Frances Fitzgerald
Ceist:1 Ms. F. Fitzgerald asked the Minister for Arts, Culture and the Gaeltacht the proposals, if any, he has for the future development of the independent radio sector.
Ceisteanna — Questions. Oral Answers. - Independent Radio Broadcasting.
Eamon Gilmore
Ceist:8 Mr. Gilmore asked the Minister for Arts, Culture and the Gaeltacht if he has established the amount of money RTÉ has accumulated as a result of the cap on advertising; if he or RTÉ have any plans for the use of this money; and if he will make a statement on the matter.
Desmond J. O'Malley
Ceist:19 Mr. O'Malley asked the Minister for Arts, Culture and the Gaeltacht if he will make a statement on the Government's broadcasting policy in view of the decision to remove the cap on RTE's advertising revenue; the impact this measure is likely to have on independent broadcasting in Ireland and on the newspaper industry; and whether the Government has any plans to create competition in the provision of national radio and television services for the consumer.
Phil Hogan
Ceist:24 Mr. Hogan asked the Minister for Arts, Culture and the Gaeltacht if, in his current review of broadcasting legislation, he intends to divert a portion of the licence fee to supplement the needs of local radio.
Tógfaidh mé Ceist Tosaíochta Uimh. 1 agus Ceisteanna Uimh. 8, 19 agus 24 le céile.
The Broadcasting Authority (Amendment) Bill, 1993, which I presented to the House on 21 April, 1993, is designed, inter alia, to remove the limit imposed by section 3 of the Broadcasting Act, 1990 on the revenue which RTE can earn from advertising, sponsorship and other forms of commercial promotion. This Bill can be regarded as the first step in a package of legislative proposals on the reform of the structures of broadcasting in Ireland.
My primary overall objective is to ensure, as far as possible, that the structures in place allow Irish radio and television programming to be of the highest quality and remain the preferred choice of a majority of Irish viewers and listeners.
I have already said that I regard local commercial stations as an important part of the mix of broadcasting services available to Irish audiences. However, I am concerned that listeners to these services should not be regarded as market segments but as citizens with rights within a communicative order. In formulating my proposals for the longer term, I will be considering measures to ensure that commercial local radio remains viable and addressing other general broadcasting issues. The question of appropriate sources of funding for the private broadcasting sector will be addressed.
With regard to competition in the provision of national radio and television services, the statutory framework for the establishment of such services by the Independent Radio and Television Commission already exists. The Independent Radio and Television Commission have also statutory responsibility for the development of the independent broadcasting sector within the parameters laid down in the Radio and Television Act, 1988. As part of my review of existing structures, I will of course be looking at the way in which this Act has operated over the past five years or so. RTE, of course, already operates in the most competitive broadcasting environment in Europe.
I do not believe that my recently announced measures will have a significant impact on existing independent radio stations. These measures will do no more than restore the advertising environment to that in which operators sought their contracts from the Independent Radio and Television Commission.
I have no statutory responsibility for the newspaper industry. However, I am convinced that the continuation of the advertising revenue and minutage restrictions contained in the 1990 Act, would have resulted in permanent damage to broadcasters, independent programme makers, advertising agencies, and indigenous companies seeking to advertise their goods and services on a strong domestic television medium.
I understand from RTE that, since the enactment of the Broadcasting Act, 1990, up to the end of 1992, the revenue derived by RTE from advertising, sponsorship and other forms of commercial promotions in broadcasts exceeded the limit set in that Act by £17.9 million. The Deputy is no doubt aware that the Minister for Finance announced in his Budget Statement that £4.5 million of this revenue will be used to commence work on the construction of the transmission infrastructure for Telefís na Gaeilge and that the remainder is to be paid into the Exchequer.
I am pleased to note that the Minister said that the Broadcasting Bill to be introduced next week is but first step. I am sure the Minister would agree that what we need at present is comprehensive provision for all aspects of the media in Ireland.
In regard to the development of the independent radio sector, I know the Minister had a meeting recently with representatives of the Association of Independent Radio Stations. Following that meeting and the information passed to the Minister about their fears for the future of their sector, does the Minister intend to look at the question of transmission costs and maintenance of transmission and at the development of an independent radio news service?
I am grateful to the Deputy for her question. It is true that I had a meeting recently with the representatives of these independent commercial local stations at which a number of issues were discussed, including the ones the Deputy has mentioned. That meeting was preceded by a number of other meetings between officials of my Department and representatives of the different stations. I have also sought to collect as much information as possible on the precise situation in each of the stations. There is a great difference between stations that are experiencing difficulties and those that are not experiencing difficulties. There are differences within those who are experiencing difficulties — there are those who are seeking mergers and those who are avoiding mergers. The items mentioned by the Deputy were indeed raised at the meeting, as were a number of other items raised by me, such as measures which could be examined and which would impact on the future viability. They did expand beyond these other items. It was a very positive meeting and we have agreed to remain in touch to see how we can advance the various proposals put forward.
Does the Minister intend to divert towards this sector some of the money accumulated as a result of the cap on advertising?
The Deputy will be aware that in the Programme for Government the reference to funding that has arisen in this way is in relation to Telefís na Gaeilge. I have dealt with it in another question and I do not want to stray into the area of the other question. In this Bill I am removing what I feel is a restriction that was damaging in section 3 of the 1990 Act and I am making provision for the independent film sector. That Bill will not only make provision for the independent film sector and make requirements of RTE but will also define independent film production. That is as much as in that legislation. In regard to the other matters in broadcasting, including the question of viability of local radio with its balance of local commerce and local community, I will be addressing these issues when I bring forward further broadcasting legislation.