Radio chief outlines views on changing stations. Gordon calls for easing of ownership regulations

relaxation of ownership rules which, in effect, would tighten the SRH

grip on the independent sector even further.

At the same time, Mr Jimmy Gordon indicated that he favoured a

limitation on the number of new stations allowed to enter the market.

His bid for an ever-bigger slice of the commercial cake came in a speech

to Glasgow Chamber of Commerce.

He did not mention by name a new rival, broadcasting across the areas

served by his biggest stations, Radio Clyde and Radio Forth. Mr Gordon

referred to Scot FM -- launched on Friday in a ''superior'' FM slot he

wanted for Clyde 2 -- only as ''a new radio service in central

Scotland''.

However, he went on to warn the new station that competitors who

unsuccessfully applied for the licence will be keeping a watchful eye on

output to ensure it adheres to its ''Promise of Performance'' for 51%

speech at peak times.

His reluctance to give Scot FM its proper title could be interpreted

as sour grapes at a time when SRH's dominant position is under threat

because of increased competition, and as Clyde and Forth's franchises

come up for renewal.

Mr Gordon later denied there was ''anything significant'' in not

naming Scot FM, and predicted Radio Clyde's franchise bid will be

unopposed at the end of the closing date for tenders -- today.

He denied that his plea to the Radio Authority, the industry's

governing body, to limit the number of new stations was designed to

remove competition and allow SRH to become bigger and stronger. Its

flagship, Radio Clyde, already has the highest listening share of any UK

station.

Mr Gordon claimed ''saturation point'' has almost been reached for

listeners -- especially in Scotland, with 14 stations, and London, with

37. He added that the Radio Authority must ''really make sure'' the

market place can stand other developments.

In his speech, he warned an independent broadcasting system left

entirely to the market place carried the seeds of its own destruction --

a ''wholly-independent operation'' would struggle in many cases, and

ultimately fail.

Failures cited in central Scotland included East End Radio, which

collapsed despite receiving #300,000 of public money, and Central FM in

Stirling, which had to be rescued by Radio Forth.

He also pointed out that licences were advertised for Glenrothes,

Dunfermline, and Kirkcaldy, but not awarded, while a Paisley station was

''not yet breaking even''.

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Mr Gordon insisted an opportunistic use of frequencies, as and when

available through technological advances, was a recipe for disaster.

However, he was upbeat on the future of radio -- forecast to do better

than television and, in advertising terms, be the fastest-growing medium

over the next five years.

In calling on the Government to relax ownership rules, he pointed out

that broadcasters are allowed to own only one FM service in any one area

-- ''unless, of course, you are the BBC, when you can have five''.

He added: ''Does anyone really believe for one moment that Radios 1 to

5 would not be as diverse as they are if they were not under common

ownership? I think the same should be allowed to a more limited extent

in the independent sector.''

He added that listener choice would increase, with public interest

protected by ''Promises of Performance'' which operators must adhere to

or risk losing licences.

Mr Gordon, perhaps with an eye on profits -- and plans to go for full

stock exchange listing in December -- acknowledged that common

ownerships would provide ''economies of scale'' by sharing costs between

stations.