Dáil Éireann debate -
Tuesday, 1 Apr 2003

Vol. 564 No. 1

Broadcasting (Major Events Television Coverage) (Amendment) Bill 2003 [ Seanad ] : Second Stage (Resumed).

Question again proposed: "That the Bill be now read a Second Time."

Mr. Crowe

It is clear from the deal struck between the FAI and Sky last summer that Murdoch intends to expand his foothold here. The effect Murdoch has had on the media and on news and journalism, in particular, was described by prize-winning German journalist Reiner Luyken as a cultural Chernobyl. Fox News in the United States is a byword for sleaze in journalism and pioneered the practice of chasing celebrities with television cameras. Sinn Féin is committed to the principle of a free and open media. A significant portion of our general election manifesto was devoted to the media and the need to protect free speech and public service broadcasting. We say specifically that certain major sporting and cultural events should be designated as protected free-to-air television and we are pleased the Government is moving on this.

An essential part of any democracy is an independent, robust and vigorous media. One of the grassroots responses to what is a battle for the freedom of the press has been the development of the network, Indymedia, which has hundreds of media outlets around the world. These collectives are run by volunteers who believe the cor porate media's coverage of news is deeply flawed and, for all practical purposes, pushes one world view. This is a decision to be welcomed as the media continues to become the property of the few, instead of the voice of the many.

No Irish broadcaster would be able to compete with the near limitless funds which these trans-national media organisations could pour into Ireland. Already we have seen an erosion of our public service broadcaster's position in Ireland. Regular attacks on public service broadcasting are made by journalists who believe that a market driven approach would ensure a more open media when what we have all seen from the market is an incredible consolidation of media power in the hands of a few companies.

Many people might still be cynical about why this legislation was not introduced before an election campaign and why the Government parties received a great deal of support from newspapers owned by News Corporation but I do welcome it and thank the Minister for introducing it. As well as his decision to introduce a welcome licence fee increase for RTE before the new year he has done much to protect the principles of public service broadcasting in the State. It would be wrong not to give him credit for this. I look forward to more positive contributions from the Minister and his Department.

Dr. Cowley

I am very pleased to speak on this Bill which will be welcomed. I say "hear, hear" to the Minister, Deputy Ahern's comment that his aspiration is that the legislation will ensure that events of major importance will not end up out of reach of those who wish to view them. He said it would stop a two-tier television system developing which, according to the Minister, would deprive the public of involvement in events which are part of Irish culture and identity. I congratulate the Minister on the Bill and I hope all the talk of ending the two-tier system is contagious. I hope it will spread to the Departments of the Taoiseach, Finance, and Health and Children, in particular, to persuade them to end the two-tier health system, this health apartheid and especially the cancer care apartheid, about which people demonstrated on Saturday, and allow equal access to radiotherapy and oncology services.

The Minister said access to sports events should not be limited to those who can pay. Similarly, access to the health service should not be limited to those who can pay. I wish the Minister, Deputy Ahern, would convince the Taoiseach and his Cabinet colleagues to introduce similar legislation in the health area but that is a pious aspiration. Let us imagine legislation which ensured that a person suffering from cancer, whom a consultant knows is in urgent need of radiotherapy and would be cured by its immediate application, would not have to wait for, say, four months which is the norm. I would be very excited about that type of legislation. I suppose it has something to do with money that it is not being introduced. It is penny-wise and pound foolish because bringing people all over Ireland for radiotherapy services costs more money than would the provision of local radiotherapy services. I do not begrudge the €161 million allocated to sporting organisations by the Government in 2002 but I resent the fact that only €23.5 million was allocated to 11 health boards to develop cancer services in 2002.

I pay tribute to the sporting organisations which do good work and deserve to be supported. The events covered by the Bill are part of what we are and part of our national fabric. It would be wrong if the population was denied access to these events due to an inability to pay. It is ironic that we agree it is wrong that people can be denied access to those sporting events while we think it is right that people can be deprived of health services because they cannot pay.

It is important for us in the west to have access to these sporting events on the television because it is impossible to get to Dublin due to the condition of the roads. Even the railway line goes south before it goes west. We in Mayo have the worst road access in the country. That these events will be shown on television will certainly help us. Sport helps young people; anything that keeps our young people out of public houses is a help. If the sporting event is on Sky television, youngsters will go to the pub to watch it and that is particularly bad in rural areas. If it is available on the television at home they, and perhaps their mothers, fathers and the rest of us, can stay away from the pub.

There is a move to commercialisation and the drinks companies have been backing the sporting organisations. It is important that the GAA would not sell its soul in all of this. While the broadcasting rights are worth a good deal of money it is no harm that there is a bar on a free-for-all for the organisations who would deprive the public of the right to view those interesting events. A number of sporting events have been listed about which other Members will speak. At the end of the day, sporting organisations are being given an opportunity to raise money.

I would like to see more legislation to prevent discrimination, particularly in the area of health. Let us have legislation to prevent discrimination against balanced regional development in the west.

Mr. J. Higgins

The coverage of the war in Iraq by the international television networks demonstrates graphically the urgency for regulations covering the activity of major television broadcasters. A criminal and illegal war involving the slaughter and brutalisation of hundreds, if not thousands, of civilians is manipulated by these networks as if it were the latest version of a Playstation game. Human suffering and the brutalisation of people are merely used as the raw material for these networks to increase their profits, to make more money for their proprietors. In effect, they have become a propaganda arm of the US and British invasion forces devoid of morality, humanity and any sense of fair play as far as the innocent people of Iraq are concerned.

The approach is the same when it comes to the coverage of major events, whether sports, cultural or other events which are important to people here. These networks are not concerned about sports, human endeavour, healthy recreation, cultural advancement of people but about the maximisation of profit for the networks and their major shareholders.

Irish people were rightly disgusted when the BSkyB network was given the rights for the Irish soccer internationals last year. That should never have been allowed to happen. Under the 1999 Act the Government should have already moved in order to ring-fence crucial major sporting events in anticipation of what might happen. The Government was negligent in not having acted at that stage and is now attempting to catch up.

