Ms Patricia Cronin:

I thank the Chairman for inviting us to participate in today's meeting. I hope today’s exchange will be of benefit to the committee members in their consideration of this important issue. I will make a brief opening statement and, following the contribution from the BAI, my colleagues and I will be happy to answer any questions from the members.

The Department’s appearance before the committee today is as a result of the appearance of the Minister, Deputy Naughten, before the committee on 21 September to discuss the Department’s Estimates. The Minister’s announcement that he would not be pursuing the introduction of a household broadcasting charge in the short term was discussed. The Minister noted the interest of the committee members in the future funding of public service media and how we define that media and indicated that he would welcome if the committee were to come forward with proposals on the issue. He also stated that the Department would facilitate the committee in any way in its consideration of these proposals.

Since then, the Minister has developed this view to take account of the need to have a wider conversation on the future of public service broadcasting. For example, what is it we want public service broadcasting to deliver? What do we want public service broadcasting to look like five years or ten years from now? The Minister is very clear that he has a statutory obligation in relation to RTE and TG4. However, while addressing the issues facing these broadcasters, he is clear that we must consider the needs of the sector as a whole. If the sector is to thrive, we need to take account of all aspects of broadcasting, including commercial broadcasting, community broadcasting and the rapidly developing and expanding digital sector. If consensus can be reached on what public service broadcasting should look like in the future, then it will be possible to start a discussion in earnest on how it is intended to fund it.

The Minister, Deputy Naughten, wrote to the Chairman of the committee on 31 October, setting out his views at a high level. In that letter the Minister said he fully recognises the important role that public service media plays in a democratic society and the need to ensure it is adequately resourced if it is to continue to deliver on its remit. The Minister fully recognises his obligations to our public service broadcasters but has asked the committee to consider the longer-term issues surrounding the future funding of public service broadcasting in detail.

I will briefly give a sense of the challenges facing the broadcasting sector. Internationally, the broadcasting sector has been subject to enormous change due to the growth of digital and online technologies, resulting in the development of new modes of delivery and new business models. As a result, traditional broadcasters, both public and commercial, are subject to increasing competition from large international players and new forms of content delivery and need to adapt rapidly to maintain their relevance, audience and commercial revenues.

The Irish broadcasting market faces the same challenges, as an ever-increasing number of non-Irish channels compete for audience share and advertising revenues. The increasing importance of online platforms and the use of handheld devices is further impacting on Irish broadcasters’ audiences, revenues and, in the case of public service broadcasters, licence fee revenues.

The Minister’s view is that Irish audiences need strong and independent public service media outlets that can hold their own in the face of increasing competition from international media and can continue to provide the Irish public with distinctive and high-quality indigenous programming that reflects our common experience and provides a much-needed Irish perspective on events and current affairs.

Discussions on longer-term issues like the future funding of public sector broadcasting and how such broadcasting is defined must not lose sight of one of the Minister's core beliefs, which is that the current public service broadcasters - RTE and TG4 - require a stable financial basis on which to operate as they face funding challenges. As I have said, the Minister has a statutory obligation in this respect and he fully intends to support the broadcasters in any way he can. The €6 million achieved for public service broadcasting in budget 2017 was described by the Minister as the beginning of the process of reversing the cuts imposed over recent years. As the committee is aware, the Minister is not simply looking at reversing these cuts; he is also considering the potential legislative changes he could make to provide some form of respite to both organisations by helping to improve the current TV licence model so that the high level of evasion is reduced. According to the most recent figures, the current rate of evasion is 13.75%, which is unacceptable. The committee will also be aware of the Minister's significant decision to agree in principle to tender for the role of TV licence collection agent. This issue, like others, is being examined in detail by the Department because legislative changes will be required. The Minister has made it clear that current payment method options, including the post office network, have to be maintained. These changes will feed into a longer-term strategy, which the committee’s work will inform. In the short term, the Minister hopes to return to the committee in the coming months with proposals for legislative changes as part of the required process of legislative scrutiny.

I hope my remarks have gone some way towards describing the Minister’s views and the steps being taken by the Department. In light of the complexity of this subject and the range of views and priorities in this area, the Minister and the Department especially welcome the committee's decision to commence public consultation on this topic. It is only by engaging with all sides of the debate that the central and core issues and values can be identified. I would like to pass on the Minister’s gratitude to the Chairman and members of the committee, as well as the Clerk and his staff, for making such rapid and comprehensive progress with this subject. We look forward to engaging with the committee this evening and answering any questions that members might have.