Eamon Ryan (Dublin South, Green Party)

The Broadcasting Authority of Ireland, BAI, was established on 1 October 2009 under the Broadcasting Act 2009 as the new statutory body to regulate the broadcasting industry in Ireland. The budget set by the authority's predecessor, the Broadcasting Commission of Ireland, BCI, for 2009 amounted to €6.238 million. That budget was prepared on the basis of a full year's operation although it was expected that the BAI would be established at some stage during that year. The BCI was allocated €4.575 million in Exchequer funding in respect of January to 30 September 2009. Following its establishment on 1 October, the BAI continued to operate until 31 December within the limit of the original budget set by the BCI for 2009.

As the BAI had not yet established the industry levy through which it is to be funded and as it had not yet established borrowing facilities which are provided for under the legislation, it relied on a number of existing cash flow sources to ensure that the regulation of the broadcasting industry could be maintained during the last quarter of 2009. As regards 2010 and later years, in accordance with section 37 of the Act, the setting of the budget for the BAI for any particular year is a matter for the authority. While the legislation makes provision in section 37(1) for the Minister to be able to specify the form the estimates should take and any additional information as may be needed, it does not require the estimates to be submitted for specific ministerial approval. The budget for 2010 has been set by the BAI at €7.6 million, which will be fully funded by the industry levy as provided for in the Act. Details of this budget have been submitted to my Department and I will be considering if additional information is required.

In accordance with section 37(7) of the Act, this 2010 estimate of income and expenditure will be published shortly by the BAI on its website, with my consent and that of the Minister for Finance. The BAI has indicated that the increase in the budget for 2010 over that the 2009 budget for the BCI is as a result of the increased role given by the Oireachtas to the BAI. While the BAI has taken over the functions of the BCI and the Broadcasting Complaints Commission, BCC, it has also been given a range of new functions additional to those held by its predecessors, mainly relating to public service broadcasting and the provision of digital broadcasting services. The BAI has also indicated that the extent to which this budget is actually expended will depend on the level of activity of the organisation. It has confirmed that it will discharge its functions in a cost effective manner and is conscious of not imposing an undue burden on the broadcasting sector. Additional information not given on the floor of the House.

In this context, section 32(4) of the Broadcasting Act requires the authority to ensure that regulation by the authority and the statutory committees does not involve the imposition or maintenance of unnecessary administrative burdens. In addition to including this provision in legislation, I have made clear to the authority the need to be particularly vigilant about keeping costs down in the current economic climate. I understand that the authority has requested the chief executive to continuously review its proposed expenditure throughout 2010 with the aim of reducing it where possible. In accordance with section 33 of the Act, any surplus of levy income over expenditure in 2010 shall be offset against future levies or refunded, as appropriate.

Section 33 of the Act provides for the BAI to meet its expenses by means of a levy on public services broadcasters and broadcasting contractors. The Act requires the BAI to make a levy order for the collection, payment and administration of a levy and for a levy order to be laid before each House of the Oireachtas as soon as may be after it is made. The levy order for 2010 was laid before both Houses on 19 January 2010.

With regard to the outsourcing of work, section 18 of the Broadcasting Act 2009 provides that the authority may engage consultants or advisers as necessary in the performance of its functions. The outsourcing of work is, therefore, an issue for the authority in accordance with the requirements of the Act.

I do not accept that there is a lack of public scrutiny of the BAI. The Broadcasting Act provides a range of measures to ensure appropriate public scrutiny. Section 37(4) of the Act requires that the annual accounts for a particular year are to be submitted to the Comptroller and Auditor General not later than the end of March the following year and, in accordance with section 37(5) of the Act, are to be submitted to the Minister, along with the report of the Comptroller and Auditor General, for laying before the Houses of the Oireachtas by the end of June of that year. Furthermore, the chief executive is accountable to the Committee of Public Accounts, and the chief executive and the chairpersons of the authority and its committees are accountable to the appropriate committees of the House of the Oireachtas.

In addition to the requirements on the provision of estimates of income and expenditure, there are also provisions requiring proper management of books and records relating to income and expenditure and for ministerial oversight and consent as to the form of accounts. The BAI is also subject to the Department of Finance guidelines on corporate governance of State bodies which include a range of obligations in terms of reporting, accountability, risk management, internal audit and departmental oversight.

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