Oireachtas Joint and Select Committees

Tuesday, 15 July 2014

Joint Oireachtas Committee on Transport and Communications

25 Years of Independent Broadcasting: Independent Broadcasters of Ireland

1:50 pm

Mr. John Purcell:

I thank members for the range of questions and positive remarks made about the service. On the issue of sport and the coverage we provide, I was speaking to Mr. Tim Collins beforehand - Deputy Michael Colreavy will appreciate this point - who was wondering about the logistics of getting a commentator to Scandinavia to commentate on the Sligo Rovers game. That is not something that will make money for Ocean FM. It will cost a significant amount of money, but it is a service that will not be provided by any other broadcaster in the State. I thank Deputy Timmy Dooley; we truly appreciate the reception aspect, as the turnout from our colleagues around the country shows.

As for the resources in RTE and the resources that would be taken from that organisation, in its review of RTE's funding, Crowe Horwath found it had sufficient resources to deliver the level of service outlined in its five year plan. The director general of RTE, Mr. Noel Curran, is on public record as stating the organisation only needs modest increases in funding to continue to provide the services it provides. We argue that an increase of €25 million to €30 million in additional licence fee revenue or public service broadcasting fee revenue from a total pot of €180 million would not be modest and that, consequently, RTE should not receive it all. I refer to Deputy Michael Colreavy's point about some people asking why should one give money to independent broadcasters which, after all, were businesses. I note ours are businesses that have undertaken something that is the equivalent of a public service obligation, inasmuch as we enter into contracts and state we will deliver a service. Our point is that it is proving increasingly difficult to maintain the service.

If the public wants the service, it would seem fair that if the market cannot support it, the public would.

A point we have not mentioned a great deal is the fact our sector employs approximately 1,500 people throughout the country. In the south east, for example, there are KCLR in Carlow-Kilkenny, WLR, Tipp FM and South East Radio. RTE employs a small regional staff in the area, based in Waterford, whereas we have operations in Kilkenny, Carlow, Wexford, Waterford and Clonmel. We provide very significant employment. On the basis of employment alone, we are worthy of support.

I will ask Scott Williams to address the question of how much revenue is lost to RTE shortly but first I will ask my colleague, Tim Collins, who has done a huge amount of work on the issue of the public service broadcasting fund, to address the issue of State aid. It is something we have looked at extensively in respect of the scheme we put forward.