Dáil debates

Wednesday, 20 October 2010

Other Questions.

Television Licence Fee

3:00 pm

Photo of Billy TimminsBilly Timmins (Wicklow, Fine Gael)
Link to this: Individually | In context

Question 50: To ask the Minister for Communications; Energy and Natural Resources if he will allow other television and radio companies to bid for a share of the proceeds of TV licence fee for public service programmes they provide; and if he will make a statement on the matter. [37860/10]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
Link to this: Individually | In context

Part 7 of the Broadcasting Act 2009 provides for public service broadcasting in Ireland and the provisions relating to the public service broadcasting corporations, RTE and TG4, including their principal objectives. These provide the companies' statutory mandates and encapsulate the national policy on public service broadcasting. They include the specific objective of providing national, free-to-air public service broadcasting services, as well as the provision of a broad range of other additional services seen as fundamental to the role of the public service broadcaster.

In their pursuit of these objects, the Act's provisions subject the public service broadcasting corporations to a range of additional requirements. These statutory objects and requirements clearly set the State-owned public service broadcasters apart from their commercial counterparts which, while bringing choice and competition to the market, are privately owned and funded companies that have entered the market on the basis of a commercial proposition.

The rationale for providing State funding for public service broadcasting is to provide an independent and reliable income flow that allows these corporations to attain their public service objectives while ensuring they can maintain a high level of editorial independence. This is especially important in the context of news and current affairs.

RTE receives 93% of net television licence fee receipts to allow it to meet its public service broadcasting remit while the remaining 7% is allocated to the broadcasting funding scheme. The scheme is open to applications from both private and public broadcasters with the aim of encouraging the production of new television and sound broadcast programmes of a particular character as set out in section 154 of the Broadcasting Act 2009.

Commercial broadcasters also benefit from the provision of broadcasting spectrum which is charged at a set rate that is considerably lower to what it would otherwise cost in an open market. I am satisfied these arrangements are appropriate and, as such, have no intention of providing for the changes suggested.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context

The Minister did a fair bit of bluffing on the Oxford study on broadband roll-out, only mentioning the bits he liked. If he had read it thoroughly, he would have noted it stated that Ireland, although coming from a bad position to a better one, is still not a leader and would not be able to deliver television on-line and other such service access. Honesty from the Minister would not go astray when it comes to these issues of national importance.

I have an open mind on the allocation of the television licence fee. Will the Minister acknowledge that RTE is not the only organisation that provides public service broadcasting? "Tonight with Vincent Browne" is every bit as much a public service as "The Frontline", probably even more so. TV3 also provides news while radio stations such as Newstalk and other independent stations provide programmes equal to "Drivetime". The same applies to Matt Cooper's and Scott Williams's programmes. Newspapers, through webcasts on their websites, also contribute public service information on the same basis as RTE. On very many occasions, it is even better.

Will the Minister consider allowing other companies which provide public service broadcasting to bid for the television licence? I understand he wishes to protect the vested interests in this country, particularly in semi-State bodies. However, I do not understand why he would have such a closed mind to this proposal.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
Link to this: Individually | In context

Yes, I agree we need to do more with broadband roll-out. We cannot be complacent even though an international report states we are 13th in the leadership table. As we roll out our cable and fixed line network and improve our mobile networks, Ireland will, I believe, be in the top ten.

Photo of Michael D'ArcyMichael D'Arcy (Wexford, Fine Gael)
Link to this: Individually | In context

One has to invest to achieve that goal.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
Link to this: Individually | In context

The report showed a dramatic improvement in the past three years in Irish telecommunications service provision compared with international performances.

Real public service is provided by the likes of Matt Cooper, Vincent Browne and a whole range of different journalists. The news and current affairs content, particularly in the independent radio companies and TV3, is important and beneficial to the State's democracy. A competitive broadcasting market with a strong independent sector is very important. When introducing the Broadcasting Act 2009, Deputies McManus and Coveney and I agreed to the idea of a broadcasting fund and allowing other companies to pitch for a business share of the licence fee revenue. Each of us agreed the setaside should be 7%. I accept there may be an argument it is too small a figure but that was the Fine Gael position at the time. The fund recognises that other networks and broadcasters are important to public service broadcasting.

RTE has a different remit with a legislative basis which allows for revenues to be raised from the licence fee and advertising. I do not believe there should be a fundamental change to that existing structure.

Photo of Michael D'ArcyMichael D'Arcy (Wexford, Fine Gael)
Link to this: Individually | In context

The Minister will have to invest in broadband roll-out or else it will not happen, particularly in rural areas.

Local independent radio stations provide a superb service for rural areas. They have as much a public service obligation remit as any other broadcaster. However, regarding the 7% setaside from the licence fee for a broadcasting fund, it irks the independent media sector that RTE can pitch for it too. Bearing in mind the reversal in advertising revenues for independent broadcasters and the power of RTE, will the Minister agree to consider making the broadcasting fund available only to the independent sector?

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
Link to this: Individually | In context

The fund rather than being broadcaster-led is independent producer-led. There is nothing to prevent an independent producer going to the fund with a proposal. TG4, if I recall, has received a large percentage of the allocation, as have community broadcasters. It has been expanded to include independent radio producers.

Photo of Liz McManusLiz McManus (Wicklow, Labour)
Link to this: Individually | In context

The Minister had an open mind on the Opposition's proposals for the Broadcasting Act 2009. The legislation is better for that.

The Broadcasting Authority of Ireland, the regulatory body established by the legislation, is now in breach of the law, however, by not producing a budgetary plan for the next three years. What action is the Minister taking on this statutory breach?

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
Link to this: Individually | In context

I read the exchange at the Oireachtas communications committee when the authority's chief executive officer acknowledged the delay in producing a budgetary plan and set out the reasons for this. He informed Deputy McManus that it would be presented at the end of October 2010. The sooner the better. While I have had no direct involvement in this process, I am looking forward to receiving the authority's budgetary statement.