Eamon Ryan (Dublin South, Green Party)

I fully agree with both Deputies that we do not want to create an expensive administrative system with economic consequences for broadcasters, but the proposed legislation provides the right cover and strictures for the broadcasting authority of Ireland. A key determinant of the cost of a public service body such as this is the staffing level. Section 15(1) requires the consent of the Minister for Communications, Energy and Natural Resources and the Minister for Finance for an increase in staff. At this moment, that will not be an easy obstacle in terms of unchecked growth.

Section 33(7) requires that a levy order shall be laid before each House of the Oireachtas, where such an order may be annulled by resolution. In section 37(7) there is an obligation for the broadcasting authority of Ireland to publish the three year revenue and expenditure estimate that is part of its business plan. The Oireachtas then has the power outlined in section 20 to bring in the chairperson and CEO, where previous legislation did not include the chairperson. There is an obligation that the three year plan is transparent and is published on the broadcasting authority of Ireland website. The Oireachtas committee may question, investigate and pass a resolution if it sees fit. There is sufficient power to provide a three year review. All this amounts to the administrative check by the Oireachtas on what might be termed regulatory creep. For the reasons set out I do not propose to accept the amendments.

I refer to the principle of whether such a levy is a valid charge on the industry. It is common practice in most of our regulatory systems, such as the energy regulator and the communications regulator, that they are funded directly by an industry levy. It is more appropriate and works better than dependence on Exchequer funding, which is less predictable and less dependable.

I attended the annual event for independent broadcasters and spoke to the chief executives of a number of companies that have been in existence for some 20 years. Each recognised that the presence of a regulatory system worked to the advantage of the companies. The setting and maintenance of standards had guaranteed a more secure future than would otherwise be the case. Taking the example of local radio stations, the initial instincts might have been that people would want music 24/7 and that the 20% local content provision was an encumbrance or a financial cost to the station. However, in operation over the past 20 years, they found that the obligations and maintenance of standards and news content gave radio stations a real character and a connection to audiences that was to their benefit. The regulatory system benefits those in the industry by providing a fair level playing pitch and the cost, when it is of the order of €5 million to €7 million and spread between the players in the industry, is very good value for the security of being in a competitive yet regulated market.

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