Dáil debates

Tuesday, 9 March 2010

Broadcasting Act 2009 (Section 33) Levy Order 2010 : Motion

 

3:00 pm

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

I move amendment No. 1:

To delete all words after "Dáil Éireann" and substitute the following:

"annul the Broadcasting Act 2009 (Section 33) Levy Order 2010 [S.I. No. 7 of 2010] to allow the Broadcasting Authority of Ireland (BAI) to review budgetary expenditure for 2010 and satisfy Dáil Éireann that the concerns of the broadcasting sector are being addressed through the delivery of value for money in the new BAI structures."

I am glad we have an opportunity to discuss this issue on the floor of the House because for some days it seemed that would not be possible. Three different motions were tabled by the Government to facilitate this debate. The first was inexplicably withdrawn and then re-introduced last Friday. It was re-introduced again today, then changed and now we have this motion.

I tabled this amendment not to be difficult. I understand where the Minister is coming from and I welcome his encouragement of a review of the expenditure plans of the Broadcasting Authority of Ireland for this year. I also welcome that he will return to the communications committee with ways to deal with the costs that have been already incurred in the last quarter of 2009 and the first of this year. I understand this expenditure has been met by cash reserves, but we do not know from where they came.

While that is a historical issue, my main problem is that the Minister is asking us to give away the only tool this House has to require the Broadcasting Authority of Ireland to review, revise and publish to the House's satisfaction its budgetary plans for 2010. The House is being asked to approve a levy order to raise moneys for a budget it has not seen. The House only knows, from what the Minister told it in January, that the Broadcasting Authority of Ireland plans to increase its budget by 27%, from €6 million to €7.6 million. Despite it having several extra responsibilities as the new broadcasting authority, I do not accept that there should be any increase in its budget due to the economic environment in which both private and public broadcasters are operating. When broadcasters' revenues have been reduced by between 20% and 30%, we are introducing a new levy on the industry, one that was not in place last year because it was paid through the Exchequer, to pay for this regulation.

In response, the industry has acted responsibly. Few broadcasters have a problem with the principle of a levy to pay for regulation. However, they have a problem with being asked to pay for a bloated yet unpublished budget. By law and, according to what the Minister said in January, it should have been published by now. With reluctance, we are using the only tool available to us as legislators to prevent the Broadcasting Authority of Ireland from introducing a levy on broadcasters until it can satisfy the House it is acting prudently, offering value for money and not putting an undue financial burden on broadcasters. The Minister has not answered that question. It is not unreasonable for us to say to the BAI at this stage to forget about this levy in order to concentrate on its budgetary review and to come back and explain why it needs that amount of money and where it will be spent between now and September. At that stage the BAI will have prepared a three-year budget so this is a temporary measure. When it does so, we will help to fast-track an order to allow it to collect a levy at that time. We will not sign a blank cheque for the Broadcasting Authority of Ireland. That is irresponsible and we should not do it. That is the basis of my amendment to the Government motion.

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