I am a member of the European executive of the European Trade Union Committee on Education, this matter is of great concern to us and has extraordinary implications for education. On condition that he behaves himself, I wish to give Senator Cassidy three minutes of my time.
Adjournment Matters. - Cassette and CD Tax Proposal.
That is a big mistake — it has spoilt a beautiful day.
What I propose fully respects the intellectual property of artists in the music industry and I am not concerned with breaches of copyright here. The European music industry is trying to force the EC to impose a new tax on blank audio and video cassettes and other forms of recording such as DATs and compact discs, this proposal is before the EC at the moment. I feel that I am pushing an open door with the Government because the previous Administration was positive in its opposition to this measure, but I am seeking reassurance tonight that this Government will continue in the same vein.
There should be exemption from this tax for the blind and partially sighted and for students requiring cassettes, not only for normal communications, but also for education. It would be an unprecedented European tax on education at all levels; students, boards, schools and teachers use cassettes all the time. Educational broadcasting available in this country, with some minor exceptions, comes from the BBC and ITV and they have an agreement with schools which allows them to copy from their broadcasts, provided they do not retain them for longer than five years in the school. However, if this levy is enacted, it would be grossly unfair in the normal operation of taping. I have a compact disc player at home but not in my car——
That is a shame.
I know it is regrettable. This would, in effect, tax those who wish to copy the material on a compact disc they have bought for the purposes of playing it in a car. It would also be an unfair and unwarranted imposition on education. It would penalise those whose use of tapes does not infringe copyright — I want to make this clear because there was a debate on that matter in this House recently, and I supported the idea of artists being paid a proper amount for their work. My argument does not conflict with that line.
Surveys on the levels of off-air taping and recording for home use have made it clear that, despite what the European music industry says — I hope Senator Cassidy will confirm this — sales of compact discs have blossomed over the last ten years. I have figures that prove that, rather than being harmed by home taping, the recording industry has gone from strength to strength.
World album sales, including vinyl and compact discs, have increased from 1.6 billion units in 1981 to almost double that figure in 1988 and European album sales increased by 36 per cent, from 1986 to 1990; the compact disc market has grown by 400 per cent. Even though technology makes home taping easier than ever, it has encouraged rather then impeded sales.
Will the Minister raise this issue with the EC Commission to ensure it does not implement the draft proposal brought to them in December 1992? The record of the previous Government has been impeccable in this regard and there is no reason this Government should be different. These proposals are totally unacceptable but I recognise that, although a number of EC member states are opposed to them, there is a laissezfaire attitude in others — the Netherlands have already introduced such a levy — and it may be introduced through the back door. It will be a tax on education and on those who wish to use blank audio or video cassettes. It should be condemned and it should also be raised at the Council of Ministers — I ask the Minister to do this — and in the European Parliament. We should use our influence to ensure that this measure is not put into operation. We should condemn the proposal, urge the EC Commission to withdraw it, oppose the principle of levies, draw attention to the extensive use of tapes in education and stress that huge educational programmes depend on this. It will become more important when RTE introduces Teilifís Scoile on a wider scale in the next couple of years. This is not in conflict with artists' rights but is being pushed by the music industry at a time — I am sure Senator Cassidy will support me on this — when we are paying considerable sums of money for recorded music. Compact discs cost more in Europe than anywhere else.
It is an industry which has a monopoly and it is important that the authorities prevent further levies. I ask the Minister to ensure that this matter is raised with the EC Commission, the Council of Ministers and at the European Parliament and that the Government will prevent the implementation of this draft directive.
May I share my time with Senator Magner?
Is that agreed? Agreed.
I would support Senator O'Toole's views on education but this matter relates to the music industry. There is wholesale pirating taking place and sales of blank tapes in relation to the pre-recorded and duplicated product is approximately 7:1, and this figure continues to increase. The manufacture of vinyl records is on the decline. I do not know any shop which sells vinyl records, and I do not know where Senator O'Toole obtained the figures he mentioned. In 1988 the number of CDs sold did not even reach 100,000. It is easy to have growth of 400 per cent in this area given the quality of CDs. There is a need to protect jobs in this area, particularly those of Irish artists and musicians.
However, the industry faces this difficulty: how do you impose a levy on those duplicating and buying blank tapes and, at the same time, protect the spoken word in the education system?
The decline in sales is affecting writers, artists and publishers. This is the view of those involved in the music industry, including artists, publishers, writers, and record companies who receive their profit margins, regardless. The Irish Government and other EC Governments face difficulties in attempting to prevent this massive duplication.
My faith in Senator O'Toole has been restored by his contribution. This levy is the greatest scam of all time. If a person videoed his cat walking around the garden or if he sang on a blank tape, he would have to pay a tax. Heaven forbid. I asked time from Senator Cassidy because he conned Senator O'Toole into sharing his time with him.
