Proposed broadcasting charge set for deferral

The Government’s proposed household broadcasting charge, a replacement for the television licence fee, is unlikely to be introduced next January as originally planned.

The Department of Communications said the Public Service Broadcasting Charge would be considered by new Minister for Communications Alex White over the summer months but it was "unlikely that a final decision on the charge will be completed in time for introduction in January 2015".

A spokeswoman for the department said short-term measures, such as the proposed legislation to allow An Post access to Sky and UPC subscriber data to track down television licence fee evaders, would be "introduced in the interim".

Planned start date

Former minister for communications

Pat Rabbitte

signalled a year ago that the charge, which is due to apply to all eligible households regardless of whether they possess a television or not, would come into effect on January 1st, 2015. This suggested that the charge would form part of the package of measures announced in Budget 2015.

The former minister last summer published a five-year review of public service broadcasting in Ireland and a consultation document on the proposed charge. He assured the rate for households would not exceed €160, the level of the current licence fee, but he hinted that higher rates might be introduced for businesses.

One rationale for switching from a television licence fee to a universal household-based charge is that a small but growing percentage of people now exclusively consume RTÉ and TG4 content on laptops, tablets and smartphones, eschewing ownership of a traditional television.

The Government fears that if this trend was to accelerate, the funding base for public service broadcasting would be undermined.

The department hopes that more money will be collected from the Public Service Broadcasting Charge than from the licence fee. Some €219 million was collected in licence fee income last year, with RTÉ receiving €182 million of this sum.

However, evasion rates are estimated to be about 15 per cent. The plan to move to a household charge also gives the Government the opportunity to review the future of An Post as a collection agent.

The organisation earned €11 million from television and dog licence revenue in 2013. The new Minister was questioned by Fianna Fáil TD Éamon Ó Cuív in the Dáil on Thursday about whether An Post should have "the nearest point of contact with as many State services as possible" or whether it is regarded as "one of a range of bidders that might win State contracts".

Citing a balance between public policy concerns and procurement rules, Mr White indicated that An Post had “many opportunities with regard to Government revenue”, but that it “cannot rely solely on Government business”.

Criticism of RTÉ fund access

Notwithstanding recent Government moves to allow An Post access to pay-TV subscriber data, no decision has been taken about its future role in relation to the Public Service Broadcasting Charge, the Department of Communications said yesterday.

The Broadcasting Authority of Ireland last year commissioned an independent review of Irish broadcasting funding from consultancy firm Crowe Horwath, which concluded that there should be no increase in public funding given to RTÉ.

However, the regulator did not accept the recommendation, advising Mr Rabbitte that “a greater level of public funding should be made available to RTÉ”, subject to various conditions including new possible restrictions on its commercial activity.