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Dáil Éireann debate -
Tuesday, 21 Jun 2011

Vol. 736 No. 1

Priority Questions

Postal Services

Éamon Ó Cuív

Question:

27 Deputy Éamon Ó Cuív asked the Minister for Communications, Energy and Natural Resources his future strategies regarding the delivery of post office services and particularly if he has had discussions with the Department of the Environment, Community and Local Government and the Department of Transport, Tourism and Sport regarding the possibility of post offices collecting car tax and issuing car tax certificates; and if he will make a statement on the matter. [15949/11]

The role of developing commercial strategies for the post office network is a matter for the board and management of An Post and one in which I have no statutory function. The legislation establishing An Post, the Postal and Telecommunications Services Act 1983 requires the company to provide counter services for its own and Government business, and other uses that the company sees fit.

Responsibility for motor tax policy and legislation lies with my colleague, the Minister for the Environment, Community and Local Government, and any decisions around the outsourcing of the collection and issuing of motor tax certificates would be a matter for him. I have no statutory function in this matter and I have had no discussions with either the Minister for the Environment, Community and Local Government or the Minister for Transport, Tourism and Sport in this regard.

In this case a commercial company could not decide to do something unless the Government decided to give it the function to do so. Does the Minister consider it would be a good idea to make this service available locally as it would have the treble advantage of localising a service, reducing the carbon footprint of people travelling to the central towns to purchase their car tax, and increasing the viability of the post office system and using it to maximum effect? Does the Minister intend to have formal discussions with his colleagues to bring forward this issue and provide this service locally?

I agree that anything that enhances the viability of the post office network is worthy of consideration. However, winning Government contracts perhaps ought not be the first focus of An Post from here on out because increasingly more Government business is going online and that will have its own implications. There is no reason An Post ought not be able to win new commercial contracts. With initiatives such as its Postfone arrangement with Vodafone and so on, it has started to do that and that is likely to be more productive. Approximately 77% of revenue currently comes from Government contracts. Whereas I am all in favour of An Post capturing new business in the State or elsewhere, it is in the commercial area that its future lies.

I have had discussions with An Post management about the future of An Post and the extraordinary challenges facing it because of electronic substitution and so on. It has made enormous progress recently and is involved in a major restructuring programme. It is well aware of further commercial possibilities.

Is it not convenient for people to pay their car tax in local post offices instead of making round trips of, for example, 100 or 120 miles? I am surprised by the Minister's negative attitude. As he knows, people have been able to get car tax online and through the post for many years, but many still choose to visit their local authorities. One can see the queues every month. Will the Minister pursue this issue, given that people must now travel considerable distances to avail of an extra customer service that used to be provided to them locally?

I am all in favour of An Post getting business wherever it can since it has the most extensive retail presence in the country. From memory, it has 1,345 post offices. I can recall no other organisation that has such a network nationwide. As to the matter the Deputy is pursuing, one can already get one's tax online. I am happy to speak to my colleagues about the issue formally. I have spoken to them unofficially. Within the Act, it is not my function to canvass for business for An Post, but I am happy to speak to my colleagues in that regard.

In recent years, An Post's great success has been the provision of financial services in an arrangement with two banks. Given the banks' attitude, the constraints on them following the hames the Deputy's Government made of supervising them and the crash, there will be a greater possibility for An Post to enter into arrangements with the banks concerning the provision of financial services to the type of customer to whom the Deputy referred. Post offices see a significant footfall, constitute a tremendous retail network and have delivered expertise in terms of An Post's arrangements with the National Treasury Management Agency, NTMA. Those products have been successful and there is greater potential for An Post in that respect.

Would the Minister not agree that, for someone who wants car tax——

We only have one hour. I apologise but we must move on to Question No. 28.

I appreciate that, but providing banking services will not be much good for someone who wants car tax.

I am calling Deputy Martin Ferris's Question No. 28.

Departmental Agencies

Martin Ferris

Question:

28 Deputy Martin Ferris asked the Minister for Communications, Energy and Natural Resources when it is proposed to establish the NewERA company; and the way that this will impact on State companies currently under his remit. [16095/11]

The programme for Government commits to the establishment of a NewERA authority as a dedicated entity to oversee investment as referred to in this reply. It is proposed that streamlined and restructured semi-State agencies will make significant additional investments over and above current plans during the next four years in next generation infrastructure in terms of energy, broadband, forestry and water.