When the Sky organisation tried to grab the rights to Irish soccer it did not do so in the interest of Irish sport or of the tens of thousands of people, including many young people, who play soccer. It made a cynical marketing ploy, hoping to use the popularity of soccer, particularly in working class communities but now more widely spread, to increase the level of subscriptions to its channels. This is what it did in the UK to drive up satellite subscriptions over a period of time. It is incredible that the FAI was prepared to co-operate with this and it shows how far the leadership of that organisation has grown from the ordinary people who support the game.

Public broadcasting is crucial to a decent society, where news, current affairs and other important events are debated with all points of view taken into account. That is not the type of service we will get from the private broadcasters and that is why we must protect and develop public broadcasting. We must, of course, democratise it further from where it is at the present time.

The list of major events drawn up by the Minister is minimalist in the extreme. Other events may be corralled off by some of the private broadcasters. If that happens the Government will bear responsibility for not having created a sufficiently wide list.

Tá sé thar a bheith tábhachtach go mbeadh ócáidí móra le fáil go hoscailte ag an bpobal go ginearálta tríd an teilifís. Chuige sin, tá córas láidir teilifíse poiblí ag teastáil. Caithfear gach tacaíocht a thabhairt don chóras teilifíse poiblí seachas na cómhlachtaí móra idirnáisiúnta. An proifid an t-aon slat tomhais ag na comhlachtaí seo, is cuma an cogadh nó ócáidí spóirt a bheadh i gceist. Ní théann an Bille seo chomh fada agus ba cheart d'fhonn ócáidí speisialta le tábhacht do dhaoine a chaomhnú maidir le craolacháin.

Mr. Eamon Ryan

The key to the Minister's speech is his saying that in protecting the public interest he also has to take into account the interests of event organisers and broadcasters. The Minister also said he is considering the concerns raised by certain sporting organisations and is open to amendments that are justifiable and necessary. I hope he will also be open to amendments from this side of the House which would protect the public interest. This Bill does not go far enough nor does it water tighten sufficiently the public's right to free access by terrestrial television to key sporting events and key parts of our cultural life. I accept the general purpose of the Bill but I ask the Minister to accept amendments on Committee Stage which will make the Bill work. In its present guise it will not lead to protection of our sporting events from encroachment by pay-per-view satellite television.

I can understand the pressure the Minister is under from certain sporting organisations which are going to face funding difficulties, given Government cutbacks, and which will be looking for revenue. However, I question the judgment of those sporting organisations if they see revenue generation as coming ahead of looking after their core supporters, the Irish public. I agree with Deputy Joe Higgins when he says the FAI's action in this regard was reprehensible. I also question the IRFU's lobbying to ensure the Six Nations Championship was taken off the list of completely free events. The IRFU has deferred rights in terms of television for those matches. I have been a rugby supporter all my life but if I cannot get a ticket and if I cannot get to watch my team playing, like many others I will soon lose interest and follow a different sport. The main sporting organisations must realise that they have a responsibility to work with national and terrestrial broadcasters and provide free televised access to certain key events which are the cornerstone of our sporting life.

Although they are not the cornerstone of our life some of the satellite broadcasters, such as Sky, have been given complete freedom to broadcast. The Minister recently indicated that he will place a restriction on Sky's broadcasting into the State but the reality is that Sky can broadcast directly into the State at little or no cost in terms of its access to the broadcasting spectrum. It can advertise directly by inserting specifically Irish advertising into its programmes which are made for an international market. With no programming costs Sky can suck advertising revenue out of the country with no regulation, no quality in standards and no comeback to an Irish customer who has a difficulty with the network. The inability of the Government and its slow, ponderous, hear no evil, see no evil approach which has allowed Sky to win a strong position in Irish broadcasting will have serious consequences for broadcasting in this State and must be addressed urgently. This Bill is part of that process.

One of the key amendments will address the question of how the arbiter is guided as to what costs he or she would impose for particular events. I am concerned when I hear the Minister talk about market rates. Should we follow the market in terms of pay-per-view market prices for sporting events? That would give an unfair advantage. Organisations like Sky, which can earn large revenues from the Republic at no cost, can buy up sporting events. Its £12 million purchase of the European Championships games works out at a rate of about €380,000 per game. The main terrestrial broadcasters cannot compete against that because they are not competing on a like basis. Sky has no costs other than the set-up costs in terms of sets. It has no significant broadcasting costs compared with Irish terrestrial television.

When we talk about market rate we must be sure that the arbiter takes into account the previous rates as applied to terrestrial television and not the special inflated prices that satellite television has used to muscle its way into the broadcasting market. That must be made clear in an amendment to the Bill.

A further amendment would ensure that production costs involved for terrestrial television companies are taken into account. The broadcaster's role must be recognised and account taken of the broadcaster's costs when the arbiter is deciding on rates.

A key component, which must be included by amendment, is that recognition is made of terrestrial broadcasters' regular involvement in broadcasting a sport on a weekly basis in the early rounds of competitions. This must be taken into account in the bidding war for the final prize of the major event. The arbiter will have to have a complex analysis of what the rate should be and not simply decide that if Sky is prepared to pay a certain amount then the terrestrial broadcasters should do the same.

If we do not consider those complex factors, the main Irish terrestrial broadcasters will not be able to afford the rate the arbiter will set and the satellite channels will continue to pick up our main sporting events and continue their encroachment on Irish broadcasting. We will then lose control, independence and our own broadcasting facilities, which are better, in the long run, for Irish sport.

Another key amendment will clarify how the Bill will apply to institutions outside the State. The rights to most of the major sporting events are increasingly held internationally, often on a temporary contract basis by companies who may be trading it on elsewhere. We are into a difficult area here in terms of how international law applies and how an Irish High Court decision can have effect in regard to a broadcasting right which is held in Britain or elsewhere. If we do not include this, it will lessen the claim of Irish broadcasters and Irish sporting organisations to that broadcasting right. We need to work out some legal mechanism within the Bill which enforces its applicability in the overseas market or in overseas courts.

