Dáil Éireann debate -
Tuesday, 6 Jul 1993

Vol. 433 No. 5

Written Answers. - Cablelink Charges.

Ivor Callely

Question:

125 Mr. Callely asked the Minister for Transport, Energy and Communications the cost per house in the Dublin area of availing of Cablelink services; the comparison costs for the past five years; if any further cost increases are being considered; and if he will make a statement on the matter.

Minister for Transport, Energy and Communications (Mr. Cowen)

The current annual rental charge approved for Cablelink Ltd., in respect of relay of the basic service to homes in the Dublin area is £80.80 inclusive of £9.36 copyright charge.

In July 1988 the annual rental charge was £63.95. On 1 March 1990 this was reduced to £62.93 following a decrease in the rate of VAT applicable to cable television rental charges from 25 per cent to 23 per cent. An increase to £68.83 was approved with effect from April 1990. With effect from 1 March 1991 there was a further reduction in the relevant VAT rate to 21 per cent and at the same time Cablelink received approval to pass on an annual copyright payment of £9.36 to each subscriber. These two changes resulted in a revised annual rental charge of £77. The current annual rental charge of £80.80 was approved in February 1992.

My Department is currently considering applications from Cablelink for increases in subscriber charges as follows: an element of subscriber charge increase arising out of an agreement between Cablelink and a number of satellite operators for the return of a range of satellite channels to the Cablelink network which had been available free of charge to cable companies such as Cablelink and hence to subscribers from the late eighties until recently when satellite operators began to demand a subscription in respect of such channels, and a small annual percentage increase in subscriber charges from 1994 to 1998, inclusive, to contribute towards the cost of a major upgrade planned for the Dublin system.