Vol. 546 No. 4
18 Mr. McGinley asked the Minister for Arts, Heritage Gaeltacht and the Islands if she will relieve RTE of the obligation to sell the national transmission network; and if she will empower RTE to establish the network and other non-core activities as stand-alone companies into which they may invite private capital and partners according to the needs of these enterprises. [32001/01]
I propose to continue to work towards the implementation of the Government decision in relation to the establishment of a DTT platform in Ireland by means of the two separate processes that are ongoing at present. The Government decision provided for the sale of the RTE transmission business as a going concern and that RTE could retain an equity stake of up to 28% in the new entity created. I should point out that RTE's original proposal for the introduction of DTT in Ireland was premised on the sale of its transmission business. RTE is at present engaged in a process that will lead to the sale of that business.
Does the Minister agree that if RTE is obliged to proceed with the sale of this national asset, it will probably exacerbate an already serious financial situation in RTE? The Minister has mentioned the PricewaterhouseCoopers report on the financial situation in RTE in which it was envisaged that RTE would accrue a net £27 million from the sale of that asset. With BSkyB entering the fray and RTE being forced to sell at a bargain basement price, does the Minister not agree that there will be severe financial implications for the station? Does she have any plans to make up the shortfall in respect of the £26 million the report envisaged that RTE would receive from the sale of this national asset?
RTE has not indicated to the Department that it is having second thoughts in relation to the sale of its transmission business. RTE is responsible for planning and managing the transmission network sale process and the Government has mandated me to oversee that process to ensure that it does not inhibit the achievement of the Government's objectives in respect of the introduction of DTT. There have been ongoing and extensive formal and informal contacts between the Department and RTE and their respective advisers in relation to the DTT project. Aspects of the project have been discussed at various meetings I have had with representatives of RTE, a number of which were attended by the chairman of the authority.
It was never envisaged that DTT would be the only digital platform; we are also considering digital cable and digital satellite platforms. The Government chose the DTT option for two reasons, namely, universality and the fact that it is free to air. I do not believe that the involvement of RTE with Sky will affect the implementation of DTT. As already stated, there is a strong Government proposal on the table and the Government's decision is being implemented. We expect DTT services to be launched in the latter half of next year.
In view of the changed circumstances and the developing situation, does the Minister still agree that the estimate by PricewaterhouseCoopers of £26 million for this valuable asset remains viable?
I do not know what the Deputy is getting at. There has been some confusion with regard to digital programming. The structure to which the question refers involves the establishment of two companies. However, the PwC report refers to digital programming which is a separate issue. Unfortunately, there appears to be a degree of misunderstanding and confusion in respect of this matter. The question tabled by the Deputy refers to the structures involved rather than to digital programming.
