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Television Licence Fee Collection

Dáil Éireann Debate, Tuesday - 26 February 2013

Tuesday, 26 February 2013

Ceisteanna (90)

Michael Moynihan

Ceist:

90. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources when the new broadcasting charge will be introduced; the possibilities of extending the revenue from the charge to more than one broadcasting organisation; and if he will make a statement on the matter. [10308/13]

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Freagraí ó Béal (5 píosaí cainte)

The programme for Government commits to examining the role and collection of the television licence fee in the light of the existing and projected convergence of technologies and the transforming of the television licence into a household based public broadcasting charge to be applied to all eligible households and applicable businesses, regardless of the device used to access content or services. In line with this commitment, my Department is involved in the ongoing analysis and policy development work that is necessary in advance of implementation of any change that may be required.

Whatever the system of funding, the rationale for providing funding will continue to apply and any change that may be implemented must continue to provide a secure funding base for public service broadcasting and content. It is also important that any change to the system of funding should take account of the reality of new mechanisms to access such content and services and the pervasiveness of such content in today's society. Publicly funded public service broadcasting and content are now available to everyone on an ever-increasing range of platforms and devices and, in fact, access is not dependent on the ownership of a device. In short, everyone benefits from the availability of these services, regardless of how content is accessed or relayed to the public and, therefore, it is my view that the cost should be borne by society as a whole.

The replacement of the existing funding system based on the collection of television licence fees with a system based on the imposition of a device-independent charge on eligible households and businesses is a complex process and the logistics involved require thorough attention. Issues such as identifying the most appropriate collection method, exemptions and enforcement mechanics require detailed consideration and all have a bearing on the timeframe for implementation.

As I have previously indicated to the House, the Department is carrying out a value for money policy review, conducted by an independently chaired group, on the proposed policy. I expect to receive a copy of the group's recommendations and report for my consideration at the end of March.

Additional information not given on the floor of the House

As the Deputy will be aware, revenue derived from the current model of funding is allocated to RTE, TG4 and also to independent broadcasters through the Sound and Vision fund that is operated by the Broadcasting Authority of Ireland, BAI. I am willing to consider proposals from other broadcasting organisations with regard to the future distribution of funding. However, I have yet to be convinced that the distribution of public funds to independent commercial broadcasters represents a sound proposition in terms of policy for the sector. In line with its legislative obligations, the BAI is undertaking a review of the adequacy or otherwise of the public funding provided to public service broadcasters. As part of this review, I have asked the BAI to consider the potential impact on these broadcasters if television licence receipts were further distributed to the independent broadcasting sector.

In terms of any changes, it needs to be understood that many specific rules surrounding the distribution of public broadcasting funding sourced from the TV licence fee have been put in place as a result of the state aid clearance from the European Commission. Any changes would require similar approval. In respect of the specific proposal from independent broadcasters for access to a share of TV licence fee funding, there are several considerations arising. There would be a direct impact on commercial local radio stations in terms of the content they are obliged to produce, and on the finances of individual broadcasters. There would be a potentially significant impact on public service broadcasters that receive public funding. Significantly, this would also apply to other media service providers which are not currently in receipt of public funds. Furthermore, such a proposal raises a potential scenario in which licences that had been advertised as protected national franchises would be changed during the franchise term.

I thank the Minister for his response. We are aware that he intends to introduce a new household broadcasting fee, although it might have some other name. The licence fee that is collected at present is paid exclusively to the State broadcaster. As this country's significant network of local and community radio stations has developed, it has taken a substantial listenership from the State broadcaster. I am talking in national terms. The stations in question have had to make it in the commercial world rather than anywhere else. Has the Minister or anyone else initiated a discussion in the Department on how we can ensure the entire funding does not go to a single organisation, in line with my suggestion that some of it should go to the independent broadcasters?

The answer is "Yes". I have been talking to Independent Broadcasters of Ireland, for example, which has made certain proposals to me in this regard on the basis that their stations broadcast public service content. I am examining its case. A pretty fundamental review by the Broadcasting Authority of Ireland is under way. It is about to be concluded. I will examine it in this context. It is important to acknowledge that the stations to which Deputy Moynihan refers provide a public service to their respective regions. They are commercial enterprises, however. They were commercial enterprises when they received their licences, which were much sought after. That has to be taken into account in the context of state aid rules, etc. I have discussed this matter with the independent broadcasters. I will examine it further in the context of the review to which I have referred. I will have to be convinced that the case can be made without encountering difficulties, for example at European level.

There is no doubt that community, local and other radio stations provide an important public service. While I accept that they are commercial entities, I must briefly point out that RTE, which receives a significant subsidy from the State, has always been a commercial entity. When the Minister's discussions are taking place, perhaps there should be an examination of where RTE's funding is spent and a recognition of the importance of local radio stations. People across all age groups and demographics have come to rely on local radio stations, which are helping to keep the fabric of our communities together at a time when many other things are happening in our society. There can be no question about it. How realistic is the possibility of getting the agreement of the European Commission in this regard? Is it likely that the state aid difficulties mentioned by the Minister will lead to a logjam that can be negotiated around, or is there a difficulty in this regard?

There is certainly a difficulty in this regard. There is no doubt about it. We will examine whether it can be surmounted. I do not dispute what the Deputy has said about the value of the output of these regional stations, which undoubtedly carry public service content. This is not the only sector from which I get representations looking for a share of the licence fee.

There are others out there, from which one can draw the inference that spreading the butter so thinly would certainly have an impact on the national public service broadcaster, on which there are statutory impositions in respect of discharging its public service function. That would have to be taken into account as well.

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