I move: "That the Bill be now read a Second Time."
I am pleased to open this debate. It provides an opportunity for the House to consider the important issues in this Bill which relate to the broadcasting of cultural and sports events of major importance to the people. Deputies will have the opportunity to express their views on these issues and I am very interested in hearing them.
In recent years the pace of technological change in the area of broadcasting has been truly breathtaking and the broadcasting scene has changed radically over the past 30 years or so. As a society we have moved from having one national television broadcaster, RTE, showing programmes in black and white, to where RTE, Teilifís na Gaeilge and TV3 operate 4 television channels. In addition, a large and growing number of television channels broadcast from countries overseas are available here on cable systems and via satellite dishes. The advent of digital television will lead to an even greater number of television channels becoming available over the next few years.
The transmission of hundreds of channels by numerous broadcasters, some of which operate on a global scale across national boundaries, has changed forever the broadcasting scene throughout the world. Some of these companies have financial resources which far exceed the resources available to many public service broadcasters in Europe. There is a danger that, if market forces are left to themselves without some level of co-ordinated control by the member states of the European Union, a small number of companies will dominate the market for major sports and cultural events that are of interest to the general public, leading to restrictions on access to television coverage of such events on those who cannot afford to pay.
The growth in the number of broadcasting channels has changed the relationship between sports organisations and broadcasters. In the past, the number of broadcasters was relatively limited due to radio frequency availability. Accordingly, the opportunity to provide coverage of sporting activities was limited if broadcasters wished to retain a wide audience. It may seem amazing now, but there was a time when some sporting organisations did not want certain events to be covered live because they felt it might reduce the number of people who would otherwise attend at a particular event.
The increase in broadcasting services which has come about through the introduction of satellite television and the emergence of dedicated sports channels has resulted in a huge increase in demand and intense competition for popular sporting programmes. While the explosion in the number of channels available can represent a greater choice for consumers, much of this programme choice is only available on a subscription or pay per view basis.
Arising from these changes, concerns have arisen throughout the European Union that certain major events, in particular sports events, will migrate from free television – that is, without direct payment by the viewer to a broadcaster – to subscription or pay per view channels. Given the important role that sports, in particular, play in the life of our country, I am concerned to ensure as far as is practicable that those who cannot afford to pay subscription or pay per view fees will not be excluded from this participation in our major events.
These concerns took shape during the debate preceding the amendment of the Television Without Frontiers Directive in 1997. Under article 3a of the directive, each member state may take measures in accordance with Community law to ensure that broadcasters under its jurisdiction do not broadcast on an exclusive basis, events which are regarded by that member state as being of major importance for society, in such a way as to deprive a substantial proportion of the public in that member state of the possibility of following such events via live coverage or deferred coverage on free television.
Member states may draw up a list of designated events which they consider to be of major importance to society and notify the European Commission accordingly. Within a period of three months from the notification, the Commission shall verify that the measures are compatible with Community law and communicate them to the other member states. The Commission is required to publish the measures taken in the Official Journal of the European Communities and, at least once a year, publish the consolidated list of the measures taken by member states. Under article 3a of the directive, each member state must recognise the lists of designated events drawn up by other member states and ensure that no broadcaster under its jurisdiction operates in such a way as to deprive a substantial proportion of the population of other member states seeing events on free television which those other member states have designated.
Sport plays an important part in our lives. There have been numerous success stories involving Irish teams and individuals. Nobody will ever forget the great excitement in recent years when the Irish soccer team, under Jack Charlton's stewardship, achieved a level of success never before achieved. Let us remember, too, the great achievements of John Treacy, Sonia O'Sullivan and Catherina McKiernan in athletics. At home, gaelic football and hurling matches, which are unique to our culture, have a treasured place in our shared memories and stories.
Clearly, sport has played and will continue to pay a major role in our culture. Without our sporting heroes, life would be much poorer. It should be remembered, too, that the successful achievements of our sportsmen and women abroad reflect a positive image of Ireland throughout the world. Success at county level in gaelic games and at international level in other disciplines contributes greatly to local and national self confidence and to our quality of life. Success at national or international level also encourages youngsters to take up and become involved in sports and sporting activities and to engage in the social life which surrounds such activities.
