Netherlands

[NL] Full Privatisation of NOB

IRIS 1997-5:1/16

Nico van Eijk

Institute for Information Law (IViR), University of Amsterdam

The former production company of the public broadcasting sector in the Netherlands (NOB, Nederlands Omroepproduktiebedrijf NV) will become a fully privatised company. Originally the NOB was an integrated part of the Dutch public broadcasting system, but it became independent when the Media Act entered into force in 1987. However, the Dutch Government became the sole shareholder, anticipating a full privatisation. To sell the Government's share, requires amendment of the Media Act. A proposal to do so, was sent to Parliament recently. The Government will look into every possibility to dispose of its participation - including an Initial Public Offering (IPO)

- but is primarily concerned about the possible effects on the continuity of the company, the employment and its impact on the public broadcasting sector, which is one of its most important clients. In order to protect the interests of the broadcasters broadcasting in the public broadcasting system, the obligation for the NOB to provide the essential technical facilities for the broadcasting of their programmes, will be maintained in the amended Media Act. For this, The NOB will receive a financial compensation based on the market value of the services delivered (f 39 mln in 1995). The revenues of the sale will be used to reduce the national debt. The broadcasters claim that they were promised in the past that the money would be used to support the public broadcasting system. Their opinion is supported by the Raad van State (Council of State), which advised the Government on the proposal. However, the Government did not share this opinion.