As the Deputy is aware, RTE is dual funded, receiving moneys from the proceeds of the television licence fee and commercial revenue. As the national public service broadcaster, RTE is mandated to provide a comprehensive range of programmes on radio and television that reflect the cultural diversity of the whole island of Ireland and that entertain, inform and educate. This mandate includes the provision of a programming schedule that will cater for the expectations of the community generally as well as members of the community with special or minority interests.
The purpose of the licence fee increase was to ensure that RTE had the necessary resources to fulfil its statutory mandate. It was accepted there was a strong case for improving the quality of RTE's programme schedules with more home-produced programming in peak time in particular. RTE's application for a licence fee increase of €43 was based on an assumption that this would generate additional income of €50 million of which €32 million would go directly to additional programming.
Through the implementation of its change management programme, RTE is committed to achieving efficiencies so that the benefit to the licence fee payer from the substantial public funds provided to RTE is maximised.
An integral part of the Government decision to increase the licence fee was that 5% of the net proceeds of the television licence fee, approximately €7 to €7.50, would be ring-fenced as a special broadcasting fund to encourage new, innovative and additional public service broadcasting. The remaining €35.50 will go to RTE. This is a significant increase for RTE and is accompanied by a package of reforms to ensure that the paying public get good value for their money. The decision to establish the special fund was an integral part of the comprehensive programme of measures that I announced last December to bring about a fundamental reform of public service broadcasting in Ireland. The special fund will result in enhanced public service programming on a nationwide basis over and above that provided by RTE, which will be in receipt of increased funding, and over and above that already provided by other broadcasters.
It is my intention that the scheme will be administered by the Broadcasting Commission of Ireland in the first instance and ultimately by the Broadcasting Authority of Ireland. I will bring forward shortly more detailed proposals in connection with the establishment and operation of the fund.