Seanad Éireann debate -
Wednesday, 7 Feb 2001

Vol. 165 No. 1

Broadcasting Bill, 1999: Second Stage.

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

Minister for Arts, Heritage, Gaeltacht and the Islands (Miss de Valera)

Television and radio broadcasting have proved to be the most important means of mass communications which have been developed. They have and will continue to have a considerable influence on what we think and on what we think about at both national and local levels. At their best they have contributed to a shared sense of community and interest regardless of where we live, who we are or our economic circumstances.

Such powerful communication systems also present enormous commercial opportunities. The ability of manufacturers and service providers to reach consumers is greatly enhanced by means of radio and television. The onset of the digital revolution has meant that the broadcasting services and the operation of their associated distribution networks have come to be seen as a very valuable commercial activity with enormous potential for future growth.

There has been an extraordinary growth in the number and type of commercial and trans-national broadcasting services in the last decade or so. Despite this growth, broadcasting in its totality is much more than a commercial activity where the object of the exercise is to simply deliver the biggest audience at the lowest price or to deliver the largest dividend to investors. Broadcasting services are without doubt powerful tools for the dissemination of information and the education of public opinion. It is imperative that there be a source of information which can be trusted to be accurate in its news, documentaries and current affairs programmes and impartial between different social and political views. Central to the idea of democratic society is that of the well informed and self-determining individual, but if individuals are to be genuinely autonomous it is not sufficient for them merely to receive information, no matter how much or how impartially presented; they must be able to understand it and make sense of it in ways that relate to their own lives and decisions. It is, therefore, hugely important that Irish viewers and listeners should continue to have access to high quality indigenous services that are of relevance to Irish society and which serve the interests of our citizens in the 21st century.

Mr. Ryan

TV3 – high quality indigenous services.

Miss de Valera

As Minister for Arts, Heritage, Gaeltacht and the Islands I must seek to find a balance between protecting and enhancing the needs of Irish society in terms of programme content and the expectations of those working in the broadcasting sector with regard to the commercial exploitation of radio and television. The statutory pillars on which Irish broadcasting is currently based are the Broadcasting Authority Act, 1960, as amended, and the Radio and Television Act, 1988. The Broadcasting Authority Act, 1960, established RTÉ as the national broadcaster on a monopoly basis and provided for the introduction of television.

Let me acknowledge the 75th anniversary of the commencement of broadcasting in this country on 1 January 1926. Let me also congratulate those who down the intervening years have striven through thick and thin to provide radio services of the highest quality for Irish listeners.

The Radio and Television Act, 1988, while not fundamentally changing the 1960 Act, introduced competition in the sector by establishing the Independent Radio and Television Commission providing for the introduction of independent radio and television broadcasting services. The existing legislative framework, however, is not suitable to cope with the developments in the environment of digital technology as applied to the broadcasting and telecommunications sectors. It is, therefore, timely that we examine our existing body of law and seek to provide a sound legis lative basis to allow broadcasting in this time of fundamental and rapid change.

The advocates of digital terrestrial broadcasting claim that the new techniques will significantly improve the quality of television reception. However, by far the most significant effect will be the increased broadcasting capacity and a significantly increased flexibility and sophistication in the number and type of services which can be broadcast.

Most of the new services that will be made possible through the introduction of digital television will be provided on a commercial basis. We will all have the possibility to have a huge amount of services by today's numbers vying for commercial survival. Quality popular programming is already at a premium and the cost of producing and acquiring such material will continue to rise. Across Europe some of the more prestige programmes are disappearing from the schedules and are being replaced by programmes of a more simple nature reflecting the precious and scarce resources. Some programming that is available on free to air channels has migrated to pay per view and subscription channels. Niche services, subscription services and pay per view services are already with us and are set to grow.

A fundamental change also is that there are now competing platforms. People in many areas of the country will be able to choose the platform from which they receive their services. The same broadcasting and broadcasting type services can be provided across a range of technical platforms, including satellite, cable television, MMDS, digital terrestrial television – DTT – and telecommunications infrastructures. Digital satellite services are already available in Ireland. Cable and MMDS systems are being upgraded to facilitate digital distribution of broadcasting services. DTT, as it is commonly known, will enable at this stage of the technological development the provision of up to 30 channels on a countrywide basis. Cable television, MMDS and satellite systems have the capacity to deliver much more. The level of access by viewers to additional services on cable, MMDS and satellite platforms will in large measure be determined by the attractiveness of the services on offer and especially by the ability of the viewer to pay for such services. It is not for me to say which is the better platform or to look into a crystal ball and try to predict which platforms will be the most profitable.

An added dimension is that infrastructures which up to now have been perceived as being capable of providing broadcasting services only, for example, terrestrial transmission and cable television systems, can be used in the provision of services for the information society age. Similarly, infrastructure that was visualised only as appropriate for the delivery of telecommunications services will be capable of delivering audio-visual services. Such changes will have profound cultural and social effects at local, national and international levels. In a world where the globalisation of broadcasting services is a growing phenom enon and where technological developments provide virtually unlimited capacity for the delivery of programme services, we must be concerned to ensure that Irish broadcasting services which reflect Irish culture and the needs and tastes of Irish viewers remain relevant.

It is vitally important that we give some basic guarantees to our citizens. We must ensure as far as possible that all our citizens, regardless of economic circumstances, have a reasonable guarantee of access to broadcasting services that have a distinctly Irish quality, that reflect Irish values and are relevant. In that context, there is now a stronger argument than ever for broadcasting services, operating to a strong public service remit providing programming schedules of quality, originality and diversity and catering for minority as well as mainstream tastes. Such services must be provided on a universal basis or as near to that concept as is technically feasible.

I am also anxious to ensure real diversity and choice between broadcasting services. One of the main objectives of the Bill is to put in place a regulatory structure that allows Irish private sector broadcasting and public broadcasters to co-exist satisfactorily. Both sectors have much to bring viewers. Each sector can learn from and challenge the another. While they have different ultimate objectives, they both have an important place in the range of broadcasting services that can be offered to Irish viewers and listeners. I am also anxious to ensure that Irish broadcasters have the opportunity to use the latest technological developments to achieve their goals.

