I welcome the Minister of State and his officials. This is probably the final session in what has been a marathon Committee Stage debate.
Section 52 deals with the amendment of the Broadcasting Act and the provision of sign language, teletext and subtitling services, a matter on which a submission has been received from TV3. I considered tabling an amendment but it would have been ruled out of order. TV3 is concerned that this provision will have a direct impact on Irish jobs, investment and competitiveness in the broadcasting sector. It submits that while the Bill refers to the public sector in general terms and specific sectors in particular, it also proposes that the Broadcasting Commission of Ireland, BCI, implement "access rules", the term used to describe the provision of services for people with disabilities, in this case those with a sight and-or hearing impediment. It also submits that there is an interesting difference between the sections controlling Government expenditure on providing services for people with disabilities and the provisions governing broadcasting. It further submits that the State should explicitly limit its expenditure to what each Department considers it can reasonably provide which can only be challenged in court following a complex internal review mechanism.
TV3 submits that, in direct contrast, the BCI will be under a rigid obligation to impose new codes without consideration of cost. The submission is dated November 2004. TV3 submits that consultation is ongoing on a code which will require it to apply the provisions to 60% of its output within a ten year framework. The other stations, including RTE, will also have significant targets. TV3 maintains that all broadcasters will find it difficult to meet these targets. While it wants to co-operate, it makes a number of interesting points. It maintains that Irish channels are competing with ten other television stations undertaking advertising in the Irish market which are UK based opt-out channels with no programming or access requirements. As the UK position was only confirmed in June, it is not about to be altered.
The BCI mandating rules on quotas for services such as subtitling, sign language and audio description, this being the provision of a narrative describing the action on screen, are primarily aimed at digital broadcasting for peak time viewing in news and current affairs programmes, in particular, which programmes are the most expensive for the Irish based broadcasters. TV3 estimates that widespread subtitling would increase costs by more than one fifth on affected programming. It maintains that in the case of audio description and sign language services which would be required under the provisions of the 2004 Bill the cost per hour would increase by approximately 200%. Has the Minister of State done any costings on this matter?
No cost model is available to European commercial free-to-air broadcasters that would make this increase in costs sustainable. TV3 maintains that the Government undertook no review of the possible impact of these regulations on the Irish broadcasting sector. I ask the Minister of State to advise whether this occurred. It believed it was Government policy that no regulation would be introduced without a review of its impact on the competitiveness of Irish industry as laid out in the Government's White Paper on better regulation. It claims these provisions will render the Irish broadcasting landscape one of the most unattractive in Europe.
In its current consultation the BCI admits that subtitling is not common in Europe other than in the United Kingdom. Subtitling is imposed on commercial stations only in German and French markets and done in an incremental fashion. Sign language requirements are minimal even in these jurisdictions which are much bigger and factors of economy of scale come into play.
TV3 maintains that audio description, AD, only works with digital services which have yet to be fully rolled out in Europe. The United Kingdom and Germany are the only countries with AD requirements which only apply to state broadcasting stations receiving multi-billion euro subsidies from licence fees. In similar markets which are close to a much larger same language neighbour, Austria, Switzerland and Luxembourg, the state funded channels carry the burden of access while the commercial sector does what it can when it can on a voluntary basis. For the sake of competitiveness in the Irish broadcasting market and to ensure consumers have an Irish choice in their viewing habits, TV3 asks that section 52 of the Bill be modified in order that the BCI could decide what a broadcaster should do, having regard to the financial implications for its activities.
TV3 proposed an amendment, which I understand the Chairman has. It proposes that the commission should in making such rules have consideration for the cost of such steps required under any rules made under this section and that it may reduce or remove any steps from the said rules should this be required because of financial hardship for any broadcaster. It also suggests that it would be appropriate to investigate the State funding of all broadcasters in providing these services for the disabled. It maintains that if the Bill is passed unaltered, the Irish broadcasting sector will shrink and be replaced by UK based opt-out broadcasters with no service access requirements. It maintains that this would benefit nobody. It also maintains that this issue is very important for its existence and respectfully requests that it be considered.
I understand that in other countries a fund is available, as is the case here. The Broadcasting (Funding) Act 2003 provides for the establishment of a fund to support certain television and radio productions and projects from an amount of 5% of net receipts from television licence fees. TV3 calls for this scheme to be administered by the BCI. The Act provides that 5% of the net proceeds from television licence fees be paid into the fund with effect from January 2003. Up to last November there was €16.2 million in the fund. A scheme to administer grants from it has yet to be established. I understand that in other countries this fund may be used to assist in the provision of access as specified in this section of the Bill.
I am not highlighting all this because I do not want to see subtitling or audio descriptions — I certainly do. However, I am concerned about the impact this provision might have on existing broadcasting stations. I do not know whether the Minister of State had discussions with the various companies involved, including RTE, TV3, etc. to ascertain whether they could practicably do this. The Bill, as drafted, seems to imply they will be required to do so, regardless of cost. Interestingly it is full of belts and braces ensuring the State will be insulated where cost is concerned and contains frequent references to resource implications. There is a fund established under the Broadcasting (Funding) Act 2003 which could conceivably be used in this regard. At the same time people with disabilities require the assistance of subtitling and audio descriptions. However, if television stations would run the risk of being put out of business or could not afford to do this, we would have a problem. Does the Minister of State agree with this proposal?