Dáil Éireann Debate, Tuesday - 5 April 2011
26 Deputy Michael McGrath asked the Minister for Communications, Energy and Natural Resources if he will provide further details on the commitment in the programme for Government to review the funding of public and independent broadcasters; and if he will make a statement on the matter. [6731/11]
View answerThe commitment in the programme for Government referred to in the question is in recognition of the pressures that the funding of both public service and commercial broadcasters has faced in recent years as a result of the serious decline in commercial revenues. Whereas this decline is primarily as a result of the impact of the recession over the past three years, revenues have also been impacted through the increasing fragmentation of the broadcast market as a result of the increasing number of channels available on satellite and cable, and through on-line and other developing platforms.
Funding of the public service broadcasters RTE and TG4 is met through a mix of licence fee revenues, Exchequer grant-in-aid and commercial revenues obtained largely from advertising. The public funding element is provided for the purpose of allowing these bodies to meet their respective public service broadcasting objects. These objects are set out in part 7 of the Broadcasting Act 2009, and they impose a wide range of public service obligations on each of these broadcasters. I am aware that the funding of the public service broadcasters has been subject to criticism by private sector broadcasters and, in particular, that there has been criticism of the dual public and commercial funding model as applied to RTE. The funding of privately owned independent broadcasters is, of course, derived from their own commercial activities.
Both public and independent broadcasters can also access funding from the broadcasting funding scheme, the purpose of which is to encourage the inclusion of additional programming of a particular character in broadcasters' programme schedules. The fund is open to independent producers and all free-to-air broadcasters.
The broadcasting funding scheme is funded by way of a payment of 7% of net licence fee receipts.
Additional information not given on the floor of the House.
This is paid to the Broadcasting Authority of Ireland (BAI) in respect of this scheme. This amount was increased from 5% to 7% under the Broadcasting Act 2009. On the proposed review of funding, the Broadcasting Act 2009, which was enacted on 12 July 2009, provides mechanisms that may be used to facilitate this process.
Section 124(8) of the Act requires the BAI, within three years of enactment of the Act, to review the adequacy or otherwise of public funding to enable public service broadcasters to meet their public service objectives. In addition, section 158(1) requires the BAI to review the operation, effectiveness and impact of the broadcasting funding scheme not later than three years after enactment. I understand that the BAI expects to complete both of these reviews before the end of 2011 and I look forward to receiving both reports from the BAI in due course.
It is my intention that the findings of these two reports from the BAI will be used to inform the review referred to in the programme for Government, which I can confirm will be carried out by my Department. This review, which will focus on the scope of funding of public service content provided by all broadcasters, public and private, will be undertaken in tandem with the review of the licence fee funding mechanism, which is also committed to in the programme for Government.
In conclusion, I accept that the broadcasting sector, in common with other sectors, is facing very challenging economic circumstances. In addition, change in the way content can be transmitted is adding to the challenging environment. Apart from the reviews referred to, I look forward to working with all of the sector to ensure that broadcasting can continue to play its important and distinctive role in Irish society and maintain quality standards in the process.
I thank the Minister for his response concerning what we all agree is an important area. I welcome the review to be initiated. Will the Minister elaborate on when he hopes to undertake the review, who will undertake it and its anticipated terms of reference? I am sure he is aware of reports today that the independent broadcasters of Ireland are asking the Government that the planned new broadcasting charge which is expected to replace the licence fee should also fund independent radio stations. Will that issue fall within the remit of the review? The replacement of the television licence fee by a public broadcasting charge is a separate matter within the programme for Government. If the charge is to be used to extend funding to independent broadcasting entities will the Minister also consider extending public service obligations to such commercial broadcasters?
The rest of my prepared answer sought to deal with the Deputy's question. Section 124 of the Broadcasting Act requires the Broadcasting Authority of Ireland, within three years of its enactment, namely, by the end of this year, to review the adequacy or otherwise of public funding to enable public service broadcasters to meet their public service objectives. In addition, section 158 requires the BAI to review the operation's effectiveness and the impact of the broadcasting funding scheme.
I understand the BAI intends to have those reports with me by the end of this year and it is my intention that the findings will be used to inform the review referred to in the programme for Government, which I confirm will be carried out by my Department.
I welcome contributions such as the Deputy made to the debate from wheresoever they may come. We live in changing times. A review is taking place separately within the Department of the efficacy of the licence collection system, with an attempt to measure the extent of evasion and gather understanding of the new platforms used in particular by young people who do not necessarily access television by means of a television screen. In that sense, one can see the notion of a universal household charge might be worth considering in the not so distant future. I have an open mind on this and the issue will be included in the review.
May I speak?
No. The rules do not allow it. For Priority Questions only the Deputy named on a question may speak.
