Law 34/2012, of 13 December, of extraordinary credit for the Government's contribution to the public company radio and television of Andorra, SA, to offset accumulated losses of previous years, and the additional cost of credit for dealing with the current transfer who has to finance the expenses of staff in the concept of termination of contracts and other expenses of the year 2012 because the General Council in its session of December 13, 2012 has approved the following: law on extraordinary credit for the Government's contribution to the public company radio and television of Andorra, SA, to offset accumulated losses of previous years, and the additional cost of credit for dealing with the current transfer who has to finance the expenses of staff in the concept of termination of contracts and other expenses of the year 2012 preamble on 13 April 2000 the General Council approved the law on radio and television broadcasting and creation of the public company radio and television of Andorra, SA.

According to this law was to create a public company stock called radio and television of Andorra, SA, which is a public company that is awarded the direct management of public service broadcasting and television, with a founding capital of one hundred million of the old pesetas (601,012.10 euros).

The contribution of this capital on the part of the Government, as sole shareholder, became effective on 24 August 2000. The Government funded this contribution through part of initial credits budgeted for power transfer to the society.

This modification in the budget of the Government, which led to a reduction of the current transfer to society to 100 million of the old pesetas, was not moved to the budget of the society by means of an adjustment of the respective streams expenditure budget, given that the company executed the total number of credits of current expenses for the financial year 2000 in accordance with the approved expenditure budget. For this reason, from the beginning of its activity, on 24 August 2000, up to the closing date of the year 2000, "SA generated a loss of 104,334,271 pesetas (627,061.60 euros).

Since then the company has been registering losses each year – except in 2001-have been slowing their equity.

Up to 2008 the increase in expenses was greater than the increase in revenue. This trend is reversed starting from the financial year 2009 up to the year 2011, inclusive. In this last period, there is a decrease of the cost of an average of 10% and a decrease of income of 8% on average and, therefore, that the effort of saving and rationalization of costs, started the year 2009 and that affects mainly the headings of personnel and other services, has had financial effect in 2011, since it has contributed to a reduction of the deficit of the company. It is worth noting, however, that despite the cost containment, the reduction has affected the quality of the product and the content of the broadcasts, which has impacted on ad revenue, although this is not the only reason. In general, the income generated by the same entity have been reduced as a result of the business crisis of the Principality, which moved in the form of reduction of expenses on advertisements and campaigns in the media.

As a result of this background in the management of the public company radio and television of Andorra, SA, and in spite of the policy of containment of the expense that has been reflected financially in 2011 with a reduction of the deficit of the company ", SA is in a situation in which does not generate nor have sufficient resources to meet the obligations in the medium term , as it highlights the fact that the 31 December 2011 the company has a working capital and negative equity.

You have to make here is that the article 85 of law 20/2007, of 18 October, corporations and limited liability provides that the General meeting of Shareholders adopt the agreement of dissolution of the company when the value of the equity is less than half the figure of social capital and it has not been possible to remedy the situation.

Accordingly, it is evident that the continuity in the operation of the company is currently subject to the refund of the own funds of the society and to the contributions that it confers the Government, as sole shareholder of the company, therefore, requested an extraordinary credit of 4,382,879.14 euros for the front.

On the other hand, regarding the year 2012 in progress, law 22/2011, from 29 December, of the budget for the financial year 2012, in the section of the budget of the radio and television of Andorra, SA, provides credits of additional currents that are not enough to deal with the following expenses: staff costs by way of compensation and social burdens derived , and months ' salary after until the time of the termination of the employment relationship, of a total of 695,976.91 euros; in consumer costs of goods and services, for a total of 256,776.79 euros; and financial expenses, for an amount of 30,018.50 euros in bank interests as a result of the negative cash flow of the company.

As for consumer spending credits for goods and services that you request support, are to deal with the contribution because RTVSA remains an active member of the European Broadcasting Union in order to continue taking advantage of the synergy of operation, especially with the Group of members from the small States of Europe. It has also taken over the media coverage of events such as the women's Ski World Cup held in Soldeu and the Olympic Games in London. Other unforeseen expenses, during the financial year, have been travelling to the assemblies of the UER or other organisms; the presence in trade fairs; various repairs of machinery, installations and equipment and computer equipment and vehicles due to the deterioration of the assets and the hiring of external production of content, mostly.


