Seanad debates

Tuesday, 18 May 2010

Role of Broadcasting Authority of Ireland: Statements

 

4:00 am

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)

The Broadcasting Authority of Ireland, BAI, is the organisation responsible for the regulation of the broadcasting sector and was established on 1 October 2009 under the Broadcasting Act 2009. It replaced the Broadcasting Commission of Ireland, BCI, which regulated the commercial broadcast sector and the Broadcasting Complaints Commission which investigated broadcasting related complaints. Apart from continuing the functions of these organisations, it has more functions, including an oversight role in the public service broadcasters, RTE and TG4.

The BAI consists of the authority and two independent statutory committees, the contracts award committee and the compliance committee. The Broadcasting Act provides for an innovative role for the Oireachtas Joint Committee on Communications, Energy and Natural Resources in the nominations for appointment to the authority. The nine members of the authority are appointed by the Government on the nomination of the Minister. I am required to have regard to the advice of the Oireachtas joint committee in the nomination of four members. Each of the committees has eight members, four of whom are nominated by the Minister and two each are appointed from the authority and the staff of the BAI. The first five members of the authority were appointed by the Government on 30 September 2009 and this enabled the BAI to be operational from 1 October. The authority has had a full complement since 15 February this year when the remaining members were appointed by the Government. On receiving the invitation of the chairman, I had the pleasure of addressing the full authority at its meeting on 29 March.

The Broadcasting Act sets out precise criteria for membership of the authority and the relevant experience required of board members. In this regard, the legislation provides for an authority which offers a wide range of experience on which to draw in the development of the broadcasting sector. The combined experience of the authority meets the criteria detailed in the Act, including media affairs, public service broadcasting, broadcast content production, trade union affairs, development of the Irish language, business affairs, community broadcasting, digital media, experience in disability issues, as well as experience in the arts, music, sport or culture. It is anticipated that an authority with such a broad range of experience will provide for an exciting and diverse broadcasting sector into the future.

The BCI was Exchequer-funded, but the BAI is industry-levy funded. Under section 33 of the 2009 Broadcasting Act, the BAI is required to make an order imposing a levy on the broadcasting industry to provide for the BAI to meet its legitimate operational costs. A levy order provides for the collection, payment and administration of the levy, including its method of calculation. The order does not set the amounts payable by the broadcasting industry or individual broadcasters. This is determined by applying the terms of the order to the BAI's annual budget.

The BAI initially proposed a budget of €7.6 million for 2010 in the light of its increased functions and role in regulating both the public and commercial broadcasting sectors. This caused concern because of the potential impact on the industry at a time when commercial revenues were under great pressure. In March I met the Oireachtas Joint Committee on Communications, Energy and Natural Resources, at which the impact of the BAI levy on the broadcasting sector was discussed. At the meeting I acknowledged the very real concerns of the sector at a time of considerable financial constraints for commercial and public service broadcasters alike. I also repeated my position on the need for the authority to be vigilant in keeping costs down, particularly in the current economic climate. I am aware that the authority was also keenly aware of the need to minimise the burden on industry and, on this basis, reviewed the 2010 budget downwards. The revised and final budget for 2010 now stands at €6 million. I understand the authority has also requested the chief executive to ensure all proposed expenditure is reviewed continually throughout 2010 to ensure it represents good value for money. It has published the budget for 2010 on its website and set €5.635 million, excluding VAT, as the amount to be levied on industry this year. This reduced budget is likely to impact on its work plan for 2010, in particular on some of the more ambitious deadlines set in the Broadcasting Act 2009.

The explanatory and financial memorandum to the Broadcasting Bill 2008, as published, provided that in order to meet its enhanced roles and responsibilities, the BAI would require significant additional staffing resources to administer its new functions as provided for under the Bill. Unfortunately, restrictions on recruitment in the public service have meant that no additional posts have been sanctioned. This is likely to impact on the authority's ability to meet its statutory functions and on its strategy development. Under section 29 of the Broadcasting Act 2009, the authority is required to draw up and adopt a statement of strategy within 12 months of the passage of the Act. It has issued a tender for consultants to carry out this body of work.

Under the Broadcasting Act 2009, the BAI's regulatory role has been extended over that of the BCI to include the public broadcasting sector. The authority has overall responsibility for its strategic direction, as well as tasks such as the preparing of codes and rules for broadcasters, the running of the broadcasting fund and the setting and collection of a levy on the sector to fund the costs of the BAI. The Act also establishes a system of checks and balances in relation to the operation of the BAI which provides, inter alia, for the authority to develop a statement of strategy, publish its budgets and develop annual reports and financial statements.