This is why the Bill provides that our existing indigenous television broadcasters, both public and private, will have guaranteed access to the new DTT platform. It is essential that these broadcasters have the opportunities to have their existing services available in digital form and to develop new services.

It is also necessary to provide a regulatory structure in which new indigenous services can be encouraged. In order to provide for this structure it is necessary to develop common basic programme and advertising standards which can be applied to all broadcasters across all platforms.

The underlying purpose of the Broadcasting Bill, 1999, is, therefore, to provide a sound legislative and administrative framework which will encourage the Irish broadcasting sector to grow and exploit the opportunities which digital technology presents while at the same time ensuring that viewers and listeners can access high quality programmes, imaginative and challenging, with a distinctly Irish emphasis.

The digital terrestrial television platform is seen to have the greatest potential for ensuring near universal coverage. However, the delivery of the broadcasting services on the platform will require significant investment both in the adoption and development of the existing analogue transmission network, the provision of reception equipment in the form of set-top boxes to viewers and in the vital area of putting together of attractive content packages. DTT will have to compete against other digital delivery platforms including cable and MMDS and satellite. It will also have to compete to some degree with telecommunications operators using DSL technology. It will have to be seen to be competing fairly. It will also have attendant risks associated with the significant investment more proper to the private sector than to public ownership.

Recognising the magnitude of the task and the associated risks, the Government has decided to facilitate the roll-out of DTT in Ireland by establishing two separate but interdependent companies – a transmission company and a multiplex company. DTT services involves two distinguishable and separate activities: the transmission of signals to people's homes and multiplexing, that is, the retailing of programme packages to viewers in much the same way as a cable television operator provides services.

The Government has accepted that RTÉ should sell its transmission network as a going concern. The entity thus created, in which RTÉ will be allowed to retain a stake of up 28%, will be licensed to provide digital terrestrial television transmission services to broadcasters as well as the existing analogue transmission business. It will be the responsibility of this new entity to make the necessary capital investment to roll out the digital terrestrial transmission network to universal coverage in accordance with the terms and conditions of the licence to be issued by the ODTR.

The DTT multiplex operator will be selected separately, in accordance with predetermined criteria, by me. I will be advised in this matter by a project management group made up of representatives of the Department of Arts, Heritage, Gaeltacht and the Islands, the Departments of Finance, Enterprise, Trade and Employment and Public Enterprise. I will also have the advice of a consortium of consultants led by AIB Corporate Finance.

The multiplex operator will be licensed to operate six multiplexes. RTÉ is to be guaranteed the use of one multiplex. TV3 and TG4 are guaranteed the use of half a multiplex each. The multiplex operator will be responsible for assembling the programme packages to be provided on the multiplexes not allocated to RTÉ, TV3 and TG4. The multiplex operator will also assume responsibility for the capital investment required to enable viewers to receive digital services by way of set-top boxes, etc. Although the ODTR will be empowered to regulate the charging practices of the multiplex operator, it will be a matter for commercial decision by the multiplex operator as to what subscribers will have to pay for the necessary reception equipment, either by way of outright purchase or rental. I am aware that in the UK, particularly, vicious commercial strategies have been adopted to encourage the speedy take up of digital television.

With regard to the regulation of broadcasting services, I propose to continue with the current administrative structures whereby RTÉ is regulated by the RTÉ Authority and independent broadcasters by the Independent Radio and Television Commission.

The Bill provides for the Independent Radio and Television Commission to be given expanded powers and functions in relation to the regulation of digital broadcasting on all platforms. To reflect this body's increased powers its name will be changed to the Broadcasting Commission of Ireland. The commission will have the critical function, in addition to the current functions of the Independent Radio and Television Commission, of making arrangements for the provision of broadcasting services additional to those provided by our existing broadcasters. In carrying out this function, the commission will be required to endeavour to ensure that the number and categories of broadcasting services available in the State best serve the needs of its people, bearing in mind their traditions and culture. It is my expectation that the commission will in general regulate the broadcasting sector with a light touch. However, specifically the commission will draw up codes and rules relating to taste and decency of broadcast material, advertising – with particular reference to advertising at children – and a range of other broadcasting related matters, and enter contracts with providers of broadcast content. To ensure consistency such codes and rules will apply to all broadcasters, including RTÉ.

With regard to RTÉ itself the Bill clarifies the public service remit under which RTÉ operates. The Protocol to the Amsterdam Treaty of the EU recognises that the system of public broadcasting in the member states is directly related to the democratic, social and cultural needs of each society and to the need to preserve media pluralism. The public service remit is currently defined in a general way in existing legislation. There have been significant changes in the broadcasting scene in Ireland and across Europe, not least the increased broadcasting capacity brought about by digital technology. For these reasons and in the context of the Protocol to the Treaty of Amsterdam on the system of public broadcasting in the member states, I believe that it is appropriate and necessary now to provide greater clarity as to what is expected in fulfilment of the public service remit which applies to RTÉ and to similarly define a public service remit appropriate to the ethos and mandate of TG4. I believe that the proposed provisions will provide for additional clarity and detail in statute law in respect of the uses to which the revenues, including licence fee, and other Exchequer moneys paid to these broadcasters may be put.

The Bill provides for the repeal and restatement of the provisions of the Broadcasting Authority Act, 1960, and the Radio and Television Act, 1998, in relation to the Broadcasting Complaints Commission and extends the powers of investigation of the commission to cover all providers of broadcast content.

