From Department of the Environment, Climate and Communications
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The Government have today responded to RTÉ's revised strategy, announcing a Commission on the Future of Irish Public Service Broadcasting is to be established.
The Minister for Communications, Climate Action and Environment Richard Bruton TD said,
"Broadcasting – national and local, is an important channel for expression of culture and community, for supporting creative talent and for independent, objective reporting of current affairs for citizens.
Massive transformation is challenging the existing model. Today, the main source of news for 52% of over 65 year olds is TV, with 18% being from radio. In sharp contrast, of 18-24 year olds, it is 18% who rely on TV, with 6% sourcing their news from radio and 71% from social media and other online sources
This gives rise to new challenges. Today, the Government agreed to establish a Commission on the Future of Irish Public Service Broadcasting to consider how best to deliver and fund public service broadcasting into the future."
A Commission on Irish Public Service Broadcasting is being established by the Department of the Taoiseach to bring forward proposals by September 2020 (to ensure input before Budget 2021) The Minister has today published the terms of reference (see notes to editor) for the Commission. The Commission will review the current approach and make recommendations to Government on setting a new strategic direction for public service broadcasting provided at national, regional and local level in light of international experience and future trends. Membership will be decided shortly.
In light of its financial difficulties, RTÉ submitted a revised strategy which has now been considered by Government, following an evaluation by NewEra. The Government have agreed to provide an additional €10m funding to broadcasting with approx €9m going to RTÉ to implement this new plan. This funding is in addition to the allocation of €10m additional funding made between 2018 and 2019.
The provision of this additional funding will be accompanied by new reporting requirements including a structured reporting template which will also see monthly meetings between RTÉ and the Department of Communications Climate Action and Environment working with NewERA.
The funding will come from the Department of Social Protection vote, in respect of free TV Licences and is to be provided in the 2020 revised Estimates.
Minister Bruton said,
"RTÉ must make changes to reposition itself. However, it is also important that a careful assessment take place of what are the models and funding mechanisms that can best support the continuing important public service goals. This is Government meeting RTÉ halfway on the financial challenges they face."
The Government also today agreed that RTÉ should not proceed with the part sale of the site, as intended in their plan, until the work of the Commission is completed and considered by Government, given that its recommendations may impact on decisions regarding the size and requirements of RTÉ.
Terms of reference for Commission on the Future of Irish Public Service Broadcasting
A well- functioning media, and in particular public service broadcasting, delivers four important public services to Irish society:
Since the foundation of the State, these aims have been, and continue to be, delivered by a wide number of media organisations with RTÉ and TG4, as the public service broadcasters, playing a central role. More recently, the Sound and Vision Scheme, which amounts of 7% of net TV licence revenue, has supported content with public service value by all broadcasters in conjunction with the independent production sector.
The independent Commission is to:
Arising from that work, the Commission is tasked with:
RTÉ funding
While RTÉ's commercial income dropped significantly during the recession, RTÉ were in a position to break even in 2013 and 2014 in the midst of the economic recession. Since then their commercial income has been largely stable:
In the same period their operating costs have grown by 11%.
T.V. licence fee
In 2017 the Joint Oireachtas Committee on Communications Climate Action and Environment made a total of 10 recommendations in respect of the Future Funding of Public Service Broadcasting including that the existing charging regime be expanded to capture every household consuming media regardless of the technology used i.e. a non-device dependent, household-based, public service broadcasting charge.
Working Group on the Future Funding of Public Service Broadcasting
In light of the recommendations of the Committee, a working group was set up on foot of a Government decision in July 2018. Comprising of senior officials from the Departments of Finance, Public Expenditure and Reform, Housing, Planning and Local Government, the Office of the Revenue Commissioners and the Department of Culture, Heritage and the Gaeltacht, the group specifically examined the options of collection of the TV Licence by the Revenue Commissioners, tendering for Licence Fee collection and replacement of the fee with a Broadcasting Charge or a variation.
The group reported to Government in Spring 2019 and recommended:
1.That the TV licence be put out to public tender as soon as the enabling legislation, the Broadcasting Amendment Bill 2019, is enacted. The group noted that it would be necessary to offer a fixed term contract of 5 years in order to make it feasible for the successful tender to invest in database and collection improvements. In the UK, tendering for TV Licence collection brought the evasion rate down to 7% over a number of years.
2.That at the end of the contract period, the licence fee should be replaced by a device-independent charge to support public service content on a sustainable basis. The group identified a number of challenges in respect of this option which would require time to resolve.
These recommendations were accepted by Government and announced in August of this year.