I propose to take Questions Nos. 148 to 150, inclusive, and 152 together as they refer to the EU Commission's investigation into the funding of RTE.
Following a period of investigation, the EU Commission forwarded an Article 17 letter to the Irish authorities on 3 March 2005 setting out its preliminary views in regard to the compatibility of the funding arrangements for RTE with the requirements of the EU treaty. In arriving at its preliminary views, the Commission followed the principles it set out in a published paper entitled Communication from the Commission on the application of State Aid Rules to public service broadcasting. In that paper the Commission outlined the questions it would ask in establishing the existence and nature of the State aid and the compatibility of that aid with the relevant provisions of the EU treaty.
As regards the presence of State aid, the Altmark judgment sets out the conditions under which State resources paid to an undertaking would not be defined as State aid. As Ireland accepts that the funding of RTE involves State aid, the Altmark judgment does not apply.
In regard to the compatibility of such State aid with the EU treaty, the Commission assesses whether the public service remit of the broadcaster is clearly defined; the remit is properly entrusted and the broadcaster is independently supervised in regard to its performance in fulfilling that remit; and the amount of aid is proportional, that is, no more than is necessary for the broadcaster to fulfil its public service remit.
I can confirm that the Commission has come to a preliminary view in regard to each of these issues, including the question of whether RTE is in compliance with the requirements of the transparency directive. The letter also includes a number of recommendations which the Commission considers must be implemented before the aid scheme can be regarded as compatible with the EU treaty.
I must stress that the views of the Commission set out in the Article 17 letter are preliminary in nature and should not be regarded as the final decision of the Commission. The outcome of the process is subject to ongoing formal and informal contacts and is a matter of negotiation between the Irish authorities and the EU Commission. Accordingly, it would be inappropriate for me to make any detailed comments on the contents of the Article 17 letter at this point.
I can confirm, however, that Ireland forwarded a response to the Commission on 30 May 2005. The Commission is currently examining that response to see if it adequately addresses its concerns. Because of the nature of the process involved I do not propose to publish Ireland's response at this time. If the outcome of the procedure requires legislative changes, I will bring such changes forward in the context of the proposed Broadcasting Bill.