Written answers

Tuesday, 5 February 2013

Department of Communications, Energy and Natural Resources

Television Licence Fee Collection

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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To ask the Minister for Communications, Energy and Natural Resources his plans to change the current TV licence system to a content licence system encapsulating laptops, smartphones, Kindles, iPads; the reason the content licence system would work in terms of the division of the content licence revenue; and if he will make a statement on the matter. [5209/13]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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The Programme for Government commits to examining the role and collection of the TV licence fee in light of existing and projected convergence of technologies and to transforming the TV licence into a household based Public Broadcasting Charge to be applied to all eligible households and applicable businesses, regardless of the device used to access content or services.

In line with this commitment, my Department is involved in the ongoing analyses and policy development work that is necessary in advance of the implementation of any changes that may be required.

Although subject to a degree of evasion, the existing TV licence fee system has provided a stable funding base for our public service broadcasters. The rationale for providing State funding for public service broadcasting is to provide an independent and reliable income flow that allows these corporations to attain their public service objects while ensuring they can maintain editorial independence. This is especially important in the context of news and current affairs.

The overall aim of Public Service Broadcasting is to provide services and content which cater for all interests in society, while ensuring that the varied elements of Irish culture and its intrinsic values are protected. Through the obligations placed on the Public Service Broadcasters, which are established in legislation passed by the Oireachtas, and the criteria set for the funding of content through the Sound & Vision Scheme, the production of quality indigenous programming and the production of minority interest programming is strongly promoted.

Whatever the system of funding, the rationale for providing funding will continue to apply and any changes that may be implemented must continue to provide a secure funding base for public service broadcasting and content.

It is also important, of course, that any changes to the system of funding should take account of the reality of new mechanisms to access such content and services and the pervasiveness of such content in today’s society.

Publicly-funded public service broadcasting and content are now available to everyone on an ever-increasing range of platforms and devices (radio, television, smart phone, pc, laptop and many other devices) and, in fact, access is not dependent on the ownership of a device. In short, everyone benefits from the availability of these services, regardless of how content is accessed or relayed to the public, and, therefore, it is my view that the cost should be borne by society as a whole. That said, I would like to make clear at this point that, while the Deputy’s question refers to a “content licence system”, the charge will not relate to the amount or type of content accessed by any one individual: it will be a charge that will be applied across all eligible households and businesses, the proceeds of which will be used to fund public service broadcasting and content.

The replacement of the existing funding system based on the collection of television licence fees with one based on the imposition of device-independent charge on eligible households and businesses is a complex process and much of the detail has yet to be worked out.

This includes identifying the most appropriate method for collecting the charge and the manner in which issues such as exemptions and enforcement should be dealt with. In this regard, my Department is currently carrying out a Value for Money Policy Review conducted by an independently chaired group on the proposed policy. I would expect to receive a copy of the group’s recommendations and report for my consideration by the end of quarter 1 2013.

At this point, however, I can state that it is my intention that the charge, which will be device independent, will replace the current licence fee and all households and businesses will be subject to the charge, except for those that are specifically exempted.

In regard to the issue of exemptions under any new system, this will have to be given detailed consideration when the type of model to be developed is agreed. That said, it is my expectation that the current exemptions in relation to pensioners and those entitled to the Household Benefit Package will continue to apply.

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