Oireachtas Joint and Select Committees

Wednesday, 20 February 2013

Joint Oireachtas Committee on Transport and Communications

Funding the Broadcasting Sector: Discussion with Independent Broadcasters of Ireland

10:00 am

Mr. John Purcell:

To respond to Deputy John O'Mahony on the broadcasting charge, we do not think it would be necessary to increase the cost of the television licence to individual consumers. In fact, we think it would be possible to reduce the cost. If the charge was universally applicable to reflect the change in technology, there would be an increase in revenue. Collecting the fee is currently very expensive. We reckon it is in the region of €1 million per month, or 8% of the overall licence fee revenue. Savings could be made there. If the broadcasting charge is enforced properly, it will generate more money.

There have been job losses in the sector. While I do not have specific figures, I have personally made people redundant and cut salary levels across the board. Salaries are reasonable and while we would like them to be higher, the market does not bear that at the moment. We operate entirely on a commercial basis. To respond to Deputy Michael Colreavy, we do not suggest that RTE should not have commercial revenue, but at the moment it has an unfettered commercial mandate.

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