The Bill also provides that the Minister may establish Teilifís na Gaeilge as a statutory corporate body, the members of which shall be appointed by the Government; that the Broadcasting Commission of Ireland shall draw up a scheme for the disbursement of a fund of £500,000 provided from the Exchequer in respect of capital expenditure on transmission infrastructure incurred by local and community radio stations; for the repeal of paragraph (b) of subsection (4) of section 14 of the Radio and Television Act, 1998, which enables the Independent Radio and Television Commission to impose a levy on the income of independent broadcasters; for the amendment of section 4 of the Broadcasting Authority (Amendment) Act, 1993, to provide that in the financial year 2001, RTÉ shall make the sum of £20 million available for independent television productions and that, in subsequent years, this amount shall be adjusted in line with changes in the consumer price index.

I will now turn to the detail of the Bill. Section 1 contains the short title, collective criterion, construction and commencement provisions. Section 2 contains definitions. Section 3 provides for repeal of existing legislative provisions set out in the first schedule to the Act. Section 4 provides for the payment of expenses incurred by the Minister in the administration of the Bill when enacted.

Section 5 provides that the Minister may, subject to the expressed conditions, following the required consultation with the Minister for Public Enterprise, designate a company formed under the Companies Act which has as its principal objectives the transmission by terrestrial means of analogue television and sound broadcasting services provided by broadcasters and digital television services provided by the multiplex company, the promotion of the development of multimedia services and the promotion of electronic information services, including internet services. RTÉ will be required to transfer its existing transmission infrastructure to this company in exchange for a shareholding in the company. RTÉ shall not transfer any such shareholding without the consent of the Minister and the Minister for Finance. In addition the Minister may, by order to be laid before both Houses of the Oireachtas, require RTÉ to divest itself of the shareholding in the company.

Section 6 provides that on a date specified by the Minister, after consultation with the Minister for Public Enterprise and the Director of Telecommunications Regulation, the director shall be required to issue licences to the transmission company in relation to the transmission equipment which has been the subject of a transfer from RTÉ and to RTÉ in relation to equipment which has not been the subject of such a transfer. If in the event that there is a delay between the designation of the new company and the granting of licences by the director, it is proposed to allow the transmission company to begin immediate transmission by providing that the rights and obligations set out in RTÉ's existing licences will operate and have effect as if they had been granted to the transmission company.

Section 7 provides that the transmission company will be licensed and regulated by the director under the Wireless Telegraphy Acts. When licensing the transmission company, the director may attach whatever conditions the director feels is appropriate including the conditions relating to the imposition of charges by the transmission company on broadcasters and the multiplex company. In addition, for the avoidance of doubt the section makes it clear that the director shall not be prevented from granting further digital transmission licences to either the designated transmission company or any other person.

Section 8 provides that the Minister may, subject to the expressed conditions, following the required consultation with the Minister for Public Enterprise, designate a company formed under the Companies Acts which has as its principal objectives the establishment, operation and maintenance of six digital multiplexes, that is to say the six electronic systems which combine programme material and related and other matter for transmission by the transmission company, the entering into arrangements with RTÉ, TG4 and TV3 for the transmission of their programme material and related and other matter in digital form by the transmission company and the promotion of the development of multimedia services and information services including the internet.

Section 9 provides that the multiplex company will be licensed and regulated by the ODTR under the Wireless Telegraphy Acts and the provisions of this Bill. RTÉ, TG4 and TV3 will be guaranteed access to multiplex capacity and the Minister will have the power to direct that multiplex capacity be reserved for Northern Ireland broadcasters. In addition the section provides that the ODTR can regulate charges imposed by the multiplex company, that RTÉ, TG4 and TV3 can decide whether their allocated multiplex capacity will be delivered via a dedicated multiplex or by an equivalent capacity and that the ODTR may issue further multiplex licenses.

Section 10 provides for the change of the name of the Independent Radio and Television Commission to the Broadcasting Commission of Ireland. Section 11 provides that the Broadcasting Commission of Ireland shall endeavour to ensure that broadcasting services made available in the State under the Bill, or the Radio and Television Act, 1998, best serve the needs of the people of the island of Ireland.

Section 12 enables the Broadcasting Commission of Ireland to enter into digital content contracts with broadcasters for the provision of programme material to be transmitted by digital terrestrial means by the multiplex company designated under section 8. Section 13 provides that the transmission company will be obliged to carry, if requested to do so, the analogue free-to-air broadcasting services of RTÉ, TG4 and TV3, the digital services supplied by the multiplex company and the analogue sound broadcasting services of RTÉ and independent sound broadcasting contractors. The transmission company may also impose charges in relation to the transmission of these services.

Section 14 provides that the multiplex company must carry, if requested to do so, the digital free-to-air broadcasting services of RTÉ, TG4 and TV3 and may carry digital services from other broadcasters and electronic information service providers. The provision also allows the multiplex company to impose charges on the broadcasters it carries, on its customers in relation to services other than the free to air services of RTÉ, TG4 and TV3 and in relation to the provision of the apparatus required to receive DTT transmission, that is to the set top boxes.

Section 15 is designated to offer the transmission company and the multiplex company some protection with regard to programme material or data which is carried on the DTT or analogue networks over which neither company has effect control.

Sections 16 and 17 deal with electronic programme guides, otherwise known as EPGs, which are defined as a means of providing information in relation to the schedule of programme material on a digital broadcast service. It is expected that EPGs will be essential to allow viewers navigate through the array of services that will be available by way of digital transmission. Consequently there is a provision requiring ease of access to information regarding the broadcasting services provided by RTÉ, TG4 and TV3 and certain of the services provided in the North. The commission may also enter into a contract for the provision of an EPG covering the DTT, cable and MMDS platforms and may direct that this EPG be carried on these platforms. Accordingly if the commission is not satisfied that viewers are being provided with easily accessible information on indigenous broadcasters, it can bring this provision into effect.

Section 18 provides for the application, subject to necessary modifications, of certain fundamental existing legislative provisions contained in the Radio and Television Act, 1988, to new broadcasting services provided pursuant to contracts entered into under this Act.

