Ms Jennifer Kenneally:

Thank you, Chairman and thank you for the opportunity to address the committee. I am joined by Screen Producers Ireland board member, Larry Bass. Larry is CEO and founder of ShinAwiL productions, one of the largest independent production companies in Ireland. We are delighted to be here this evening on behalf of Screen Producers Ireland to discuss funding for public service broadcasters, PSBs, and the nature of the relationship between independent producers and PSBs.

Screen Producers Ireland is the national representative organisation of independent film, television and animation production companies. We promote the growth and sustainability of a working environment conducive to a strong independent production sector for our 130 members and for the industry as a whole. Screen Producers Ireland members produce programmes such as "Vikings", "Room to Improve", "Red Rock", "Ros Na Rún", "Ear to the Ground", "Dragons Den" and "What are you Eating". They have produced Oscar nominated films such as "Brooklyn" and "Room" and are also responsible for GAA and rugby coverage on TG4.

It is imperative that policy makers understand the importance of public service broadcasters to the independent production sector. PSBs nurture growth within the sector and give our creative talent a platform to present their work. Security of funding allows RTE to commission independent productions. That, combined with Irish Film Board and BAI funding, ensures an active independent production sector which allows Irish producers to gain experience and skills. RTE and TG4 act as incubators for Irish production talent. TG4's operation as a publisher and broadcaster is particularly beneficial to regional independent producers.

The audiovisual sector is currently experiencing many disruptive challenges in the form of new technologies and changes in consumption patterns. Viewing patterns are increasingly favouring on-demand content via Internet streaming over traditional cable viewing. Ireland’s public service broadcasters need to be adequately resourced to adapt to this new environment. We are aware that the Minister, Deputy Naughten, has stated that he will not be pursuing the introduction of a household media charge. We believe that this is a misguided and short-sighted choice and urge the committee to recommend that the Minister reverse the decision. The current TV licence fee is no longer fìt-for-purpose. Consumers are moving from traditional television viewing to streaming content from digital platforms. In 2009, 2.5% of Irish households did not own a TV. That figure increased to 8% by 2015. Additionally, Ireland has one of the highest TV licence fee evasion rates in western Europe. It is currently estimated to be 13.7%, amounting to €40 million in lost revenue per annum. The Minister is seeking to address evasion but we are concerned that, even if evasion rates decline, the growing number of households opting to not own a TV will off-set any gains made. In the five years between 2009 and 2014, the number of TV-free households grew by 5.5%. If the trend continues the number of households who legitimately do not require a TV licence will almost equal the current evasion level by 2019.

The introduction of a household media charge is the ideal solution to the problem. However, an alternative would be to amend Statutory Instrument 319 of the Broadcasting Act to expand the definition of a television set to include new screen technologies. Screen Producers Ireland also believes we should move towards the European norm where PSBs are funded principally from licence fee or media charge revenue with little or no reliance on advertising and commercial revenues. The current dual funding model leaves Ireland’s PSBs open to significant fluctuations in their annual budget, creating uncertainty in the sector.

If our recommendations are to be implemented, and a household media charge and elimination of reliance on commercial income are introduced, then efficiencies and value for money must be a condition of the changes. For that reason, we believe RTE should move towards the emerging trend of the publisher-broadcaster model. That would be a better use of funding and would result in a greater volume of quality, original Irish programming.

In conclusion, the continued success of the Irish independent production sector is very reliant on a strong public broadcasting service. Protecting PSBs is critical for preserving democracy, social cohesion and for providing a trustworthy platform for public debates and national conversations. Their funding base must be protected and increased and that increase would have a positive knock-on effect on the indigenous production sector.