In general, I am supportive of the Bill. The Minister and the Government are coming incredibly late to this. They have slipped up and allowed a loss of control of Irish broadcasting to outside satellite stations which are coming in here. I do not mind that. It is a reasonable component of international broadcasting and while we cannot stop it, we certainly must regulate it and support and protect our indigenous broadcasting industry. If we do not do so, we will find we cannot compete against digital or satellite services which do not have any investment in this State, nor any local knowledge or colour and just use a strategy of picking certain high profile sporting events to increase their subscriber levels to encroach into a dominant position in the Irish broadcasting market. If the Government were to allow that to happen, it would be a huge loss to the State.

I encourage the Minister to be open to amendments. The Bill is complex and the arbiter's role is a difficult and complex one. It is a legally complex situation and an area where none of us is an expert but I hope the Minister will take advice and amendments which will strengthen the legal role of the arbiter and make his decisions more finely balanced in favour of the broadcasters and the sporting institutions but also, crucially, in favour of the public interest.

Mr. O'Flynn

I wish to share time with Deputy Kelleher.

An Leas-Cheann Comhairle

Is that agreed? Agreed.

Mr. O'Flynn

Alarm bells rang in my head when I heard the news last July of the FAI selling the rights to Ireland's home games. Fans who had followed the team all over the globe were angry that hundreds of thousands of supporters would be forced to subscribe to BSkyB. I have rarely seen an issue which aroused such strong public emotions. Everyone I spoke to was absolutely fuming because there are so many fans who cannot make it to games or even get tickets for games and they rely on free-to-air television to watch their heroes. My constituents in Cork were angry at the BSkyB deal which would have meant thousands of households would have to fork out €40 per month to see the home games live on TV. Irate fans telephoned Cork's 96 FM, 103 FM and Red FM and wrote letters to the Evening Echo, Inside Cork and the Irish Examiner. The parents of young children believed their offspring would effectively be prevented from watching their role models, Robbie Keane, Damian Duff, our own Roy Keane when he was playing, and so on, in the comfort of their own homes.

The FAI failed to give due consideration to the interests of Cork's children and young people prior to the sale of its broadcasting rights for Ireland's home international football matches. As a body that receives substantial public funding, the FAI is obliged to ensure that its decisions and actions conform to generally accepted standards regarding the promotion of the public interest. One of the most widely accepted standards holds that in all actions that concern children, the best interests of the child should be a primary consideration. By limiting viewing access to families who can afford to pay almost €500 per year, the FAI turned its back on the great majority of children and young people in Ireland. The situation was made worse by the suggestion that pubs might offer an alternative viewing venue. We should be doing everything in our power to break the strong link which connects alcohol and sport in this country. Very few of my constituents in Cork North-Central would allow their children to go to the pub on a Wednesday night to watch matches. Without the next generation being able to watch their heroes, the money invested in local soccer would be wasted due to lack of interest.

I was delighted that within a few days of the FAI announcement, the Minister, Deputy Dermot Ahern, made clear his intention to sort out the situation. The fruits of his efforts over the past nine months is this Broadcasting (Major Events Television Coverage) (Amendment) Bill, which copper-fastens the viewing of major sporting events on free-to-air television. The original Act, the Broadcasting (Major Events Television Coverage) Act 1999 incorporated into Irish law the provisions of Article 3a of the Television Without Frontiers Directive, which allows member states to designate certain events as events of major importance to society in order to ensure that a substantial proportion of the Irish population is not deprived of the possibility of watching such events on free television services.

In accordance with the provisions of the 1999 Act, the Minister for Communications, Marine and Natural Resources published a list of events which he proposed to designate. The order giving effect to the designation has already been approved by both Houses of the Oireachtas and has been signed by the Minister.

The consultation process undertaken by him in regard to the listing of events gave rise to two substantive issues which need to be addressed by way of amending legislation. It became clear that existing legislation would not adequately ensure that designated events that are already the subject of an existing contract for exclusive broadcasting rights would continue to be available on Irish free television services. Accordingly, the Broadcasting (Major Events Television Coverage) (Amendment) Bill 2003 will include provisions dealing with this issue, which we welcome.

The national governing bodies of sports organisations expressed the fear that they would not receive a fair price for the sale of the broadcasting rights to a qualified broadcaster, for example, RTE or TV3 for a designated event and highlighted the need to introduce a formal arbitration mechanism. Accordingly, the Bill will include a provision establishing an arbitration mechanism to facilitate the determination of reasonable market rates for a designated event. This legislation will ensure that sports events of major importance will not end up out of reach of those who wish to view them. This will stop the development of a two-tier television system which would deprive the public of involvement in events that are part of our national identity.

In recent times the media has become a major social force in modern Irish society, fulfilling numerous different functions – it entertains, informs, provokes, excites and saddens. When it first emerged, the media's role was to report what was happening in the world but in recent times it has developed this role to investigate, challenge and expose, which is crucial to the development and maintenance of a mature and democratic society. The media has become the public watchdog and is known as the fourth estate. It enables people to communicate and participate in civil society and with the State. If the Irish, at home and abroad, are to debate our past, present and future, if we need to give public expression to our values then we will need indigenous broadcasting on radio and television to express this community's dialogue with itself and the rest of the world. The public purpose of this broadcasting will be first and foremost to serve the entire community with a range of programming which is universally available and affordable and which will not be supplied by broadcasters who are principally obliged to make profits for their commercial operators. Vigorous public service broadcasting is essential to our country's future as a democracy. The Minister has protected the public's right to view major events deemed of national importance.

We will have time next week to tease out all of the concerns expressed by the Opposition. Any amendments put down will be debated in the Select Committee on Communications, Marine and Natural Resources. I hope that following this we will emerge with legislation of which everyone in the House will be proud and in which we can all say we had a part in ensuring its safe passage through the Houses.