Section 19 provides for the preparation by the Broadcasting Commission of Ireland of codes and rules to be complied with by broadcasters with respect to programme material. The commission shall, following a wide consultation process, prepare codes in relation to the taste and decency of programme material and broadcast advertising, sponsorship and other commercial promotion including advertising, direct or indirect, to children. The commission shall make rules in order to promote the enjoyment of broadcast services by persons who are deaf or hard of hearing and persons who are blind or partially sighted. The commission shall also prepare a code in respect of a broadcasting service that has as one of its principal objectives the promotion of the interests of any organisation.

In relation to this section, I was particularly anxious to ensure that the use of children's advertising be specifically addressed by the Broadcasting Commission of Ireland. To this end, the provisions are designed to ensure that the Broadcasting Commission of Ireland will deal with the preparation of a code on children's advertising as a priority. In the preparation of such a code, the Broadcasting Commission of Ireland will be obliged to undertake a wide consultation process, having regard to any existing research, or commission its own research and consider the merits or feasibility of banning advertising directed towards children of a specified age.

I regard the role of the new Broadcasting Commission of Ireland in this regard to be of such importance that I propose to oblige the commission to report to me on its progress within one year and every three years thereafter. These reports will be laid before the Houses of the Oireachtas.

I am particularly pleased that I have been able to contribute to the implementation of the national children's strategy which was recently launched by the Taoiseach. This strategy recognises for the first time, the importance of giving children a voice in matters which affect them. Indeed the first national goal for children is that "children will have a voice in matters which affect them and their views will be given due weight in accordance with their age and maturity". The strategy goes on to recognise that one of the issues of concern to children is the impact of information and communications technologies. These technologies include television, videos, video games and the Internet.

The strategy recognises that research on the impact of such technologies on children is under-explored. Proposed actions in this area include the commissioning of research of the impact of a wide range of technologies on children and that the public and private sectors working in information and communications technologies should develop in partnership a code of ethics in relation to children's issues. I believe that my approach to the issue of advertising directed at children is practical and is not only consistent with but actively supports the aims set out in the strategy.

Section 20 provides for the co-operation by the Broadcasting Commission of Ireland in the preparation of non-technical codes or standards with respect to the transmission of information by any electronic means, other than by means of broadcasting, including the Internet. Section 21 provides that the Broadcasting Commission of Ireland shall enforce Parts II and V of the Bill when enacted and the codes and rules and contracts made thereunder.

Sections 22 to 27 provide for matters relating to the Broadcasting Complaints Commission. Section 22 provides for the appointment, remuneration, resignation and removal of the chairman and members of the commission and provides for gender balance among the members.

Section 23 provides for the supply by the Broadcasting Commission of Ireland to the Broadcasting Complaints Commission of staff, services, accommodation and facilities for the performance of its functions and for the payment of the expenses of the Broadcasting Complaints Commission by the Broadcasting Commission of Ireland. Exceptional expenses of the Broadcasting Complaints Commission may be reimbursed by the Minister to the Broadcasting Commission of Ireland from television licence fee revenue.

Section 24 provides for the grounds for complaint to the Broadcasting Complaints Commission, which comprise the existing grounds with the addition complaints of breaches of the code regarding taste and decency of programme material. The section also provides for the procedures for making complaints and the procedures to be followed by the commission in investigating a complaint.

Sections 25 to 27 provide for annual reports by the commission, for recording of programme material by holders of content provider contracts and for the completion by the commission of existing investigations.

Section 28 provides additional clarity and detail in respect of the public service character of the national television and sound broadcasting service provided by RTÉ. The basic requirement is that the service provided by RTÉ shall comprise a comprehensive range of programmes in Irish and English, shall be free-to-air and shall be universally available in so far as is reasonably practicable. Television licence revenue shall be, and commercial revenues may be, used by RTÉ for the purposes of fulfilling its public service remit.

Section 29 provides that in addition to its national service, RTÉ may provide local, community or regional services. Section 30 provides that, in addition to its public service broadcasting remit, RTÉ shall have the power to offer special interest subscription or pay-per-view programme services – secondary broadcasting services – and to transmit programmes by electronic means other than broadcasting.

Section 31 provides for the continuation of the current regime in relation to the approval by the Minister of advertising time on RTÉ broadcasting services, which are not subject to a contract with the Broadcasting Commission of Ireland, and specifically includes teleshopping within this regime.

Section 32 provides for an amendment to section 6 of the Broadcasting Authority (Amendment) Act, 1976, under which RTÉ is required to record every broadcast and to make such a recording available to the Broadcasting Complaints Commission in the event of a com plaint. The amendment will require RTÉ to record visual as well as audio material.

Section 33 provides for an amendment to section 4 of the Broadcasting Authority (Amendment) Act, 1993 which deals with the annual amounts which RTÉ must make available for independent television productions. Paragraph (b) of the section provides that the amount to be made available in the financial year 2001 shall be £20,000,000. The other provisions of the section provide that, in subsequent years, this amount shall be adjusted in line with changes in the consumer price index.

Section 34 provides that the Broadcasting Commission of Ireland may authorise the television programme service contractor, TV3, to provide additional broadcasting services by means of a variation made by it to the contract which has been entered into under the Radio and Television Act, 1998 in respect of its existing service.

Section 35 provides that any television programme service contracts entered into or renewed by the Broadcasting Commission of Ireland after the commencement of this section shall include a provision that the definition of "independent television programme" has the same meaning as that provided in the Broadcasting Authority (Amendment) Act, 1993.

Section 36 provides for the entry by the Broadcasting Commission of Ireland into satellite content contracts with persons for the supply of programme material to be transmitted as a broadcasting service by means of a satellite device. The commission may charge fees for such contracts.

Section 37 provides for measures in respect of the transmission and retransmission of programme material by means of cable and MMDS systems. Specifically, the section provides that only properly licensed broadcasting services may be carried on cable and MMDS systems. It also provides for the notification of the Broadcasting Commission of Ireland in respect of the transmission or retransmission of broadcasting services, and for "must carry" status for the television services of RTÉ, TG4, and the television programme service contractor, namely TV3, national sound radio services and community channels on cable television systems. TV3's "must carry" status on MMDS systems is maintained.

