Joe O'Reilly (Fine Gael)

I move amendment No. 83:

In page 74, subsection (9), line 14, to delete "5" and substitute "7".

This section deals with a situation where a licence is due for renewal and there is no realistic challenge to the current licence holder. I welcome that the section provides adequate opportunity for challengers. There is a process whereby challengers can emerge from broadcasting organisations for the licence in an area. The section provides that a report on the incumbent's compliance with broadcasting codes and regulations be sought. If the incumbent is not challenged, there is provision in the section to vet the incumbent and their degree of compliance with codes and regulations and their competencies. In other words, the incumbent does not get the nod automatically; there is a process to ensure they are up to scratch, although that would be visible anyway from non-compliance issues having arisen previously.

When the incumbent is established to be in order, the section provides for fast-tracking of the application and permitting a five-year automatic extension of the licence. All Members involved in this debate met people in the industry in private discussions and negotiations before the Bill was brought to the House. The representatives of the industry make a cogent, well-argued and professional case for a ten-year extension. In this amendment I propose a seven-year extension, which is a reasonable compromise between the position put by the industry and the five-year option adopted by the Minister.

There are a number of salient reasons for supporting this proposal. Operating a radio station or a broadcasting station of any type involves constant capital investment in terms of new equipment, offices and so forth. That is true of any industry but the broadcasting industry requires particularly expensive equipment and facilities. If there is a capital investment requirement, there must be security of tenure and good prospects for that investment from the point of view both of the financiers who provide the capital and of the investors or risk takers themselves. There are also the issues of long-term planning and maintenance of investors. There must be long-term planning in terms of planning capital investment, broadcasts, programmes and seeking capital for expansion and development. There are planning issues in any business but particularly in the complex and volatile area of broadcasting, with its many daily challenges both domestically and internationally. In fact, it is not always easy to maintain investors due to the mercurial nature of the business, so maintaining investors is important. A seven-year option is therefore more workable.

There is another aspect to this. If the five years is perceived by the industry as too short, it might create a phoney competition. The Minister of State and Members of the House live in the real world and are aware of what can happen. Ways can be found around legislation. In this case there is a risk of phoney applications being made, merely to create a spurious competition so the broadcaster can secure the full extension. We must guard against that as it would cause a great deal of administrative hassle and delay in addition to a waste of public resources and expertise in the broadcasting authority. That must be factored into our consideration of this. I commend the amendment as a reasonable, proportionate measure which draws a fine balance between what the Minister, commendably, seeks to achieve with the five-year extension and the cogent and comprehensive argument of the industry, whose representatives probably made a strong case to the Minister as well, for the ten-year extension. Seven years appears to be a reasonable compromise.

Amendment No. 108 refers to section 134. It is vital that all radio broadcasters, both independent and public service, get involved in digital radio broadcasting if it is to be successful in Ireland. There is a high degree of uncertainty about digital radio and its future development. It is only in its infancy and faces uncharted waters. There is a shortage of information on the technology that will be used, what radio stations will get carriage on the digital platform and how that will pan out. There is an open debate on the issue and doubts surround it. There is a lack of comprehensive knowledge as it has not yet been worked through. Every encouragement must be given to broadcasters to promote their participation in the digital project, specifically digital radio.

The Bill provides for a four-year extension to the broadcasting contract for operators who embrace digital technology and make the necessary investment in it. However, some of the arguments I made for amendment No. 83 hold for amendment No. 108. The most powerful inducement to full participation in digital radio is the extension of the contract, as is recognised in the legislation. A sizeable amount of financial and human resources is required for the development of digital broadcasting and a return on this investment is not guaranteed at this stage. The contract extension must be sufficiently significant to induce the embrace of digital technology and to get the independent sector's involvement.

I propose that the provision in the Bill which refers to not more than four years be changed to not more than seven years. This will be a good incentive to broadcasters to grasp digital technology and I believe it will work. That is the Bill's objective but I believe the amendment enhances the Bill and makes the provision more likely to work in the marketplace. Ultimately, that is the important issue. I commend both amendments and hope the Minister of State will accept them now or offer to incorporate them in amendments on Report Stage.