Mary Lou McDonald (Dublin Central, Sinn Fein)
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6. To ask the Minister for Communications, Energy and Natural Resources his views on whether independent broadcasters should receive a share from the licence fee or the new broadcasting charge; and if he will make a statement on the matter. [35028/13]

Pat Rabbitte (Dublin South West, Labour)
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At the outset, I acknowledge 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. Having said that, it needs to be borne in mind that these stations were established as commercial entities. Station owners sought and accepted licences on clear terms, which included a limited amount of public service-type content. In many cases, their success in the licence application process was assisted by the voluntary commitments they gave regarding the provision of public service-type content, over and above that required by the relevant legislation. The licences were accepted in full knowledge of the current system of public funding. It is certainly regrettable that some of these stations are experiencing an understandable degree of financial stress. While that is a cause for concern, it does not mean the State should step in and provide funding. They are and remain commercial enterprises. It should also be noted that their popularity in the communities they serve is, in many cases, a distinct result of the local news content and current affairs programming they provide. That, in turn, gives them a strong advertising presence and thus earning potential.

The rationale for providing State funding for public service broadcasters is to provide an independent and reliable income flow that allows these corporations to attain their statutory public service objects while ensuring they can maintain editorial independence. This is especially important in the context of news and current affairs. The overall aim of public service broadcasting is to provide services and content which cater for all interests in society, while ensuring the varied elements of Irish culture and its intrinsic values are protected. Through the obligations placed on the public service broadcasters, which are explicitly set out in legislation passed by the Oireachtas, and through the criteria for the funding of content through the Sound and Vision scheme, the production of quality indigenous programming and the production of minority interest programming is strongly promoted. Over the last number of years, there have been calls from a wide range of media organisations regarding the future distribution of licence fee funding.

I am committed to the introduction of the proposed public service broadcasting charge, which will be household-based. The extent of the additional funding which may be yielded by this measure is unclear. As the charge will replace the TV licence, the first obligation of the revenue from the charge will be to ensure adequate funding for public service broadcasting. Therefore, before considering any wider distribution of public funds than that which applies at present, I would have to be convinced that such a distribution would represent a sound proposition in terms of policy for the sector and would not be to the ultimate disadvantage of public service broadcasters. I should clarify that if I were minded to provide public moneys to private investors, EU state aid rules would apply. It is categorically not possible for the State simply to 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 litigation from other operators who may have considered applying for a licence if such a revenue stream had been available.

Michael Colreavy (Sligo-North Leitrim, Sinn Fein)
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I recognise and value the work done by RTE and TG4. In general, their broadcasting is of a very high standard. Local radio provides a public service, particularly in areas that cannot access RTE services. I would not argue that State funding should be made available to fund private broadcasting enterprises. However, I think there are community groups and projects that could do with exposure to the wider community. I ask the Minister to consider engaging with communities and supporting them in getting their message out via local radio. I also ask him to consider assisting not-for-profit community radio stations like Near FM in Dublin that provide a public service.

Pat Rabbitte (Dublin South West, Labour)
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I agree with what the Deputy has said. Local radio is very important. It is quite remarkable that the regional radio stations have 60% of the audience. They provide public service content of merit, above and beyond what the legislation requires.

They have a tremendously loyal audience and perform a very important role, as Deputy Colreavy notes. I spoke at the annual conference of the Independent Broadcasters of Ireland this year and met with people from Near FM. They put certain propositions to me in respect of the issues raised by the Deputy, including the question of representation for local community radio on the Broadcasting Authority of Ireland. I assured them that I would be happy to look at that.

Michael Moynihan (Cork North West, Fianna Fail)
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The social content of what independent local radio stations do must be applauded because they have contributed enormously to vulnerable and elderly people. Is the report on RTE by the Broadcasting Authority of Ireland imminent within the next couple of weeks? When is it likely to be published?

Anthony Lawlor (Kildare North, Fine Gael)
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RTE is probably as commercial as any other television and radio broadcaster in the country so I find it very difficult to understand why the European Commission would look upon RTE as being totally different. I know my own radio station in Kildare, Kfm, covers a huge amount of local and national issues. Perhaps when the next round of licences is published, the Minister might broaden it so that some form of subvention can be given to some of these stations that provide vital services in their local communities.

Pat Rabbitte (Dublin South West, Labour)
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I can tell Deputy Moynihan that I intend at 4 p.m. today to lay the report of the Broadcasting Authority of Ireland before both Houses. Under the 2009 Act, the Broadcasting Authority of Ireland is required to produce a fundamental review of funding for public service broadcasting as against the statutory objects in the Act that are on the public service broadcasters. This is the first time this has happened since 2009. The authority produced the report for me and I brought it to Government yesterday. It will be laid before the Houses of the Oireachtas. If the spokespersons want a briefing or material on it, I will be glad to provide them.

In response to Deputy Lawlor's statement that RTE is as commercial as anyone else, I agree with what he said about Kfm. However, it is not accurate to say that RTE is as commercial as any other station and, therefore, there is an issue regarding State aid for it or private commercial broadcasters. Under the legislation establishing RTE and as it has evolved since then, there are a number of impositions on RTE and TG4 that they must statutorily perform. Those impositions do not apply to private commercial television or independent radio. They are laid down by law. In the 2009 Act, the Broadcasting Authority of Ireland is required to measure the performance against those statutory impositions and see whether public funding is adequate.

RTE has been run on a dual-funded model since it was founded, in other words, through the TV licence and commercial revenue. There is significant evasion in respect of the TV licence fee of the order of €30 million. In addition to evasion, technology means that many people are accessing RTE material on their iPhone or iPad. The collapse in commercial revenue is hugely significant. It has come down by €84 million since 2008. The reason for that is not just the recession but the fact that a large proportion of the advertising budget is migrating online. At the end of last year, something like 20% of the advertising budget went online to companies that can target segments of the audience to whom they want to sell product. I must look at the question raised by Deputy Lawlor in the context of the debate that will take place following the laying of the two reports before the Houses of the Oireachtas. I am aware of the argument he makes for the independent broadcasting sector.