Dáil Éireann Debate, Tuesday - 24 February 2004
110 Mr. Costello asked the Minister for Communications, Marine and Natural Resources his views on the claims made by the chairman of the RTE authority that he is undermining staff morale in the station and that he has underestimated the work achieved by RTE; and if he will make a statement on the matter. [5817/04]
Amharc ar fhreagraThe Government decision of December 2002, which provided for a very substantial increase in the television licence fee, also introduced a new mechanism for determining the future level of the licence fee. The Government decision provided for an annual adjustment of the television licence fee using a consumer price index minus X formula to take account of rising costs but also to reflect RTE's performance on execution of change management and programme commitments.
My decision to grant RTE an increase of €2 in the licence fee was informed by the report of an independent evaluation of RTE's performance in 2003, that was undertaken by PricewaterhouseCoopers. When announcing the decision to increase the television licence fee, I recognised that RTE had achieved a significant amount in 2003, particularly with respect to delivery of programme output; near achievement of its budget target; and delivery of accountability and transparency measures. I also highlighted that RTE had less success in terms of the implementation of its change programme.
The chairman of RTE welcomed the increase in the licence fee, while saying that RTE would have preferred a higher figure. He also expressed some concern at the language used in my press release. I do not consider it particularly helpful to engage in a lengthy public debate on this matter. I have spoken to the chairman about his concerns and the chairman understands the position taken by me on the issue. I had a duty to explain to the public the circumstances in which they would be asked to pay an increased licence fee. As a result, my statement reflected the positive achievements of RTE in 2003 and also referred to where there could have been a better result.
111 Ms Burton asked the Minister for Communications, Marine and Natural Resources the nature of the investigation he intends to hold into RTE’s pricing policy in the advertising market; the terms of reference of the investigation; the person who will carry it out; when it is expected to be completed; and if he will make a statement on the matter. [5816/04]
Amharc ar fhreagraLast December when I announced an increase of €2 in the television licence fee, I also announced that I will be arranging for an external review of the impact on all broadcasters of the licence fee paid to RTE with particular emphasis on possible distortions in the advertising market. This review will be undertaken later this year and the terms of reference for the review will be published once they have been drawn up. I intend to engage independent experts to undertake this review. In drawing up the terms of reference for the review, I will take account of the fact that the Competition Authority recently concluded its consideration of a request from TV3 to take up a complaint against RTE for alleged predatory pricing on advertising.
