Liz McManus (Wicklow, Labour)
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Question 53: To ask the Minister for Communications, Energy and Natural Resources if he will review the levy structure he has proposed in view of widespread concern at job losses arising from levies to be charged to the independent radio sector as a result of the establishment of the Broadcasting Authority of Ireland; and if he will make a statement on the matter. [10614/10]

Eamon Ryan (Dublin South, Green Party)
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Section 33 of the Broadcasting Act 2009 provides for the making of a levy order by the Broadcasting Authority of Ireland for the purposes of meeting the expenses of the authority and its committees in undertaking the performance of its statutory functions. As I have made clear in my replies to previous questions on this issue, the setting of the levy is a matter for the authority and not one in which I have a direct function.

In addition, in accordance with section 37 of the Act, the setting of the budget for the BAI for any particular year is a matter for the authority. While the legislation makes provision for the Minister to be able to specify the form the estimates should take and any additional information as may be needed, it does not require the estimates to be submitted for specific ministerial approval. The budget for 2010 was set by the BAI at €7.6 million at its meeting in December 2009.

As I also have previously stated, the BAI has indicated that the need for an increased budget over those previously provided for under the Broadcasting Commission of Ireland is as a result of the increased role given by the Oireachtas to the BAI. While the BAI has taken over the functions of the BCI and the Broadcasting Complaints Commission, BCC, it has also been given a range of new functions in addition to those held by its predecessors, mainly in respect of public service broadcasting and the provision of digital broadcasting services. The BAI has also indicated that the extent to which any budget is expended will depend on the level of activity of the organisation in any one year.

The BAI has confirmed that it will discharge its functions in a cost effective manner and is conscious of not imposing an undue burden on the broadcasting sector. In this context, section 32(4) of the Broadcasting Act requires the authority to ensure that regulation by it and the statutory committees does not involve the imposition or maintenance of unnecessary administrative burdens.

I have made clear to the authority the need to be vigilant about keeping costs down, particularly in the current economic climate. The authority has requested the chief executive to review the detail of the 2010 budget with a view to reducing it where possible and the chief executive will shortly report to the authority on this.

In accordance with section 37(7) of the Act, any 2010 Revised Estimate of income and expenditure approved by the authority will be published on the BAI's website with my consent and that of the Minister for Finance. The authority has also asked the chief executive to review its proposed expenditure throughout 2010 continuously with the aim of reducing it where possible. In accordance with section 33 of the Act, any surplus of levy income over expenditure in a given year shall be offset against future levies or refunded, as appropriate.

In addition, the chief executive met commercial radio broadcasters last week to discuss the levy and the 2010 budget and sought to address any issues and concerns that these stakeholders may have had on this issue. I understand that the chief executive has undertaken to have a further meeting with the commercial radio broadcasters once the budget review mentioned has been completed to the satisfaction of the authority.

Liz McManus (Wicklow, Labour)
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The name Pontius Pilate comes to mind. Does the Minister not accept that he cannot hide behind the broadcasting authority as regards the undue burden that he is responsible for placing on the independent radio sector in particular and that he cannot walk away from it now, since it is a direct result of decisions and legislation he has introduced? Secondary legislation will not come into force until Thursday, so I urge him again to ensure that this order is annulled to allow for a fresh start.

Has the Minister received the types of submission I have received from independent and local radio stations from the south east, Munster, the midlands, Dublin and Connacht-Ulster? People who are concerned about their jobs cannot believe that this system of levies will be imposed with no recognition of the impact on the budgets within which radio stations are struggling to survive. Does the Minister not accept that, for example, the percentage of advertising revenue has mushroomed as regards the levy? He must bear responsibility for what has occurred. I urge him to come out from behind the BAI. We are discussing secondary legislation, so he can still ensure that fairness comes into play. He should do so because he promised in the House that an undue burden would not be placed on those who are struggling.

Eamon Ryan (Dublin South, Green Party)
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I accept that fairness has a part of play. I have a similar concern to the Deputy's regarding the jobs of those in broadcasters across the State, particularly in the independent radio broadcasting sector, that are facing difficult times in terms of advertising revenue that has fallen dramatically and the change in the nature of the broadcasting market. There is fairness in the sense that the public service broadcaster will bear the largest burden in the form of payment of a levy, as is right.

A benefit of an industry-funded regulator is that one gets a proper, fair and independent regulation of the sector. This is in the commercial and employment interests of everyone involved in the sector. We knew this would be difficult. It was flagged at various stages throughout the legislative process. However, our experience of independent regulation funded by the industry is a positive one.

I agree that this is a difficult time. The authority has told the chief executive that there is a particular difficulty and asked him to examine the Estimate. He is due to revert on the matter because everyone, including members of the authority, is aware of the difficult times people are facing.

Liz McManus (Wicklow, Labour)
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The Minister is a hypocrite.

Brendan Howlin (Wexford, Labour)
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Deputy, please.

Liz McManus (Wicklow, Labour)
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He is responsible for taking this approach. He set up a separate quango unnecessarily. He could have been cost effective. An bord snip nua pointed the way for him, but he insisted in a bull-headed way on setting up an expensive regulatory structure for which he is now penalising the independent radio sector in particular as well as others. The Minister cannot walk away from his responsibilities. I urge him to ensure that the secondary legislation is annulled so as that we can start again and try to put right the problem he has created. He must bear some responsibility for it.

Eamon Ryan (Dublin South, Green Party)
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I flatly reject the Deputy's accusations. I recognise that there are difficulties in the industry. We must examine the regulatory system to ensure that it is cost effective and efficient as well as being a proper regulatory system. There are different opinions as to how this should be done. For example, should there be an amalgamated or separate content network regulator? The experience of the UK, which took the combined route, is that there were no cost savings. A single body would have the exact same functions, personnel and needs. One cannot remove the need for proper content regulation.

Liz McManus (Wicklow, Labour)
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Tell that to Colm McCarthy.

Eamon Ryan (Dublin South, Green Party)
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For the Deputy to depict it as an easy alternative-----

Liz McManus (Wicklow, Labour)
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Colm McCarthy stated it.

Eamon Ryan (Dublin South, Green Party)
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I did not agree with everything in his report. I agree that there is an issue that we should examine and I will continue to examine it, but to portray as a political virtue-----

Simon Coveney (Cork South Central, Fine Gael)
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When will the budget increase?

Eamon Ryan (Dublin South, Green Party)
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-----the idea that there is an easy and simple solution through which we could wave away any costs is not accurate or fair to anyone, least of all the people in the industry.

Brendan Howlin (Wexford, Labour)
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We must move on to the next question.

Liz McManus (Wicklow, Labour)
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The Minister created the problem.