John Deasy (Waterford, Fine Gael)
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Question 8: To ask the Minister for Communications, Marine and Natural Resources his preferred options for the development of local radio in view of the development of the industry in recent years with particular reference to sales or takeovers; and if he will make a statement on the matter. [13829/06]

John Browne (Wexford, Fianna Fail)
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The licensing of local radio is a matter for the Broadcasting Commission of Ireland, BCI, which carries out its functions under the Radio and Television Act 1988. In this regard, the BCI is charged with the orderly development of sound broadcasting services and with ensuring the appropriate development of the sector. Independent radio and community radio undertakings have all performed well over the past decade. It could be concluded that the overall framework and structure is suitable as is and should not be significantly altered. However, it is the case that services and markets will change over time and it is likely that a static approach to the development of the radio licensing framework will not, in the long run, serve the listener well.

With this in mind, in late 2003, the Minister for Communications, Marine and Natural Resources initiated a review of radio licensing in Ireland. This review culminated in a study by sectoral experts entitled the Ox report. The report indicated that additional radio licensing is possible in Ireland, given the availability of spectrum. The report raised some concerns regarding the viability of some local radio franchises given their market size. The report also considered issues around ownership and control of radio stations and the need for balance in this regard. Options with regard to financial charges such as spectrum levies and royalties on radio stations using scarce spectrum were also discussed. In developing the legislative proposals which will establish the broadcasting authority of Ireland, the Minister will consider the findings of the Ox report and developments in the local radio sector generally.

Bernard Durkan (Kildare North, Fine Gael)
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Will the recommendations of the Ox report be implemented in full or will they be kept secret? Will the Minister of State share the report with his colleagues in the House for the betterment of the industry? Notwithstanding the success to date of the local and private broadcasting sector, it is now necessary to review in the context of the broadcasting Bill, which should have been put before the House by now, the developments which have already taken place in the public broadcasting sector and which are likely to take place in the private broadcasting sector. Given the movement of the marketplace, the degree to which takeovers, sales or buyouts are likely to take place in the local broadcasting sector could have an impact on the degree to which local broadcasting remains an entity.

John Browne (Wexford, Fianna Fail)
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All the issues raised by Deputy Durkan were addressed in the Ox report and have been considered by the Minister. There is nothing secretive about the report. In it Ox Auction Experts examined four different tools which could be used to generate a financial return to the State. These were auctions, which is a mechanism to assign a licence to the highest bidder; market-based spectrum fees or royalties; clawback arrangements, a method used to ensure that a portion of any windfall profits earned as a result of spectrum ownership are shared with the Exchequer; or a combination of these mechanisms. All these issues have been put forward and are being considered by the Minister. He has not made a final decision but all of these mechanisms are up for consideration.

Tommy Broughan (Dublin North East, Labour)
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Does the Minister of State not accept that there are grave concerns that a number of dominant companies are gaining control of significant numbers of stations and that, ultimately, viewers and listeners will be left with restricted choice? Is this not the core point which the Minister must address?

In that context, will the Department make any announcement on digital audio broadcasting, DAB, which operates in the UK. DAB provides additional free to air services. I am unaware of any DAB services in Ireland. Why have we not taken some initiatives in respect of DAB which is a very exciting development in UK media circles?

I wish to make a slightly parochial point, although I am the Labour Party's national spokesperson on this issue. There is grave disquiet in the Dublin region over the decision by the very successful local radio station, NewsTalk 106, to apply for a national radio licence. This station covers all aspects of social and economic life in Dublin very well and has been especially valuable for Dublin public representatives. There is grave concern that the service provided by NewsTalk 106 to the Dublin region, which is replicated by between 30 and 40 other regional radio stations throughout the country who perform so admirably, will be lost if NewsTalk 106 becomes a national station. We need a Dublin-based public affairs station like NewsTalk 106.

John Browne (Wexford, Fianna Fail)
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It is very important that a station like NewsTalk continues to broadcast and is available to Dublin. We have South East Radio and other stations around the country are very much regionally or locally based. It is important that cities also have locally based radio stations. I will bring the Deputy's views to the Minister. The report of Ox Consultants is with the Minister and, hopefully, some decisions will be made shortly.

Eamon Ryan (Dublin South, Green Party)
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I want to speak on the Minister of State's last point. The country could benefit from a station such as NewsTalk broadcasting elsewhere.

Bernard Durkan (Kildare North, Fine Gael)
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Get it out there.

Tommy Broughan (Dublin North East, Labour)
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Does that not mean we will have less time?

Bernard Durkan (Kildare North, Fine Gael)
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It is time to be shared.

Eamon Ryan (Dublin South, Green Party)
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I am not sure. Perhaps my colleagues across the country could hear the wisdom of Deputies in Dublin. NewsTalk has added to public debate. It was a significant risk and endeavour to try to set up a talk radio station of high standard and NewsTalk should be recognised for doing so. I would be concerned if it went national and lost some of its Dublin impetus but, at the same time, there is room for such a national talk station to rival RTE Radio 1. I would have asked the Minister of State about whether he has any knowledge of when a decision will be made on this matter but, from his final comment, the answer would be "no". Is it purely for the commission to make the decision or can any reference be made to the Minister?

John Browne (Wexford, Fianna Fail)
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The BCI is the governing body. It is obligated to consider the desirability of allowing any person or group of persons to have control of or substantial interest in an undue amount of communications media in an area specified when considering the award of a licence and to take account of local needs. The BCI will take into account the issues raised by Deputy Eamon Ryan. In my part of the country, we have local radio stations. I am sure it is the same elsewhere. We also have Beat 102-103, which was recently set up as a regional station and has proven successful. I am not the final decision maker but I do not see a reason cities should not have local stations also.

Tommy Broughan (Dublin North East, Labour)
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Who decides in respect of digital audio broadcasting? Does the BCI or the Minister of State take the decisions?

John Browne (Wexford, Fianna Fail)
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I am not sure but will get the information for the Deputy.