Seanad debates

Thursday, 25 January 2018

Commencement Matters

Television Licence Fee

10:30 am

Photo of John Paul PhelanJohn Paul Phelan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I am not an expert on this issue either which I am taking on behalf of the Minister for Communications, Climate Action and Environment, Deputy Denis Naughten, who sends his apologies. He recognises the important part public service broadcasters play in our democratic society. The provision of stable and adequate funding is essential to ensuring the continued delivery of their role in that regard. He is also aware, however, of the challenges facing the existing television licence system, including the current unacceptable levels of evasion. While the rate has fallen from 15.3% at the end of 2013 to the current rate of 14.6%, it is still much too high. In addition, the number of households required to have a licence under the current system is declining due to a departure from traditional viewing habits, as the Senator outlined. Recent reports show that 9% of households no longer have a television set. I do not have the statistic which shows the percentage of households that never had a television set because a certain number did not.

While the current television licence model has provided a measure of stability to date, the rapid changes in technology altering the traditional way in which television is watched, together with economic pressures generally, mean that there is a serious question mark against the ability of the current funding model to provide continued stable funding for public service media in the long term. In October 2016 the Minister requested the Oireachtas Joint Committee on Communications, Climate Action and Environment to examine the longer term issue of the future funding of public service media. As the Senator will be aware, the committee considered this issue following a period of public consultation and stakeholder engagement. It launched its report on the future funding of public service broadcasting in November 2017. The Minister's officials are considering its contents and it is the Minister's intention to bring proposals to the Cabinet in the near future on funding options. In addition, he has proposed a number of amendments to the Broadcasting Act 2009, including amendments to allow for the tendering of television licence fee collection. The proposed amendments are being considered by the Oireachtas Joint Committee on Communications, Climate Action and Environment as part of the pre-legislative scrutiny process. The Minister looks forward to receiving the committee's report as soon as possible. In the meantime, there will be no change to the existing television licence-fee arrangements.

The Senator has rightly pointed out that many people use mobile devices. I will try to avoid naming some of the bigger companies operating in that area, but people are already paying a fee to obtain that product. While public service broadcasting is done quite differently in the United States, as the Senator mentioned, there are other examples in Europe of how public service broadcasting is funded which should and I know will be examined. The television licence-fee arrangement has always been contentious because for many years RTÉ was the only television broadcaster and also the only recipient of television advertising revenue. There is the question of having a level playing field for other television stations that do not receive any part of the fee and have to compete for advertising revenue in order to survive.

The Senator has acknowledged that it is a complex issue, on which the Minister expects to bring proposals to the Cabinet in the near future.

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