Vol. 437 No. 1
1 Mr. Noonan (Limerick East) asked the Minister for Transport, Energy and Communications the steps, if any, he intends taking to restore the number of TV channels to Cablelink subscribers, which they had previously enjoyed; and if he will make a statement on his recent decision to disallow advertising on cable and MMDS systems.
48 Mr. Gilmore asked the Minister for Transport, Energy and Communications if he has rejected an application from Cablelink to carry advertisements on its network; the other proposals, if any, he has to facilitate Cablelink to restore the satellite channels it previously offered to consumers; and if he will make a statement on the matter.
56 Ms Keogh asked the Minister for Transport, Energy and Communications if, in view of proposals received from the cable network to allow for local advertising, he intends to introduce legislation to enable them to so do; if so, the timeframe for this legislation; and if he will make a statement on the matter.
I propose to take Questions Nos. 1, 48 and 56 together.
I am very anxious for the early restoration of satellite TV on the Cablelink network at reasonable cost to viewers. Deputies will be aware that Cablelink's proposals for the restoration of these channels involved the use of inserted advertising. After full consideration of the proposal, which included consultation with a very wide range of media interests, I inclined to the view that there are options available which need not involve inserted advertising. Ordinary advertisement included in original broadcast programmes on cable and MMDS are not, of course, affected by my decision. If the satellite channels cannot be restored for all viewers at reasonable cost, then I would like to see a situation evolving where the maximum choice in terms of free and subscription programmes is made available to viewers. Accordingly, I have informed Cablelink that I would like these options to be explored with the satellite TV companies and I have asked that this be done urgently and jointly with all other cable relay and MMDS companies.
(Limerick East): Is the Minister aware that Cablelink was in a position to restore full service to its subscribers and pay for it by a modest £5 increase in subscriber charge, the remainder being made up by insert advertising? The option the company now faces is to increase the charge per household by £30 if it is to restore the full range of services enjoyed by consumers heretofore.
I am aware of the original proposal submitted by Cablelink. As I said, I consulted a wide range of interests, including media interests, and I inclined to view that inserted advertising is not the only option available. I have stated that that satellite channels will only become available again at a reasonable cost. I do not subscribe to the view that the amount mentioned by the Deputy is accurate.
(Limerick East): Will the Minister agree that the advertising proposed on an insert basis will simply replace the advertising now carried and, from the Irish consumers' point of view, replace relevant advertising with irrelevant advertising? Will the Minister state on what he founded his decision not to allow one type of advertising to be substituted by another?
It has been put to me very forcefully that inserted advertising on satellite TV channels would be detrimental to Irish media interests. While it is an open question as to whether such advertising would have an adverse effect, I have to take account of that risk. Irrespective of the arguments for and against inserted advertising, I believe the satellite TV question can be best settled through the principle of consumer choice, if it cannot be achieved through a reasonable price increase. This is why I have asked the multi-channel industry as a whole to negotiate again with the satellite TV companies with a view to arriving at a formula which will not need inserted advertising to support the restoration of these channels.
(Limerick East): I agree that the best way forward is to base decisions on consumer choice. Is the Minister aware that a recent survey carried out on behalf of Cablelink by MRBI, a reputable scientific agency, established that 77 per cent of consumers want Sky News, 69 per cent want Sky One, 58 per cent want Euro Sport, 57 per cent want text and community information, 47 per cent want MTV.
I had hoped for brevity at this time, for obvious reasons.
(Limerick East):—— 38 per cent want the children's channel and 25 per cent want the French language channel? If we are talking about consumer choice, is the Minister aware that the days of satisfying consumer demand by confining them to the six traditional choices — the two RTE channels and the four traditional British Channels; is long gone and people now want a range of choices?
I am aware that people want a wider range of choice. I am simply seeking to reach a position where this is provided at a reasonable cost. I am adhering to the principle of consumer choice. The reason this issue arose in the first place is that these channels were previously provided free of charge to gain access to the grid. The companies concerned now wish to put a charge on this service. What is at issue here is the price and how this can be accommodated in terms of a general price increase to accommodate the wider consumer choice. In the event of further choice being available, consumers should have the option of paying for it if they wish rather than imposing a general price increase across the board on every channel.
