Éamon Ó Cuív (Galway West, Fianna Fail)
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Question 1: To ask the Minister for Communications; Energy and Natural Resources the definition of public service broadcasting used by him in allocating the resources from the television licence; if he feels that this requires further examination; and if he will make a statement on the matter. [11072/11]

Pat Rabbitte (Dublin South West, Labour)
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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 objects. These objects provide the companies' statutory mandates and encapsulate national policy in terms of public service broadcasting. They include the specific objective of providing for national, free-to-air public service broadcasting services as well as the provision of a broad range of other additional services that are seen as fundamental to the role of the public service broadcaster. In their pursuit of these objects, the provisions of the Act 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 who, 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 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 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 objects while ensuring they can maintain editorial independence. This is especially important in the context of news and current affairs.

In regard to the television licence fee moneys, I point out that not all these are allocated to the public service broadcasters and that a proportion is available to both public and independent broadcasters through the broadcasting funding scheme. The purpose of this scheme is to encourage the inclusion of additional programming of a particular character in broadcasters' programme schedules. The scheme is open to independent producers and all free-to-air broadcasters. It is funded by way of a payment of 7% of net licence fee receipts which is paid to the Broadcasting Authority of Ireland in respect of this scheme. This amount was increased from 5% to 7% under the Broadcasting Act 2009. 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 and that there have been calls to extend the current scope of funding.

Additional information not given on the floor of the House.

The broadcasting sector in general has faced a challenging funding environment in recent years with a large fall in commercial advertising revenues. In addition, change in the way content can be transmitted is adding to the challenging environment. It is understandable in such a situation that extending further the scope of funding of public service content would seem attractive to some. However, great care should be taken in considering any such course of action. The provision of balanced, adequately resourced and independent public broadcasting services is fundamental to democratic society.

Therefore, we must ensure that the ability of our public service broadcasters to deliver on their remits and obligations is not undermined through decisions that cause a slow but certain erosion of their economic base. As the Deputy may be aware, the importance of ensuring continued and appropriate funding for public service broadcasting is recognised in the programme for Government. In this document, the Government commits to examining the role and collection of the television licence fee in light of existing and projected convergence of broadcasting technologies and to transform the television licence into a household based public broadcasting charge to be applied to all households and applicable businesses, regardless of the device they use to access content.

In line with this commitment, my Department is currently undertaking an exercise whereby it is examining the effectiveness and efficiency of the current model of television licence fee collection in the context of the changing technological environment, and examining the efficiency of various international models for the funding of public service broadcasting. The results of the exercise will be an analysis of the most effective models in terms of efficiency, capability to fund our public service broadcasting service and equity of applicability.

The scope of work being carried out under this review is extensive. Nevertheless, I expect to receive recommendations arising out of this review by the year end. Following this, work will begin on developing any legislation that may be required to facilitate implementation of any recommendations that I decide to take forward. I accept that the broadcasting sector, in common with other sectors, is facing challenging economic circumstances. I recognise these challenges and I look forward to working with all broadcasters, including public, commercial and community, to ensure that broadcasting can continue to play its important and distinctive role in society and maintain quality standards in the process.

Éamon Ó Cuív (Galway West, Fianna Fail)
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I congratulate the Minister as this is the first time we have had Priority Questions here since I became the spokesperson for Fianna Fáil. I thank him for a comprehensive, if somewhat predictable, answer from the Department. The nub of the matter is that I agree with the idea of public service broadcasting and I fully support the Minister in this. Has the Minister any ideas on how to ensure measurement of the public service output compared to the commercial output of the public service broadcasters? How can the Minister ensure that in allocating the licence fee between the various public service broadcasters the moneys are allocated to public service broadcasting and do not subsidise commercial output within those companies?