Mr. Kelleher

I thank Deputy O'Flynn for sharing time with me. I welcome the opportunity to debate this important Bill which is indicative of the esteem in which we hold sport in this country.

If one looks back over recent great sporting moments in Irish history we see evidence of a nation coming to a standstill when the Irish soccer team played abroad or during the All-Ireland Final or, as happened last Sunday, when the rugby team played for the grand slam and the Triple Crown. This goes to show how dearly we feel about sport. It is part and parcel of our everyday life. For that reason, this Bill is very timely.

I have a few general concerns about the direction in which sport is going. The whole issue of advertising and sponsorship must be looked at, particularly the close association of sporting events with drinks companies. In the past, tobacco companies sponsored great sporting events, but this role is now being filled by drinks companies. This must be seriously considered.

Reports have been published on the problems associated with underage binge drinking. Advertisers are covertly creating an association between sport and alcohol, and it is creating problems in our society that must be tackled on a long-term basis. Dr. Loftus of the GAA has raised this issue on numerous occasions, and it is now widely accepted that advertising has a very strong hold over young people. They are impressionable at an early age, and drinks companies can use their sporting heroes to market their products. That must be addressed.

Over recent years, sport has become a major industry internationally. One of the fastest growing sports in the world, for example, is golf, and a single individual like Tiger Woods can generate huge advertising revenue. Even in this country, there has been a huge growth in sponsorship of the GAA, soccer and rugby. All-Ireland finals have become huge commercial as well as sporting events. That is very welcome, but we must recognise that sport is about participation. It is about young people getting involved at an early age, becoming part of a team, enhancing their self-esteem and developing as individuals. Participation is the essence of sport.

If we keep going down the road of massive sponsorship and huge advertising campaigns, we will end up with people not participating in sport anymore but merely viewing it. That would have a long-term serious impact for society. Many reports have noted the role of sport as an attractive alternative to anti-social behaviour like drinking and drug taking. However, through their success in attracting advertising and sponsorship, sporting bodies themselves will effectively cut off their noses to spite their faces. Instead of young people getting involved and participating on the field, they will remain at home watching sport day in, day out. Saturation of sports coverage to the point of overkill is an issue that must be addressed.

Prior to television, among the generation before mine, neighbours would gather in one house to listen to the radio broadcast of the all-Ireland final. It was almost an event in itself in townlands, villages and parishes. That is very important. Families can now sit down and watch sporting events together on television, cheering on their sporting heroes, their country, county or parish. That is what sport is all about. If we go beyond that, to the point where sport becomes a form of entertainment that no longer involves the actual participation of young people, it would be a very dangerous development.

The FAI and domestic soccer is being swamped by the saturation coverage of the Premiership and the Champions League. If we have an arbitrator in place to adjudicate on which companies can broadcast the various designated events, that arbitrator must take into account the effort that has been made by qualifying broadcasters to cover less prestigious fixtures. Take the FAI as an example. TV3 now broadcasts domestic soccer matches, which is a very welcome and positive development. It gives the domestic league an opportunity to promote itself, to demonstrate that there is good home talent, that facilities are improving and that the standard of the domestic league is improving. Such coverage should be taken into account when it comes to deciding who broadcasts the FAI Cup Final or other events under the control of the FAI.

Thus, for an organisation that has made the effort to send reporters out on wet, miserable nights to Turners Cross or wherever, that should be taken into account when it then tries to secure the rights to show one of the major sporting events covered in this legislation. That is a very important point. The Minister, through this legislation, gains leverage over organisations interested in showing major sporting events. The fact that companies have shown commitment to lower profile games and to the drudgery that accompanies everyday sport should be taken into account when the arbitrator decides who should be awarded the broadcasting rights to designated events.

The era of professionalism has been upon us for many years in soccer and has been evident in rugby more recently. It has raised the standard of these games on the pitch. There is now huge pressure on the GAA to embrace professionalism. When one attends an all-Ireland final, one witnesses the spectacle of huge crowds cheering on their county teams. Huge advertising and commercialism has built up around such occasions. Obviously, the main participants in this are the people on the pitch performing for the spectators in the stadium and at home. That issue must be addressed. In the long-term, we must acknowledge that people incur costs when training for many months each year. They also must cope with huge family and financial commitments. This will create enormous pressure on the GAA.

Equally, however, if organisations are intent on capitalising on the major sporting events and trying to sell them to the highest bidder without taking into account the people who sustain the sport at grass roots levels and attend less glamorous fixtures, it can create different tiers of supporters. Sponsorship will obviously attract the more attractive fixtures with the larger audiences.

In general, this Bill is very welcome. I have followed Cork hurling and football in particular, which has given us many great occasions over many years. Cork city soccer club also has a new manager, Pat Dolan, whom I wish the best of luck. I know he will bring us on by leaps and bounds. Coverage of less glamorous, everyday sporting events should be taken into account. This Bill gives us an opportunity to create a situation whereby the arbitrator must give consideration to the costs incurred by broadcasters who cover less glamorous events. This would pay great dividends.

The Irish Derby and Grand National are also events in which a large proportion of the population take a great interest, even if they do not follow horse racing for the rest of the year. I welcome the thrust of the Bill and compliment the Minister on it. Obviously, the FAI jumped the gun in its sponsorship deal in 2002 with BskyB, and it is regrettable that we find ourselves in this situation. If taxpayers make contributions to sporting organisations, the sport ceases to belong exclusively to that organisation. The public take ownership of the sport also by making a contribution to the development of the sport and its infrastructure, training programmes and so on. That has to be taken into account as well when the arbitrator is deciding what terrestrial company should show the major sporting events.

In recent years the drink culture has grown and we will have many debates on it in the years ahead. If we do not acknowledge that it is one of the biggest scourges facing Irish society, then we have our heads in the sand. All sporting organisations along with Government and society will have to address and confront this problem.