Sections 38, 39 and 41 are designed to enable the Broadcasting Commission of Ireland to enter into local content contracts with persons for the supply of programme material for local interest, community and commercial channels to be transmitted on cable and MMDS systems. The commission is empowered to make a community channel "must carry" on the local cable or MMDS system.

Section 40 provides that the commission may carry out an assessment on the needs of a community in respect of broadcasting with regard to the availability of production facilities, training and resources to the community to best serve its interests.

Sections 42, 43 and 44 provide for the establishment of TG4 as a statutory corporate body on a day, which the Minister may appoint. It is the intention that these provisions will be brought into effect at the optimum time.

Section 45 provides that the function of TG4 shall be to provide a national television broadcasting service catering for the expectations of those whose preferred spoken language is Irish or who otherwise have an interest in Irish. The service shall have a public service character similar to that to be provided for in the case of RTÉ in section 28 of the Bill, with, of course, special emphasis on the Irish language service.

Section 46 provides that the general duty of TG4 shall be similar to that of RTÉ by virtue of section 17 of the Broadcasting Authority Act, 1960 as amended by section 13 of the Broadcasting Authority (Amendment) Act, 1976. Section 47 provides a statutory basis for the supply by RTÉ free of charge to TG4 of one hour per day of Irish language programming.

Section 48 provides that the approval of the Minister will be required for the total time per year of broadcasting by TG4. This provides for the continuation of the current position. Section 49 provides that the approval of the Minister will be required for the daily and hourly times devoted to the broadcast of advertising and teleshopping by TG4. Again this reflects the existing position.

Section 50 provides for the application, subject to necessary modifications, of certain fundamental existing legislative provisions contained in the Broadcasting Authority Acts, 1960 to 1993 to TG4 as they apply to RTÉ under the existing law. By virtue of the application of section 21 of the Broadcasting Authority Act, 1960, TG4 shall have the power to appoint advisory committees or advisors.

Section 51 provides for the payment by the Minister of Exchequer funding to TG4. Sections 52 and 53 provide for transitional provisions in relation to TG4, including the transfer to TG4 of land, property and other rights and liabilities of Seirbhísí Theilifís na Gaeilge Teoranta. This company is the wholly owned subsidiary company of RTÉ, which currently provides the TG4 service.

Section 54 provides for the separation of accounts and moneys in respect of secondary broadcasting services provided by RTÉ and TG4 in addition to their national public service broadcasting services.

Section 55 provides for general matters relating to content provider contracts entered into by the Broadcasting Commission of Ireland under the Bill, and section 56 provides for the charging by the commission of fees for applications for contracts.

Section 57 provides for offences in relation to the supply of programme material for the purpose of its being transmitted as a broadcasting service otherwise than in accordance with a con tent provider contract, offences in relation to the "must carry" requirements on cable and MMDS systems and offences in relation to the requirements to notify the Broadcasting Commission of Ireland of services transmitted or retransmitted on cable and MMDS systems.

Section 58 provides for the payment by the Minister of Exchequer moneys to the Broadcasting Commission of Ireland in respect of its expenses. This arises from the repeal provided for in section 3 of the Bill of the power of the Independent Radio and Television Commission to impose financial levies on independent broadcasters under section 14(4)(f2>b) of the Radio and Television Act, 1988.

Section 59 provides for the operation by the Broadcasting Commission of Ireland of a scheme of capital grants to local and community radio stations in respect of their transmission costs to be funded from Exchequer moneys up to a maximum total of £500,000 to be provided to the commission by the Minister.

Section 60 provides that the Broadcasting Commission of Ireland, when considering the award of a sound broadcasting contract, must have regard to the extent to which the applicant complied with any sound broadcasting contract held by the applicant before the date of making the application. In addition, this section also obliges the commission to notify the applicant of the reasons for refusing an application for a sound broadcasting contract.

Section 61 provides for an increase from 14 to 30 in the number of days in a period of 12 months for which the commission can licence a temporary sound broadcasting service. Section 62 provides for amendment in respect of the grounds on which the commission can authorise a derogation by a broadcaster from the minimum requirement of 20% of broadcasting time to be devoted to news and current affairs programmes.

Sections 63 and 64 are designed to bring the pension provisions of the Broadcasting Authority Act, 1960, in relation to RTÉ, and the Radio and Television Act, 1988, with regard to the Independent Radio and Television Commission, up to date.

Section 65 provides that the existing prohibition on broadcasting advertising directed towards a religious end will be relaxed to allow advertising of newspapers, periodicals, etc., and notice-board type advertising of religious events or ceremonies where the language used does not address the merits of a particular faith or belief or of becoming a member of any religion or religious organisation.

The First Schedule contains the list of enactments to be repealed by section 3 of the Bill. Sections 18A, 18B and 18C of the Broadcasting Authority Act, 1960, provide for the establishment, functions and duties of the Broadcasting Complaints Commission. Essentially, the powers of the Broadcasting Complaints Commission are being restated for clarity in the new legislation. Section 19 of the Act provides for the hours of broadcasting on RTÉ radio and television services to be subject to the approval of the Minister. Sections 3(1), (1A) and (1B) provide for that, and the Minister may make an order directing RTÉ to refrain from broadcasting any matter which, in the opinion of the Minister, would be likely to promote or incite to crime or tend to undermine the authority of the State.

Section 11(3) and (4) of the Radio and Television Act, 1988, provides for the extension of the powers of the Broadcasting Complaints Commission to the independent radio and television sector. Section 12 of the Act automatically extended the scope of any order in force under section 31(1) to independent broadcasters under the 1988 Act.

Section 14(4)(f2>b) of the Act provides for the payment by independent broadcasters of financial levies to the Independent Radio and Television Commission. This requirement is being dropped. Section 4 of the Broadcasting Act, 1990, provides for the drawing up by the Minister of a code dealing with advertising, sponsorship and other forms of commercial promotion in broadcast services which shall be complied with by RTÉ and independent broadcasters. This will now be a function of the Broadcasting Commission of Ireland.

