Timmy Dooley (Clare, Fianna Fail)
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RTE's refusal to broadcast Newstalk's advertising asking listeners to move the dial is an abuse of the State broadcaster's dominant position in the broadcasting sector. This restrictive approach to advertising is a direct attack on competition within the broadcasting market. Action must be taken to ensure RTE cannot hinder competition from independent broadcasters and it should accept the offer of revenue from Newstalk and run the advertisement.

I express my belief in the principle of public sector broadcasting and my recognition of the good work RTE has done through generations. I believe in the important role of a public service broadcaster to ensure its content is accurate and impartial and without external influence. That is the bedrock of what public service broadcasting should be about. I support this fervently and will continue to do so.

Having said that, when I see something I consider to be an abuse of a dominant position, I have a duty to raise the issue. There is no doubt that RTE enjoys a very privileged position, receiving approximately €180 million in licence fees from citizens and playing a central role in the nation's artistic, cultural and political life. At a recent meeting of the Joint Committee on Transport and Communications I supported delegates from RTE in their condemnation of the broadcaster's inability to deal with its budgeting position because of the Government's decision to withdraw upwards of €5 million in licence fee revenue which would normally come from the budget of the Department of Social Protection. I did so on the basis that reducing its funding in this way would make the operation of the public service broadcaster all the more difficult in the light of the significant competition it faced. However, with RTE's special responsibility and special position come serious responsibilities, one of which must be to avoid abusing its substantial power. By refusing advertising revenue from a legitimate business operation and blocking a rival broadcaster from advertising on its stations, RTE has abused that position. It looks like a simple and petty attempt to frustrate a commercial rival. The nonsensical reason given for blocking the advertisement serves only to reinforce that impression. Station bosses say they blocked it because it contained a call to action. My simple understanding of advertising in general is that the entire point of it is to function as a call to action, that is, a call to consumers to act in a certain manner, whether it is purchasing a product or availing of a service.

The Minister for Communications, Energy and Natural Resources, Deputy Pat Rabbitte, has hinted publicly that he shares my analysis. I call him to action by way of asking RTE management to reconsider its position. The broadcaster has worked hard in recent times to rebuild public trust after a series of high profile problems. I have complimented it on the efforts made in that regard and the changes in its management structure which will facilitate the rebuilding of confidence. Unfortunately, however, unforced errors like this clumsy attempt to damage a rival serve only to distract from the station's important work.

Seán Sherlock (Cork East, Labour)
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I am taking this matter on behalf of the Minister for Communications, Energy and Natural Resources, Deputy Pat Rabbitte.

RTE is an independent national public service broadcaster, the remit and obligations of which are set out in the Broadcasting Act 2009. Section 114(1) of the Act states the principal objects and associated powers of RTE, while section 98 provides that it shall be independent in the pursuance of these objects, subject only to the requirements of the Act. As such, the Minister has no function in RTE's general day-to-day matters, including decisions on advertising.

It is clear that commercial revenue remains a key priority for RTE, to which advertising revenue is central. There has been a considerable decline in advertising revenue for all broadcasters since the economic downturn in 2008 and the advertising market remains challenging for RTE. Of late, however, there have been modest and tentative signs of stabilisation. The Minister is satisfied that RTE is continuing its efforts to exploit all commercial opportunities in pursuance of its statutory objects.

The contention that RTE refuses to accept advertising from rival broadcasters is materially incorrect. In fact, it has carried advertisements for several rival broadcasters, including Sky, Setanta, Newstalk, TG4 and TV3, in recent times. It has advised departmental officials that it has no objection to continuing to do so, provided the proposed advertisements conform to its own internal guidelines. Notwithstanding the corporation's continuing objective to maximise its advertising revenue, to which I referred, RTE does have internal guidelines which it provides for all advertising copy houses with broadcaster clients in order for an advertisement to be cleared for broadcast. These guidelines state RTE does not accept advertisements where, inter alia, the advertising broadcaster claims superiority over or denigrates another broadcaster, or requests the audience to tune in to another channel. I am advised that these are the only circumstances in which advertisements for other broadcasters may be refused for broadcast by RTE. It would clearly not be in the company's commercial interests to clear for transmission on its own broadcasting services an advertisement which served to denigrate RTE or effectively asked viewers to discontinue using RTE services. If a broadcaster is not satisfied with RTE's decision to refuse to clear an advertisement for broadcast, it may refer the matter to the Competition Authority, the independent statutory body that enforces Irish and European competition law. The Department does not have a function in the oversight of complaints of this nature.

On a related matter and by way of update, arising from the five year review of funding of public service broadcasters, the Department has commissioned Indecon to conduct an economic assessment of the advertising market in Ireland to inform the development of a revised regulatory framework. This review which is expected to be completed in the coming months will provide a comprehensive overview of the market, including an analysis of issues around pricing and competition, and for the introduction of a revised system for setting advertising minutes.

Timmy Dooley (Clare, Fianna Fail)
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I note the Minister of State's reference to the guidelines RTE circulates generally to advertising houses and the prohibition on advertisements which seek to denigrate another broadcaster or request the audience to tune in to another channel. While I accept that no advertisement should in any way denigrate a competitor's product or service, whatever that might be, I am not so sure there is validity to the rule that states an advertisement cannot request the audience to tune in to another channel. RTE occupies the position it does by virtue of the legislation that gives it its reason to exist and is supported by the taxpayer to that end. It seems fair and reasonable to say any advertisement by any other broadcaster is effectively competing with RTE and requesting, albeit in perhaps more subtle terms, a shifting of the dial or a change to another service provider for whatever period of time. I am not convinced that this element stands up to competition rules generally, but that is for another jurisdiction.

The Minister of State's considered response seems to be at variance with the comments of the Minister, Deputy Pat Rabbitte, when he indicated his view that if he were the person making the decision - I am paraphrasing him - he would have allowed the advertisement to run. Consumers generally can be given credit for their capacity to discern what constitutes a good service. As I said, my understanding of the function of advertising is to show the choice that is available and, in that respect, it does represent a call to action. However, listeners are not so gullible that, having tuned in to another station and not liked what they heard or saw, they would persist with that station. It is incumbent on RTE to ensure it is able to develop and maintain a competitive advantage based on the quality of service it provides, rather than operating in a restrictive capacity towards its audience by restricting other potential broadcasters from accessing the marketplace. I hope the Minister will be in a position to convey his views directly to the board of RTE in a manner which might see a change in attitude towards what is essentially normal competition that does not in any way seek to undermine RTE or the quality of its programming.

Seán Sherlock (Cork East, Labour)
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I accept the statement made by the Deputy. If one were to trawl through recordings of RTE radio programmes, one might come across instances where advertisements for shows on sister stations were broadcast. I listen to RTE radio and this practice can sometimes seem contradictory. I also noted the comments made by the Minister, Deputy Pat Rabbitte. However, the reply I have just read clearly indicates that there are guidelines which apply within RTE in whether it accepts advertisements from other broadcasters. The station has set down its own rules in this matter. We all take the Minister's comments seriously, but it must be noted that he may have been speaking in a personal capacity. I did not hear the comments in question, but I imagine that what the Minister had to say has come to the attention of those in RTE. While it is important that the national broadcaster retain its autonomy, common sense must ultimately apply in this issue.