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(1)The activities that the Welsh Authority are able to carry on include activities which appear to them—
(a)to be activities that it is appropriate for them to carry on in association with the carrying out of their function of providing S4C, S4C Digital or a service the provision of which is approved under section 205; and
(b)to be connected, otherwise than merely in financial terms, with activities undertaken by them for the carrying out of that function.
(2)The approval of the Secretary of State is required for the carrying on by the Welsh Authority of activities authorised only by subsection (1).
(3)The approval of the Secretary of State—
(a)must be contained in an order made by him; and
(b)may be a general approval in relation to a description of activities or a specific approval in relation to particular activities.
(4)The activities capable of being authorised under subsection (1)—
(a)do not include the provision of a licensable service; but
(b)do include activities for securing the provision of such a service by an S4C company and other activities connected with the provision of such a service by such a company.
(5)The activities referred to in subsection (4)(b) include—
(a)the formation of a company to provide a programme service;
(b)the taking of steps by means of which a company that is providing such a service becomes an S4C company.
(6)For sub-paragraphs (2) and (3) of paragraph 1 of Schedule 6 to the 1990 Act (power of Welsh Authority to do things incidental or conducive to the carrying out of their functions) there shall be substituted—
“(2)The Authority may do anything which appears to them to be incidental or conducive to the carrying out of their functions.
(3)The powers of the Authority under sub-paragraph (2) include power, to the extent that it appears to them incidental or conducive to the carrying out of their functions to do so—
(a)to carry on activities (other than those comprised in their duty to carry out their functions under section 204 of the Communications Act 2003) through S4C companies; and
(b)to participate with others in the carrying on of any such activities.”
(7)In this section “licensable service” means a service that would fall to be regulated under section 211 or 245 if provided by an S4C company.
(8)Section 57(1A)(b) and (1B) of the 1990 Act (power of Welsh Authority to establish, acquire an interest in or assist a qualifying company) shall cease to have effect.
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