By Gail Alexander, www.guardian.co.tt

State-owned National Broadcasting Network, currently losing $1.5 million a month, will be put on the divestment block, Public Administration Minister Dr Lenny Saith said yesterday.

He pronounced on the plan for NBN at yesterday's post-Cabinet briefing. It will be an historic step for the company which has been State-owned since inception in 1962.

Comprising Trinidad and Tobago Television and three radio stations, the company became known as NBN after the stations were integrated.

Yesterday, Saith said NBN will have to be restructured to become financially sound. He said Cabinet will use the restructuring as an opportunity to create a new Government Information Service. Restructuring and divestment will take place simultaneously.

There has been concern for some time, Saith said, about the future of NBN. He outlined the station's losing streak in terms of revenue, ratings and market share plus an increase in expenditure.

Its total debt at November 14 was $23.3 million. NBN bankers have also refused to extend a line of credit without a letter of comfort from Government.

"Government is convinced that market share and viability cannot be regained with the present ownership and management structure," he added.

Under the plan, agreement should be reached in principle for the transformation of the GIS into a private, limited liability company for public education, distance learning, Government information and local programming.

His Ministry will transfer the ownership of the Information Channel (TIC) and radio frequency 91.1FM from NBN to the GIS.

He said the new NBN — TTT, 610AM, 98.9FM and 100.1FM — should be divested with shares reserved for staff, trade unions and other identified stakeholders.

The Divestment Secretariat will assess NBN's financial situation and make recommendations within three months. Government's share in NBN will also be determined by the Secretariat.

Saith could not say if retrenchment would take place. He said acquisition of shares may be limited to prevent monopolisation.

NBN's Maraval Road building will be included in the divestment. Its other properties at 17 Abercromby Street (now vacant) and at Lady Young Road, Morvant (Information Channel) will be kept by the State.

The proposed GIS will be at a new seven-storey building being constructed at the current GIS location, on St Clair Boulevard. TV4 and current GIS employees will be absorbed into the new GIS.

"The GIS will be akin to PBS and BBC1, leaving NBN to become a lean, mean competitor and take its premier role in competitive TV," Saith added.

Government's assessment of the situation was assisted by a PriceWaterhouseCoopers study performed in 2001.

Saith said PNM stopped advertising in TTT since the 2001 general election.