Peter Fitzpatrick (Louth, Independent) | Oireachtas source

People are spending more time than ever consuming information, but in a more fragmented manner, thanks to the development of media gadgets whereby TV content can be seen live, recorded, accessed on demand and accessed via mobile phones, laptops and tablets.

The value of the Irish entertainment and media industry is expected to increase at a 4.53% compound annual growth rate to €6.14 billion by 2026, up from €4.92 billion in 2021. This expansion is being driven mostly by increased Internet availability and a huge rise in Internet advertising.

In Irish life, RTÉ is unique in that, in any given week, 91% of Irish people watch or use its channels or services. This reach extends across television, radio, online, mobile, social media and live events, and provides RTÉ with a unique insight into Irish media viewers. RTÉ currently operates on a dual funding model, with 55% of its income, or €200 million per year, brought in by way of a licence fee which costs Irish households €160 per year.

Public service media is a cornerstone of a healthy society and democracy. It educates, informs and entertains, and research shows that it enhances social, political and cultural citizenship and promotes social cohesion. For this reason, the Future of Media Commission was tasked with making recommendations on sustainable public funding to ensure media in Ireland remains viable, independent and capable of delivering public service aims. RTÉ has previously raised concerns about a funding crisis, calling for reform of the fee and stating that millions were being lost annually by people evading the fee and using the RTÉ Player on phones and tablets.

The commission looked at five options, with commercial-only funding and public-only funding being ruled out for a range of reasons. The commission therefore noted three main funding models, namely, a TV licence, a universal charge or direct Exchequer funding. The Government accepted most of the recommendations, leading to initiatives like the media fund and support for local democracy reporting. However, while the commission recommended the latter option, almost all the significant decision-makers in Government were against the proposal to replace RTÉ’s €200 million a year income from the licence fee with direct State funding. It was the only recommendation of the commission to be rejected outright.

It is time to acknowledge the entire environment has now changed as a result of the RTÉ scandal, which has exacerbated its funding challenges. Governments have failed for too long to address the question of how to fund public service broadcasting. All options need to be considered, taking learning from our international counterparts while considering both ideas put forward by the technical working group and the Future of Media Commission's original recommendations.

We also need to consider the fact that there is a decline in TV licence receipts and a continuing shift in media consumption patterns. For example, the proportion of households without a TV is now over 13% and the figure is increasing. On top of this, due to the ageing population, the number of people qualifying for free licences is increasing, resulting in the Department of Social Protection providing €70 million in free licences per year. Evasion rates for the licence fee were 50% before the recent RTÉ scandal, with figures from the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media showing that total licence fee sales fell by €19.8 million in 2023.

The courts are clogged with prosecutions for TV licence evasion with 60 people per day now facing prosecution for not paying their TV licence. More than 13,000 were summonsed to appear before the courts last year for non-payment, with the numbers facing prosecution since the controversy broke increasing by 33% per month. That figure is expected to rise over the next six months, given the surge in the numbers refusing to buy a licence in the wake of the RTÉ crisis and loss of trust in the broadcaster, which is surely exacerbating the funding crisis.

At the time of the commission report, the Government decided to establish a technical working group to examine options for the reform and enhancement of the current system. However, final decisions have been paused until the reports of the two expert advisory committees into RTÉ have been completed. The reports are expected this month. With that in mind, there is a real opportunity for us to work with the Minister on taking a modern, progressive approach to the funding of RTÉ. It is imperative we deliver a secure and sustainable source of funding. A future funding model must not only put RTÉ on a more sustainable footing but must also support other public service media providers and content producers to continue to provide high-quality public service content for the benefit of our entire society.

We have a lot of creative talent on this island in need of funding to create content, but the people in question often do not get enough. In the past year, we have seen the likes of Cillian Murphy and "An Cailín Ciúin" being nominated for awards to acknowledge that talent. This could become a regular occurrence if we were to implement a fairer, more equitable funding model.

In line with the Future of Media Commission recommendation, Screen Producers Ireland has said the independent sector urgently requires the introduction of a sustainable funding model to permanently replace the outdated licence fee. For example, Denmark started a gradual move away from the licence fee in 2019 before completely abolishing it last year. It now funds its public broadcaster directly from taxation. Screen Producers Ireland believes the sector needs sustainable multi-annual funding through direct Exchequer funding. This is a way of funding public service media across the EU and in the UK. Financing the public component of public service media funding via a taxation approach was adopted by a number of countries across Europe, including Finland, Sweden, Norway and Denmark. A taxation-based model either works as a specifically earmarked charge or as a fully integrated charge whereby public service media is designated as a core expenditure item alongside health and education and funded from general taxation.

According to Professor Brian MacCraith, chair of the Future of Media Commission, an advantage of a taxation approach is that the cost burden for the provision of media content is spread widely across the population.

This model would not explicitly affect individuals directly and, therefore, would likely gain a positive response from the general public. It can be made progressive to deal with the issue of a tax credit for pensioners. It would provide predictability of funding and sustainable funding into the future.

The landscape is very different now than it was when the RTÉ model was set up. Continuing shifts in media consumption patterns need to be accounted for and funded. Most people have a device capable of receiving streaming content, video and radio. If we are to safeguard RTÉ and other public service broadcasters’ independence, some form of media charge needs to be applied. The Minister for media, Deputy Catherine Martin, has said all options for reforming RTÉ’s funding model are on the table, including a new media levy or direct Exchequer funding. People may be reluctant to pay a new media levy, given the current context of cost-of-living pressures and the decline in licence fee compliance. However, we must debate the best options, emphasising the value of public service broadcasting.

We are sovereign in information and culture. For all that we consume and enjoy globally regarding culture and entertainment, we Irish still have our own way of doing things, our own sense of humour and our own brand of creativity. We need to invest in the arts. Centrally, we need a sustainable funding model for the national broadcaster, RTÉ, but the funding model also needs to extend to the likes of TG4, Virgin Media and other media organisations at a national and regional level, including local independent radio and print, which contribute to public service media content. The landscape has changed, which means the model has to change. Overall, it is clear that the recommendations and the comprehensive analysis made by the Future of Media Commission are now even more important and provide a clear blueprint of the options and a rationale for the particular recommendations given. The Government must revisit its decision to reject the Future of Media Commission recommendation. Everything must be on the table, including Exchequer funding.

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