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Dáil Éireann díospóireacht -
Wednesday, 4 Oct 2000

Vol. 523 No. 2

Other Questions. - Television Licence Fee.

Deirdre Clune

Ceist:

90 Ms Clune asked the Minister for Arts, Heritage Gaeltacht and the Islands if she has had any discussions with RTE regarding the level of remuneration it receives from the licence fee; and if she will make a statement on the matter. [20639/00]

Seán Ryan

Ceist:

95 Mr. S. Ryan asked the Minister for Arts, Heritage Gaeltacht and the Islands the plans she has to assist RTE in regard to the £16 million shortfall in its budget for 1999; and if she will make a statement on the matter. [20239/00]

I propose to take Questions Nos. 90 and 95 together.

RTE has informed me that it will be lodging a formal application for an increase in the television licence fee in the near future. I will give the application, when it is received, detailed and careful consideration within the framework of the Government's anti-inflation strategy. I will bring any proposals that may emerge from my consideration of the proposal to Government as is the standard practice in dealing with television licence fee applications from RTE.

As there are two questions involved, not more than 12 minutes is allowed.

The annual report for 1999, produced by RTE three weeks ago, shows that RTE has a serious deficit problem. The previous Minister, Deputy Michael Higgins, permitted an index linked licence fee increase. Would this Minister not at least allow that increase given that the licence fee has been stagnant for some time? It is obvious that RTE cannot function with its current level of remuneration.

I have examined the report. The number of new houses built in this country since 1997 – there were approximately 45,000 in 1999 – is striking but that is not reflected in the amount of licence fees being collected. That anomaly should be addressed. This is not reflected in the level of licence fee being collected and this anomaly must be addressed.

With regard to the indexation of the licence fee and the licence fee itself, I am aware that RTE has produced its annual report. As I have responsibility for broadcasting, I must bring this report to Government, which I have done. I have looked very carefully at the figures pertaining to the report and I know the difficulties facing RTE because I have the opportunity to keep in contact with the RTE Authority, the Chairman and Director General. That is my job, given my responsibility for broadcasting. RTE has not as yet put a proposal in writing to me with regard to the proposed licence fee increase but, given newspaper reports, I understand this will be forthcoming. Obviously it is not just a question of accepting the figures without knowing the arguments involved. However, I will give it every consideration when it finally reaches my desk.

My question related to the £16 million shortfall in last year's accounts and what the Minister proposes to do about it. The other question which arises goes back to the point I raised earlier in relation to the proposals that may emanate from the EU Competition Policy Commissioner. Is the position of RTE not highly precarious at present and should the Minister not respond with much more urgency?

I reiterate that the Deputy is trying to scaremonger. There is no question of the Commission dealing in the way he has suggested; that has not happened. In considering the position of RTE and whether a licence fee increase is advisable at this time, I obviously must consider the arguments put forward. I must work also within the framework of the Government's anti-inflation strategy. I acknowledge there has been a shortfall in 1999 and it is also projected that there will be a shortfall for 2000.

RTE has reported an operating deficit of £16.6 million for 1999 and a group surplus of £74.3 million was recorded. Most of this was made up from the sale of RTE's share of Cablelink, of which £130 million was received. The station is forecasting a deficit of approximately £12 million for 2000. As Minister responsible for broadcasting, I will be very interested to see the proposals put forward to me, as I believe they will, and I will consider them in a fair and dispassionate way. If I believe the issue and arguments are worth supporting, I will do so and seek the support of my Government colleagues in return.

Will the Minister indicate the effectiveness of the collection system for the licence fee to which Deputy Clune has already referred? How many licence holders are there in the country? I understand An Post is responsible for the collection of the licence fee and, if so, what percentage of the licence fee goes to RTE and to administrative and collection costs?

That is a separate question relating to a number of statistics and I will be pleased to get this information for the Deputy. He is correct in saying that An Post is responsible for the collection of the licence fee, and that is important. I also note the statement by Deputy Clune that more houses are being built and that, therefore, there should be a greater collection. That issue is worth considering.

I asked the Minister about the indexation granted by the previous Government but stopped by her. Will she give her reasons for that decision which obviously has had an effect on RTE? I am aware a licence fee increase per se is a different issue but I am referring to the indexation granted.

The question of a licence fee increase is put to the Government of the day for consideration as to whether it is an issue it could support. Indexation is a Government policy matter and not an issue I felt should be pursued. I will consider whether a licence fee increase is merited and, if so, how much. All these issues will be considered. The issue of indexation, as well as being put forward by Deputy Clune here today, has been put forward by RTE on a number of occasions.

Does the Minister agree that time is of the essence in this case, given that there was a shortfall of £16.6 million last year and that a shortfall in the region of £12 million is projected for this year? The indications are that if this roll-over continues there will be great pressure on RTE to reduce home made programmes because it will not have the funding to continue to provide the service it has been providing heretofore. It is important for forward planning that RTE has an indication of its total source of income.

I agree with the Deputy's last statement. However, I cannot act unless I receive a submission. Once I receive the submission, I will consider proposals. I agree also with the Deputy that programming is a very expensive business. I am aware that RTE is engaged in restructuring and is considering the situation facing it in the future.

Does the Minister agree that if she does not respond to the 1999 shortfall and the projected shortfall for this year that not only will she reduce the capacity for home made programmes, either in-house in RTE or through independent film makers, but there will be very severe redundancies in RTE?

The Deputy will be aware that I have been very interested in the debate by the independent film makers and their different productions. Provision is made in the Broadcasting Bill, 1999, for independent producers. I reiterate – this point should be accepted by the Deputy given that he outlined his concerns about the EU during Question Time – that there is no question of RTE being automatically entitled to an increase regardless of the situation. This is important in the context of possible complaints to the European Commission about unacceptable State aids to RTE. Therefore, there must be a very balanced approach to this issue. There is a great deal to be considered and I can give the House an undertaking that once the proposals arrive on my desk, I will consider them in a planned and strategic way.

On the Minister's responsibility to the House in relation to RTE, I asked if she would make a statement on its annual report. I was informed that the Minister has no responsibility to the Dáil but I understood from her initial comments here that she has some responsibility and will address the report. I would be grateful if she would clarify the matter.

The Deputy is moving outside the substance of the question.

Miss De Valera

This is a matter of procedure. The Minister of the day receives RTE's annual report and the procedure is for him or her to bring it to Cabinet. The content of the report is for RTE and the RTE Authority, not for the Minister. That is the differentiation.

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