Written answers

Tuesday, 9 November 2010

Department of Communications, Energy and Natural Resources

Broadcasting Services

9:00 am

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Question 357: To ask the Minister for Communications, Energy and Natural Resources in view of concerns raised over transactions between RTE's public service arm and its commercial arm, if he intends to direct the Broadcasting Authority of Ireland compliance committee to report on compliance by RTE; if he will publish the report; the timeframe for the report; and if he will make a statement on the matter. [41072/10]

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Question 358: To ask the Minister for Communications, Energy and Natural Resources in respect of RTE and TG4, the [i]ex ante[/i] and [i]ex post[/i] ministerial and regulatory oversight mechanism currently being employed; and if he will make a statement on the matter. [41073/10]

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Question 359: To ask the Minister for Communications, Energy and Natural Resources in the context of the annual statement that RTE is required to make to the Minister under the Broadcasting Act 2009, whether he will prepare and issue directions in order to ensure maximum transparency; if he will exercise his powers to direct the Broadcasting Authority of Ireland to prepare and publish general guidance on the cost accounting principles and methods by which costs and revenues are assigned to the various activities; and if he will make a statement on the matter. [41074/10]

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Question 360: To ask the Minister for Communications, Energy and Natural Resources the steps he will take to ensure that RTE does not engage in anti-competitive practices with regard to its competitors in accordance with the 2009 commission guidelines on the application of State aid rules to public sector broadcasting; and if he will make a statement on the matter. [41075/10]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 357 to 360, inclusive, together.

The Broadcasting Act, 2009 imposes extensive operational and reporting requirements on RTE and TG4 in relation to the pursuit of their public service objects and the conduct of their commercial activities. Sections 108 and 109 of the Broadcasting Act, in particular, translate the principles of EU and national competition law, and the requirements of the European Commission's 2009 Communication in this regard.

Section 108 (2) requires that all activities of the public service broadcast corporations arising from their public service objects and the exploitation of commercial opportunities object are made at arm's length and on commercial terms.

Section 109 (9) of the Broadcasting Act, 2009, requires each public service broadcast corporation to submit to me annually a Financial Statement in respect of revenue and costs, distinguishing between monies received or expended on activities in pursuance of its public service objects and activities in pursuance of its exploitation of commercial opportunities.

In accordance with this provision, RTE's Annual Report and Group Financial Statements, 2009, was submitted to me earlier this year, incorporating the required statement on Page 70. This Report was subsequently laid before the Houses of the Oireachtas and published on the RTE website.

With regard to my powers and responsibilities under the Act, the above reporting and operational requirements are supplemented by ex-ante and ex-post Ministerial and regulatory oversight mechanisms to be used when and as appropriate.

Section 109 (6) of the Act, for example, provides that the Minister may require a public service broadcast corporation to provide him with such information as he deems necessary in respect of any balance sheet, account or report or in relation to the policy and operations of the corporation other than day-to-day operations.

In accordance with this provision, my Department is currently engaging with RTE in regard to the policies, processes and mechanisms that are in place to support the corporation's compliance with the Act's provisions regarding transparency and arm's length operation. This engagement falls within my Department's standard practice in delivering on its corporate governance functions with regard to the State bodies under its aegis.

In addition, as referred to in the Deputy's questions, the Broadcasting Act 2009 also provides for a possible role to be given to the Broadcasting Authority of Ireland and its Compliance Committee in this area. In particular, section 108 (3) provides that the Minister may direct the Compliance Committee of the Broadcasting Authority of Ireland (BAI) to report on compliance by a corporation with its arm's length obligations; and section 109 (11) provides that the Minister may direct the Broadcasting Authority of Ireland (BAI) to publish guidelines for a corporation in relation to its activities and statement as set out above.

These sections would only be invoked in circumstances where I am not satisfied with the level of transparency or any element of RTE's operation of its commercial activities at arm's length. I will keep this matter under review.

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