Oireachtas Joint and Select Committees

Wednesday, 13 November 2013

Joint Oireachtas Committee on Transport and Communications

Future funding of Public Service Broadcasting: Discussion with Representatives of the Broadcasting Authority of Ireland

10:35 am

Mr. Bob Collins:

That is not the case in relation to the advertising minutage. It makes no sense that three separate agencies are involved. It makes no sense that the limit on the advertising minutage for commercial radio stations is set in statute and primary legislation is required to amend it. With the greatest respect to the Oireachtas that passed the legislation in question, it makes no sense. An anomaly in the respective positions of Irish-based stations and stations coming in from abroad meant we were able to change the permitted minutage for commercial television. Stations from abroad are allowed far more advertising minutage than local Irish-based stations. I refer to stations like TV3 and Setanta. We believe there is an argument to be made for additional minutage to be available to the commercial radio stations. At the moment, there is nothing we or anybody else can do about it unless primary legislation is introduced. That is why we have recommended that the legislation be amended urgently. We think this provision should be taken from the face of the Act. Frankly, the question of who does it is a less important consideration. As we do it for the commercial television stations, we think it makes sense that we would do it for the commercial radio stations and that we would have a view on it in the cases of RTE and TG4.

Our primary focus is on the rebalancing of RTE's funding between public and commercial funding. That was the major element in our recommendation. We think there is a need to progressively reduce RTE's dependence on commercial funding. The ratio between public and commercial funding needs to be altered. That was the key and, if I may say so, the most radical element of the proposal we made regarding the long-term funding of broadcasting. I do not see it happening immediately - that was never the plan - but it has radical implications and possibilities.

The Deputy also referred to digital television. There is no question of the resources arising from the sale of spectrum going back into the broadcasting sector. The money from the very successful disposal of the spectrum that was liberated by the transfer from analogue to digital has already gone into the Exchequer.

The Deputy also asked about TG4's costs. TG4 and RTE operate quite differently. TG4 makes a very small amount of its own programming. It gets its news from RTE. The rest of its programming is produced by independent producers. It has a small-scale operation. The potential for reducing costs would make no material difference to the overall cost of TG4.

RTE is a large-scale operation and makes a significant amount of its own content, including virtually all of its own radio content. It has a symphony orchestra and a concert orchestra and a legacy in terms of its buildings, location, etc. It is in this context that we felt there was a need for a definite, independent, external review of the extent to which RTE could reduce its costs further. This may not be the most productive time to consider the disposal of land, as was in RTE's consideration some time ago, but that work is being done by NewERA.

The review of the advertising market, which chimes exactly with our point about considering the implications if our rebalancing proposal was put into effect, is being done by the Department. We engaged with it on the tender process. It was not our tender document. Rather, the Department undertook this work independently, making an important contribution to the decision making as regards the rebalancing.

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