Reports show that sport is a mechanism which encourages young people to get involved and to participate in something which is positive and which will provide them with an opportunity to express themselves, to build self-esteem and to develop into young adults. Most sporting organisations have developed this area but a grave difficulty is emerging in regard to volunteerism. Many sporting organisations will find it difficult to get volunteers in the years ahead. In the past a person who lined the pitches or who trained the under 14 or the under 12 team received a ticket to the All-Ireland Final at the end of the year as a bonus. As a result of the lack of available tickets, clubs can no longer recognise volunteerism in this way. That is something which will effect all sporting organisations.

It is time to ensure we have a stadium which can accommodate a greater number of people than heretofore. I urge everybody involved, particularly the GAA which holds the trump card with Croke Park, to ensure as many people as possible can access sport, whether by attending or by viewing it on terrestrial television free of charge. I commend the Bill and I congratulate the Minister on bringing it forward.

Mr. Kehoe

I wish to share my time with Deputies Hayes, Pat Breen and Connaughton.

I welcome this Bill. The events covered by the Bill are wide-ranging and I do not have to tell the House how important sport is to the people, all of whom have a favourite sport. The Minister has said he would like to get the Bill promptly through the House. For many years there has been much procrastination on this issue and I hope the Bill will copper-fasten the availability of major public events to the television viewing public.

We are only too well aware of the circumstances which necessitated this Bill, namely, the loss of international soccer matches. Some people are willing to pay considerable sums of money or pay-per-view fees to watch games which were, in the past, free to those who wished to watch them on RTE 1 or Network 2. I hope this Bill will prevent what has happened from happening in the future.

This situation would not have arisen if it had been handled more professionally. I understand there was toing and froing between the two parties involved, the FAI and RTE. The FAI wanted to make as much money as possible while RTE was trying to save money. We hope this embarrassing situation whereby the national broadcaster was unable to broadcast the soccer matches and stop the likes of BSkyB coming in will not happen again.

In Ireland, there are only one or two bidders but in other countries, there are many more because there are more television companies. This creates more competition. When there is only one bidder, it is difficult to establish a market value. In Denmark, Germany and France, there is a range of television stations and they are willing to outbid one another.

When one thinks back over what happened, it would have been crazy for the FAI to turn down the extra money Sky was willing to pay over RTE. One should consider the type of development for which the extra money could have been used. Maybe it could have been used to improve rural pitches, to look after local teams and to develop the game in urban and rural areas.

Those who were unable to pay for Sky Television and for the viewing rights were disappointed and, as Deputy O'Flynn said, people were annoyed because they did not believe Sky could come in and prevent the likes of RTE from having the right to show these soccer matches. People were unable to see their favourite team and we all know what the people think of the soccer team going back to the early 1990s when it was managed by Jack Charlton. I hope we never face this situation again.

The Minister has designated different events but given the sensitive manner in which this set of circumstances came about, much of the debate will centre around soccer. In recent years, this sport has captured the imagination of almost every person on this island, young and old, and they have enjoyed its success. It is easy to understand why people were unhappy when they found out they would have to pay to watch some soccer matches or would only be able to view them when they were over. The people had been deprived of something they enjoyed and deserved. Soccer matches may be the main events requiring free-to-air television coverage but there are other great sporting events, all which cannot be designated as events which must be free-to-air.

The Government has approved a draft list of sporting events for designation as events of major importance under section 2 of the Broadcasting Act 1999. An array of sporting events is listed but I would like to ask the Minister about one event which is not listed, namely, the provincial hurling and football finals. Like the Minister of State, Deputy Browne, I would like to see Wexford playing in the Leinster final on RTE.

Mr. Hayes

Little hope.

Mr. Kehoe

We might not be doing well in the league but we are starting to improve.

Mr. Connaughton

It will not make any difference.

Mr. Kehoe

We will get there. The provincial finals are important and I hope they are televised on RTE, although maybe the Minister has covered that. It is important the provincial finals are listed on the list of events.

I commend the Bill. Fine Gael will propose some amendments to it but, overall, I support it.

Mr. Hayes

Like the other speakers, I welcome the Bill and I am glad of the opportunity to say a few words on what is important legislation. We all know how important it is to give viewers a chance to see all major sporting events. The proposed legislation ensures that all citizens will have television access to major sporting events in Ireland which Ireland claims as part of its great cultural tradition. These events, such as the All-Ireland Finals, the Irish Grand National and Ireland's home and away qualifying games in the European Football Championships and in the FIFA World Cup tournament, are not merely sporting events, they are part of our cultural tradition and identity.

These are popular major events that people want to watch on television if they cannot make it to the stadiums, a reality that is becoming more common as ticket prices for these sporting events become increasingly expensive, almost to the point that the average parent finds it difficult to bring the family to some of these events. Last week we saw tickets for the Ireland-England rugby game selling for €2,000, an incredible amount of money. People who were extremely anxious to attend could not get tickets for what was hailed as a huge event in the rugby world. Obviously that will not be the case for every event to which the Bill applies, but it highlights the trend of major sporting events becoming increasingly difficult to watch live, hence its importance.

It therefore stands to reason that every citizen should be able to watch these events without having to worry about whether he or she can afford cable television. People deserve to be able to go to pubs to see any of these games free of charge. That is the reason the Bill should have been introduced by the Government, or the previous Government, years ago. We could perhaps have avoided the outrageous situation last year where 30% of the population were deprived of seeing our national soccer team playing in the World Cup when the broadcasting rights were sold to Sky Television. A significant proportion of people in this country, especially those living in rural areas, have no access to cable or satellite television and have no way now of watching the games. I am sure that even those who are able to watch would agree that the sale of the broadcasting rights was an injustice as it ensured that only those soccer fans with money could watch the games.

Such an outrage should not be a necessary pre-requisite for the introduction of important legislation such as that under discussion. We should not sell the rights of Irish citizens to watch their national team to foreign television networks. These are our games and should be broadcast on our networks. The fact that approximately 30% of citizens do not receive cable television does not mean they do not have an interest in these sporting events. RTE and TV3 were specifically established to ensure that people could watch such events. Any group that limits the exposure of these sporting events does a disservice to the sporting organisations, the broadcasting networks and the people.

