The administration has granted itself a sixty-day period to deliberate over the financing of future public service media. This deliberation is taking place in the context of decreasing television licence revenues following a string of scandals surrounding RTÉ. Here is an outline of the television licence fee, prior attempts for reforms, government disagreements over future financing, and the expected next steps.
Q: What defines a TV licence?
A: Every home or establishment in possession of a television is mandated to obtain a TV licence. The cost for a TV licence is €160, a rate that has been steady since 2008 and is collected by An Post. The majority of the funds acquired, specifically 89% for the year 2022, are directed towards RTÉ. The broadcaster’s annual report for 2022 reveals a revenue of €195.6 million from licence fees, a figure which pertains to a €500,000 decrease from the previous year.
Q: Do all pay this fee?
A: While most households comply, it’s not universal. Non-payers risk legal action. RTÉ has long campaigned for a revision of the TV licence system, especially in light of the higher evasion rates that have been noted even before the onset of the TV licence scandals such as undisclosed payments to the former Late Late Show host Ryan Tubridy last year. The evasion rate for 2022, for instance, stood at around 15%.
Catherine Martin, the Media Minister, predicted an estimated evasion rate of about 19% for 2023 in January. This percentage encompasses the decline in the number of TV licence sales seen in the latter half of the year. Sales slipped by nearly €22 million from end of June 2023 to late February 2024, in comparison with the equivalent duration the prior year.
Q: Has there been previous attempts by this Government to revamp the TV licence charge?
Between the years of 2011 and 2016, during the regime of the Fine Gael-Labour Coalition, there were considerations introduce a new broadcasting charge applicable to all households, not just those owning a television, addressing the increasing use of tablets and smartphones for streaming. However, such plans were never executed due to its political unpopularity. This plan was subsequently discontinued by the minority government led by Fine Gael, which came into power in 2016, with then communication minister Denis Naughten, an independent, commenting that “we have to live in the real world” and expressing his aim to “try to maximise the collection of the existing licence fee”.
The subsequent communication minister, Richard Bruton from Fine Gael, tried to re-start the broadcasting fee initiative, however this again didn’t succeed. The current Coalition has established the Future of Media Commission to provide suggestions on long lasting public funding for the media. The commission then proposed direct exchequer funding for public service broadcasting, a recommendation which was the only one among the commission’s 50 recommendations that the Government rejected, as they were worried about the potential consequences that the exclusive use of exchequer funding could have on the neutrality of public service broadcasting.
The current Coalition does not seem in harmony regarding amending the TV licence system. Ms Martin, the acting Minister, has shown support towards reintroducing the commission’s entire exchequer funding model, assuming there are protections for independence. Yet, Tánaiste Micheál Martin, along with finance minister Michael McGrath and public expenditure minister Paschal Donohoe, have resisted this. The Tánaiste expressed fears that full exchequer funding would grant excessive control over Irish media to future governments, something he deemed unhealthy. In addition, Mr McGrath has shown apprehension that full exchequer funding could potentially lead to funding for RTÉ and other public service broadcasting services contesting with vital public services like the health service and education.
Reports in recent times indicate that the government may be leaning towards a modified model where the TV licence fee would be partially funded by the Exchequer and partially collected by Revenue. However, doubts have been raised about the efficacy of this proposed system, with Ms Martin warning it could combine the worst aspects of both funding methods. Yet, there is a consensus amongst the Cabinet members that a resolution on how the funding will be secured is imminent, likely before the summer.
Query: When will the funding plan be made public?
Answer: It is anticipated that the final resolution on funding will be released shortly before the summer break of the Dáil in July, and the detailed legislative framework will be prepared during the autumn or winter. This schedule is designed to prevent any controversies before the local and European elections in June. However, should the government fail to pass the necessary legislation before a general election is announced – a challenging feat with a mere 10 months remaining in the current Dáil term – the topic of the TV licence is likely to become a campaign issue.