Dáil debates

Wednesday, 17 June 2009

Broadcasting Bill 2008 [Seanad]: Report Stage (Resumed)

 

7:00 pm

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)

I will focus on amendment No. 113, which gives us an opportunity to have a discussion on where we are with DTT. I have raised this issue with the Minister during Question Time as a result of the very difficult position that RTE finds itself in with regard to funding because of Boxer deciding not to go ahead with a contract for commercial DTT. Boxer was to provide the necessary equipment to ensure households could get the set-top boxes which would allow people switch from analogue to digital terrestrial television. The idea was that RTE would build the infrastructure and a commercial operator would then lease the infrastructure or pay RTE for the use of it to provide a digital network across the country.

We have no commercial operator now and yet RTE is still being asked to roll out the infrastructure. It has spent €40 million so far and must spend another approximately €50 million to €60 million, which it does not have. I presume that is why the Minister feels it necessary to change the target date from 31 December 2009 - the original wording whereby 90% of people would have DTT coverage with regard to the public service multiplex for which RTE has responsibility.

We are now considering a wording indicating that this may happen on such a date as may be specified by the Minister. In other words, it will be at some stage in the future when RTE can afford to do it. There is recognition of a real problem, and this is the first time the Minister has given us that acknowledgement. Until now, his line has been simple; if Boxer does not do it, we will move to the next best tender, which is OneVision. The BCI is speaking with that consortium with a view to providing a commercial DTT product, although many of us are very sceptical about whether OneVision has the capacity or will to do this. I hope I am wrong in that respect. What is sure is that there will be a delay in the commercial DTT product over three multiplexes, amounting to approximately 20 channels, whether it is provided by OneVision or somebody else.

The problem for RTE is that it still has the financial commitment to continue rolling out the infrastructure of masts and aerials. On top of that there is recognition in amendment No. 113 that there is a suggestion that RTE will have to provide the set-top boxes. The new section 130(1)(c) states "RTÉ shall take steps to promote the availability of equipment capable of receiving, identifying, decoding and displaying a national television multiplex operated by RTÉ under section 114(1)(i)." Not only will RTE be required to meet the expense of rolling out the infrastructure across the country but it will also be asked to solve the problem of the set-top boxes, which it was not supposed to be involved with at all. That was to be resolved by the commercial operator.

That will have a significant financial consequence for RTE on top of everything else. We should have a dose of honesty as to when we are likely to have 90% coverage for DTT in Ireland and how much it will cost. How will RTE afford to carry this out in its current financial position? I would like to hear the Minister's comments on that. I make these statements in the context of being very supportive of the DTT project while acknowledging the real barriers and roadblocks which exist from a financing perspective.

Paragraph (e) provides for RTE to exploit the commercial opportunity if spare capacity is available on its multiplex. Is this contradictory to section 130(1)? It will be required to provide RTE 1, RTE 2, TG4, TV3, the Irish Film Channel, the Oireachtas Channel and such other television services having character of a public service as designated by the Minister by order. What further commercial opportunities will be available?

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