Pat Rabbitte (Dublin South West, Labour)
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I thank Deputy Ó Cuív for his remarks. I doubt if there is much difference between his philosophy and mine on this issue. There are specific statutory obligations in respect of the public service broadcasters, including TG4. They must fund the service without fear of intrusion into their independence. Public service broadcasting is about more than funding. It is about content and structures as well. The broadcasting fund has been successful. It has spawned a not insignificant number of independent producers who have carried out some quality work. Given the current climate, perhaps the commercial sector is finding it more difficult to remunerate those independent producers. However, in terms of innovation and imagination in the sector they have made a valuable contribution and it represents a beneficial use of the money. The Deputy will be aware that the last budget allocated some €10 million of the broadcasting fund directly to TG4. I intend to give effect to that.

Éamon Ó Cuív (Galway West, Fianna Fail)
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I welcome the commitment from the Minister today. I have always believed from the time TG4 was set up, including when I was Minister and since, that TG4 should be funded from the same fund as RTE and that if there is to be an Exchequer subvention, the lot should go into one ball of wax and then be spread out. We give a licence fee to public service broadcasters. Let us leave aside the broadcasting fund, or the fund that goes to bidding and concentrate on TG4, RTE and its various manifestations. Is there any measurement by the Department of the application of the funds in terms of public service broadcasting to ensure that what we get back in terms of public service broadcasting from the licence fee money is a good return and an equitable return on the money?

Will the Minister clarify whether any of the licence fee is used to pay inflated salaries and fees to broadcasters in RTE? The licence holders would be upset if they believed this was the definition of public service broadcasting, that is to say, paying people €600,000 and €700,000 per year in a time of economic downturn. Will the Minister clarify whether any mechanism exists between the giver of the money, that is, the Department, and the recipient to ensure that public service broadcasting money is put to public service broadcasting and not to the enrichment of private individuals?

Pat Rabbitte (Dublin South West, Labour)
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Are we getting value for money or could it be reapportioned to specific programming types within the broadcaster? To some extent, that is in the eye of the beholder. Deputy Ó Cuív may take the view that RTE does an immense job in public affairs, especially were it to recognise his inherent outstanding qualities, but were it to decide to apply the same to this side of the House he may believe it is not so great. We all react more or less like that. In particular, the broadcaster's coverage of public affairs is in the eye of the beholder.

I am keen to see the quality content of RTE being the focus of RTE all the time. I realise that in comparison with the broadcasters across the water RTE's budget is small. Nonetheless, it has produced quality output, although perhaps not enough of it. Some of the stuff imported from outside the jurisdiction is pretty terrible. Perhaps that is a subjective view. However, if one tunes in to any of the other channels one gets the same pap. I am unsure whether it does anything to raise the intelligence quotient in the country.

Regarding the inflated salaries aspect of Deputy Ó Cuív's question, the honest answer is that some of the moneys must, inevitably, go towards the remuneration of contract staff because they are all paid from the same purse. I do not disagree with Deputy Ó Cuív. Given the times we are in and that RTE is projecting a deficit at the end of the year in excess of €30 million, it would be appropriate to consider all levels of salary and remuneration packages in the corporation because it must survive in a more difficult climate. There has been a dramatic collapse in its commercial revenues in the past two years. I have discussed the financial provision of RTE with the management and sought assurances that quality will not suffer as a result.

Éamon Ó Cuív (Galway West, Fianna Fail)
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May I ask a brief supplementary question?

Michael Kitt (Galway East, Fianna Fail)
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I have been very generous, Deputy. Perhaps you can put down another question.

Éamon Ó Cuív (Galway West, Fianna Fail)
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I know that, but this is fundamental.

Michael Kitt (Galway East, Fianna Fail)
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I call Deputy Clare Daly.

Éamon Ó Cuív (Galway West, Fianna Fail)
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Will the Minister consider making it a condition of the licence that no one would be paid more than a Minister's salary, which, we would all agree, is rather generous?

Michael Kitt (Galway East, Fianna Fail)
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I will not call on the Minister to reply.

Pat Rabbitte (Dublin South West, Labour)
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It is not as generous as when the former Minister Deputy Ó Cuív was over here.