This situation is given, on the one hand, by the fact that the amount removed by the company up to date on concept of property income, corresponding to advertising revenue, mainly, is below the amount foreseen in the budget for the year 2012 and therefore the society needs to restore this funding in order to cope, by the amount equivalent to the costs of running that was scheduled to take on with this income in order to ensure a balance between revenue and expenses cleared off, respectively.

And on the other hand, by the fact that in the phase of elaboration of the program of action for 2012 the company was in a period of transition, marked by a management oriented only to costs with guidelines strictly of containment and rationalization of spending given its economic and financial situation, in hopes of being able to set the bases of public audiovisual media more efficient and appropriate for Andorra. This new model more efficient management, on which is based the management of the company from March 2012, represents a profound reform of the company that this year brings ordinary expenses already mentioned, that are necessary to achieve the strategic objectives that determines this new model.

For all these reasons and with the aim of giving continuity and ensure the public that audiovisual media owned by the State, on the initiative of the public company radio and television of Andorra, SA, the Government in the October 17, 2012, in accordance with articles 23 and 24 of the general law of public finance, has approved a special credit to offset accumulated losses of previous years , which are encrypted in a total amount of 4,382,879.14 euros, in order to restore the value of the net assets of the company and thus be able to amortize the debts in the short term those who currently cannot cope; and an additional credit for taking on the costs of termination of contracts and other expenses of a total amount of 982,772.20 euros.

This extraordinary credit and credit supplement must be allowed to continue with appropriate measures for the efficient management of public audiovisual media without neglecting the quality of content, and to use the resources available in accordance with the principle of good management (economy, efficiency and effectiveness), with the objective of not generate losses the next few exercises and present a balanced accounts.

The character of urgency and necessity of this provision is justified by the obligation of fulfilling a public service with major character, since it depends on the smooth functioning of public audiovisual media of the Principality of Andorra.

Seen the resolution of the General meeting of shareholders ", SA;

Seen the report of the General intervention;

Seen the governmental agreement of 17 October 2012;

Article 1 approves a credit and an additional credit for the following Government budget budgetary items, respectively: 110-114 Government General Secretariat Transfers-PROJ-0012-", SA-87901 extraordinary contributions of the Government to compensate for accumulated losses of previous years, for an amount of 4,382,879.14 euros.

the Government's General Secretariat 110-114 Transfers-PROJ-0012-", SA-44300", s.a., for a total amount of 982,772.20 euros.

Article 2 approves an extraordinary credit for an amount of 4,382,879.14 euros and an additional credit for a total amount of 982,772.20 euros for the following budgetary items of the budget of the radio and television of Andorra, SA: expenditure budget in euros 1 110 basic Salaries and other staff costs 695,976.91 610,703.55 85,273.36 social security Contributions the remuneration of permanent 160 2 consumption of goods and services 203 256,776.79 machinery rental 208 6,338.40, installations and equipment Rental other services 43,831.72 213 Repar. and maintenance machinery and facilities and equipment 41,678.09 214 repair and maintenance. 216 4,008.40 transport equipment repair and maintenance of computer equipment 7,237.65 221 224 226 12,279.58 insurance premiums 6,000.00 Supplies other services 90,319.05 227 work carried out by other companies 39,284.54 230 2,700.15 231 3 reimbursement of financial expenses 3,099.21 diets Locomotion 330 30,018.50 9 30,018.50 4,382,879.14 Financial Liabilities current accounts interest 91 loan amortization 4,382,879.14 Total 5,365,651.34 income Budget expenditure budget in euros 4 982,772.20 443 requited to public companies and other public bodies Passive 8 982,772.20 835 4,382,879.14 Financial Contributions government payments and the rest of the public sector to offset accumulated losses of previous years Total 4,382,879.14 Government of Andorra 83501 income budget credit supplement Article 3 5,365,651.34 and the extraordinary credit funded through increased revenue collection by the Government in respect of the consumption rates established.

Final provision this law comes into force the day after being published in the official bulletin of the Principality of Andorra.

Casa de la Vall, 13 December 2012 Vicenç Mateu Zamora Syndic General Us the co-princes the sancionem and promulguem and let's get the publication in the official bulletin of the Principality of Andorra.

Joan Enric Vives Sicília François Hollande Bishop of Urgell, President of the French Republic Co-prince of Andorra Co-prince of Andorra