The massive influx of money from TV stations for broadcasting rights has revolutionised European sport. In many ways, sport in itself is becoming a huge and complex business. One could be forgiven for saying that sport is now part of the transnational entertainment business. The sale of exclusive broadcasting rights has become sport's largest source of income ahead of ticket sales, particularly in respect of the Olympic Games and World Cup soccer. Closely linked to the sale of television rights is the question of sponsorship. Sporting events with guaranteed TV coverage quickly find backing from sponsors. World sporting events are now timed to take account of time zones and international audience interest.
Football matches are the television programmes which attract the biggest audiences throughout Europe. This demonstrates the importance of relations between sport and television. Sports organisations realise the importance of their sport being shown on television and also realise the importance to television of sports coverage. Television is a very powerful medium which has a major influence on society.
A recent and, to me, a worrying trend in soccer has been attempts to purchase clubs by large powerful audio-visual companies. Recently, the British Government blocked the purchase by an audio-visual company of Manchester United. Other European Governments have adopted a different policy. In France, Canal Plus controls clubs not only in France but elsewhere. Also, major European soccer clubs such as Inter Milan and Paris St. Germain are backed by media groups.
Everybody is aware that sport now involves huge amounts of money. To be successful in sport today means not only commitment and dedication, whether by a team or an individual, but in most cases significant financial resources. The sale by event organisers to broadcasters of the rights to broadcast sports events, such as the Olympic Games or the World Cup soccer matches, involves billions of dollars worth of business. The Olympic Games and World Cup soccer matches have huge audiences across all continents and this is reflected in the huge amounts of money broadcasters are prepared to pay for the rights to transmit them.
Many broadcasters today operate in the private sector. Some of them operate on a global scale. They are answerable not to governments or to the general public but to their shareholders. I recognise that sports organisers wish to generate the maximum amount of income from the sale of broadcast rights to the events which they organise. This income is vital to event organisers and can be used, for example, to recruit new talent, undertake improvements to facilities at sports grounds, such as new stands, or to improve coaching and training facilities.
I assure event organisers that this Bill does not propose to interfere on a broad scale with the commercial marketing of sports events, to distort competition or to interfere to an undue extent with the rights of event organisers to sell the commercial rights of sports events. What is required is a balance between the rights of event organisers to sell the broadcast rights to sports events and the rights of the general public to continue to see major events that have, as the Bill states, a special general resonance for the people of Ireland, on free television with near universal coverage. It must be recognised that the citizen has rights too and these must be safeguarded.
There is widespread interest among our people that certain events, which are of such importance to our way of life and culture, must continue to be seen on free television with near universal coverage. Therefore, I have no doubt that they will welcome and support the provisions in this Bill.
At European level, the European Commission recently organised the first European conference on sport in Olympia in Greece. The conference was attended by participants from a wide variety of sports organisations, government departments and public and private sector broadcasters from many countries throughout Europe, including countries which are not member states of the European Union.
One of the issues addressed at the conference was the issue of relations between sport and television. The Commission identified a number of issues under this topic which needed to be addressed. These included television's role in broadcasting sport and its impact on the development of sport as a spectacle; the concept of solidarity applied to sports and relations between inter-club competitions and international competitions; individual or collective selling of television rights, the ownership of rights and the redistribution of money from television rights; the conditions for awarding contracts, the lack of transparency and publicity, the duration of exclusive contracts and equal opportunity for operators; the problems inherent in the growing interpenetration of the sporting world and the audio-visual sector; sports ethics, including the possible manipulation of competitions; the ethics of journalism, including the independence of journalists of a television channel which owns sports teams; the national lists of major sports events and the Television Without Frontiers Directive; the citizen's right to information; and the emergence of pay television channels and the survival of a sport linked to presence on television and ratings.
