Liz McManus (Wicklow, Labour)

On 3 March, the Oireachtas Joint Committee on Communications, Energy and Natural Resources did something unusual. It recommended the annulment of the broadcasting levy scheme. All parties, Government and Opposition, supported the motion. They shared the same feeling of outrage at what is being done, particularly in respect of how it affects the smaller operator such as local radio stations across the country. We now have an opportunity to put things right in this debate. We can ensure that a new fair scheme is put in place if we vote for the amendment tabled by the Opposition and reject the motion.

Over the past number of days, Government shenanigans have led to an abuse of this Parliament. A meaningless motion is being debated at a time when we need to get real. The motion states that we in this House note the commitment of the Minister and the BAI to address the concerns of the broadcasting sector. The Minister and the BAI have created the mess. Both parties colluded in the exorbitant increase in the budget, which is still to be published, of €7.6 million. This figure was agreed by the Minister for Communications, Energy and Natural Resources and the Minister for Finance and was only made known by way of a parliamentary question. The formula - the levy scheme used to apportion costs across the sector - was devised by consultants employed by the BAI. It is grossly unfair and militates against smaller local radio stations.

We do not need ineffectual posturing and crocodile tears from the Government. We need the levy scheme taken off the table and a new one drawn up. This is not just about the budget for 2010, it is about future budgets and past budgets. The Minister let the cat out of the bag when he met the committee recently. Until he said otherwise, everyone understood the broadcasting industry would have to pay the €1.25 million fee for last year. It turns out the Broadcasting Authority of Ireland had money in the bank and was well able to pay for it themselves. That bill presumably will not be levied on the broadcasting industry.

It goes without saying that we need a reduced budget at this stage because of what happened. That is not the issue. The issue is the levy scheme, where reform must happen. Work postponed will reappear next year or the year after. It will still be paid for and the leopard will not have changed its spots. The unfortunate independent sector will be bled dry. The budget increase is 27% or more and according to the industry the cost of the levy represents 1.7% of total advertising revenue at a time when broadcasters have had to cut costs by 15% to 25%. That is what is going on beyond the confines of this House.

The formula set out in the statutory instrument militates against smaller operators. The bigger the operator, the bigger the discount. I do not want to knock RTE but it is noteworthy that RTE will pay 50% of the levy even though it has far more than 50% of the revenue. Even a simple percentage levy would be fairer than what is proposed now. Government Deputies can show their mettle again. They have already done so and it is a great credit to them that they stepped out of their comfort zone. They know the importance of the role of local broadcasting. The Minister for Communications, Energy and Natural Resources can steamroll a levy scheme into force that will penalise the independent sector and lead directly to job losses. He can do so if the Government Deputies give him that right today. However, we have a choice and it is an important one. If the amendment is passed, the Minister will be sent back to the drawing board and a new levy scheme will be introduced, which is not an insurmountable task. As Deputy Coveney said, there would be willingness on the part of the Opposition to make progress and to sanction a scheme to ensure it is put in place.

Nobody is refusing to contribute to the cost of regulation but the Minister bears the responsibility for a lavish budget drawn up by a quango he established unnecessarily. There was a cheaper, easier and better way to do this. The Minister must take responsibility for putting to right what has happened. This has a major impact, particularly on local radio stations across the country. They are being hit unduly hard and we have a duty to represent those people across the country.

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