Marc MacSharry (Fianna Fail)

I am glad to have this opportunity to make a few brief points on the Broadcasting Authority of Ireland. I would like to focus briefly on the area of local radio as the RTE issue has been covered substantially by others. The introduction of local radio licences over a decade or more ago brought official Ireland to the people in the street in a much greater way than did the elitism of RTE where only the chosen stories or people rose to the top in terms of getting their points across. I often joke with Senator Norris that in the context of the coverage of this House, unless one is gay, a former president of ICTU or a Sunday Independent business editor, it is difficult to make "Oireachtas Report". I know the Independent Senators will not mind me saying that because it is a joke we often share.

Local radio has ensured all news gets to the community and it has provided a service. When we consider the implications of the work of the Broadcasting Authority of Ireland, we must ensure to the fullest possible extent that we do not undermine the great work of the local radio stations, from Donegal to Kerry FM and from TippFm to Ocean FM and all the local stations in our own areas. The national broadcaster, RTE, does a very good job in terms of radio and television, as do the other national television channels but, increasingly, in the context of news, due to the complexion people choose to put on the news, news becomes views. This happens less frequently in local radio. It is important to acknowledge the Irish public's intelligence, education and ability to interpret the news and facts for themselves without requiring the often distorted view of an individual or group of individuals. When one listens to current affairs shows on radio or watches them on television almost always at least 50% of the panels are from the journalistic world. I know many graduates of NUI, Trinity College and other colleges but I did not know that journalism necessarily meant one would be an expert on everything. In that context, we should seek to preserve the independence of local radio stations throughout the country.

The levy must be mentioned in this regard, because it threatens local radio. As others have mentioned, advertising revenues are down 35% to 40% or down to 2001 and 2002 levels. I have a difficulty with the structure of the levy. The key issue for the smaller stations is that we have chosen to favour RTE in structuring the levy. The rationale is that it costs proportionately less to regulate a larger organisation than a smaller one. This ignores the entire basis of our taxation system, which is based on the principle of the ability to pay and in which the better off pay more. The order structures the levy on a regressive scale, whereby larger broadcasters pay proportionately less and smaller ones pay proportionately more. This is the reverse of how Ofcom, the UK regulator, operates. In that case operators which are in a better position to pay more do pay more.

Furthermore, the justification for the structure of the levy was based on a report by PricewaterhouseCoopers which chose not to deal with any of the local radio stations in its deliberations or ask them their views, nor indeed did it ask any Members of the Oireachtas for their views, to the best of my knowledge. The Ofcom levy structure in the UK consists of two levies, the Broadcasting Act levy, whereby Ofcom collects a percentage of the relevant turnover, and a second levy which is based on the Wireless Telegraphy Act. If Ofcom's approach were applied here, the fees paid by the smaller radio stations in Ireland would be approximately €3,000 to €4,000, as opposed to the current levels ranging from €25,000 to €30,000. These are huge figures for these stations, even if they might appear small in a national context when one considers the work of RTE and so forth. They are huge amounts for stations such as Radio Kerry, TippFm, Highland Radio or Mid West Radio. We must consider that.

There is also the issue of an organisation being able to determine what the levy will be when it decides its budget. It resembles the domestic commercial rates process, whereby when local authorities do their budgets, they see the shortfall and shove it all onto the business community. I do not believe it should fall on stations that are less well off and doing what I consider to be a greater service to the public, in supplying the news for the public to interpret, than the national broadcaster, which dictates the complexion it wishes to put on the news.

The Minister is aware of my views so I will let my colleague, Senator Ó Murchú, continue.