I move: "That the Bill be now read a Second Time."
I am pleased to open this debate on the Broadcasting (Funding) Bill 2003. This Bill is a core element in the programme of public service broadcasting reforms announced in December of last year. It provides for the allocation of 5% of the net proceeds of the television licence fee, almost €8 million annually, to a scheme to fund new programmes on television and radio.
This initiative will increase the availability of high quality programmes on television and radio in both the private and public broadcasting sectors. In particular, the scheme will be available for new programmes on Irish culture, heritage and experience, new programmes to improve adult literacy and for additional Irish language programming. Programmes to be funded will be in addition to existing elements of the schedule of public or private sector broadcasters. The scheme will also fund the development of archiving of television and radio programmes. The objective behind the scheme is to improve the range and quality of programmes available to television and radio audiences in Ireland and to focus on programmes relating to our culture and heritage, in particular.
The issue of the quality and impact of broadcast material is part of an ongoing debate both here and in Europe about the direction of broadcasting. The number of broadcasting services on offer has exploded and new opportunities are provided by changing technologies. We need to ensure that Irish audiences have access to a comprehensive, quality, distinctively Irish and free broadcasting service, Irish broadcasting services keep up with technologies and Irish audiences, broadcasters and producers are not disadvantaged by global broadcasting markets. I fundamentally disagree with those who argue that a public broadcasting services is no longer needed, that it should not be funded by the State or that it should be limited to a restricted output of niche programming.
It is in the public interest to ensure that a comprehensive, varied and quality broadcasting service is available to everyone free of charge. The expansion in the market, if anything, strengthens the case for public service broadcasting, particularly in the context of tendencies towards generic minimum cost programming and subscription services for special interest niche programming.
The decision last year to substantially increase the level of public funding for RTE was a clear indication of the Government's commitment to the principle of public service broadcasting. As we move to a digital era, RTE must be able to continue to deliver to Irish audiences free of charge the distinctive broadcasting service they deserve and expect. Equally, it must meet high standards and deliver on the challenging agenda which has now been set for it. Part of RTE's mandate is to provide a range of radio and television services for all the people. It is the very nature of these services, with the variety and quality required by legislation, that underlies the specific nature of public service broadcasting.
While independent broadcasters are providing a different kind of service, there is scope for them to offer high quality programming of interest and relevance to Irish audiences. The proposed new scheme is an initiative which will, I hope, raise expectations about programming variety and content, prove that the talent and ideas are out there and highlight our own rich culture and heritage.
A distinctive broadcasting service is a fundamental requirement but has to develop in the realities of the increasingly globalised market. The digital technology issue has dominated debate on broadcasting in Europe to a significant degree, focusing on what technology will win out or what business model is most likely to succeed.
There has been criticism of the lack of progress in this area in Ireland but this fails to recognise the number of the complex realities. A number of pay DTT platforms have been spectacular failures and rights issues have to be teased out to prevent our broadcasters facing major difficulties on many digital platforms. It is vital that Ireland gets digital platforms which work. However, there is no point rushing to mimic the pay DTT platforms which have lost billions or the satellite platforms where copyright issues would entail huge financial and, ultimately, programming losses for Irish broadcasters.
The Department is assessing the options for rolling out digital television services in Ireland, taking the practicalities and the international experiences into account. The eventual outcome will ideally include the possibility of a broadband offering. This would improve the economics of the platform and provide much needed cross-platform competition in the broadband sector. The industry will be consulted as part of the assessment and a report should be with the Minister by the end of the year.
We must also recognise a major concern that the digital era will result in less choice for audiences and an overall reduction in programming quality. The purely commercial pursuit of the most economically advantageous audiences can lead to lowest common denominator programming, generic schedules, cultural imperialism and specialised niche programmes for those who can pay.
A third issue in the broadcasting sector which I would like to highlight is local and community broadcasting services, which can provide valued services for particular regions and communities. Their potential is recognised in the broadcasting funding scheme, which specifies "the development of both local and community broadcasting" as one of the objectives under section 3.
There is huge potential for local and community broadcasting services and for radio, in particular, to carry or, indeed, commission the kind of programmes envisaged in the Bill. While it is envisaged that the scheme will encourage applications from this sector, no specific financial allocations are made in the legislation for this or any other specific area.
It is important that the scheme can operate within a flexible framework which allows it to meet all its objectives, make the best use of the funding and evolve over time in response to circumstances. I am also aware that community services, in particular, are interested in accessing funding of a more general nature, such as for capital, start-up or training costs. The purpose of this Bill, however, is specifically related to programmes.
As I have already outlined, the aim of the broadcasting funding scheme is to encourage broadcasters to include in their schedules additional high quality programming of interest and relevance to Irish audiences. It is a clear indication of the Government's resolve that the people should continue to be guaranteed a minimum level of distinctive, high quality programming.
The emphasis on additionality is central to the scheme. Programmes must be in addition to any existing requirements relating to broadcasters and to their existing outputs. The scheme will also be used to fund the development of archiving of television and radio programme material. This is a follow up on one of the recommendations of the forum on broadcasting which reported to the Minister last year.
The forum highlighted the lack of a coordinated approach or overall direction to the archiving of programme material at present. A variety of agencies, in addition to RTE, are already involved in the archiving of audio-visual material, including, for example, the National Archives, the Irish Film Board and the Irish Traditional Music Archive.
