Ruairi Quinn (Dublin South East, Labour)
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Question 571: To ask the Minister for Communications, Energy and Natural Resources his views on the proposal made by his Department to the special group on public service numbers and expenditure programme report that radio spectrum should be auctioned; the actions he has taken to progress this proposal; the possible revenues to the Exchequer from same; and if he will make a statement on the matter. [31257/10]

Eamon Ryan (Dublin South, Green Party)
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The Commission for Communications Regulation (ComReg) has statutory responsibility for the management of spectrum in accordance with national spectrum policy objectives. A primary objective of ComReg is to ensure the efficient use of this unique natural resource.

The submission from my Department to the Special Group on Public Service Numbers and Expenditure Programmes stated that while it is necessary for the State to receive a fair return for spectrum, it is critical for the creation of a suitable environment for new digital businesses that ComReg also gives due recognition to the innovation and enterprise value of spectrum and promotes spectrum availability as a vehicle for the development of new digital services and technologies.

Assignment of spectrum is done by way of licences for specific applications or general authorisations. The design of assignment mechanisms, such as an auction, is determined by ComReg, taking account of the circumstances prevailing in the sector and the particular markets at a given time. The objectives of spectrum assignment are to ensure a fair return to the State for the use of this resource; ensure that competition and innovation are promoted; and to protect public service interests. Operators in this field range from large-scale to small-scale, and from existing to new entrants. The assignment of spectrum thus requires a balanced approach that recognises these objectives and the various types of players.

ComReg has previously used auctions to assign spectrum and is currently finalising plans to assign further blocks of spectrum by auction. Before deciding on the method of allocation, ComReg holds a public consultation on its proposals, including the terms and conditions of the assignment mechanism. It is not possible to determine in advance what the outcome in terms of revenue would be. The price paid by bidders for the available spectrum is determined by market conditions.

While market mechanisms, such as auctions, are an efficient means for assigning spectrum, they are not always the most appropriate means. In areas where social, cultural, safety and security objectives are paramount, assignment mechanisms other than market mechanisms are more appropriate.

Ruairi Quinn (Dublin South East, Labour)
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Question 572: To ask the Minister for Communications, Energy and Natural Resources the use and purpose of the broadcasting fund; the reason for the increase in the allocation to the fund in 2010; and if he will make a statement on the matter. [31258/10]

Eamon Ryan (Dublin South, Green Party)
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The Broadcasting Act 2009 assigned responsibility to the Broadcasting Authority of Ireland (BAI) to develop and administer schemes under the Broadcasting Fund, which are designed to support the production and transmission of high quality programming based on Irish culture and heritage. Details of the scheme are available from the BAI at www.bai.ie.

Section 156 of the Broadcasting Act, 2009 increased from 5% to 7%, the proportion of net television licence fee receipts that the Minister (with the approval of the Minister for Finance) can pay annually to the BAI for purposes of a grant to the Broadcasting Funding Scheme. The reason for this increased allocation to the Broadcasting Funding Scheme is to implement my policy objectives to enable greater support and finance to be made available to independent producers and all broadcasters licensed in Ireland in the production of new TV and radio programmes.