Just before the break for Private Member's Business I had been indicating the reasons the Labour Party should be supporting this amendment in the names of Deputies De Rossa and McCartan. In his very brief reply so far to this Committee Stage debate, the Minister simply said that the meaning of advertising is "well known". By more or less saying it is something for which it would be very difficult to legislate, something to which it would be very difficult to give precision, he was not being entirely consistent with his speech on Second Stage. I had been making a number of points and, in order to be of assistance to you and to the House, I will not be repetitive. Neither shall I encroach on the debate which I anticipate may take place at some time in the future on section 4.
On the Minister's remarks that the meaning of advertising is well known, I want to make a few points. If the meaning of advertising is "well known", advertising is of the nature of the marketplace.Many of us have philosophical, political and ideological reservations on the utility of advertising, whether it makes a contribution to consumers' welfare or whatever, but be that as it may, confining ourselves to the wording here, advertising is of its nature something that is addressed to the marketplace. What is curious in the Minister's Second Stage speech, which has direct relevance to amendment No. 1, is that an elected representative of the people, who is nominated by the Taoiseach and receives his seal of office as Minister, is taking upon himself to say how advertising should be disposed. When one reflects on that extraordinary proposition, one can see immediately how the market idealogues want to talk about the marketplace one week but when the marketplace is not generating revenue from the private and commercial interests they favour, or they feel well disposed towards, they then decide that the market can be distorted.
There is a curious rambling reference in the Second Stage speech to how deregulation must be managed by regulation, a piece of mumbo-jumbo that the old Adam Smith school of economics used throw out every now and again. The Minister for Communications is going to establish the disposal of advertising. The second proposition which flows logically from that is that the Minister is going to curtail the advertising capacity of a company who have a mixed source of income — a licence fee and advertising revenue. The Members of this House are entitled to know why a company such as RTE should be chosen for this treatment.
The Minister is not coming into the House to say, for example: "I and my party, who were for a long time committed to public service broadcasting, have decided that RTE's work is so important it should not have to rely on advertising at all. I am going to give them direct aid as well as the licence fee and I will free them from advertising". The Minister is saying he is in favour of a recipe for death for RTE. He is saying: "I am going to cap your advertising and the mechanism by which I will do so will be the licence fee". Of course, increasing the licence fee is hardly what one might call a move that one would initiate in the week before declaring an election. The Minister who is claiming statutory responsibility for disposing of and capping advertising is the same Minister who assented to the increase in the licence fee. That is a truly extraordinary set of powers.
The amendment raises another interesting issue. Stokes Kennedy Crowley, a very interesting group who are now part of a much larger group who prepared a report on the BBC, prepared a report on the future of RTE. I have been involved in this issue for a long time. When Ireland was allocated in 1977 an orbital position for its communications satellite at 31º west, Stokes Kennedy Crowley — part of the Peat Marwick group that had examined the BBC — were the people who suggested that RTE should not be allowed to proceed with bidding for the telecommunications possibilities of the satellite.
It went to a company with no broadcasting experience that within a very short period had sold on about 80 per cent of their holding to the Hughes Corporation.It so happens that the Hughes Corporation owns 30 per cent of the company which, for example, in Japan is in charge of the Japanese telecommunications capacity. It is interesting also to note that the frequencies applied for by Ireland were not those used for television but were those used for telecommunications.
Why statutorily limit advertising within the entity that is RTE when it is very clear that the competitive environment which we are all in now may be leading to the end of public broadcasting as we know it? Linked through all these different forms of communications, we are seeing the colonisation of the citizen by the new communications media. The interesting lesson was that the people had the right in 1977 to be allocated by the World Administrative Radio Conference — WARC — the new frequency. The people got it as Ireland but it was sold on as a private entity. We are in a very unusual situation in relation to RTE. RTE having got their lecture from Stokes Kennedy Crowley and having shed a number of their staff, encouraged a number of their staff, through redundancy schemes, to set up stand alone companies to sell products and turn to RTE and so forth are not now to be regarded as being commercialised. The amendment states that:
`advertising' shall mean advertising, other than promotional material broadcast by the Authority within its own broadcasting service for the purpose of promoting its own commercial activities;.
One of the reasons the advertisers and the advertising agencies have come out so strongly on this point — it is only a minor point — is that RTE was one of those advertisers who paid their bills. The people actually got their money for work done. There are many others who do not pay their bills and who do not have the same record. In this instance the Minister is going much further. This is an entirely different concept of advertising that has never been known before. He is not only saying to the company: "There will be a limit on your advertising", but is also saying to them: "The way you do it will be limited too. We will deal with that in extenso later. They will be required to move on from 10 per cent to 75 per cent of daily programming and from seven minutes 30 seconds to four minutes 30 seconds.” That is another interference by the free marketeers. All my life I have listened to this about the marketplace taking its course and so on.