Proposals are being developed for the Government's consideration on the formal establishment of NewERA. Intensive cross-departmental engagement is ongoing and I hope to be in a position to set up NewERA within the next three to four weeks. I am committed to ensuring speedy progress is made in this regard. One of the key objectives is the leveraging of additional investment and employment from streamlined and restructured commercial State bodies. The Government has made clear its intention to ensure State companies play a full role in our economic recovery. The energy companies are already engaged in significant programmes of development. We must ensure all the investment programmes of the State companies are cost effective, strategic and subject to rigorous shareholder scrutiny and, where appropriate, regulatory oversight. NewERA will have a key role to play in this regard on behalf of the Government.

Can the Minister of State guarantee that such a company, if established, will not lay the groundwork for the eventual privatisation of what were formerly State assets? For example, a new State company to manage the water network is a part of the NewERA programme. During last week's debate, the House agreed that such an authority would be required to tackle the significant wastage of water. However, the clear signal coming from quarters that appear to have sympathy with some of the Minister of State's Cabinet colleagues is that the establishment of such an entity and the introduction of meters would prepare the ground for the company's privatisation. In light of this fear, I would like it if the Minister of State could clarify the matter.

I will clarify. Irish Water will be a State-owned entity, not a private one, and it will not be privatised. The management of our water infrastructure will be by a State entity. The Deputy need have no fears in that regard.

The Deputy's second point related to the programme for Government, which states that €2 billion from the sale of non-strategic State assets will be used to finance the NewERA investment programme. However, that which is essential for the State will remain in State ownership.

I thank the Minister of State for his categoric assurance. I hope it stands the test of time.

Regarding another aspect of the NewERA programme, the fate of Bord na Móna and Coillte's assets, especially Coillte's forestry, is unclear following the companies' merger into a new bioenergy company. Will the Minister of State assure the House that the land and forestry will remain primarily for public use?

I have met the Minister for Agriculture, Fisheries and Food, Deputy Coveney, regarding the programme for Government's proposal on merging Coillte and Bord na Móna. He is discussing his opinions with Coillte and I have sought another meeting with him to discuss what progress has been made. There is no question of the land being sold. It will never be sold and will remain in State ownership.

What about the forestry side of it?

The commitment is that both companies will be merged and a business plan is being examined with a view to determining what new synergies could result. Taking a decision will be a matter for the Cabinet, but the business plan will be a matter for debate in the Dáil.

Broadcasting Legislation

Shane Ross

Question:

29 Deputy Shane Ross asked the Minister for Communications, Energy and Natural Resources in view of his responsibilities to broadcast media and further in view of the recommendations contained in the 2009 Report of the Advisory group on Media Mergers, his views on the recommendations relating to the broadcast media; and his plans in relation to the mergers in the broadcast media sector; if he will make a statement on the matter. [15721/11]

Éamon Ó Cuív

Question:

30 Deputy Éamon Ó Cuív asked the Minister for Communications, Energy and Natural Resources the discussions he has had with the Department of Jobs, Enterprise and Innovation regarding the dangers of an over-concentration of private media broadcast outlets being in the ownership of a few conglomerates; his plans to introduce legislation to ensure a diversity of ownership; and if he will make a statement on the matter. [15950/11]

I propose to take Questions Nos. 29 and 30 together.

The genesis of the report of the advisory group on media mergers was the establishment of an advisory group by the then Minister for Enterprise, Trade and Employment in 2008 to review the current legislative framework regarding the public interest aspects of media mergers in Ireland. The advisory group was specifically asked to examine the provisions of the Competition Act 2002 regarding media mergers. Media mergers are subject to the normal clearance provisions under the Act. The Act prescribes that, where the Competition Authority decides that a merger may not be put into effect because it would have the effect of substantially lessening competition, the Minister for Jobs, Enterprise and Innovation has no role. If the Competition Authority determines that a merger should be put into effect with or without conditions, however, the Minister is mandated under the Act to consider such mergers having regard to the "relevant criteria" as specified in Part 3. These criteria, essentially the public interest criteria, relate to the diversity and plurality of views in the Irish public sphere, the strength and competitiveness of media businesses indigenous to the State, and the dispersion of media ownership among individuals and other undertakings. Following consideration of the "relevant criteria", that is, the public interest criteria, the Minister for Jobs, Enterprise and Innovation may decide that the merger be put into effect, be put into effect subject to conditions or not be put into effect.

This advisory group reported in June 2008 to the then Tánaiste and Minister for Enterprise, Trade and Employment and the report was noted by the Government in November 2008 and published in January 2009. The report contains 11 principal recommendations, for example, that there should be a statutory definition of media plurality, that the Competition Act should be amended to incorporate a statutory test to be applied by the Minister for Jobs, Enterprise and Innovation in the discharge of his or her function in respect of media mergers, the current definition of the "relevant criteria" should be replaced, there should be an ongoing collection and periodic publication of information and employment of concrete indicators in respect of media plurality in the State, and that the definition of media business should be amended to include the publication of newspapers and periodicals over the Internet and the broadcasting of certain audiovisual material over the Internet. Implementation of the advisory group's recommendations will require the introduction of primary legislation. The advisory group report points out that there are some indications of a trend towards the concentration of ownership and this may accelerate depending on economic circumstances. Global trends also reveal a tendency by large media corporations to acquire other media organisations on a continuing basis.

