The 2014 Budget provided for a €2.5 billion adjustment in the Government's fiscal position. Expenditure cuts of €1.6 billion were central to this adjustment and difficult decisions were required across all Departmental budgets. As the Deputy is aware, a decision was taken by Government as part of this process, on the proposal of the Department of Social Protection, to reduce by €5m the amount required to be paid to my Department by the Department of Social Protection, for free television licences. This measure resulted in RTÉ's licence fee income being cut by over €4.6m from the start of 2014, as well as a reduction of around €350,000 in the amount available to the independent production sector through the BAI's Sound & Vision Fund.
The BAI's Five Year Review of the Funding of the Public Service Broadcasters was published in July 2013 and made a number of recommendations in relation to the future funding of the Public Service Broadcasters. It is my intention that the recommendations made in this Review will serve as the basis for future decisions on the funding of the Public Service Broadcasters.
RTÉ continues to make considerable efforts to achieve its targets. While the prevailing challenging financial circumstances and this reduction in its licence fee revenue will have an impact on the provision of some RTÉ services this year, I am hopeful that RTÉ can continue to protect and promote its core public service output in 2014.
I launched a consultation on the proposed Public Service Broadcasting Charge on 27 August last, which ran until the 8 October. Almost 400 responses were received from members of the public, industry and stakeholder groups. The consultation paper was based on the key findings of a Value for Money Policy Review completed by my Department earlier last year. Views were sought on a series of questions based on each of the Value for Money recommendations, which can be generally categorised as pertaining to the Basis for the Charge; Eligible Households; Applicable Businesses; Payments; Collection; and Compliance and Enforcement.
I am considering the responses received during the Consultation and will use them to inform proposals on the Charge, which I will bring to Government in due course.
The only costs to date generated by work on the proposed charge, other than staff costs in my Department, relate to the expenses of the Value for Money Review on the proposal to introduce such a charge. The independently chaired Review Group considered a range of issues in relation to the proposal, including the efficiency and effectiveness of the current licensing system. The total cost of this process was €1,880.
