Michael McDowell
Question:9 Mr. M. McDowell asked the Minister for Arts, Culture and the Gaeltacht if he intends to authorise an increase in the TV licence fee; and if he will make a statement on the matter. [3230/96]
Ceisteanna—Questions. Oral Answers. - TV Licence Fee.
Television receiving licences are issued under the provisions of sections 5 and 6 of the Wireless Telegraphy Act, 1926. Under the Act, the consent of the Minister for Finance is required before I can make any alteration in the level of the television licence fee. It is a matter of long-standing practice that decisions to increase television licence fees are taken by Government.
The Deputy will be aware that the level of the licence fee has not been changed since 1986 and I feel that it is not inappropriate to review the level of the licence fee after so many years. I will be consulting my Cabinet colleagues on this matter and the Deputy will understand that it would not be proper for me to discuss my views on the level of the licence fee before I have the opportunity to formally submit them to Government.
Is it the Minister's understanding that it will be necessary to increase the licence fee to enable RTE to meet the additional commitments being placed on it by law? On the one hand RTE is expected to provide £7 million for the funding of Teilifís na Gaeilge, which we have discussed, and is required by law to make 20 per cent of its expenditure available to the independent television makers by 1999, three years away. It makes 6 per cent of its expenditure available at present.
A question Deputy and not dissemination of information.
Is the Minister convinced that RTE can sustain that level of demand at both ends without adversely affecting its programme making budget?
The latest figures I have seen for the provision of one hour's television by RTE to Teilifís na Gaeilge is between £5 million and £5.5 million, and not £7 million. Having a good RTE requires addressing the issue of its income and the level of the licence fee. I repeat that RTE seems to have made a good and sustainable case on its own grounds irrespective of the question of this hour. Would it not be rather extraordinary to have lived from 1986 to 1996 and needed the requirement of one hour in Irish to electrify the case for a licence fee increase? On the independent sector, it has been very good for the film making community and it is good for RTE and has meshed nicely in regard to future broadcasting policy.
RTE has made a good case. I am reflecting on it and it is my conclusion that it is not inappropriate to consider whether the licence fee is adequate at this time and to go to Government on that basis. We have to consider whether that is appropriate. RTE can make its own case. There are other factors that the Deputy did not mention such as that the station has to reinvest in capital, regear its staff and that it has an important and exciting programme of regionalisation and so on. The case for a licence fee increase is not predicated on the narrow base of either of the two points that have been made.
Does the Minister intend to implement the proposal in the Green Paper with regard to indexation of the licence fee? Will he adopt that policy now or in future years?
When I was preparing the Green Paper, which is just that, and generating 52 questions which drew 160 responses to every question on broadcasting, I included this question of indexation. It was my view, and I was putting it out for response and discussion, that if you get the level of the licence fee right rather than having long periods of discussion on when it is right politically to make the case, you should think in terms of indexation. I have not changed my view since the publication of the Green Paper.
May I clarify the Minister's answer for my own information? Is the Minister intent on indexing the licence fee?
I ask the Deputy to put her inquiry in the context of what I said earlier. I have to go to Cabinet to discuss it with my colleagues before I can discuss it at Question Time. In my view it is a good idea if you have settled the level of the licence fee to then move it at the same time with indexation. That is still my view.
Will the Minister put the proposal for indexation of the licence fee to the Government?
It will be part of my reflective process.
Can we take that as a "yes" Minister?
The original "Yes Minister" was more positive than this Minister. Has an analysis been carried out into the operation of RTE, particularly since the licence fee is a subsidy somewhat similar to that which CIE gets? Has an analysis been carried out to ensure that the licence fee is not being used to subsidise what should be commercial programmes or the rebroadcasting of popular programmes from other countries? We need to ensure that the licence fee is being used to subsidise the public service broadcasting element which would involve a social and cultural element that would not be self financing. Is there any ongoing analysis to ensure that RTE is not living off the fat of the licence fee for ordinary commercial purposes and that it is acting in a commercially competitive way?
We are going somewhat beyond the bounds of the question.
I will try not to stray off the point but I want to answer the Deputy's question.
The Minister should not grant the licence unless he is sure it is not living off the fat of the land.
Let us hear the reply.
This question arises in relation to policy points which must be considered, for example, in Europe in relation to the television sans frontieres and its application. Does the Deputy want the national broadcaster to be split — in other words, RTE is a national broadcaster when it is doing one thing but not when it is doing something else? If one makes the national broadcasting system function in a mixed way, will it be able to divide itself regularly in relation to one part of its activity or another? This question is crucial in terms of the decision on the implementation of conditions — for example, how to define the proportion of home produced programmes. There is a big difference between RTE and Mr. Berlusconi's stations in Italy. The Green Paper looks at this issue but one must be careful not to be driven into an inoperable stance while living in the mixed world of broadcasting and competition because the benefits of the licence fee are enjoyed.