It is important for young people that sports are available for them to watch because it encourages them to participate. Any time there is a major event that achieves much publicity on television, such as an All-Ireland Hurling Final or rugby or soccer matches, the following week young people will be out playing with their footballs or hurleys or whatever. We in Tipperary have seen in the weeks following the many times we have had the honour of winning the All-Ireland in the first Sunday in September young people at crossroads hurling a ball left, right and centre.

Mr. Collins

When was the last time?

Mr. P. Breen

I am delighted to have an opportunity to speak on the Bill. Ireland has always been a nation that has been very proud of its sports. The great spirit they have raised in this country is priceless. The All-Ireland hurling wins in 1995 and 1997 showed how important sport was to County Clare and they lifted the spirits of the people of the Banner county. We still talk about it. This was proven again last weekend with the great win Ireland had in Georgia and the scramble for tickets for the Ireland-England match which attracted record numbers of television viewers.

It cannot be disputed that sport is built into our society, culture and identity as a nation. It is for these reasons that an overdue change in the current law regarding the broadcasting of sporting events must happen immediately. We must support the Bill and not let another opportunity pass us by for fixing the problems surrounding the broadcasting of sporting events. It is necessary to pass this law, not only for the future of sport in this country but also for the future of broadcasting.

The current law, the Broadcasting (Major Events Television Coverage) Act 1999, has caused many problems in the sporting world. Many sporting events are directly affected by the current legislation. The event that stands out most was when our national soccer team made it to the World Cup in Japan and Korea in 2002. This was a great accomplishment for the team and a great triumph for the people. Ireland's admission to the tournament spread excitement throughout the country and the world. It created a great deal of hype and put Ireland on the map of international soccer.

The positive spirit soon turned sour last September after the FAI made a financial deal with Sky Television. Instead of the local television stations, RTE and TV3, Sky Television showed the first of Ireland's qualifying matches and no live matches were available for the devoted followers of the sport. I welcome TG4's coverage of sporting events in Ireland, especially the provincial matches which is a great boost to local societies and counties.

The agreement was good for the FAI because it negotiated a lucrative deal with Sky Television that could be used as badly-needed funding to promote soccer, especially at the under-age stage. However, this is not the way forward for Irish sport and is an outrage to its devoted fans. Statistics show that 30% of Irish homes do not have satellite or cable television. Not being able to watch certain events at home encourages people, including teenagers, to go to pubs to watch them. This encourages and adds to young people's drinking problems and does nothing to help family life.

It is events such as the FAI deal with Sky that proved that the current law was not being enforced efficiently, especially the provision in the principal Act which allows member states to designate certain events as events of major importance to society to ensure that a substantial proportion of the population are not deprived of the opportunity of continuing to watch designated events on free television services. This was not put into action. It should have been in recent years by the previous Government under my colleague from Clare, the former Minister, Deputy de Valera. It is an outrage this issue was not dealt with. The situation cannot be allowed to go further and we cannot let more people and sporting events become the victims of the practice I mentioned previously.

We approve of the principle and support the Minister in laying out and designating events for free television. It is a principle that should have been put into law a long time ago by the previous Government. It is important that we protect the people from those who possess satellite and cable television but do not possess a love for Irish sport.

The sporting organisations were consulted in the context of the principal Act of 1999. Their main concern with that Act was that it would hurt their income. Much of the funding sporting organisations receive comes from television broadcasting. The Minister has included an arbitration process to deal with such concerns and this is important. Will he ensure the arbitration is binding because at present it is not?

Mr. Connaughton

The debate gives us an opportunity to examine the world of sport on television, especially the all-embracing coverage of world events whereby they can be seen on every television in every home in every part of the world. It also gives us an opportunity to ensure that the aspirations of ordinary people in Ireland, including the elderly, the poor and those outside the cable network, to see and enjoy our national sport on our television networks is taken into account and that, whatever legislation is necessary in this regard, either here or in Europe, is put into practice. I will return to this.

I congratulate the Minister on what he is doing. It is a difficult matter. I am not sure that television networks such as Sky will not have their way in years to come. However, I hope the European Union will be more cohesive regarding this matter than other recent events.

Most speakers on this Bill have referred to the very sharp reaction of the public to the Sky-FAI deal. I have no problem with what the FAI wants, which is what most other national sporting bodies want, extra finance to build up infrastructure. However, people in Irish society greatly resent having to pay for certain sporting events. While, I do not have the time to list all those events, I agree with those that have been listed. While I am not a golfer, I am surprised at the omission of golf from the list. I presume there is some rationale behind that decision.

Given the new era in digital broadcasting services, the landscape has changed completely. Television companies can now do things that were not dreamed of ten years ago, which will cause huge problems for our service providers, RTE and TV3.

The principle of this Bill is correct and I believe it will have the backing of the vast majority of the people. Nonetheless, the Minister must be careful with the question of how the arbitrator will act. Irrespective of who he or she is, the arbitrator will have a terrible job because commercial influences will be at work on one side while sporting and cultural aspirations will be at work on the other. To equate those competing influences to a level where everybody will be relatively happy will create a lot of trouble from a commercial perspective. I commend the Bill to the House but would like to think that when it returns to the House on Committee Stage, the Minister will deal with my concerns regarding the arbitrator.

Mr. Glennon

I wish to share my time with Deputy Collins, by agreement.

An Ceann Comhairle

Is that agreed? Agreed.

Mr. Glennon

I welcome the legislation and congratulate the Minister on the swift reaction on his taking office in introducing measures to deal with the problem which, if I remember correctly, first came to the fore this time last year – coincidentally, at the time of the Ireland v England rugby game at Twickenham which was confined to Sky viewers. Before I continue, I should declare that I have no interests in any broadcasting service, whatever interests I may have had in the past. Unfortunately, I no longer have those interests although there are times when I wonder whether I would be better off if that were the case.