The main conclusions about television and sport were that participants agreed on the recognition of intensified relationships between broadcasters and sports organisations in a competitive market characterised by a growing number of distribution channels and diversification of television services favoured by digital technology. This intensified relationship requires sports organisations, broadcasters and public authorities to pay renewed attention to the need to preserve the values, autonomy and specificity of sport.
Although the presence of sports on television is desired by the sports movement, especially for promotional and educational reasons, the constraints of television broadcasting in a competitive environment may negatively affect the nature of sport disciplines and bring about changes in the organisation of sports activities. The integrity and autonomy of sport must be preserved and there must be no confusion of roles between broadcasters and the sports movement nor must the media directly or indirectly exercise control of the organisation and schedules of sports competitions. In this regard, hesitation and even outright opposition was expressed by some participants to the acquisition of sports clubs by broadcasters.
The majority of the working group considered that the interests of sport are best served by a system of collective sale of rights, especially by federations. This collective sale system is deemed a necessary condition for the functioning of the redistribution and solidarity mechanisms which must characterise European sport whereby redis tribution occurs within each discipline in favour of less wealthy clubs and amateur clubs.
On the issue of the duration of exclusive broadcasting rights to sports competitions, the majority of participants accepted the need for limiting the duration of such contracts for obvious reasons related to competition but considered that such duration must be sufficient, especially in respect of the investments needed for producing and programming such events. It was the generally held view of participants that it was undesirable for a single rule to apply to all sports disciplines and that the maximum duration must be adapted to the characteristics of each discipline, taking into account the diversity of sport and the impact on the sports rights market.
The working group recognised the importance of measures aimed at ensuring access by the public to information on sports events of major importance for society, taking into account the influence exercised by such events on sport practice and social cohesion. In this context the necessity to strike a balance between the protection of public interest and the development needs of clubs and federations was underlined. Participants expressed their desire to advance the dialogue between the sports movement and broadcasters, together with representatives of EU member states and the European Commission.
The Commission will prepare a report for the European Council meeting in Helsinki in December 1999. It believes the report will offer a unique opportunity to put the relationship between sport and the European Union on a satisfactory footing. The Commission considers the time has come to reflect together on a new type of relationship guided by dialogue and the search for solutions to the problems and challenges facing European sport.
Deputies will appreciate from the foregoing that the world of sport is full of complex relationships between participants, event organisers, broadcasters and sponsors. We must be careful that the measures we take now in the public interest serve that interest and do not have a negative effect on the events on which we place the most value.
The Bill will give the Minister the power to draw up a list of designated events following consultation with the Minister for Tourism, Sport and Recreation. In deciding which events should be designated, the Bill stipulates certain criteria which must be taken into account, but does not identify which events will be designated by ministerial order. It envisages a wide ranging consultation process being undertaken to ascertain the views of event organisers, broadcasters in the State and the general public before any order is made. I intend for the public to be afforded the opportunity to air its views as to which events it would like to see listed. While some sports events readily spring to mind, I intend to enter the consultation process with an open mind and without prejudice to any sport.
I will now deal briefly with the main provisions of the Bill. Section 1 deals with definitions, the most significant of which are "near universal coverage", "qualifying broadcaster" and "free television service". Until 31 December 2001, a broadcaster in the State who provides a free television service with 85 per cent coverage of the population will be considered as a "qualifying broadcaster" under the Bill. Thereafter a "qualifying broadcaster" will be a broadcaster who provides near universal coverage as defined in the Bill. "Near universal coverage" is defined as a free television service available to 95 per cent of the population. However, in a situation where, at any time, only two broadcasters are capable of providing such coverage, a broadcaster who provides 90 per cent coverage will be considered to provide near universal coverage. "Free television service" is defined as a television service which is free at the point of reception.