I object to that remark. That is very unfair.
I thought I would redress the balance and support Senator O'Toole who, having shared his time, thought he would receive support from Senator Cassidy. I support Senator O'Toole's call to prevent the introduction of this draconian legislation by the back door. The last thing we need are examples from The Netherlands, given the Red Hot Dutch television. I urge the Minister to prevent the imposition of another levy on the people so that individuals like, for example, Mr. Daniel O'Donnell may become richer.
That is the last time Senator Magner will get a minute of my time.
I do not know whether to reply or to sing.
This is a serious matter and I want to put on the record a considered note that has been prepared by the Patents Office which is under the jurisdiction of the Department of Enterprise and Employment. The EC Commission has for some time been examining the question of a directive on home copying of audio and video tapes. The Commission has a major work programme on copyright which has the objective of harmonising the laws of member states in order to achieve the proper function of the Internal Market in the area of copyright. A number of EC countries have, or propose to have, a levy on blank tapes and recording equipment and the Commission is considering whether a harmonisation measure is appropriate. A levy, in such circumstances, is designed to fund cultural activities in those countries.
As Senators are aware, the power of initiative in these matters rests with the Commission but it has not to date proposed such a directive. If it does, any such proposal will be considered on its merits by the Council of Ministers and I will take into account the points made here tonight. It should be clear, however, the legal basis for such a directive would include Article 100 (A) of the EC Treaty which provides for the adoption of measures by qualified majority voting. No country on its own can block an EC measure of this nature, a qualified majority of members would be required. If we were opposed to it we would need a sufficient number of allies to prevent it from being endorsed. If the Commission were to make such proposals, I would examine them with an open mind but I remain to be convinced on the merits of such a levy.
I accept that home copying of sound recordings may result in a loss of sales on recordings to some extent. However, sales may also benefit from home copying. An individual may, for example, buy a CD and tape a copy for use in their car. This greater utility of the CD may increase sales. However, many blank audio tapes are only used for non-copying purposes, to record home or local events or to send messages. I am concerned that tapes used by the blind should not be subject to this levy.
Senator Cassidy would tax the blind.
That is not true.
In the case of video tapes, my information is that the greatest use for such tapes is for time shifting of television programmes; in other words, people record their favourite programme while absent from home or viewing another channel. Home copying of videos and any unfair loss of the video industry does not appear to be significant.
We have high standards of copyright protection and are party to the most important copyright conventions and we are committed, under recent EC measures, to further extend and improve that protection. Composers, songwriters, performing artists, producers and others involved in the music industry should receive a just return for their efforts. We can be proud of the success of Irish artists and that the international remuneration they receive is underpinned by the copyright laws of other countries.
I am conscious of the losses to such right owners arising from the unfair copying of their recordings. This problem has been changed radically by the development of new digital recording and reproduction technology. This allows for a serial recording of great clarity which is not lost on repeated copies. The best way to tackle this problem is to prohibit serial recordings by technical means. These technical systems have already been developed and while they allow a first generation digital copy of a recording, that copy cannot be further recorded.
This issue of home copying will be discussed later this year at the World Intellectual Property Organisation, the UN agency which deals with international treaties in this area. Proposals have been made by that organisation for a new international agreement on the protection of the rights of performers and producers of phonograms. The Irish delegation at that meeting will take part in a detailed examination of all the issues involved. The results of that international discussion will be of considerable assistance in assessing all the implications which arise.
The losses caused to the music and film industry from copying derive in a considerable part from the illegal piracy of recordings and videos on a commercial scale. Our priority for action should be in this area and that we should not too easily accept the need for additional payments by the law abiding consumer.
New enforcement measures against piracy are also included in the proposed new international agreement and are part of the current discussions in the Uruguay Round of the GATT. I intend to ensure that we support such measures in the relevant international discussions.
Shortly, I will carry out a comprehensive review of the Copyright Act, 1963, and I intend to include in the new legislation increased anti-piracy measures and tougher penalties for commercial infringers. In short, I intend to focus on the criminal rather than the consumer.
The general principles of international law in respect of copying are that it must not conflict with the normal exploitation of the work and it must not unreasonably prejudice the legitimate interests of the right owners. Home copying does not infringe the first criteria. In respect of the second criterion, we should concentrate initially on technical means to limit excessive and repeated copying of recordings. I will examine ways in which we can reinforce this by legislation.
I intend to pursue a fair and equitable solution to the issues which are now made more urgent by rapidly changing digital technology. I am under no illusion, however, about the complexity of the legal, economic, technical and international problems which must be carefully assessed and dealt with. I am also aware of the problems which have been raised in this House of the collection of performance rights and the repatriation to the UK of moneys so collected and not necessarily passed on to Irish artists and performers.
The Seanad adjourned at 10.50 p.m. until 10.30 a.m. on Thursday, 17 June 1992.