Cayetano defends 10-percent gov’t cut from ads in ABS-CBN interim franchise bill

MANILA, Philippines — Speaker Alan Peter Cayetano defended the requirement for ABS-CBN to allocate 10 percent of its paid commercials and advertisement to the national government, saying that the same provision is also included in GMA Network Inc.’s (GMA-7) current franchise.

During Monday’s plenary session, Cagayan de Oro Rep. Rufus Rodriguez took note of Section 4 of House Bill No. 6732, the bill granting ABS-CBN a provisional franchise to operate until October 31, 2020.

Section 4 the bill states that the network shall “provide free of charge, adequate public service time which is reasonable and sufficient to enable the government” to relay important public issues and important public announcements concerning public emergencies and calamities.

The provision defines “public service time” as “ten percent of the paid commercials or advertisements which shall be allocated based on the need to the executive, legislative judiciary, constitutional commissions and international humanitarian organizations duly recognized by statutes.”

Cayetano explained that the same provision is also included in Republic Act No. 10925 which granted GMA-7 its current 25-year franchise back in 2017.

“I happen to be in the Senate during this time. So yung huling provision, unfair kasi sa Channel 7 or sa other channels kung 10% of advertisements paid for will be free sa government, tapos sa iba hindi,” Cayetano said.

If it were up to him, Cayetano said that would have amended ABS-CBN’s franchise as early as 2017 to include a similar provision.

“So this is actually an equalizer provision. So if we don’t put this in the ABS-CBN franchise whether it’s for a temporary or a 25-year franchise, hindi mao-operationalize yung sa ibang mga channels,” Cayetano said.

According to Cayetano, before the coronavirus crisis, it costs around P1 million to P1.4 million to place a 30-second advertisement in ABS-CBN and GMA-7, two of the biggest broadcast networks in the country.

The Speaker also cited examples when government agencies can benefit from the provision, particularly on disseminating information to the public regarding their programs.

“Regardless whether we grant or not, it is a good law to have this provision that gives the government 10% of the advertising time that is sold. Kasi mahirap naman na pagbabayarin pa natin ang gobyerno ng P1 million, P1.4 million for 30 seconds, yung airwaves naman ginagamit niya,” Cayetano said.

‘Unequal protection of the law’

Rodriguez, however, said that other franchise bills do not include the definition of “public service time,” making the move to include them in ABS-CBN and GMA’s franchise bills “questionable” on the grounds of unequal protection of the law.

The lawmaker also listed approved broadcast franchises that did not have the same provision.

“We cannot have a situation where the ABS-CBN franchise, which we are about to grant a temporary one, could have this, and GMA-7 could have this but those at least six others do not have the second paragraph,” Rodriguez said.

But Cayetano argued that “the law has to be equally applied to those who are similarly situated.”

“In the franchises that you have mentioned, they are either radio or if they are TV, they are regional or provisional. If you look at Channel 5 and Channel 7, the same provision is found there,” Cayetano said.

“And I think it’s worth arguing that Channel 2 and Channel 7, sa ratings and sa reach with Channel 5, are the ones similarly situated,” he added.

Cayetano then expressed his intention to amend existing franchises to include the provision which, he said, would be “favorable to the government.”

“I’m willing to submit this to our legal. But may I just stipulate my personal stand that all franchisees should have this if the argument is legal protection,” Cayetano said.

“And lastly, if you look at the profits of our giant networks, the 10% will not affect their bottom line, will not affect their stockmarket prices, will not affect severely their income. But it will give a great advantage to the government to be able to communicate with our people directly,” he added.

EDV