Section 2 of the Broadcasting Authority (Amendment) Act, 1993, provides that the maximum daily and hourly advertising times on RTÉ broadcasting services shall be subject to the approval of the Minister.

The Second Schedule provides for standard provisions in relation to the establishment of TG4 as a separate statutory body, including the appointment, remuneration, resignation and removal of the chairman and members of the body, and the requirement for gender balance among the members. Provision is made for the employment of, and the devising of, a superannuation scheme for staff, including a chief executive. Provision is also made for TG4 to present annual reports and accounts.

Senators will agree that the Bill is a major legislative initiative. The introduction of DTT will provide the best opportunity to ensure that digital television services are rolled out to as much of the population as is feasible. It will provide the best guarantee that at least our existing indigenous television services will be available in digital form, free at the point of reception on a universal basis, or as near to that concept as is feasible.

In addition, DTT has the capacity to provide information services via television sets to viewers. The companies to be designated under the Bill will be required to have, as part of their objectives, the promotion of multimedia services and the development of electronic information services, including those provided by means of the Internet. In this way the Bill will ensure that the maximum opportunity to partake in the information society is provided to as many people as possible.

I look forward to hearing the contributions of Senators to this debate.

Mr. Coghlan

At the outset I must declare an interest in that I am a shareholder in Radio Kerry. I was among the founding directors who established the company and successfully applied to the Independent Radio and Television Commission for the licence to provide local radio to the people of Kerry.

I welcome the debate on the Bill and note the Minister's comments and aspirations for the effective roll-out of digital broadcasting. I deeply regret that it has taken the Minister so long to progress the Bill and that the legislation is likely to be enacted close to the second anniversary of its introduction. However, I appreciate that the Minister has had her difficulties with the legislation. What we are presented with now is a rather hybrid Bill which is unlikely to be remembered as the legislation which best achieved clarity of thought or expression. In short, this is a bad Bill.

As we enter the digital age, a number of clear public policy objectives must underpin such important legislation on broadcasting and broadcasting policy. First, we must ensure that all members of the public are able to benefit from the digital era and are not left behind. Many households along the western seaboard feel entirely neglected by recent developments in broadcasting. The recent migration of "Coronation Street" from RTÉ to TV3 was greeted with dismay by many ardent soap fans who were unable to receive the TV3 signal in their local areas. It must be an important tenet of public policy that all of Ireland must benefit from digital broadcasting, not just the areas where commercial broadcasters see a commercial imperative to roll out their services. I am sure the Minister has no difficulty in accepting this basic principle.

Second, it is of vital national importance that we encourage and sustain the important role of RTÉ as the national broadcaster. We have been excellently served by RTÉ since 2RN was first established in the 1920s. The quality and standard of home produced broadcasting that we see daily from RTÉ is unparallelled and it must be encouraged and sustained. As with many national enterprises operating in an increasingly globalised environment, RTÉ will face considerable commercial and cultural challenges with the advent of digital broadcasting. Faced with formidable and well resourced competitors operating in an increasingly international environment, it will be important that RTÉ is sustained and nurtured by Government. The benefits of a dedicated national public service broadcaster with specific public interest objectives, must be recognised in an environment where we are being continually barraged by such cultural gems as "The Gerry Springer Show", "When Animals Attack" and "Temptation Ireland".

There are two important aspects to this matter. First, RTÉ must be in a position to offer high demand and high quality programmes to viewers. In the bidding war for key programmes RTÉ will always be at a disadvantage vis-à-vis international competitors. Second, surely TV broadcasters offering such high quality dross as previously mentioned must not be automatically conferred with the same rights, assumptions and privileges on “must carry” status as those who offer content with a genuine public service or public interest objective. I will return to this later.

It seems immensely generous of the Minister to confer such exalted status on what is low quality content. The automatic "must carry" status conferred on commercial broadcasters in the context of this Bill must also be subject to review. In fairness to the commercial broadcasters, there must also be closer examination of the public service remit conferred on RTÉ to ensure it stays faithful to the public service mantle conferred on it by the Oireachtas and that it is run effectively and efficiently to provide value for money.

A third public policy issue concerns the role and status of the independent broadcasting sector. From first-hand experience, I have witnessed the hugely important and significant role the independent local radio stations have assumed since they were first licensed by the Independent Radio and Television Commission. They provide a vital public service and should be encouraged and sustained. One of the major issues for local radio stations concerns the expiry of their licences in the years ahead. There is much uncertainty and unease about the expiry of the licences. Staff are uneasy about their employment prospects and investment decisions are difficult for stations to make in the knowledge that the renewal of licences will be subject to the uncertainties of a milk round system. The Independent Radio and Television Commission should at least carry out some assessment of the performance of the local stations in the context of their contractual and statutory objectives and the outcome of this review should influence the Independent Radio and Television Commission in deciding whether to re-advertise the licence for the franchise involved. The Minister has offered something in that regard and I think she accepted an amendment in the Dáil, but there is still concern about it based on legal advice. The Minister can see how difficult it is to continue to develop a service in terms of capital investment and so on and stations can be placed in an impossible and invidious position.

I see considerable advantage in allowing the independent broadcasters to have some role in a new digital transmission company. If RTÉ, as the national broadcaster, is going to retain its stake in the new entity, it is important that other broadcasters should be facilitated with involvement provided no competition law issues arise. I have serious concerns about issues of transparency and public accountability with this legislation. Many functions are reserved to the Minister and there are other instances where public participation and accountability are not fully encouraged or facilitated. In broadcasting, more than in any other sector, it is imperative that the public is involved in the decision-making process. In the current environment, broadcasters shape and influence the way people develop their responses to cultural, political and social matters. It is imperative that public participation and accountability are encouraged in all aspects of the regulation of broadcasting and broadcasters.

