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Cymdeithas yr Iaith Gymraeg will today launch proposals for a new Welsh language broadcaster funded by a tax on advertising.

The pressure group will put forward ideas for a broadcaster that would operate on radio, television and online.

It argues “hundreds of millions of pounds” could be raised through a new tax on advertising and private sector broadcasters which could also support “other public interest channels”.

The group argues that while companies such as Sky, Facebook and Google make major profits, the funding for public broadcasters such as S4C has been cut “severely” in recent years.

A discussion paper will be launched at a meeting at the National Eisteddfod in Llanelli.

Speaking ahead of the Eisteddfod meeting, Robin Farrar, chair of Cymdeithas yr Iaith Gymraeg, said: “We need fresh thinking about the state of broadcasting in Wales. The way people use the media, and the nature of the ‘platforms’ they use, is changing quickly, and we must ensure the Welsh language thrives in the digital age.

“We favour creating a new broadcaster – or more accurately a new provider – which will be ready for the multi-platform, converged age.”

The group argues that the prospect of responsibility for broadcasting being devolved to Wales is “on the political agenda”. The new tax, it is claimed, could be levied at a Welsh, UK or EU level.

A new Welsh language content provider would help S4C and Radio Cymru, the group argues, because they are accused of “trying to be all things to all people”.

Greg Bevan, Chair of Cymdeithas yr Iaith’s digital group added: “We have a duty as a society, not only to call for new and better Welsh language services, but also to offer new sources of funding. Several companies – like Google, Facebook and Sky – are prominent examples of firms who contribute almost nothing in terms of original Welsh content, not to mention Welsh language content. At the same time public funding for S4C has been cut by 92%, and the license fee has been frozen.

“With taxation powers being devolved to Wales, and a Westminster election on the horizon, I hope this paper will spark a discussion about the innovative use of taxes which could benefit minoritised languages and the public more generally. A number of public interest broadcasters across Europe have suffered because of austerity – innovative taxes could be an answer.

“In Wales, the money should be earmarked for Welsh language output and a new Welsh language provider. The new provider would be a big boost to S4C and Radio Cymru, because they’d be freed of the burden of being all things to all people.”

Jim Killock of the Open Rights Group, which aims to put people in control of technology, said: “The question is [how] to find the best ways to support and encourage creativity and use of the Welsh language. In my opinion, this needs to include independent community services as much as official activities, funded well.

“It’s a challenge to create diversity from the top down, but it’s important the Welsh Government are supportive.”

Google declined to comment on the proposals.

Last month, Culture Secretary Sajid Javid commented on the possibility of transferring responsibility for S4C from Westminster to Cardiff, saying: “There have been some recommendations by the Silk Commission and others have looked at this as well. That’s something that we would consider, and I think it’s right for people to constantly look at this issue.”