Part 3: Public service broadcasters Chapter 2: S4C Section 32: S4C’s powers and public service remit
This section amends the CA 2003 to update S4C’s public service remit and powers. The section removes the current geographical restriction on S4C’s powers, therefore ensuring S4C is able to provide services outside Wales, and confirms that S4C is allowed to provide a digital or online service, as recommended by the independent review published in 2018. In addition, it simplifies the framework of S4C’s functions, public service duties and public service remit currently set out in the CA 2003, reflecting the new public service remit introduced for all PSBs in Part 1, and adjusts the approval arrangements for S4C’s commercial activities.
	Subsection (2) replaces current sections 204 to 206 of the CA 2003, which set out the functions and powers of the Welsh Authority (i.e. the body corporate) to be delivered through the analogue and digital channels of S4C and S4C Digital, and also set out other activities the Welsh Authority is permitted to undertake with the associated approval requirements.
	New section 204A provides S4C in subsection (1) with the power to provide any audiovisual content i.e. it may provide content that does not fulfil the public service remit alongside content that does. Subsection (2) sets out S4C’s public service remit and (3) states that S4C must use subsection (1) to fulfil that remit (generally, the Actrefers to the body corporate as "S4C", rather than as the "Welsh Authority" – see notes below on Chapter 2 of Part 3: minor and consequential amendments). The new remit aligns with the changes introduced in Part 1 above for all PSBs, requiring S4C to make available a broad range of audiovisual content which contributes to the public service remit for television and (collectively) represents an adequate contribution to that remit. To contribute to the public service remit for television, and therefore S4C’s public service remit, content must (for example) be available free of charge. In addition subsection (2) retains the requirement that a substantial proportion of S4C’s public service remit content must be in Welsh. S4C also has the power in this subsection to do anything it considers appropriate in association with its provision of audiovisual content in subsection (1). This ensures S4C can continue to conduct commercial activities that are related to its main functions and activities.
	Subsection (4) confirms that the phrase "audiovisual content" has the same meaning as in section 264 as amended above, i.e. audiovisual programmes other than advertisements, included in a relevant audiovisual service. Subsection (5) confirms that the same interpretation of "made available" as set out in subsection (13) of section 264 also applies. This confirms that S4C may provide audiovisual content itself or under arrangements with another person. Paragraph 1(2) and (3) of Schedule 6 to the BA 1990, which allows S4C to do anything incidental or conducive to the carrying out of its functions (including its powers and public service remit in new 204A), still applies.
	New section 204B sets out a number of additional restrictions on S4C’s powers in section 204A. Subsection (1) states that S4C must obtain the Secretary of State’s approval in writing before providing any television programme service, or doing anything for a charge or with a view to making a profit i.e. commercial activity. Subsection (2) applies the latter requirement to a commercial activity carried out by an S4C company. These subsections also replace the previous requirement for approval to be provided by way of an Order in secondary legislation to allow S4C greater flexibility in responding to market developments.
	Subsection (3) allows the Secretary of State to approve a range of activities by way of a general approval, or to approve a particular activity in a specific approval.
	Subsection (4) confirms that S4C Digital, the current television channel, is to be treated as approved at the point of commencement. No further approval is required. It also confirms that any other activities already being carried out by S4C are to be treated as approved at the point of commencement, whether or not they were previously approved, given it would be impractical to pause them purely for the purposes of obtaining approval after commencement.
	Subsection (5) confirms that S4C still cannot provide a licensable radio service under section 245 of the CA 2003.
	New section 204C subsections (1) to (3) confirm that the Secretary of State must publish any approval of a new television service or a specific new commercial activity, but any commercially sensitive material must be redacted. No approval for the activities described in new section 204B(3) is required to be published.
	Subsections (3) and (4) respectively amend section 207 of the CA 2003 (S4C’s finances) and paragraph 1 of Schedule 6 to the BA 1990 (S4C: supplementary provisions) to reflect the restructuring of S4C’s powers detailed above. This includes that its power to do anything incidental and conducive to its functions can be done through or with other persons.