Pat Rabbitte (Dublin South West, Labour)

The commitment in the programme for Government referred to in the question is in recognition of the pressures that the funding of both public service and commercial broadcasters has faced in recent years as a result of the serious decline in commercial revenues. Whereas this decline is primarily as a result of the impact of the recession over the past three years, revenues have also been impacted through the increasing fragmentation of the broadcast market as a result of the increasing number of channels available on satellite and cable, and through online and other developing platforms.

Funding of the public service broadcasters RTE and TG4 is met through a mix of licence fee revenues, Exchequer grant-in-aid and commercial revenues obtained largely from advertising. The public funding element is provided for the purpose of allowing these bodies to meet their respective public service broadcasting objects. These objects are set out in part 7 of the Broadcasting Act 2009, and they impose a wide range of public service obligations on each of these broadcasters. I am aware that the funding of the public service broadcasters has been subject to criticism by private sector broadcasters and, in particular, that there has been criticism of the dual public and commercial funding model as applied to RTE. The funding of privately owned independent broadcasters is, of course, derived from their own commercial activities.

Both public and independent broadcasters can also access funding from the broadcasting funding scheme, the purpose of which is to encourage the inclusion of additional programming of a particular character in broadcasters' programme schedules. The fund is open to independent producers and all free-to-air broadcasters.

The broadcasting funding scheme is funded by way of a payment of 7% of net licence fee receipts.

Additional information not given on the floor of the House.

This is paid to the Broadcasting Authority of Ireland (BAI) in respect of this scheme. This amount was increased from 5% to 7% under the Broadcasting Act 2009. On the proposed review of funding, the Broadcasting Act 2009, which was enacted on 12 July 2009, provides mechanisms that may be used to facilitate this process.

Section 124(8) of the Act requires the BAI, within three years of enactment of the Act, to review the adequacy or otherwise of public funding to enable public service broadcasters to meet their public service objects. In addition, section 158(1) requires the BAI to review the operation, effectiveness and impact of the broadcasting funding scheme not later than three years after enactment. I understand that the BAI expects to complete both of these reviews before the end of 2011 and I look forward to receiving both reports from the BAI in due course.

It is my intention that the findings of these two reports from the BAI will be used to inform the review referred to in the programme for Government, which I can confirm will be carried out by my Department. This review, which will focus on the scope of funding of public service content provided by all broadcasters, public and private, will be undertaken in tandem with the review of the licence fee funding mechanism, which is also committed to in the programme for Government.

In conclusion, I accept that the broadcasting sector, in common with other sectors, is facing very challenging economic circumstances. In addition, change in the way content can be transmitted is adding to the challenging environment. Apart from the reviews referred to, I look forward to working with all of the sector to ensure that broadcasting can continue to play its important and distinctive role in Irish society and maintain quality standards in the process.

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