Mr. Browne

The Deputy should have stayed there.

Mr. Glennon

Anybody listening to this debate will be familiar with, and most speakers have mentioned, the value of sport and its place in Irish society. It is of crucial importance and an integral part of the fabric of Irish life throughout the country, in urban and rural areas. However, speaking as a sportsman, I must issue a note of caution. It is ironic that we are talking about the role of the media in a certain aspect of sport because there was a very interesting article in today's edition of The Irish Times by Tom Humphries, a journalist for whom I have huge respect. He stated:

Sport in schools is dying. A minority of good players get all the games and all the pressure, whether it's Leinster Schools Senior Cup rugby or Harty Cup hurling. The coverage given to these exploits could fool a body into thinking that sport in general is in a healthy state at schools' level. It's not.

That is a warning to us all. Sport in Ireland is not about what we see on Sky Sports or at the weekend with professional players indulging in what to me is a brand of show business. Sport is about participation at grass roots, parish, club and, particularly, underage level, and we should not lose sight of that.

That brings me to the crux of this Bill, something we should address carefully, namely, if worthwhile sport is to develop in this country, as it should, a balance must be struck between the revenue earning potential of media rights and the need for the sporting bodies which control the games to market those games and exploit the media opportunities presented. I have a particular reservation about section 2 of the Bill which confers on the Minister a retrospective right to review arrangements.

Mr. Durkan

If that is the case, the Deputy should vote against the Bill.

Mr. Glennon

I have no doubt this is being carefully considered at present, as should be the case before Committee Stage. Any sports body negotiating television rights with this clause hanging over it negotiates with its hands tied behind its back. While the principal purpose of the Bill is well known in that it is aimed at a particular contract, nevertheless, we should be very careful that we do not throw out the baby with the bath water. It is important that the revenue generating potential of sport at the highest level in this country, which we saw examples of last weekend, is not spoiled for the major organisations.

Sport is extremely important and vital to the health of the nation. However, while we like to see ourselves as a hugely sports oriented nation, sport is hugely underdeveloped in many sectors – I am thinking particularly of women's sport and of some of the less well-off areas of our cities. It is vital that our major sporting organisations, particularly the GAA, which have done such huge work in propagating games and healthy activity for boys and girls around the country, have every possible means made available to them for generating the revenue necessary to continue that work.

I support totally the principle that the population at large is entitled to see our national events, be they games involving teams wearing the green jersey and using the brand name of Ireland – if I can be totally commercial – or with regard to all-Ireland finals. Whatever it is, people have a right to see major events.

However, people should not fool themselves, in this Chamber or anywhere else, into thinking that such a right comes free. Nothing comes free in this world. A pay day is due somewhere along the line and the sporting organisations are due that pay day. We must ensure that their capacity to earn their due from the material they have developed so assiduously over the years is protected. I congratulate the Minister and I commend the Bill to the House.

I would like to give one word of warning, however, in line with Deputy Kelleher's earlier comments. The Bill removes some of the major revenue generating streams from the sporting organisations and we need to be very careful about this. Another area of revenue generation which is under threat is the sponsorship of sporting events by alcohol companies. Such sponsorship will probably be outlawed sooner than we think. Although it will be a good move for Irish sport and for the Irish nation, we should ensure that we do not throw out the baby with the bath water.

Mr. Collins

I welcome the Broadcasting (Major Events Television Coverage) (Amendment) Bill 2003 and I am glad the Opposition supports it.

The Television Without Frontiers Directive provides that EU member states may designate certain sporting and cultural events as being of major importance to society. It ensures that events can be designated to continue to be available to the public on free-to-air television services. Individual member states can decide whether or not to draw up such a list. The directive was initiated at a time when competition was being introduced to the provision of television services in the Union. It obliges member states to provide national legislation as a statutory basis for designating such sporting events. The Broadcasting (Major Events Television Coverage) Act 1999 fulfils Ireland's obligations in this regard. When designating sporting events, the Minister must have regard to the relevant circumstances and, specifically, to the extent to which the sporting event in question has a general special resonance with the people of Ireland. The Government must have cognisance of whether the event has a generally recognised and distinct cultural importance for the people.

The European Commission has three months to verify that the list of sporting events, published by the Government, is compatible with EU law. The list of events which come under this order include Ireland's home and away qualifying games in the European Championships and the World Cup; the All-Ireland senior inter-county hurling and football finals; and the Irish Grand National and the Irish Derby. I share Deputy Naughten's worries in relation to the exclusion of golfing events. The Government hopes this Bill will be signed into law before Ireland's next home football match, against Albania on 7 June, in the qualifying competition for the European championships.

The Minister for Communications, Marine and Natural Resources, Deputy Dermot Ahern, recently said that this legislation will ensure that sports events of major importance will not end up out of the reach of those who wish to view them. It will prevent the advent of a two-tier television system, which would deprive the public of involvement in events that are part of our national identity. Given the important role that sport plays in the life of our country, it is essential that sports events of major importance are accessible to the largest possible number of viewers, via free television. Access to such events should not be restricted to those who can afford to pay the rates demanded by subscription or pay-per-view television services. There is widespread support among the people for the political decision taken by the Government. Certain events of major importance must continue to be available on free television services on a near-universal coverage basis. We have seen clear evidence in recent times of sporting events migrating to pay-per-view television services.

I commend the determination and vigour shown by the Minister, Deputy Dermot Ahern, in pursuing this legislation which has been a live political issue since last summer. All Deputies should support the position that has been taken by the Government. The public's right to watch sporting events on terrestrial television should be protected. On 17 July 2002, the Government received approval to publish a draft list of events it proposed to designate as events of major importance that should, in the public interest, continue to be available on free television services. Government officials met representatives of the FAI, the IRFU and the GAA to inform them of the Government's decision to proceed with the process of designation. Officials also met representatives of the European Commission to advise them of the relevant steps that were being taken. More than 120 submissions were received from the general public as part of the consultation process, which also involved a public meeting held in Dublin Castle on 26 August 2002.