It is wrong, for example, that the Minister retains the right to appoint the companies likely to run the digital transmission and multiplex companies. The Minister also retains the right to appoint the members of the RTÉ authority and set the licence fee for RTÉ. Surely, these powers are inappropriate in current circumstances and should be devolved to a competent authority or body. For example, I would see much merit in the prospective appointees to the RTÉ authority being asked to appear before the Oireachtas committee on heritage and the Irish language so that they could outline their experience and give an insight into their visions for broadcasting in Ireland. Likewise, the Oireachtas committee on heritage and the Irish language would have a useful role in addressing the RTÉ request for a licence fee increase. Is it right that RTÉ's existence and survival depends on a decision that the Minister alone will make? This is a ferocious power vested in the Minister alone. I wonder is the Minister happy with this.

There must also be an argument for addressing the issue of consistent regulation of broadcasting in Ireland. Arising from this Bill, it now appears that broadcasters could be regulated by up to five different regulatory authorities – the Minister, the RTÉ Authority, the Broadcasting Commission, the Broadcasting Complaints Commission and the ODTR. There must be a public interest imperative in ensuring that we can achieve consistent regulation across all broadcast platforms, albeit by reference to different public policy objectives in different instances. I detect that some of the independent and commercial broadcasters feel that consistent regulation would best achieve the general public policy objectives that this Bill endeavours to achieve.

Another key area which the Bill needs to address effectively is the role of Irish programme makers. While I note that the Bill provides for £20 million to be dedicated to Irish programme makers, I think it will be necessary for the Minister to take other significant steps to create an atmosphere that is conducive to Irish programme and film makers. Part of this can be achieved by using the "must carry" status on cable and MMDS more effectively and subjecting automatic "must carry" status to some analysis on the grounds of programme context. If broadcasters were encouraged to use Irish produced programmes in order to acquire "must carry" status, this would, doubtless, assist Irish programme and film makers. I do not subscribe to theories that suggest that RTÉ should be the sole repository for Irish made programmes while other channels are free to offer whatever content they wish without scrutiny or review.

The delay in rolling out this Bill is very serious. We are faced with a situation where the legislation needed to establish DTT in Ireland is only coming onto the Statute Book two years after its introduction. We must then commence the process of establishing the digital transmission company and the multiplex operator. This will, doubtless, take until the end of the year to achieve. It looks as if it will be the middle of 2002 before Irish consumers will see the first hint of DTT. This is simply a disgrace. It is incumbent on the Minister to ensure there are no further delays and that the Bill does not present any future hostages to fortune that will need to be resolved by the courts. I know that some commentators have expressed concern about the manner of establishment of the digital transmission company and raised the Century Radio spectre as a disturbing precedent. We have also seen the inordinate delay in the roll-out of the new mobile phone service in Ireland as a result of a cumbersome selection mechanism for awarding the licence for the new operators. This has directly disadvantaged Irish consumers.

I see a large number of potential legal potholes into which this Bill might yet fall before the DTT is established in Ireland. The manner of selection of the DTT transmission and multiplex companies is a lawyers' charter. I understand the cable companies have expressed serious legal reservations about what they perceive to be a discriminatory regime in the Bill for differential charging provisions across platforms – in other words, one platform can impose charges while another is prevented from doing so. This gives rise to serious concerns under EU competition laws. Given that such clear potential obstacles to the roll-out of DTT can be identified at this stage, it is incumbent on the Minister to try to anticipate and address these concerns rather than wait until the courts or the EU Commission intervenes and places the whole timescale back another 12 months. The Minister will not be thanked by the people if obstinacy overrules prudence on this issue.

It may be that the Minister is unaware, or at least disregarding, of the great success of local broadcasting to date, and the lame deference to the idea of localised television services in Part V of the Bill suggests as much. It seems that local services, if they are introduced, will be conveyed only to those who enjoy and pay for MMDS or cable. This accounts for about 650,000 homes out of 1.1 million or more. Those areas not served by these systems are to have no local service and those who cannot or will not pay for a cable or MMDS connection must also do without it. It is also the case that the charge by cable or MMDS will itself constitute a barrier to establishing these services because the local broadcasters will not have confidence that they will reach a sufficient audience. What is the objection to reserving a multiplex, or even half a multiplex, for local services? Is it that somebody, whether in the Minister's Department, the ODTR or RTÉ, got the engineering wrong? Is it too late to correct this? Can I look forward to viewing Kerry TV on the same channel frequency as the Minister will view Clare TV?

In the matter of stimulating investment, creating jobs and adding to the range of broadcasting available to the viewer, local services have considerable advantages over national channels. They tap into local investment which would not otherwise be available to broadcasting, they open whole new streams of advertising revenue which national stations cannot access due to price and, in audience terms, they provide cohesion within the community. I am assured there is nothing inherent in DTT that prevents the reservation of a multiplex for this purpose. It simply requires that the transmission system is built appropriately. Should we not now include an obligation on the designated transmission company to deliver this vital and exciting service and leave the provision of it to the wit and ingenuity so manifest in the success of local radio?

Localisation might solve another long-running problem of the Minister's predecessor's creation. I refer to the vexed matter of the deflector groups which serve communities that would otherwise be denied access to multi-channel television. As I understand it, these groups have been temporarily licensed by the ODTR and those licences may well be extended for a further year. It also seems that when the DTT system is switched on, some at least of these groups will have to cease their activities. This has to do with the allocation of frequencies base spectrum, as it is called.

There is a great deal of unhappiness in many communities that an adequate local system is to be displaced by the heavy handed imposition of a national system. Some more sensitive consideration of localisation could guarantee these groups a continuing part in local broadcasting services and in all probability resolve this long-running and deeply felt dispute.

In this context the Bill is not reassuring to the outlying communities which have been grossly neglected by Irish broadcasting. I see nothing to guarantee them inclusion in this wonderful new system. Is it possible that in one stroke they will be deprived of their existing community-organised service while not being included in the new service which has displaced it? I should like the Minister's formal answer to that question. As I understand it, something of the order of 40% of Gaeltacht homes cannot receive TG4, which is absurd. The Minister is not only responsible for broadcasting; she is also Minister for the Gaeltacht. Will she ensure that this neglect is made good before the new system is introduced?

