Part IIITransitional Provisions
1(1)In this paragraph—
“new statutory provisions” means the provisions of the [1981 c. 68.] Broadcasting Act 1981 as amended by this Act; and
“existing statutory provisions” means the provisions of that Act as they had effect immediately before the coming into force of section 181.
(2)Any contract between the Authority and a programme contractor which is in force immediately before the day on which section 181 of this Act comes into force shall, until it is varied or superseded by a further contract between them or expires or is otherwise terminated (whichever first occurs), be deemed to be modified by virtue of this Schedule so as—
(a)to substitute provisions in conformity with the new statutory provisions for so much of the contract as is in accordance with the existing statutory provisions and is not in conformity with the new statutory provisions, and
(b)to incorporate in the contract such additional provisions as a contract between the Authority and a programme contractor is required to include in accordance with the new statutory provisions;
and (subject to paragraph 5 of Schedule 4 to the 1981 Act) any provisions of the contract which provide for arbitration as to any matters contained in the contract in accordance with the existing statutory provisions shall be construed as making the like provision for arbitration in relation to matters deemed to be included in the contract by virtue of this sub-paragraph.
(3)Where it appears to the Authority that the new statutory provisions call for the inclusion of additional terms in any such contract, but do not afford sufficient particulars of what those terms should be, the Authority may, after consulting the programme contractor, decide what those terms are to be.
(4)This paragraph shall not be taken to have effect in relation to any contract entered into by a programme contractor and any person other than the Authority before the day on which section 181 of this Act comes into force.
2Where any accounting period of a programme contractor begins before 1st January 1990 and ends after 31st December 1989, the additional payments payable by the programme contractor in relation to that accounting period under section 32 of the [1981 c. 68.] Broadcasting Act 1981 shall be the aggregate of—
(a)the amounts payable by him on the assumption that section 181 of this Act was not in force at any time during the accounting period, multiplied by—
,and
(b)the amounts payable by him on the assumption that that section was in force throughout the accounting period, multiplied by—
;where (taking any odd four days or more as a week)—
X is the number of weeks in the accounting period falling before 1st January 1990, and
Y is the number of weeks in the accounting period falling after 31st December 1989.
3Where, under the existing statutory provisions, any excess of first category expenditure over first category income of a programme contractor would have been carried forward and treated as relevant first category expenditure of his for an accounting period ending after 31st December 1989 if those provisions had applied in relation to that period then the excess shall be carried forward and treated, under the new statutory provisions, as relevant expenditure of the contractor for any accounting period which eds after that date.
4In this Part of this Schedule, references to programme contractors shall be read as including references to teletext contractors.