The audiovisual media business in Ireland is subject to the same technological advances, growth of new media, globalisation and convergence of what were formerly separate businesses. These rapid advances in communication technologies, including, in particular, Internet based media offerings provide for freedom of expression and a plurality of voices but may also concentrate media in large conglomerates not subject to Irish jurisdiction. I agree with the general view that with increasing technological advances, growth of new media and convergence of what were formerly separate businesses, new media is becoming inextricably interlinked. These fundamental changes mean that the traditional print media business is migrating to audiovisual media and the Internet in a rapidly globalising print and audiovisual media landscape.

Additional Information not given on the floor of the House.

On this basis, I see an increasing role for my Department and the Broadcasting Authority of Ireland in the media mergers area as desirable. Nevertheless, Deputies may wish to note that the report of the advisory group recommended that the public interest test in relation to media mergers should reside with the Minister for Jobs, Enterprise and Innovation, who, I understand, intends to shortly bring legislative proposals in this area to Government. I will give my views on these matters to Government at that stage.

I thank the Minister for his reply from which I take it primary legislation on redefining what is meant by statutory media plurality will be introduced at some stage. Perhaps the Minister will indicate what these redefinitions will be and if he has any fears in regard to cross media directorships or the undesirability, as expressed in the report, of there being a lack of diversity in current media. Lest I get into trouble, I should at this point declare an interest in this area. I am not sure whether I will in this regard be promoted or demoted for having raised this subject. As an employee and former business editor of the Sunday Independent I have a particular interest in this matter.

Perhaps the Minister will indicate if there is any reason for concern about cross media directorships or lack of diversity. Also, he might indicate when we can expect primary legislation with a new definition of media plurality.

I have had initial discussions on this matter with my colleague, the Minister for Jobs, Enterprise and Innovation, Deputy Bruton. While broadcast and related media are the responsibility of the Minister for Communications, Energy and Natural Resources, print media and mergers are the responsibility of the Minister for Jobs, Enterprise and Innovation.

Deputy Ross referred to the report on this matter. It is my tentative understanding from discussions with my colleague, the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, that he will bring forward legislation in this area. It is likely — the Deputy should not hold me to this — to repose responsibility in one or other Department. As the Deputy stated in his question we are living in a period of growing cross ownership of the media. The Deputy asked whether I have concerns about cross ownership. Yes, I have. I believe undue concentration of ownership in the Irish media is unhealthy for our democracy. This area of the media is different to other areas of enterprise endeavour in the sense that it conditions the quality of our public discourse and democracy. If the convergence of technologies about which we have been speaking were to lead to undue concentration of ownership or, of cross directorships, it would be unhealthy for the democratic health of our society. We are examining the issue. It is hoped it will be possible to act on most of the recommendations of the report we are discussing.

I welcome the Minister's statement and concur with what he has to say about the importance to our democracy of having diverse ownership of the media. Is the Minister happy with the current situation and does he believe we genuinely have a diverse and healthy mix of ownership? Also, will the Minister indicate when primary legislation might be published and introduced into the House?

Would the Minister agree it is important that we maintain a strong State hold on the public broadcasting sector? Also, what is the Minister's view on keeping the new digital channels in State ownership?

Deputy Ross's question raises broader issues than those which come within my responsibilities in that it encompasses a question in regard to plurality in the media. Deputy Ó Cuív asked how soon the legislation will be brought forward. The legislation will be brought forward by my colleague, the Minister for Jobs, Enterprise and Innovation, Deputy Bruton. I imagine it is a technical and difficult issue for which to legislate. I note that the previous Government, of which Deputy Ó Cuív was a member, despite receiving the report in June 2008 had not managed to publish a Bill between June 2008 and March 2011. That may be because it did not want to kick sleeping dogs as it passed or that it did not have the time to deal with the complexities undoubtedly wrapped up in this issue. We will deal with the matter as soon as we can.

I accept what the Deputy had to say in regard to the convergence of technologies. They are, as the Deputy might say, fite fuaite and that has to be taken into account in the legislation. I hope we will continue to have a thriving public sector broadcaster. I take this opportunity to offer my congratulations to RTE on its remarkable achievement as announced last night and this morning in terms of the performance of RTE radio as No. 1 in the global assessment. I hope that will continue to be the case as part of a diverse media where no particular acceptable view in society is excluded.