The whole issue of access to multi-channel services and particularly the main UK services remains mysteriously unresolved by the Bill. There is provision in section 9 (6) for a multiplex to be reserved for material supplied by the rather curiously defined "person who provides a broadcasting service in Northern Ireland". There is however nothing to guarantee that this "person" will provide the services to which we have become accustomed, namely, BBC, UTV and Channel 4. As the Minister presents the Bill in this House she may be reserving a multiplex to BSkyB and Rupert Murdoch for all we know. This is a serious flaw that requires correction.

Will the Minister clarify a few matters similarly ignored in the Bill? Will this "person" pay carriage fees to the multiplex operator to carry their signal as we see that our own broadcasters must? If not, they will be at a substantial advantage over our local broadcasters. If they pay such fees will the Minister not have created the most unholy copyright mess? What will be the position when RTÉ transmits a UK programme to which it has bought Irish rights, and the multiplex operator re-broadcasts the same programme on the original UK service? Will that multiplex transmission not infringe RTÉ's rights? Who should sue whom in those circumstances?

Thus far I have concentrated on the DTT system in terms of television broadcasting as we have known it. It can, as we know, provide a great deal more. Can the Minister explain what interactive service the system will offer and compare the services so offered to those that will be available through cable or MMDS services? It seems the way her Department and the others concerned with the engineering of the system have decided to configure the DTT system has ignored a fantastic opportunity to bring the benefits of interactivity to all the people. In doing so the Minister is doing two things. Firstly, those with the funds and access to cable systems will have far greater access to data. The less well-off and those living in the more outlying districts will have a great deal less access. In doing this she is greatly exacerbating both polarisation in society in terms of distribution of wealth and further disadvantaging rural communities. This issue has very serious social and educational implications. I ask her to attend to it.

It is in the Minister's power to require that this new technology is so configured as to provide interactivity at a level exceeding that achieved by most domestic Internet users. It will cost money, but unlike W.T. Cosgrave who saw the value of radio in 1926 in an impoverished war-wracked country, or Seán Lemass in 1960 who was trying to lay the foundations of our modern economy, this Government has access to resources of which those earlier legislators would not dare dream. Why then is the Minister either deliberately or recklessly denying access to such new technologies to so many who are already being left behind as our economy and our society roar forward?

I said earlier this is a bad Bill. The Oireachtas waited two years for its introduction. The Minister had that time, yet it has taken another 20 months to bring the Bill this far. She might usefully have produced a consolidation of broadcast ing legislation in that time but she chose not to. She produced this sad exercise in doing the minimum and ignoring the rest. I appeal to the Minister to take it back, do a proper job on it and return it as quickly as possible when it will be much more worthy of consideration.

Mr. Mooney

I welcome the Minister to the House. Listening to Senator Coghlan's rather interesting contribution I could not help thinking that much of its theme was similar to that of his opposite number in the other House in his reply to the Second Stage debate. It is interesting to note that the words used were not extended to other contributions. In general, while people opposed elements of the Bill, they welcomed the broad thrust of it. That would be the consensus view here also but everybody is entitled to their opinion.

In reading the Bill and the contributions I found that we are dealing with a complex, technical Bill dealing with settting up technology rather than conventional broadcasting legislation. I am not technologically minded although I know how to switch on a microphone and talk through the ether. When it comes to other elements of the technology of radio and television I have to refer to the experts. Having said that, the broad thrust of the Bill addresses the most immediate issues.

As the Minister will acknowledge, this is the first major Bill since 1988. The legislation that set up Radio Teilifis Éireann is 40 years old and there have not been any fundamental changes in broadcasting legislation since then. The Minister will agree it is difficult to legislate in a fast-moving technological environment. What is fashionable today could be out of date tomorrow. We have only to look at the upgrading of PCs. One is told as one is buying a PC the chances are that it will be out of date within 12 months. It will do the work you want it to do. Obviously, we may be back here again at some future date, although I would like to think from reading the Bill that the Minister has covered all the bases.

There will be greater choice as a result of technological innovation. That choice extends far beyond what the original drafters of broadcasting legislation envisaged. The Minister has addressed much of that here.

I agree with the Minister that broadcasting services should operate to a strong public service remit providing programmes of quality and also catering for minorities as well as mainstream issues. In general RTÉ has discharged that responsibility well. Television has produced some wonderful moments of homegrown talent while Radio One in particular has attempted to satisfy a broad constituency within its restrictive scheduling format.

RTÉ is seeking an increase in its licence fee. I intend to nail my colours firmly to the mast early in the debate and put on record that the Minister and the Government should look favourably but critically on this request. Put simply, if we want public service broadcasting as outlined in the Bill we must resource it or else throw RTÉ to the tender mercy of the marketplace. In a competitive television and radio environment unless RTÉ as the national broadcaster is resourced adequately it will have little choice but to dumb down along the lines mentioned by Senator Coghlan. Sadly, I have to use as an example what I would refer to as the dumbing down of Network 2 within the national broadcasting station. It is a mish-mash of American sitcoms and the excesses of programmes that, I suggest, appeal to the lowest common cultural denominator. That is the future now unless it is adequately resourced. That may sound like a contradiction. I think I am right in saying that the individual who was responsible for reshaping and restyling Network 2 has now left this country. I am not talking like a little Englander but I always found it difficult to understand that somebody from a different culture and environment could fully understand us by transplanting himself into this culture and this environment and then trying to reshape a radio or television network from a national perspective.

In the UK the development of an alternative television channel meant that BBC 1 was complemented by BBC 2, which became an arts and documentary style television transmission station with a very loyal and significant audience. Channel 4 was developed as the alternative to the mainstream ITV populist programming. It has also established itself with a very impressive track record of documentaries, films and many other aspects of good quality programming. I wish Network 2 had taken the same route. Perhaps it is not too late.

Debate adjourned.