Analysis of the policy reasons which lie behind the Government's decision should not only bear in mind young people, but also recall that there are 500,000 pensioners in Ireland. A strong case was made by organisations representing senior citizens, who argued that many such people would not be able to afford to pay the higher television subscription charges to watch major sports events. Many contributors to the public consultation process argued, in light of the level of support provided to the sporting organisations from Exchequer funds, that the State has a duty to protect the wider public interest by ensuring continued access to certain events and free-to-air television services.

The all-Ireland senior inter-county football and hurling finals have, quite rightly, been designated under this legislation. The GAA is a broadly-based organisation, with over 2,500 clubs and over 300,000 participants in this country. It is clear that the FAI strongly opposes the proposed designation of certain soccer events under this legislation. This is not surprising, given that Ireland's qualifying games in the European Championships and the World Cup enjoy enormous public interest. The level of interest is such that the British Sky Broadcasting Group is willing to pay a substantial sum of money to broadcast the games I have mentioned on a live and exclusive basis on its subscription television services. The purpose of designation, however, is to prevent events of major importance to society, which have traditionally been available on free television services, from migrating to subscription or pay-per-view services on an exclusive basis.

I commend this Bill to the House.

Minister of State at the Department of Communications, Marine and Natural Resources (Mr. Browne)

I welcome the opportunity to respond to this Second Stage debate and to thank Deputies for their contributions. I followed the discussion in the Chamber for the past hour and on the monitors earlier and I heard a wide range of views being put forward by Deputies on all sides of the House. I would like to reply to some of the comments made and I am sure other issues that were raised today will be further discussed on Committee Stage. I should add, having listened to Deputies on all sides, that many all-Irelands were won this afternoon. The only Deputy who did not claim that his county would win this year's all-Ireland was Deputy Connaughton.

Mr. Connaughton

Galway will win the double.

Mr. Collins

Not after its performance last Saturday.

Mr. Connaughton

Coming from Limerick, Deputy Collins is in no position to talk.

Mr. Browne

Deputy Kehoe was correct to claim that Wexford will win this year's all-Ireland hurling final and I support him on that issue.

I welcome the broad support for this Bill, the purpose of which is to strengthen the existing statutory provisions contained in the principal Act. It is clear, from today's debate and an earlier debate on the designation order, that there is support on all sides of the House for the principles that underpin the notion of designating major events. Deputies share the Minister's wish to protect the public interest in a proportionate and balanced manner.

One of the issues raised by a number of Deputies was the arbitration mechanism provided for under section 5 of the Bill, which provides that the Minister can appoint an arbitrator if the parties are unable to agree on one. Notwithstanding the provisions of this Bill, it is envisaged that broadcasters and event organisers will, in general, negotiate terms without recourse to arbitration or the High Court. It is intended that a mechanism will be put in place to help event organisers and qualifying broadcasters to reach an agreement where negotiations have broken down. The arbitration mechanism provided for under section 5 is entirely different from the High Court route, provided for under section 4. Rights to broadcast events are often sold as a package and the arbitration mechanism will be capable of dealing with this reality by offering a view as to what should constitute reasonable market rates for a series of designated events. The High Court option can only be used to deal with a single or small number of events that are shortly to take place.

It was also suggested during the debate that the findings of an arbitrator under section 5, or a High Court order under section 4, should be binding on the qualifying broadcaster. The Bill is deliberately drafted to provide the qualifying broadcaster with the right to withdraw from seeking access to an event when the price for access is about to be fixed.

Broadcasters have an important role to play in a modern democracy like ours and their editorial independence must be guaranteed. That is true of national and commercial organisations. To impose an obligation on a broadcaster to include a specific item in its programming schedule at a price over which it had no control would constitute unacceptable interference. In practice, interfering in that way might mean that a qualifying broadcaster who tries to gain access to an event could be forced to buy the rights at any price. Broadcasters have limited budgets and they have to make choices about what to include in their schedules. Qualifying broadcasters must continue to have the right not to purchase broadcasting rights to designated events, otherwise they might be forced to drop other valuable programmes from their schedules to meet the costs imposed on them. Such interference in their activities cannot be justified.

If qualifying broadcasters were not given the right to withdraw from a bidding process, they might decide not to seek access to designated events in the first instance. They might decide that to do so would expose them to the risk of having to pay too high a price to secure broadcasting rights. As a result, designated events would not be carried on free-to-air television services which would frustrate the purpose of establishing the designation process. The arbitration finding should not, therefore, be binding on the broadcaster. For the reasons outlined, I cannot envisage any circumstances in which we would force a broadcaster to buy rights at a price it was not prepared to pay, although I am sure this issue will be debated in detail on Committee Stage. This Bill is not modelled on legislation in place in any other EU member state. Indeed, only four other member states have established lists, although others are working on criteria for designated events.

Deputies have asked how reasonable market rates will be determined. Section 6 provides guidance to the High Court or an arbitrator to help them establish what should be considered in this regard while allowing them the flexibility they need to come to a conclusion. Under section 4(10), the High Court has power to adjust a contract concerning the rights to a designated event between the event organiser and a non-qualifying broadcaster although it does not seek to define the manner in which the adjustment should be made. It is a matter for the court to make any such determination.

There was considerable comment during the debate on the designation process itself. Many references were made to the make-up of the list, but debate has ended for the present as the designation order has been signed. We must now put in place the legislative support to ensure that effect is given to the designation decision. This Bill serves that purpose and I look forward to the continuation of debate on Committee Stage. I thank all Deputies for their contributions. Committee Stage will be taken next week at which point we will have the opportunity to discuss the legislation in further detail. I welcome the support that has been forthcoming from all sides of the House as the Minister is anxious to ensure that the Bill is passed as quickly as possible. I thank the officials from the Department of Communications, Marine and Natural Resources for staying with us for the night. They have been very helpful.

Question put and agreed to.