Netherlands

[NL] Dutch Broadcasting Corporation to be Privatised

IRIS 1999-5:1/7

Gerard Schuijt

Media Forum

In connection with the privatisation of the Dutch Broadcasting Corporation ( Nederlands Omroepproduktie Bedrijf NV - NOB ), the Bill amending the Dutch media law (Mediawet ) was published in the Official Gazette and entered into force on 1 May 1999. The term "privatisation" may be slightly misleading, since shares in the company, previously owned by a special foundation, are being taken over by the State. Under the new law, the foundation is to be dissolved and its property automatically transferred to the State in accordance with regulations in this field. The proceeds from the planned sale of NOB shares by the State shall be allocated to the general broadcasting budget, except for a sum of 155 million guilders. However, interest on the proceeds will not fund broadcasting directly, but will go towards the State's annual support for culture, which is provided for by law. The new regulation is the result of a lengthy tug-of-war between the Finance Minister and the Lower House.