Finland

[FI] New Administrative Model for YLE in Finland and Specifications in the PSB

IRIS 2006-1:1/21

Marina Österlund-Karinkanta

Finnish Broadcasting Company YLE, EU and Media Unit

On 19 August 2005, the Laki Yleisradio Oy:stä annetun lain muuttamisesta (Act on the Amendment of the Act on Yleisradio Oy)was ratified. This Act enters into force on 1 January 2006.

Yleisradio Oy, the Finnish Broadcasting Company (YLE), is the public service broadcaster in Finland. Through theamendments in the Act on Yleisradio Oy, a new administrative model for the company was introduced and some specifications were made to its public service remit.As of 1 January 2006, the company will have an external Board of Directors after previously having had an internal Board. As of 2006, the Board must have 5 to 8 members, none of whom can be members of the Administrative Council nor of the company's senior management.As a consequence of this reform, the Board of Directors' powers are being extended to correspond, with certain exceptions, to the tasks of directors defined by the Companies Act (734/1978).

YLE's highest decision-making body, the Administrative Council, consists of 21 members elected by Parliament. As was previously the case, the Administrative Council elects the Board of Directors and decides on issues concerning considerable restriction or expansion of the activities or significant changes in the organisation of the company. The Board shall represent sufficient expertise and both language groups (e.g. Finnish and Swedish). The amendments in section 6, and the inclusion of a new section 6a, in the Act on YLE, shift some of the tasks of the Administrative Council to the Board. Other changes prescribe that as of 2006 the Administrative Council must :

- submit to Parliament, every second year, a report on the implementation of the public service in the previous two years after having heard the Sami Parliament;

- decide on the economic and operational guidelines;

In future the duties of the Board include:

- electing and dismissing the company'sDirector General who must not be a member of the Administrative Council nor of the Board of Directors;

- electing the other members of thecompany's senior management;

- deciding the budget for the following year;

- summoning the Ordinary General Meeting and preparing the items of the agenda;

- submitting an annual report of the company's operations to the Finnish Communications Regulatory Authority.

The list of particular public service duties in section 7 was extended to include:

- supporting everyone's opportunity to participate and opportunities to interact;

- producing art and inspiring entertainment;

- taking equality aspects into consideration;

- providing an opportunity to study;

- focusing on programming for children;

- supporting tolerance and multiculturalism;

- promoting cultural interaction.