Pact deputy fights back, as Ch4 stops payments

Channel 4 is to stop its monthly payment to production trade association Pact, ending a 25-year agreement.

Executives at the broadcaster believe Pact is becoming too powerful, and with some production companies like Endemol now bigger than smaller broadcasters, insiders at Channel 4 feel that Pact can cope without the extra cash direct from broadcasters.

Channel 4 will reportedly pay £12,500 a month until June, when all funding will stop.

The BBC currently pays around £300,000 a year to Pact, with Five deducting money from programming budgets it gives to indies and giving around to £180,000 Pact. Producers on ITV commissions have a Pact fee directly deducted, working out at over £200,000 a year.

Pact chief executive John McVay said the organisation was disappointed with Channel 4's decision, and was consulting with council and members over the most appropriate way to replace the shortfall. Options could include scrapping the levy and charging independents more for their membership, or approaching indies directly, as is done with ITV.

A Channel 4 spokesman told Broadcast: "Our decision to stop paying the levy reflects the very different media environment in which we all work today. However we will continue to liaise closely with Pact."

Meanwhile, Pact has currently suspended vice-chairman Nick Rosen, director of factual producer Vivum, over allegations of improper conduct. He was suspended by a unanimous vote at its monthly meeting.

Rosen claims the move came after he publicly questioned the trade body's commitment to small production companies in a February issue of Broadcast. Rosen, who was elected to the council a year ago, has called for "an extraordinary general meeting," in order for him to be reinstated.