Section 2 provides that, following consultation with the Minister for Tourism, Sport and Recreation, the Minister may designate by order events as being of major importance to society. In drawing up the list of designated events, the Minister will be required to take certain criteria into account. Section 2(1)(a) provides that the Minister will have the basic power to designate certain events as being of major importance to society. Broadcasters who are qualifying broadcasters under the Bill will have the right to cover such events. Section 2(1)(b) provides that, when exercising the power to designate events, the Minister will determine whether such events should be available on free television on a live, deferred, or both live and deferred basis, and whether such events should be available in its entirety or on a partial basis. This enables the Minister to take account of situations where a designated event takes place in a different time zone or where a number of different events take place at the same time.
Section 2(2) requires the Minister to have regard to certain criteria when designating an event under section 2(1). The Minister must have regard to the extent to which the event in question has a special general resonance and a generally recognised distinct cultural importance for the people. The intention is to designate only events of an outstanding nature. Section 2(3) provides that, to determine whether these criteria have been met, the Minister may take into account whether the event involves participation by a national or non-national team or by Irish persons. Past practice with regard to television coverage of the event or similar events may also be taken into account. Section 2(4) provides matters to be considered by the Minister in making a determination as to whether a designated event should be available on free television on a live or deferred basis or in whole or partial form.
Section 2(5) provides that I may by order revoke or amend and order under this section. Section 2(6) provides that I must consult the Minister for Tourism, Sport and Recreation before making, amending or revoking an order under this section. Section 2(7) provides that an order under this section shall be a positive order, namely, that the order shall not come into force until a resolution approving the draft of the order has been passed by both Houses of the Oireachtas.
Section 3 provides that before making an order I shall consult with the organisers of events and with broadcasters under the jurisdiction of the State, publish a notice of the event I intend to designate in at least one national newspaper circulating in the State and invite comments on the intended designation from members of the public. Section 3(2) provides that where it is not possible to establish the identity of the organiser of an event or if an organiser or broadcaster fails to respond to efforts to consult, I am not precluded from proceeding to make an order under section 2. This is to ensure that the process cannot be delayed indefinitely by the failure of an event organiser to respond to attempts at consultation.
Section 4 provides the following: that a broadcaster under the jurisdiction of the State who acquires exclusive rights to broadcast a designated event shall make the event available to another broadcaster on request and the payment of reasonable market rates by that other broadcaster; that where a broadcaster under the jurisdiction of the State who is not a qualifying broadcaster and acquires exclusive rights to broadcast a designated event, that broadcaster shall not broadcast that event unless the event has been made available to a qualifying broadcaster, in accordance with the order under section 2, on request and the payment of reasonable market rates by the qualifying broadcaster; and that where a qualifying broadcaster acquires the right to broadcast a designated event, the qualifying broadcaster shall broadcast the event on a free television service providing near universal coverage.
Section 5 transposes the mandatory provisions of Article 3a of the Television Without Frontiers Directive to ensure that no broadcaster in our jurisdiction operates in such a way as to deprive a substantial proportion of the population in another member state of the opportunity of following events designated by that member state on free television.
Section 6 provides that where a broadcaster alleges that an activity or conduct prohibited by section 4 or 5 is being, has been or is about to be carried out by one or more broadcasters, the broadcaster shall be entitled to apply to the High Court for civil remedies such as a restraining order or damages from another broadcaster.
Section 7 provides that if broadcasters are unable to agree on what constitutes reasonable market rates with respect to television coverage of an event, either of the broadcasters may apply to the High Court for an order determining reasonable market rates for an event. Section 8 contains the Short Title to the Bill.
I cannot conclude without acknowledging the debt we owe to those who organise and administer sports in this country. By and large we have been well served by those who give of their time to ensure that sport at every level is organised and that participation for both participants and spectators alike is possible. These organisations have the primary purpose of developing the sports with which they are concerned and they fully appreciate the cultural value which their premier events represent. This is why I have proposed such a significant consultation process. I wish to emphasise that this will be a meaningful and thoughtful process in which the views of all will be given the respect they deserve. The objective of this Bill is to protect the public interest in ensuring continued access to all to television coverage of outstanding events. I am well aware that there is a strong public interest in ensuring that our sports organisations can continue to manage and administer our various sporting disciplines.
I commend the Bill to the House.
