C4 merger plan in TV shake-up

CHANNEL 4 could be merged into a new, larger broadcaster as part of one of the Government's biggest revamps of British television.

The plan is set to be put forward by communications minister Lord Carter as a possible solution to the channel's funding crisis.

The new broadcaster would be operating by 2012 and would carry public service responsibilities such as providing an alternative to BBC's news coverage.

Lord Carter is expected to rule out giving a slice of the BBC licence fee to publicly-owned Channel 4, which is facing a £100 million-a-year shortfall.

Yesterday, Channel 4 chief executive Andy Duncan rejected a possible merger with Channel Five, likening it to trying to "mix oil and water". A spokesman for the Department for Culture, Media and Sport said: "Ministers have taken no decisions about Channel 4 but remain committed to retaining it in public ownership."

Lord Carter is also expected to call for fresh legislation on internet piracy and for a new rights agency to protect content. A report by the International Federation of the Phonographic Industry today says that 95 per cent of music downloaded online is illegal.