Pat Rabbitte (Dublin South West, Labour) | Oireachtas source

As I have told this House on a number of occasions, I fully recognise the contribution of the independent radio sector in bringing diversity to the airwaves, and serving the needs of communities, often at a very local level. As I noted when I addressed the Independent Broadcasters of Ireland annual conference earlier this year, "Local radio gives a voice and enhances social dialogue for people of all ages - it provides a forum for local communities; it enhances a local community; its gives confidence to people and indeed is an expression of the community in which the station is broadcast".

However, it should be borne in mind that these stations were founded as commercial operations, with the profit motive as their primary objective. Station owners sought and accepted licences on clear terms, terms which included a limited amount of public-service type content. Moreover, in many cases, their success in the licence application process was assisted by the voluntary commitments they gave in regard to the provision of public-service type content, over and above that required by the relevant legislation. The licences were accepted in the knowledge that public funding was not available for small broadcasters. The fact that some of these stations are now undergoing an understandable degree of financial stress does not mean that the State should immediately step in and provide funding. They remain commercial enterprises.

Moreover, it should also be noted that their very popularity in the communities they serve is, in many cases, as a result of the local news content and current affairs type programming that they provide and which, in turn, gives them a strong advertising presence and thus earning potential. Overall, I cannot see how it is reasonable to expect the Government to consider dispersing licence fee revenue to private broadcasters.

I would like to clarify for the Deputy that even if I were minded to provide public moneys to private investors as the Deputy seems to be suggesting, and I have given consideration to whether I can do that, state-aid rules definitely apply in this case. While it is true that neither the Altmark principles nor the general state-aid rules prohibit the State funding of services of a general economic interest, it is categorically not possible for the State to simply decide to fund a set of incumbent licence holders during a licence period. Such a move, quite apart from the reaction of the European authorities, would expose the State to the risk of prosecution from other operators who may have considered applying for a licence were the revenue stream available. In order for funds to be dispersed in the manner suggested, an entirely new scheme would therefore have to be constructed involving primary legislation and a new licensing round whereby revised licences would be offered to the market. Clearly, this is not what is being proposed here.

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