of Schedule 10 to the 2003 Act, with the modifications specified in that paragraph of that Schedule.back

[12] Section 109(3) (as amended by section 344 of the 2003 Act and paragraph 50 of Part 1 of Schedule 15 to that Act) applies to a national, local or restricted service (within the meaning given in section 245(4) of the 2003 Act); to a digital sound programme licence by virtue of section 62(10) of the 1996 Act (as amended by paragraph 121(6) of Part 2 of Schedule 15 to the 2003 Act); to a digital additional services licence by virtue of section 66(10) of the 1996 Act (as amended by paragraph 124(7) of Part 2 of Schedule 15 to the 2003 Act); and to a radio licensable content service by virtue of section 250(3) of the 2003 Act.back

[13] Section 41 (as amended by paragraph 18 of Part 1 of Schedule 15 to the 2003 Act and paragraph 3 of Part 1 of Schedule 13 to that Act) applies to a restricted service by virtue of section 42B(2) of the 1990 Act, with the modifications specified in subsections (3) and (4) of section 42B.back

[14] Section 42 (as amended by paragraph 18 of Part 1 of Schedule 15 to the 2003 Act) applies to a restricted service by virtue of section 42B(2) of the 1990 Act; to an additional service by virtue of section 55(4) of that Act, with the modifications specified in that section; to a multiplex licence by virtue of section 17(6) of the 1996 Act, with the modifications specified in that section; to a digital programme licence by virtue of section 23(8) of the 1996 Act, with the modifications set out in section 23(9) of that Act; to a digital additional services licence by virtue of section 27(8) of the 1996 Act, with the modifications set out in section 27(9) of that Act.back

[15] Section 55(1) was amended by paragraph 27 of Part 1 of Schedule 15 to the 2003 Act.back

[16] Section 110(1) was amended by paragraph 50 of Part 1 of Schedule 15 to the 2003 Act.back

[17] Section 111 (as amended by paragraph 50 of Part 1 of Schedule 15 to the 2003 Act) applies to a radio multiplex licence by virtue of section 59(8) of the 1996 Act, with the modifications specified in section 59(9) of that Act; to a digital sound programme licence by virtue of section 62(10) of the 1996 Act, with the modifications specified in section 62(12) of that Act; and to a digital additional services licence by virtue of section 66(10) of the 1996 Act, with the modifications specified in section 66(12) of that Act.back

[18] Section 120(1) was amended by paragraph 58 of Part 1 of Schedule 15 to the 2003 Act.back

[19] Section 17(1) was amended by paragraph 89 of Part 2 of Schedule 15 to the 2003 Act.back

[20] Section 23(1) was amended by paragraph 92 of Part 2 of Schedule 15 to the 2003 Act.back

[21] Section 27(1) was amended by paragraph 96 of Part 2 of Schedule 15 to the 2003 Act.back

[22] Section 59(1) was amended by paragraph 118 of Part 2 of Schedule 15 to the 2003 Act.back

[23] Section 62(1) was amended by paragraph 121 of Part 2 of Schedule 15 to the 2003 Act.back

[24] Section 66(1) was amended by paragraph 124 of Part 2 of Schedule 15 to the 2003 Act.back



ISBN 0 11049630 2


  © Crown copyright 2004

Prepared 2 August 2004


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