£5m would be 'a reasonable sum' to subsidise STV's regional news

THE managing director of broadcasting for STV has said £5 million would be "a reasonable amount" of subsidy to allow it to continue to produce regional Scottish news bulletins.

Bobby Hain said STV had warned the government that the five and a half hours of Scottish news programmes it broadcasts each week are under threat because of rising costs and falling advertising revenues.

The commercial television station is hoping to become one of the first in the UK to receive money from the licence fee to allow it to continue to produce regional news programmes.

Mr Hain said the figure of 5m a year in subsidy had not come from STV – but acknowledged that it was "a reasonable amount".

The UK government is currently considering giving public funding to commercial television channels in the wake of the Digital Britain report, which outlined the threat to local news coverage around the UK.

Mr Hain said: "STV news is noted by Ofcom as being amongst the most watched and valued by viewers anywhere in the UK.

"We have four local news areas that we have developed in Scotland – we have a level of news coverage that doesn't exist anywhere else. We think it is very important that alongside the BBC there is competition and plurality for viewers."

Minister for culture Michael Russell said: "There will of course be other bidders but I remain in touch with STV and will watch their bid closely. Their news services are of great importance in securing diversity."