The Postmaster-General asks for advice as to the legal position as regards the present proposals, and refers to the Solicitor-General’s opinion of 21st May, 1924.1

The question is whether the substitution of the broadcasting scheme now proposed for that in existence under the Regulations now in force will give holders of broadcasting station licences any legal or moral claim for compensation.

I assume that existing station licences will not be revoked; though of course the organisation of the station licensees’ business will be entirely thrown out of gear by the abolition of subscriptions by receiver licensees to station licensees, and by the introduction of open sets.

I have conferred with the Attorney-General and we are of opinion:

1. That the substitution of the new system will not give the licensees any legal claim for compensation. There is no contract with them, express or implied; their rights depend upon the Regulations, and they have no legal right to the continuance of the Regulations.
2. That the station licensees will have ground to complain of unfair treatment if their existing rights are substantially taken away without compensation.

A station licence is granted for five years and is expressed to be renewable. It imposes on the licensee heavy financial obligations, for which he looks to subscribers to recoup him. To take away his means of revenue without compensation would lay the Government open to a charge of breach of faith.

That of course is not proposed. The licensees are to be compensated by allowances from the revenue from broadcast (receivers’) licences in the State. The political question of fair treatment will depend altogether on whether this compensation is reasonably adequate in every case.

The obligation being a moral and not a legal one, the Commonwealth can determine the amount without reference to the licensees; but it is obviously desirable, if it is practicable, to arrange it with the licensees and thus remove the possibility of complaints which it might be very difficult to satisfy.

[Vol. 21, p. 111]