Scotland’s culture minister has backed the proposal by the Scottish Digital Network that any local television service in Scotland should be publicly funded.

Following the publication of the Scottish Digital Network Panel’s report, minister Fiona Hyslop told the Scottish Parliament’s Education, Lifelong Learning and Culture Committee that the television license fee should be the source of funding for a new television channel.

Ms Hyslop said:"We firmly believe that a publicly-funded Scottish Digital Network is the best way to sustain and support local television services in Scotland. It would bring benefits to viewers in all parts of Scotland - not just the largest centres of population which are commercially viable - as well as meeting the need for choice in public service broadcasting in Scotland.”

The action published by the Scottish Government estimates that the annual budget for the network in Scotland would be around £75 million each year, with four hours of original content a day expected to cost a total of £55 million alone.

Hyslop continued to say that the case for the digital network was “sufficiently strong” and has political support, although she also highlighted ‘uncertainty’ over when a network would be established.

"The report's recommendations in relation to funding a digital network can only be implemented with the co-operation and agreement of the UK Government.  My key priority, therefore, since receiving the Panel's report, has been to make the case for funding a Scottish Digital Network to the UK Government, in order to try to secure prompt agreement from UK Ministers about possible funding for a network.”

She also recognised the UK Government’s view that the core network should be funded by commercial means, but said that such a solution would be unlikely to offer significant public service benefits to Scottish viewers, with commercial funding unlikely to raise significant sums.

“It is now for the UK Government to work with us to establish a digital network for Scotland, funded from the licence fee as S4C will be from 2013-14, or from the sale of spectrum once digital television switchover has been completed, which will then accommodate more localised broadcasting,” Hyslop concluded.

The Scottish Government's response also claims that the Scottish network could provide the local TV elements of Channel 6, which is being developed under the auspices of the UK Government. It is expected to be operational by 2013 with Westminster expecting to name the award of the first local TV licences by 2012. The Scottish Government have submitted an official note of interest to say their the Scottish Digital Network could provide local services North of the Border.

The local television network is being led by UK culture minister Jeremy Hunt, with 20 companies thought to have express interest in holding the broadcast license.