(Dublin Central) asked the Minister for Posts and Telegraphs the date the recommendation from the National Prices Commission concerning the increase in television licences was received in his Department.
3.
Ceisteanna—Questions. Oral Answers. - Television Licence Fees.
2.
(Dublin Central) asked the Minister for Posts and Telegraphs why he did not accept the recommendations of the National Prices Commission in respect of the increase in television licences.
4.
(Dublin Central) asked the Minister for Posts and Telegraphs the estimated additional revenue expected for 1976 from the recent increase in television licences.
With the permission of the Ceann Comhairle, I propose to take Questions Nos. 2, 3 and 4 together.
The recommendation was received on 11th December, 1975. The Government considered that the interim increases recommended by the National Prices Commission would not provide sufficient additional revenue in RTE's financial year ending on 30th September, 1976, having regard to the authority's statutory obligation to be self-supporting. The new licence fees are expected to bring in additional revenue of the order of £2,200,000 in 1976.
(Dublin Central): Surely the proper statutory body to decide on these matters is that set up by the Government— the National Prices Commission. Therefore, can the Minister say how the Government were in a position to decide that the recommendations of the commission in regard to RTE would not bring in sufficient revenue?
Presumably, the Deputy is aware that the Government are not bound to accept a recommendation of the NPC. The reasons for the Government taking the decision referred to here are fairly clear from the figures. RTE had accumulated debts in the period 1st April, 1974 to 30th September, 1975 which were estimated at £943,000. They forecast a further deficit of £1,419,000 in the financial year to the end of September, 1976. The interim increase recommended by the NPC would have yielded about £960,000, that is, compared with the existing deficit of £943,000 in RTE's financial year, ending 30th September, 1976. This was regarded as inadequate in the context of the authority's statutory obligation to be self-supporting. Consequently, the Government decided to grant the increase.
(Dublin Central): In the November issue of the publication of the National Prices Commission it was seen that there were then 34 applications and 34 recommendations. Would the Minister agree that by not accepting the recommendation of the commission in this instance he is creating a dangerous precedent while expecting the private sector to accept the Commission's recommendations?
There is no precedent being set on this occasion.
(Dublin Central): There is and it is a dangerous precedent.
That is not the question.
The Minister is assuming the role of Ceann Comhairle, also.
May we have a question, please?
(Dublin Central): Since the private sector are expected to accept the recommendations of the NPC, surely there is an obligation on the Government to give good example by showing that they are prepared to accept the commission's recommendations in regard to matters which concern the various Departments?
The Government are not under any obligation to agree to a recommendation which they consider not to be in the public interest or in furtherance of the statutory duty of the body concerned.
Question No. 5.
Would the Minister not agree that in a similar situation in private industry he would be one of the people to allege mismanagement in respect of the company concerned? Are the private sector not entitled now to accuse the Minister of mismanagement in regard to the affairs of his Department?
The Minister indicated that there is a statutory obligation on RTE to be self-sufficient. Surely the NPC were aware of this obligation. In those circumstances why did the Government not accept their recommendation?
I have explained why.
Next question, please.
Were the commission aware of this statutory obligation in respect of RTE?
I am sure they were.
Why, then, go against their recommendation?
I have explained why the Government took this decision. The NPC appear to have had in mind the recommending of an interim increase and to consider, during the period of that interim increase, what the total increase should be. It appeared to the Government that this would result speedily in two levels of the licence fee. We did not think this would be in the public interest and thought it would leave RTE during that time in possible breach of section 24 of the Broadcasting Authority Act.
The fact that——
The Chair has called the next question. I have allowed a lot of latitude on this matter.
There are three questions involved.
Because of that the Chair has given a certain amount of latitude.
Would the Minister agree that the failure of the Government to accept the NPC recommendation will result in a lack of confidence in the commission on the part of other sectors?
Our decision does not imply any lack of confidence in the commission.