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Dáil Éireann debate -
Thursday, 8 Nov 2001

Vol. 543 No. 4

Other Questions. - Broadcasting Legislation.

Michael Bell

Question:

7 Mr. Bell asked the Minister for Arts, Heritage Gaeltacht and the Islands the discussions she has had with the RTE Authority regarding the introduction of digital terrestrial television; and if she will make a statement on the matter. [27141/01]

I refer the Deputy to my response to Question No. 43 on 29 May 2001.

Implementation of the revised arrangements agreed by Government last year for the introduction of digital terrestrial television – DTT – in Ireland as provided for in the Broadcasting Act, 2001, is ongoing. These revised arrangements provide that the DTT platform will be established by two separate but inter-linked transactions: (a) the separation out and sale by RTE of the existing RTE transmission network as a going concern and subject to RTE being able to retain a shareholding of up to 28% in the new entity; and, (b) the selection of the DTT multiplex licensee, the DTT retail business, to be licensed by the Office of the Director of Telecommunications Regulation.

An interdepartmental project management group chaired by my Department and including the Departments of Enterprise, Trade and Employment, Finance and Public Enterprise is managing the process to select the DTT multiplex licensee. In June of this year bids were invited from parties interested in being selected as the DTT multiplex licensee. While a total of four parties expressed interest in applying, only one party submitted a proposal and that proposal was received by the deadline of 3 August. The proposal was submitted by a consortium named "It's TV" and discussions are taking place between the consultants engaged by me to oversee the process and the sole bidder to ensure full compliance with the conditions laid down for selection of the DTT multiplex licensee.

In the process that will lead to the sale of a majority stake in the RTE transmission network, I understand from RTE that it received a number of bids from interested parties in late October. RTE has invited a number of bidders to take part in the next phase of the process which will include access to a data room, a presentation by management and draft documentation on which to comment. Thereafter applicants will be asked to submit revised bids. Following the receipt of the revised bids a further shortlist will be determined. RTE expects the process to conclude in December.

My Department is engaged in ongoing regular contact with RTE in relation to the implementation of the Government's objectives for the establishment of the DTT platform.

The former Secretary to the Government, Mr. Frank Murray, is acting as process auditor to both the multiplex licensee selection process and the RTE transmission network sale process. The role of the process auditor is to verify that both processes have been carried out in accordance with normal criteria of openness, fairness and impartiality.

I thank the Minister for her comprehensive reply. Will the Minister give the House an assurance that reports that RTE is abandoning plans to go ahead with the digital terrestrial project are untrue and that the process is moving ahead within the station? Are the various proposals considered to be serious in nature? Does the Minister think that a December date for concluding the discussions is realistic? When does she expect us to have digital terrestrial transmissions within the State?

If I may, a Cheann Comhairle, I will answer the last supplementary question first. Based on the current timetable the DTT services can be expected to be launched in the second half of next year. With regard to the other question about RTE, I have not been advised that RTE is taking a different view than the one that reflects Government policy on implementing DTT. RTE is going ahead with the sale of the transmission network, subject to its being able to retain a shareholding of up to 28%. RTE has said it expects its own process to conclude in December. Those are the timescales that have been indicated to me through the project management group and the consultant. At this stage, I believe those timescales will be upheld.

In the event of RTE abandoning the digital terrestrial television project and in the event of the broadcast transmission network being sold, subject to 28% of the equity being held by RTE, does the Minister envisage a situation could arise whereby the transmission network is sold yet it is not used for the purpose for which the legislation was introduced?

With due respect to the Deputy, I have no intention of entertaining that hypothetical situation.

How can the Minister guard against it?

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