In an 8:5 vote, the Knesset Economic Affairs Committee has rejected a proposal to allow Channel 10 to reschedule payments. The vote means that unless an investor is found to inject NIS 60 million to pay for royalties and franchise fees, the company's shareholders - Ron Lauder and Arnon Milchan - agree to provide the financing, the station will shut down in three weeks.
Following the decision, Channel 10 CEO Yossi Varshavsky said, "The channel will go dark on January 27, 2012."
MKs Amir Perez (Labor), Nachman Shai (Kadima), Yoel Hasson (Kadima), Yulia Shamalov Berkovich (Kadima), and Robert Tiviaev (Kadima) voted in favor of the proposal. MKs Israel Eichler (United Torah Judaism), Yitzhak Vaknin (Shas), David Azoulay (Shas), Hamad Amar (Israel Beiteinu), Robert Ilatov (Israel Beiteinu), Zeev Elkin (Likud), Ofir Akunin (Likud), and committee chairman Carmel Shama Hacohen (Likud) voted against.
At the start of the Economic Committee's discussion on the future of Channel 10, Minister of Communications Moshe Kahlon said, "I favor doing everything to keep Channel 10 operating. To tell you that I know what would be the results of the pending vote - I have no idea."
Before the vote on rescheduling Channel 10's debt, Shama gave Varshavsky the right to speak. "Channel 10 has fulfilled the commitments it assumed when the franchise was extended," he said. "Moreover, Channel 10 is the only franchise that does not owe the public high quality content programming. See the report by the Second Broadcasting Authority.
"The shareholders are expanding the channel's financial infrastructure with a new investor. This measure will fail unless there is a debt rescheduling agreement. Obviously, any reasonable investor wants to see new money first invested in content."
Varshavsky concluded, "On January 27, 2012, Channel 10's franchise will expire. If you vote against rescheduling, I will have to recommend to the shareholders not to request to extend the franchise. You will certainly say that the shareholders closed the station, and we will say that the legislature closed it, but in the end that will make no difference to the dismal truth. Channel 10 will be closed and the TV market will regress ten years and will stay that way for a long time. Such an act contravenes the spirit of the current bill, whose sole objective is to increase the number of channels offered to the public without payment."
Shama criticized Channel 10's recent conduct, saying, "Channel 10 as a financially weak company that will require government support cannot be the watchdog of democracy. At best, it would be a poodle."
Labor Party chairwoman MK Shelly Yacimovich said that the coalition's determination in today's vote to close Channel 10 demonstrated that it was not driven by impartial motives, and that the move was a blatant attempt to get rid of a TV station that did not kowtow to the regime.
Published by Globes [online], Israel business news - www.globes-online.com - on December 12, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011