Seanad debates

Wednesday, 15 October 2003

Criminal Justice (Temporary Release of Prisoners) Bill 2001: Committee Stage. - Local Radio Licensing: Motion.

 

Looking at a recent licensing case, three board members of the Broadcasting Commission of Ireland voted for North West Radio, and three for Ocean, while the chairman gave his casting vote in favour of Ocean. Seven people were involved. When the broadcasting legislation was enacted in 1988 none of us could have realised the sums of money that would later be spent in purchasing local stations, which have turned out to be massive money spinners. Given the sums spent on these takeovers and the advertising revenues involved, the legislation should have included a clawback for the State. If a radio station is sold for €20 million or more, which has happened, would it not be legitimate for the State to receive 20%, which may be reinvested in the radio network? In drafting the original legislation, we never realised that millions would be made from lucrative local radio stations but that has happened around the country. One may say that the original investors took a risk in 1988 but there is a huge disparity between the amount they invested and the revenues accrued through takeovers since then. That disparity is not compatible with the consumer price index. One may say good luck to those millionaires but there should be some mechanism in the legislation whereby the State can claw back a certain percentage for the development of the radio network.

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