Alex White (Dublin South, Labour) | Oireachtas source

I thank the Seanad for the invitation to address the House. Public service broadcasting is provided for in Part 7 of the Broadcasting Act 2009. The Act sets out the principal objects of the public service broadcasting corporations, RTE and TG4. These objects provide the companies' statutory mandates and reflect national policy on public service broadcasting. They include the specific objective of providing national free-to-air public service broadcasting services. They also include provision of a broad range of other additional services that are seen as fundamental to the role of the public service broadcaster. The Act subjects the public service broadcasting corporations to a range of additional requirements in their pursuit of these objects.

Licence fee funding for public broadcasting provides an independent and reliable income which allows the two public service broadcasters to meet their public service objectives with a high level of editorial independence. The licence fee also allows some funds to be made available to commercial broadcasters and independent producers. As in many other small EU member states, a mix of commercial and public funding is used to support public service broadcasters. This model is not unusual in a European context and the funding balance of many European public service media organisations is similar to Ireland's. Under this model RTE is statutorily obliged to use its commercial revenues to further subsidise its public service obligations.

RTE and TG4 are accountable for the public funding they receive. They publish detailed commitments on an annual basis setting out how they intend to meet their public service obligations and objects as set out in the Act. The extent to which the commitments entered into by the two public service broadcasters have been met is reviewed annually by the Broadcasting Authority of Ireland. In addition to the annual review and five-year processes, RTE has been subject to a high level of independent scrutiny of its efficiency and performance in recent years, notably through the NewERA review, published earlier this year. These reviews benchmark operating costs against the public service semi-State sector, private sector and other public service and commercial media organisations. In a competitive and converged media marketplace the availability of public service broadcasting on various platforms has implications for other media. This means that the structure and mandate of public service broadcasters needs to be continually monitored in order to ensure that they meet their objects but do not unfairly constrain commercial media, which have their own equally vital role to play. Commercial broadcasters, while bringing choice and competition to the market, are privately-owned and funded companies that have entered the market on the basis of a commercial proposition.

In terms of radio, station owners sought and accepted licences on clear terms, which included the requirement to broadcast a specific amount of public service content. In many cases their success in the licence application process was assisted by the voluntary commitments they gave in regard to the provision of public service type content over and above that required by the relevant legislation. The licences were bid for and accepted in the knowledge that public funding was not available. That said, I fully recognise the contribution of the commercial sector to broadcasting in Ireland, including that of many local radio stations, both rural and urban. These broadcasters perform a very valuable function in the communities they serve, adding value particularly in the reporting of local news and current affairs. I recognise that many of those stations face financial pressures, particularly but not solely those in rural Ireland. Public funding is available to all public, community and independent commercial broadcasters through the broadcasting funding scheme, which encourages programming on Irish culture, heritage, adult literacy and global issues. Funded by 7% of net TV licence fee receipts, sound and vision II funded 477 projects worth over €3.6 million from commercial radio stations. This represented 40% of the total radio allocation. By contrast, allocations to public service broadcasting stations in the same period were worth less than €1.6 million or 18% of the total allocated.

The question of further distribution of public funds to independent commercial broadcasters beyond the supports that already exist would constitute a major change to broadcasting policy. It would have to be justified and would of course require legislation.As matters currently stand, the net effect of such a move would be to reduce the funding available to all other broadcasters, community and public.

It may well be worth considering whether the obligation on commercial radio to provide a minimum of 20% news and current affairs remains either necessary or desirable. At the time this provision was introduced, there was a concern that commercial radio stations would only broadcast so-called "wall-to-wall" music, but in the spirit of the debate we are having, if there is a demand for music stations, why would there necessarily be a statutory requirement for all of them to have 20% news and current affairs? This is an issue that we should, perhaps, discuss.

Senators will be aware that other groups have also been calling for public funding to be allocated to their members, including those representing community radio and the print media. There are continuing challenges confronting all media organisations in Ireland and none is immune to the changes that are taking place. As with the national economy, the television and radio advertising markets are showing signs of recovery and some small degree of growth but it is universally accepted that, as a result of continued fragmentation, revenues will never reach the levels that prevailed prior to the economic collapse.

The media landscape has been transformed and is increasingly fragmented, with the proliferation of new services, devices and providers available to audiences and consumers. In this rapidly changing environment, the core public purpose of RTE and TG4 is as important and relevant as ever. Irish audiences need strong, independent public service media organisations that can both compete with international media and provide a distinctive Irish voice and perspective, culturally and in news and current affairs. In this regard, our independent content creators have been badly affected by the fall in RTE's revenues. RTE needs a thriving independent production sector if it is to produce challenging and high quality programming. In turn, the independent sector needs RTE as the key commissioner, funder and broadcaster of Irish-made programming, yet while it is obliged to spend approximately €40 million a year on independent commissions, its capacity to invest in additional Irish programming of any kind is now severely diminished

The Government is committed to providing funding for public service broadcasting, as, indeed, all Governments have been over the years. A public service broadcasting charge would contribute to this, while reflecting the changing ways that viewers now access public service broadcasting. More and more, proposals for similar charges are being developed and introduced in other European countries. It is inevitable that a public service broadcasting charge will be introduced here. However, this will not happen before we build the necessary public understanding and support for such a charge.

In the meantime, I recognise the limitations of the current licence fee system. Work needs to be done in the short term to ensure that the stability of funding is maintained, at least at current levels. It is my intention to bring forward a number of proposals to amend the current regulatory framework for advertising. In regard to commercial radio advertising, I propose to give the BAI oversight and control of the amount of advertising minutes allowed to such broadcasters. I will also bring forward amendments to ensure the BAI's reviews of public service broadcasting funding will always take account of the impact of its recommendations on the broader advertising market. These proposed changes, along with others I intend to bring forward in respect of licence fee collection and the database, will lead to a more sustainable financial, advertising and regulatory framework for all broadcasters. In the context of an improving economy, these measures will help deliver a viable future for everyone in the sector, public service and commercial. I welcome the opportunity to engage with Senators on this important issue and to hear their views and suggestions.