I thank the Minister for his reply, which is helpful. The Minister said that primary legislation to deal with this highly technical issue would be introduced but that it might take some time. Things move fast in the media world. What measures could the Government take to enforce the laudable principles it espouses if in the meantime they are offended prior to introduction of the legislation?

Perhaps the Minister will clarify if the new digital spectrum now available to RTE will be held in State hands or auctioned out to private interests, with the consequence of adding to the emerging problem, if it is not already an established problem?

We are not talking about the medium or long term in terms of tidying up this area. The Bill will be before the House in a reasonable time. However, if what Deputy Ross fears or anticipates happens, then current powers ought to be adequate if the political will exists to intervene. In my direct experience going back over the years, it is political will that has been absent. Although there are some 11 recommendations in the report to modernise the legislation, to acknowledge we are now dealing with a convergence of media that was never the case before, the measures that are in place in the legislation provide adequate power if the political will is there to implement them.

I assure Deputy Ó Cuív there is no intention that the switch to digital should mean it will go outside the hands of the State broadcaster. If the commercial revenue was there and if in better economic circumstances there might be the possibility of additional multiplexes in terms of some of the private sector companies renting space and so on, that is something I would not be averse to considering. However, there is no question of the existing capacity going outside.

Energy Exploration

Martin Ferris

Question:

31 Deputy Martin Ferris asked the Minister for Communications, Energy and Natural Resources his views on the proposed gas exploration project at Lough Allen; and if he will make a statement on the matter. [16096/11]

In recent years there has been renewed interest in targeting the natural gas resource potential of the onshore north-west carboniferous or Lough Allen basin. This potential had been identified in earlier exploration but was not considered commercially viable at the time. In February of this year, following an open competition, my Department awarded two two-year onshore petroleum licensing options to Tamboran Resources Limited and the Lough Allen Natural Gas Company Limited over parts of the basin.

The licensing options awarded are designed to allow the companies assess the natural gas and shale gas potential of the acreage. This work will be largely based on desktop studies of existing data from previous petroleum exploration activity. Exploration drilling is not allowed under these authorisations but shallow geological sampling is permitted. Exploration activity under these authorisations is at an early stage and there is no certainty that it will lead to applications for follow-on exploration licences that would be required before exploration wells could be drilled.

In the event that hydraulic fracturing was envisaged as part of a possible future exploration or production programme, then that activity would be subject to an environmental impact assessment, including an appropriate public consultation phase.

We have both had fracturing in the past, although, unlike the Minister, I am not in denial.

With regard to the Lough Allen project, in particular hydraulic fracturing, or "fracking", as it is known, is the Minister aware of the international concerns in regard to this exploration methodology? In particular, in a number of areas where this methodology was used, such as Louisiana and Texas in the United States, the consequences for people living in the areas were serious due to the detrimental effect it had on the water table, which it contaminated to the point that the water was not useable and residents could not continue living in their own houses. If the Minister is aware of this, he will agree there needs to be a public investigation at least into the consequences of adopting this exploration methodology.

I am aware there are concerns in the United States about the process to which Deputy Ferris refers. When this matter first came to my attention, I did not appreciate that the work going on consisted largely of desktop studies of existing data. Therefore, the notion one could fall into a terrible hole around Lough Allen is not exactly in accord with what is happening. I am also aware that a horror movie is being hawked around the country with the implication that dreadful things are going on in the Lough Allen basin. When I found that all of this was a few chaps in front of a computer screen, I had to take a rain check with regard to what is happening.

If the data suggests there is merit in continuing the process further into exploration, the exploration companies must come back to get an environmental impact assessment and then seek permission. I do not know that this is in prospect at present. If it is, we will consider it when it happens.

I welcome that the Minister is prepared to, let us say, investigate the consequences of fracking in other jurisdictions. I am not referring to any horror movie. I understand a very alarming presentation was made by some group but I understand it had nothing to do with fracking and related more to the consequences for the landscape which result from exploration. However, I have concerns about fracking given the information of which I have been made aware. It has had a detrimental effect on people's homes and many had to leave their homes as a result of the methodology used. Fracking involves putting pressurised water into the hole being drilled, which expands any cracks in the rock formation and leads to gas escaping into the water. I suggest the Minister needs to get expert advice from jurisdictions where things have gone wrong.

I would be as concerned as the Deputy if the fallout in this case was as he fears. I believe we are a very long way from that and I assure people who live in the area that this is not the case. I am aware there are concerns in the United States and that the French Parliament not long ago banned the practice of hydraulic fracturing, or fracking, as Deputy Ferris refers to it. There are certainly concerns about its application in this jurisdiction.

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