Bernard Durkan (Kildare North, Fine Gael)
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Question 463: To ask the Minister for Communications, Energy and Natural Resources if he has received submissions from independent broadcasters wherein the disadvantages under which they operate compared with the national broadcaster are highlighted; if he directly or through the aegis of the regulator can anticipate legislative or regulatory changes which might address the relevant issues; and if he will make a statement on the matter. [36879/12]

Pat Rabbitte (Dublin South West, Labour)
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I can confirm that I have received submissions from the Independent Broadcasters of Ireland with regard to their recent proposals which include suggestion to the effect that licence fee funds be dispersed to independent broadcasters in recognition of their public sector output and that RTÉ's commercial operations be restricted.

It should be clear that these stations were founded as commercial operations with creating a profit for their owners central to their objectives. Station owners sought and accepted licences on clear commercial terms. In many cases, their success in the licence application process was assisted by the voluntary commitments they gave in regard to the provision of public service type content, over and above that required by the relevant legislation. The fact that some of these stations are now undergoing an understandable degree of financial stress does not mean that the State should immediately step in and provide public funds – they are and remain commercial companies. Moreover, it should also be noted that their very popularity in the communities they serve is, in many cases, as a distinct result of the local news content and current affairs type programming that they provide and which, in turn, gives them a potentially strong advertising presence and thus earning potential. As the economy recovers, it is to be expected that this commercial pressure will ease as advertising revenues recover apace. Indeed, the recent review of the radio sector carried out by the BAI reveals that the overall sustainability of services is not in question, despite the challenging commercial situation that some stations find themselves in.

In practical terms, EU State Aid rules provide a serious and unavoidable obstacle to the IBI proposal. The Principle of Additionality means that State funding can only be provided to companies where, in the absence of such funding, the service would not be delivered. The fact that the commercial broadcasters already provide a range of public service content voluntarily would clearly rule out the provision of any state funds on this basis.

As the Deputy may be aware, the Broadcasting Authority of Ireland (BAI) is presently engaged in the first '5 year review' under Section 124 of the Broadcasting Act 2009. This review, which builds on the single year reviews completed thus far, and will examine issues in relation to Section 108 of the Act and the commercial funding of these corporations as well as the impact of further 'top slicing' of the available licence fee fund. As such, I expect that it will fully engage with questions around RTÉ's presence in the advertising market, and the nature of their commercial remit. I will, of course, consider any suggestions or recommendations that may emanate from this around legislative change. Equally, I remain of the view that the existing BAI Levy system is the most appropriate means by which that organisation should be funded, and I see no compelling reason to change that position in the current circumstances.