The Bill provides the legislative framework for the scheme, which will be prepared and administered by the Broadcasting Commission. It does not set out the detail of the scheme, such as grant rates, the allocation of funding to various categories, or the assessment criteria and procedures. That detail will be developed as the scheme is put together, and the final scheme or schemes will be subject to my approval and be laid before each House of the Oireachtas.
It may be useful to Members to have some idea of the timeframe of the scheme. If the legislation is enacted by the end of the year, 5% of this year's net television licence fees will be allocated to the scheme and the Broadcasting Commission can begin preparation of the scheme in the new year.
The scheme, because of its complexity and intention to consult widely, will take some months to complete. It will then have to be put to the European Commission for approval as a State aid. Following such approval and the formal agreement of the Minister, the scheme will be published and applications will be invited, hopefully in the second half of 2004. Allowing time for interested parties to develop and submit proposals and for applications to be assessed, audiences may begin to enjoy the new programmes on radio and television in 2005.
I will now describe the detail of the Bill, which is a short one with just nine sections. It sets out the framework for, and objectives of the scheme, the amounts to be paid to the scheme, the details of the scheme to be included in annual reports and accounts of the Broadcasting Commission, and contingency provisions for the winding up and dissolution of the scheme. I will comment briefly on each section and outline the main provisions.
Section 1 is a standard provision which gives definitions for the purposes of the Bill. Section 2 provides that the Broadcasting Commission will prepare and submit for the Minister's approval a scheme or schemes to support new television or radio programmes on Irish culture, heritage and experience, new television or radio programmes to improve adult literacy, programmes under both of these categories in the Irish language, and the development of archiving of programme material.
The categories of programmes are specifically defined, so that best use can be made of limited funding. News and current affairs programmes are specifically excluded, as particular requirements are already set out in legislation and contracts applicable to broadcasters. RTE already commissions independent productions as a substantial part of its programming schedule, covering a wide variety of topics and ideas.
Having a specific focus in the context of finite resources will encourage new and distinctive programmes, and the focus in this Bill is on Ireland's heritage, environment and culture. This concept of who we are, and why we are what we are, offers considerable scope for programmes, as can be seen from the examples in subsection 2(1)(a).
Television programmes may be funded only if broadcast on a free television service which provides near universal coverage, thus ensuring the widest audience within the State, or on a cable or MMD system, multipoint microwave distribution system, as part of a community content contract, thus enabling community television to access the scheme. Radio programmes may only be funded if broadcast on RTE services or on services licensed by the Broadcasting Commission. The scheme is, therefore, available for additional programmes carried on national, local and community services.
For reasons relating to EU legislation, it is not possible to construct the Bill so that the scheme is available only to broadcasters based in Ireland. The focus must be such that the benefit of the scheme, the new programmes, is available to Irish audiences, regardless of the provider. I stress that the scheme is not for broadcasters; it is for the audience.
Section 2 also provides that the Minister may direct the commission to amend or revoke a scheme. This could arise, for example, where the operation of a scheme turns up particular anomalies, difficulties or unintended effects. The Bill also provides powers to direct the commission to prepare a particular scheme, if, for example, it does not put forward for approval a scheme covering a particular category. The section finally provides that any scheme approved by the Minister will be laid before each House of the Oireachtas.
Section 3 sets out the objectives of the scheme. With regard to programmes on Irish culture, heritage and experience, these are to develop high quality programmes, and programmes in the Irish language, to increase the availability of such programmes to audiences, to represent the diversity of Irish culture and heritage, to record oral heritage and aspects of heritage which are disappearing, under threat, or which have not been previously recorded, and to develop local and community broadcasting.
The objective on the development of archiving of programme material is to develop an integrated approach, including the development of suitable storage processes and formats and the accessing of material by interested parties. An objective for adult literacy programmes is not included in this section as there is already a specific reference to it in section 2. My colleague, the Minister for Education and Science, will be closely involved in the particular aspect of the scheme regarding the national adult literacy strategy under the national development plan.
Section 4 provides for annual payments to the scheme of 5% of net television licence fee receipts. This will amount to an annual payment to the scheme of approximately €8 million. At present the full value of the licence fee receipts, less collection costs, goes to RTE to fund its public broadcasting service. The 5% payment will be for the purposes of both the scheme and any administration or reasonable expenses relating to it. Costs to the Broadcasting Commission of administration, including additional staff, are estimated at about €400,000 per year.
Section 5 requires the Broadcasting Commission to review and report on the operation, impact and effectiveness of the scheme every three years, or at such other time as may be requested by me. The review will be laid before the Houses of the Oireachtas. If necessary following such a review, the scheme can be amended or revoked under section 2, either on the commission's volition or the Minister's direction. The ultimate option of winding up the scheme is provided for in section 7.
Section 6 provides that details of the scheme will be provided in the commission's annual report and accounts. Section 7 provides for the winding up and dissolution of the scheme. This is included as a last resort provision, as once the scheme is wound up and dissolved by order it ceases to exist and cannot be revived. Section 2 of the Bill already allows for the fine-tuning of the scheme over time, by means of amendments or revocations. Winding up the scheme would require the consent of the Minister for Finance and the dissolution order will be laid before each House of the Oireachtas.
Section 8 is a standard provision that the expenses incurred by the Minister in the administration of the Act will be paid out of moneys provided by the Oireachtas. Section 9 sets out the short title of the Bill.
Members will, I hope, see the Bill as straightforward and non-controversial and give it their support. I look forward to hearing their observations on it. I commend the Bill to the Dáil.