Bernard Durkan (Kildare North, Fine Gael)
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Question 148: To ask the Minister for Communications, Marine and Natural Resources if he will confirm the letter of 3 March 2005 from the European Commission to the Government concerning the funding arrangements of RTE and TG4, that the Commission has questioned these funding arrangements as no longer being appropriate and as not having pre-established parameters; if the Commission has expressed dissatisfaction with the remit or statement of public service purposes governing the functioning of both RTE and TG4; when a formal answer to this letter will be made; if such response will be made public; if such response requires in relation to the matters raised here that legislation be introduced in Dáil Éireann; when such legislation may be expected to be presented to Dáil Éireann; and if he will make a statement on the matter. [19830/05]

Bernard Durkan (Kildare North, Fine Gael)
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Question 149: To ask the Minister for Communications, Marine and Natural Resources his views on whether the remits of both RTE and TG4, contained in the Broadcasting Act 2001 are adequate to allow a competent external independent authority to determine whether or not State aid to these institutions is proportionate; if he will determine whether there is any element of over-compensation; if he has plans to nominate such an external authority; if so, if he will bring in legislation to do so before Dáil Éireann in the near future; and if he will make a statement on the matter. [19831/05]

Bernard Durkan (Kildare North, Fine Gael)
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Question 150: To ask the Minister for Communications, Marine and Natural Resources if the remits, funding mechanisms, accountability arrangements and regulation of RTE and TG4 do not comply with the tests laid down in a case (details supplied) in relation to State aid; if these deficiencies have been drawn to the Government's attention in the Commission's letter of 3 March 2005; if amended legislation will therefore be necessary in relation to these matters; if so, the timetable for introducing such legislation; and if he will make a statement on the matter. [19832/05]

Bernard Durkan (Kildare North, Fine Gael)
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Question 152: To ask the Minister for Communications, Marine and Natural Resources if, in relation to the EU Commission letter of 3 March 2005, the form of accounting, reporting and record-keeping being adopted by RTE, particularly in respect of licence fee allocations, does not comply with the Transparency Directive 80/723/EEC as amended 2000/52/EC in relation to the annual report and accounts of RTE published last week; if this matter was drawn to the attention of the Government in the Commission's letter of 3 March 2005; the response the Government is giving in this matter to the EU Commission; if such response will be made public; the steps his Department is taking to ensure future compliance by RTE with this directive; and if he will make a statement on the matter. [19834/05]

Noel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 148 to 150, inclusive, and 152 together as they refer to the EU Commission's investigation into the funding of RTE.

Following a period of investigation, the EU Commission forwarded an Article 17 letter to the Irish authorities on 3 March 2005 setting out its preliminary views in regard to the compatibility of the funding arrangements for RTE with the requirements of the EU treaty. In arriving at its preliminary views, the Commission followed the principles it set out in a published paper entitled Communication from the Commission on the application of State Aid Rules to public service broadcasting. In that paper the Commission outlined the questions it would ask in establishing the existence and nature of the State aid and the compatibility of that aid with the relevant provisions of the EU treaty.

As regards the presence of State aid, the Altmark judgment sets out the conditions under which State resources paid to an undertaking would not be defined as State aid. As Ireland accepts that the funding of RTE involves State aid, the Altmark judgment does not apply.

In regard to the compatibility of such State aid with the EU treaty, the Commission assesses whether the public service remit of the broadcaster is clearly defined; the remit is properly entrusted and the broadcaster is independently supervised in regard to its performance in fulfilling that remit; and the amount of aid is proportional, that is, no more than is necessary for the broadcaster to fulfil its public service remit.

I can confirm that the Commission has come to a preliminary view in regard to each of these issues, including the question of whether RTE is in compliance with the requirements of the transparency directive. The letter also includes a number of recommendations which the Commission considers must be implemented before the aid scheme can be regarded as compatible with the EU treaty.

I must stress that the views of the Commission set out in the Article 17 letter are preliminary in nature and should not be regarded as the final decision of the Commission. The outcome of the process is subject to ongoing formal and informal contacts and is a matter of negotiation between the Irish authorities and the EU Commission. Accordingly, it would be inappropriate for me to make any detailed comments on the contents of the Article 17 letter at this point.

I can confirm, however, that Ireland forwarded a response to the Commission on 30 May 2005. The Commission is currently examining that response to see if it adequately addresses its concerns. Because of the nature of the process involved I do not propose to publish Ireland's response at this time. If the outcome of the procedure requires legislative changes, I will bring such changes forward in the context of the proposed Broadcasting Bill.

Bernard Durkan (Kildare North, Fine Gael)
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Question 151: To ask the Minister for Communications, Marine and Natural Resources if he will be referring the accounts and records of RTE and TG4 to the Comptroller and Auditor General in view of the fact that in the year ended December 2003 and again in the year ended December 2004, public funding of one kind or another constituted more than 50% of the revenue of RTE and TG4; and if he will make a statement on the matter. [19833/05]

Noel Dempsey (Meath, Fianna Fail)
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Section 7 of the Broadcasting Authority Act 1990 provides that RTE's accounts shall be audited annually by qualified auditors appointed by the authority. I have no proposal to amend this provision.

Section 8(1)(b) of the Comptroller and Auditor General (Amendment) Act 1993 provides the Comptroller and Auditor General with a power to inspect the accounts of a body where that body receives more than 50% of its income from a public source. This provision does not apply to a number of bodies listed in the second schedule of that Act and RTE is among these listed bodies.