Dáil debates

Tuesday, 9 March 2010

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

 

3:00 pm

Photo of Martin FerrisMartin Ferris (Kerry North, Sinn Fein)

Sinn Féin will oppose the motion to enforce a levy as it will mean many local radio stations will find it difficult to survive. Local radio stations simply cannot afford the levy, in some cases up to €50,000, in the current economic climate. They are not taking in enough revenue to sustain such costs. Also, the budget allocated to the new broadcasting authority is significantly higher than the two authorities it replaced, the Broadcasting Commission of Ireland and the Broadcasting Complaints Commission, despite one of the arguments for its establishment being greater efficiency and presumably cost savings.

The advent of local broadcasting has been welcomed as a positive development and has contributed to a great improvement in the level of local coverage across the spectrum from local news to sport and other cultural activities. It would be a great pity if the effect of this levy was to put some of these local broadcasters out of business. Apart from the loss to local communities, it would also mean that stations would be forced to close or curtail their activities and a significant number of jobs would be lost. When this issue was raised in a question to the Minister, he said the broadcasting authority would review its budget estimates and would meet again with radio stations. Today, however, he seems to have decided there will be no change and the levy will stand. Surely, given that advertising revenues, which are a key part of the income that allows local radio stations to operate, have fallen by as much as 30%, there is a need to re-examine the levy, which was decided upon before the full impact of the current economic downturn was felt in the sector. Surely it is preferable that the Minister waives the levy, given that having the stations continue to operate and provide jobs and income and tax revenue to the State is preferable to bringing about a situation where some, if not many, are forced to close with the consequent loss that would represent.

It should also be noted that the levy has been opposed by people across the political spectrum. This includes Government members of the Joint Committee on Communications, Energy and Natural Resources, one of whom tabled a motion to annul the levy. This received unanimous support. Presumably there will be another situation which Government Deputies will shamefully be forced to retreat from positions adopted in the committee and vote in favour of something they are clearly opposed to. The Minister ought to take on board the concern expressed by the committee as he said he would. He should promise the broadcasting authority will review its budget and reduce the budget so that the levy is not required. That will allow local radio stations to continue to operate in the current economic climate without having to cope with an added financial burden. That would mean the preservation of the quality of the service provided and jobs. The situation could be reviewed if and when the situation changes and stations are earning sufficient advertising revenue to meet the demands imposed upon them. For the reasons listed, I ask the Minister to change his mind at to at least allow those members of the Government parties, who clearly share opposition to the levy, the opportunity to vote against it.

As stated by previous speakers, perhaps the Minister will contemplate the amended motion and revisit the whole situation to the benefit of Irish broadcasting and local radio stations in general.

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