The contracts award committee has the role of licensing independent commercial and community broadcasters such as local radio stations or digital television providers. The compliance committee is responsible for ensuring all broadcasters comply with their licence conditions and the standards set out in the broadcasting codes and rules. Rather than provide details on all their areas of responsibility, I have highlighted some issues which I consider may be of interest to the House.

The broadcasting funding scheme which was originally established under the Broadcasting (Funding) Act 2003 offers financial support for the production of new television and radio programmes on Irish culture, heritage and experience, adult literacy and with a particular focus on the Irish language. Funding can also be granted to support programmes on topics such as the natural environment and historical buildings and programmes which raise public awareness and understanding of global issues impacting upon Ireland and other countries. The scheme was updated in the Broadcasting Act 2009 when the funding allocated to it was increased from 5% to 7% of the net television licence fee receipts. The new scheme also received European Commission approval as being compatible with state aid rules at the time.

The latest sound and vision scheme expands the eligible genre to include development of local and community broadcasting and media literacy. The scheme is operated by the BAI.

The primary purpose of the audiovisual media services directive which amended and renamed the television without frontiers directive is to ensure the effective operation of the internal market for television broadcasting services by ensuring the free movement of broadcasting services throughout the European Union. The directive covers all audiovisual media services, meaning traditional television, linear service and video on demand, non-linear services, irrespective of the technology used to deliver the content. In line with its obligations under the Broadcasting Act 2009, the BAI is charged with enforcing the traditional television provisions of the audiovisual media services directive, while new regulations which my Department is preparing will transpose the new non-linear provisions of the directive. The forthcoming Audiovisual Media Services Regulations 2010 will transpose those aspects of the directive that deal with non-linear services. These services are typified by video on demand type services delivered over the Internet and because of their nature and taking into account the degree of choice and user control over these services, they will attract a lighter tier of regulation than applies to traditional television. Accordingly and in line with the spirit of the directive, I will be providing in the regulations for a self-regulatory regime in this area. In this regar, I am pleased to report to the House that both IBEC and the Advertising Standards Authority of Ireland, ASAI, in consultation with the BAI, have agreed to take up this task and are well advanced in developing a self-regulatory code of practice, as envisaged under the regulations.

More generally, the Broadcasting Act 2009 requires the BAI to create, keep under review and modify broadcasting codes, particularly with regard to objectivity and impartiality in news and current affairs, as well as with regard to privacy. In this regard, the BAI has published an updated general advertising code and children's advertising code. The Act also allows for a children's advertising code to specifically prohibit advertising aimed at children for foodstuffs which may be of concern with regard to health, in particular, where such foods have a high fat, sugar or salt content. I understand the BAI is planning to update its codes to take account of this aspect later in the year.

The BAI has an oversight role with regard to public service broadcasting which includes requirements to undertake a review of the performances of RTE and TG4 with regard to their public service objectives, prepare and submit to the Minister a report on the review of the performances of RTE and TG4 with regard to their public service objectives and make recommendation to the Minister with regard to their funding requirements, and prepare and issue guidance to RTE and TG4 on the format of a code of fair trading practice. It is my understanding work on all these areas has commenced and is progressing.

Under section 112 of the Broadcasting Act 2009, the BAI is charged with the responsibility of preparing and issuing guidance for public service broadcasters on a code of fair trading practice in the commissioning of programming material from independent producers in fulfilment of the authority's statutory obligation. This work has been initiated by the BAI and it is myunderstanding it is planned to publish the guidelines by July this year. The BAI is required to establish a right of reply scheme, on which preliminary work has commenced with a view to concluding in 2010.

The BCI launched its digital terrestrial television multiplex licensing policy in February 2008. The licensing process for the contracts commenced in March 2008. The objective was that contracts arising from this process would facilitate the provision of a minimum of 24 new television services. The contract was originally awarded to Boxer DTT Limited in July 2008, but this consortium withdrew in April 2009. In April this year the BAI withdrew the contract offer to One-vision, the second placed applicant. The third placed applicant, EZTV, has also declined the DTT contract offer. I am disappointed that the BAI process has ended without delivering a commercial DTT operator. However, RTE is continuing its work on rolling out the DTT transmission network and aims to provide 90% population coverage by 31 October, with full coverage earmarked for the end of 2011. In the light of the ending of the process, it is now my intention to meet the key State agencies, including the BAI and ComReg, as a matter of urgency to determine how the provision of digital public broadcast services can best be progressed without further delay.

Those are the broad outlines of what I see as the expanding role of the BAI. I look forward to hearing the views of the Seanad.

Comments

No comments

Log in or join to post a public comment.