John Paul Phelan (Fine Gael)

The two amendments under discussion are clearly related because they pertain to the granting of licences. I am glad the Government tabled the same wording in respect of amendment No. 60 as did Senator Bradford and I, namely, that on the renewal of a local licence, the term of which has elapsed, if no one is competing for it there should be an automatic re-granting for seven, as opposed to five years, as originally proposed in the Bill.

Amendment No. 108 refers to digital technology in radio broadcasting. While the Minister's Department and the Government are anxious to move towards a digital radio network, this will involve considerable expense for all broadcasters. However, many local community stations in particular are not in a position to carry that expense. If they make a substantial investment in digital equipment, the Bill proposes that they would be entitled to an automatic four year extension to their licences. Amendment No. 108 seeks to change that to seven years, in line with what has been agreed on uncontested local area licences in amendment No. 60. I hope the Minister can accept it.

If we are serious about promoting digital radio across the country, we need to provide incentives for local stations. Many of them do not make much money and operate on a shoestring budget. Applying for radio licences is a time-consuming and costly job. In my own area, the local station has to go through a process of application about two years before the licence is due for renewal. If it invested substantially in digital technology at great expense, it would be appropriate to give it a suitable extension to its licence period. I think four years is too brief, as once the station has started that period, it is already looking for a further renewal. Given the level of investment involved, seven years is more commensurate. I understand that it costs about €250,000 to get a local radio station digitally equipped. The digital network is not in operation.

A number of stores around the country sell digital radios. During the week, I walked into a high street store in Kilkenny that sells digital radios, but it had sold only a couple because there is little point in buying such radios if most of the nation's radio stations are not available on the digital network. If we want to ensure local radio stations embrace digital technology, we need to provide an incentive for them to do so. A suitable incentive would be an increased extension to their licence period. I hope the Minister can accommodate that in amendment No. 108.