Mandelson's music tax will hit North Wales charities
22 December 2009
Colwyn Bay
Charity events across North Wales will suffer as a result of the decision by Lord Mandelson’s department to abolish an exemption from charities from complying with music licensing rules, which will mean that community groups will have to pay fees for playing recorded music at events such as discos, coffee mornings and tea dances.
The decision to abolish the “PPL exemption” has been made by the Intellectual Property Office, part of Lord Mandelson’s Department for Business, Innovation and Skills. The Government itself admits that the levy will cost voluntary organisations some £20 million a year and will be “highly detrimental”.
Clwyd West Conservative MP, David Jones, commented:
“The decision to abolish the PPL exemption will affect voluntary organisations across North Wales, including sports clubs, charity shops and church and village halls. Many youth and pensioners’ groups may decide to stop holding discos and tea dances as a consequence.
“At such a gloomy economic time, it seems particularly heartless for Peter Mandelson’s office to decide to tax struggling voluntary groups laying on welcome entertainment for local people. It is, in every sense, a tax on simple enjoyment
“Oliver Cromwell’s Protectorate banned dancing and abolished Christmas. Peter Mandelson’s music tax is just one step short of doing the same.”
ENDS
Note to Editors:
Phonographic Performance Limited (PPL) administers licences and collects income for the playing and performance of sound recordings and performances; the Performing Right Society Mnot-for-profit bodies benefit from an exemption to obtain a licence from PPL in respect of their use of recorded music (though they are still required to obtain a licence from the PRS).
The Intellectual Property Office, part of the Department for Business, Innovation and Skills, has now decided to end the exemption from April, 2010. It is estimated that about a quarter of a million organisations will be affected by the decision, including 140,000 charities, 6,750 charity shops, 66,440 sports clubs,4,000 community buildings5,000 village halls and 45,000 religious buildings.
The cost to the voluntary sector is estimated at £20 million per annum.
03 September 2010