Seanad debates

Tuesday, 19 November 2019

Public Service Broadcasting: Statements

 

2:30 pm

Photo of Pádraig Ó CéidighPádraig Ó Céidigh (Independent) | Oireachtas source

Tá fáilte roimh an Aire Stáit go dtí an Teach. Bhí muid ag súil go mbéadh an tAire, an Teachta Bruton, anseo, ach is ionadaí an-mhaith é an tAire Stáit agus is duine é ó mo cheantar féin, Contae na Gaillimhe. D'iarr mé trí huaire go dtiocfadh an tAire isteach anseo. D'iarr mé air teacht i mhí na Samhna 2017, i mhí Eanair 2018 agus i mhí Dheireadh Fómhair. I have asked that the Minister come before the House for a debate on RTÉ and public broadcasting on three occasions going back to November 2017. It is frustrating that it took so long to get a Minister here, but sin scéal eile.

I served on the board of RTÉ for two years before coming into the Seanad. It was a privilege to work on the board and under its chair, Moya Doherty, and the team that was there. They are very committed people. Having said that, RTÉ needs to be made fit for purpose, which it is not at present. My colleague, Senator Horkan, made the point about the licence fee very clearly and very well. RTÉ has been beating the drum for probably 20 years or more, asking why it does not get the licence fee it is due. Roughly 13% or 14% of those who should pay do not pay; 86% or 87% pay. What it is about Ireland? How is it that it is always the same people who pay and in many cases the same people who do not pay? One is penalised for compliance, and now we are looking at giving more money to RTÉ. I am not saying I am against this, but who is paying the money in? It is the same taxpayers. We must create equity for the majority of people - 87% - and RTÉ, in fairness to it, has been crying out for that. That 13% amounts to roughly €25 million per year. In 2018, RTÉ lost €13 million. It would have a profit of €12 million even the way it is if the whole lot were collected. I believe that compliance in the UK is something like 98%. I am delighted the Minister of State said in his statement that, based on this legislation, there will be a collection process and that it is going out to tender. At present An Post delivers that service at a cost, I believe, of roughly €12 million per year, which is quite significant. I could be corrected slightly on that because it is difficult to get real, good, accurate, evidence-based information.

I will share a few thoughts on RTÉ's income and expenditure. In 2015 its commercial income was €155 million. This represents a fall of €1.5 million on the figure for last year. Licence fee revenue in 2015 was €178 million and has risen to €189 million. Total income in 2018 was almost €340 million, and RTÉ made a loss of €13 million in the same year. As I said, if it got that €25 million in licence fee revenue in, it would be in profit. It is important to state that RTÉ does not get all the licence fee revenue, but it does get the bulk of it. I am also told that Lyric FM costs approximately €500,000. Lyric FM is a very important flagship for the people of Limerick. I am not from Limerick but I can fully associate with the people of Limerick when they say they need that flagship there. One of RTÉ's key raisons d'êtreor mandates is to go out into the regions rather than retreat into Donnybrook. The RTÉ National Symphony Orchestra costs, I believe, approximately €4 million per year. That has been reshaped to some degree as well. That was landed on RTÉ's lap a good few years ago by the Government of the day, which said, "Ye deal with it." RTÉ was not given extra funding for it. It is a national orchestra. It is for the benefit of the Irish people, culturally and otherwise. That needs to be looked at and properly supported. The sale of land in 2017 was, I believe, worth approximately €110 million. I do not know what is happening to that income. Is it going back into the State coffers or being used by RTÉ to help it to right-size its business model?

To respond to a point made by my colleague, Senator Horkan, in 2017 roughly 65% of households had signed up for pay TV in Ireland. That tells us something. I am speaking from memory, but I think RTÉ's viewership share is approximately 32% to 35%. If it keeps going the way it is going, which is the last thing I would like to happen, that will fall to 20% or less.The national broadcaster is absolutely integral and critically important for us both as a society and as a country.

I cannot understand how RTÉ is not making a decent profit. I will give a few examples of the 2018 profits of some other State and semi-State bodies. Dublin Port had an income of €90 million and made a profit of €47 million with 163 staff. ESB Networks brought in €1.5 billion and made €355 million profit with 3,440 staff. The Irish Aviation Authority had a turnover of nearly €200 million and made a profit of €32 million with 685 staff. Dublin Airport had a €900 million turnover and made €133 million profit. Coillte has a turnover of €330 million, which is similar to RTÉ's €340 million, and last year it made €162 million profit. Who says State bodies and agencies cannot make a profit? They can and do, and we are very proud of that. RTÉ could and should be making a profit. There has never been as much demand for information, TV, and so on as there is at the moment. RTÉ can have a captive audience. It would not be complicated to rightsize it, and there is a bit of rightsizing to be done. While RTÉ has internal issues and problems, 100% collection on the licence fee is critically important.

Advertising is another issue, on which it was very difficult to find information. My understanding is that RTÉ is allowed nine or ten minutes of advertising per hour, and uses about six of them. Private broadcasters have approximately 18 minutes of advertising an hour.

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