Dáil Éireann Debate, Tuesday - 2 March 2010
54 Deputy Simon Coveney asked the Minister for Communications, Energy and Natural Resources if he will report to the Houses of the Oireachtas on the progress made in the development of commercial digital terrestrial television channels here. [10456/10]
View answerThe Broadcasting Act 2009 requires the Broadcasting Authority of Ireland, BAI, an independent regulatory authority, to provide for the development of commercial digital terrestrial television, DTT, services. On foot of this requirement, the BAI's predecessor, the Broadcasting Commission of Ireland, BCI, launched a competition, which is still ongoing. As the Deputy is aware, the highest placed consortium in the competition withdrew from the process last April. Negotiations then commenced with the next placed bidder and this process is continuing.
This is the same answer the Minister gave previously.
As I stated recently in response to a previous question on the issue, I am not prepared to speculate on the outcome of the commercial DTT process, which is a matter for the BAI. Nor am I prepared to surmise on the ongoing negotiations between the BAI, RTE and the OneVision consortium. I have, however, made clear my opinion that I would like to see this process concluded as soon as possible. The conclusion of the process is essential to provide certainty for broadcasters, suppliers and the general public with regard to the development of commercial DTT services.
Under section 129 of the Broadcasting Act 2009, RTE is required to ensure that free-to-air DTT is available to approximately 90% of the population on such date as may be specified by the Minister. I signed an order last week specifying this date as being 31 October 2010. The Act also requires RTE to provide a national free-to-air digital service with capacity to carry RTE 1, RTE 2, TG4 and TV3 by the end of 2011 or such later date as I may specify. I have written to RTE informing it that the date for provision of a national service is 31 December 2011.
My policy objective is the earliest possible switch-off of the analogue television system operated by RTENL and it is my intention that this will be no later than quarter four of 2012.
At least we now have some dates. On 26 January, the House got the same answer from the Minister in terms of the process, in that he hoped it would conclude as soon as possible. It is not encouraging for the myriad of industries that depend on a decision. It will be almost impossible for RTE to pay for the roll-out of free-to-air DTT services unless it has a revenue stream from a commercial service using the infrastructure RTE has put in place. Originally, they were to be paid for and used by Boxer, but that deal collapsed. Since then, the Minister has backed a process whereby the next tender after Boxer, OneVision, would try to do a deal with RTE. However, this has not occurred.
As I asked in January, has the Minister set a timeframe with the BAI, RTE and OneVision to conclude their negotiations? What will be the Minister's response if the relationship between RTE and OneVision breaks down to such an extent that a commercial proposition does not come from OneVision?
There are sensitivities here. There would be difficulties if the Minister intervened in the awarding of licences. We have learned the lesson that we should maintain a certain distance and have an independent regulatory system to organise such a competition.
We are not in a selection process.
It is a contract negotiation arrangement, which is commercially sensitive. I am dissatisfied at the long time it has taken and I want to see an outcome quickly. We will be switching off our analogue system at the end of 2012 because the economic cost of using that spectrum for broadband is so significant that we cannot afford not to make that happen.
I agree that the preferred outcome is one where we combine a free-to-air service with a commercial platform which helps cover RTE's transmission costs. This was set out in the legislation. I do not have complete control of that process but I believe it must be decided within a maximum of three or four weeks because we are running into timelines where it starts to be difficult to meet the overall objective.
We certainly are.
If it is not possible for both parties to reach agreement we will have to look at other alternatives. It will be up to the Broadcasting Authority of Ireland to do that. If it cannot succeed the Department will work with the BAI to make it happen.
For the first time the Minister has conceded that this process may not work out. If that happens the Minister says the BAI will be responsible for finding a way forward. I reject that. This is the Minister's responsibility. It is his obligation to ensure that we can have analogue switch-off by the end of 2012. He should not try to transfer responsibility to the BAI.
Is it realistic to set a date for RTE to provide free-to-air digital terrestrial television, DTT, services in the absence of an agreement on commercial DTT, given the significant funding implications of free-to-air television? Why has the Minister decided to set a date for free-to-air DTT in the absence of an agreement, or even an understanding, of where we are in terms of commercial DTT? He knows one is reliant on the other.
I do accept responsibility but my responsibility starts with letting the legislative process which has been put in place work. That lies with the BAI. I have supported the authority and will give it the room to do its work. If it fails and the process cannot be worked through, it will be back to myself and the Department to find a solution; and we will find one. While I understand Deputy Coveney's argument that we should try to wait for the commercial process, I wanted to make it clear and certain that, come what may, we are switching off our analogue system. That was one of the reasons behind the decision to signal RTE to start switching on the transmission system, which is in place, at the end of October this year. We have already spent the significant volumes needed to put in the mast and other equipment.
There is a debt attached to that which must be repaid. It is €100 million.
I wanted to give a clear signal to the suppliers and all concerned of our determination in terms of switch-off and the move towards whichever alternative system evolves in the coming months.
