THE EUROPEAN Commission yesterday announced that it was closing an EU state aid investigation into the financing of public service broadcasters RTÉ and TG4 after recent Government proposals to amend the current funding rules.
"I am satisfied that the co-operation between Ireland and the commission has brought the funding system of public broadcasts in Ireland in line with EU state aid rules," said EU competition commissioner Neelie Kroes.
"The new system will provide more transparency, proportionality and accountability and public funding will be limited to what is necessary to allow public service broadcasters to fulfil their mission," she continued.
Minister for Communications Eamon Ryan welcomed the decision, saying he intended to "bring forward proposals for a comprehensive new broadcasting Act, which will set up the broadcasting authority of Ireland". The new authority is to "carry out the new supervisory functions in relation to RTÉ and TG4" that have been decided with the European Commission, said the Minister.
The commission opened the investigation two years ago after TV3 complained that RTÉ's and TG4's remit was too broad and they did not have specific public service obligations. TV3 also said there was a lack of transparency surrounding the extent of the funding and whether it could be used for commercial activities.
Under EU state aid rules for public service broadcasting, the funding must be "proportionate" and it must be clear how and where the money is being spent.
The Government last month announced proposals including the broadcasting authority, transparent accounts and safeguards to ensure that RTÉ and TG4 carry out their activities according to normal market terms. These amendments must be put into law by the end of this year.