Huw Jones said the agreement with the BBC will show a commitment 'for S4C to keep its operational and editorial independence'
The chair of the S4C Authority, which oversees the management and output of welsh-language broadcaster S4C, has insisted that its independence is not "all over", in light of planned changes to its funding and governance.
In an address given to the Institute of Welsh Affairs, and published by the S4C Authority, Huw Jones said ongoing discussions between S4C, the BBC and the department for culture, media and sport will result in an agreement which shows a commitment "for S4C to keep its operational and editorial independence".
Under the proposed arrangements, S4C's funding will move from a direct department for culture, media and sport grant, to funding through the BBC licence fee.
In May the House of Commons' Welsh Affairs committee said it felt the deal struck by the BBC and government ministers on the future of S4C was made in "regrettable haste".
The committee's report on the proposed changes to S4C's funding and governance, following last year's comprehensive spending review, called on the government to ensure the channel's editorial and managerial independence "is not compromised".
In his speech to the Institute of Welsh Affairs yesterday (17 October) Jones said all sides were making an effort to come to an arrangement "which respected the principles that were fundamental to the two organisations".
"One of the things of vital importance to S4C is to be able to show clearly, under the new arrangement, that S4C can make its own final decisions on operational matters as well as editorial, for example when making recommendations regarding different ways of operating and that its own administrative officers are free to assess the benefits of each recommendation from the standpoint of the value it will bring to S4C's service and S4C's viewers."
According to the S4C Authority the broadcaster has lost £11 million from its budget in 2011 compared to last year.
"Compared to what it would have received under the Broadcasting Act the reduction is £14.5 million. Next year, 2012, the income will be down to £83 million and it will remain at that level without an increase for inflation for a further two years," the authority added.
"S4C faces a cut of about 36 per cent in its income by 2015 compared to what would have been generated by the formula existing under the present Act, namely an increase in line with inflation."
In October last year culture secretary Jeremy Hunt also announced plans to reform the funding mechanism for S4C and give ministers power to modify its funding arrangements. This would be achieved by removing the link to the Retail Price Index as set out in a new public bodies bill which had previously meant S4C received an inflation-linked increase in funding each year.
In March this year an amendment to the bill calling for S4C to be removed was defeated by 197 votes to 162. The bill remains in report stage.
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