Pat Rabbit Minister for Communications

New Irish Cabinet Unveiled
10 Mar 2011 :

Wednesday, March 9th saw Fine Gael leader Enda Kenny formally elected as Taoiseach and one of his first acts in office was to announce his new cabinet of ministers. The position of minister for Communications, Energy and Natural Resources has been appointed to Labour T.D., Pat Rabbitte whilst that of Arts, Heritage and the Gaeltacht has gone to Jimmy Deenihan.

Born in Claremorris, County Mayo in 1949, Pat Rabbitte has represented Dublin South-West in the Dáil since 1989 and has served in several other positions since, including that of Minister of State for Commerce, Science and Technology from 1994-1997 and was leader of the Labour Party between 2002 and 2007.

Pat Rabbitte featured strongly in the media in November 2010 following his heavy criticism of then Minister for Community, Equality and Gaeltacht Affairs (and former Ireland’s penultimate Minister for Communications), Pat Carey on ‘Prime Time’. A Youtube clip of the incident has been viewed over 160,000 times.

One of Pat Carey’s last acts as Minister for Communications, Energy and Natural Resources, was the addition of several new RTÉ channels in the line-up of channels to be included in the new national ‘free to air’ Saorview DTT platform. The upcoming analogue switch-over will be on of Minister Rabbitte’s priorities in the coming months.

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http://www.iftn.ie/news/?act1=record&only=1&aid=73&rid=4283707&tpl=archnews&force=1

Broadcasting

Assistant Secretary: Eamonn Molloy

Head of Division: Éanna Ó Conghaile, Principal Officer

Functions of Division

The Broadcasting Policy Division is responsible for the development of the legislative and regulatory framework for broadcasting in Ireland, the funding of public service broadcasters and the development of the broadcasting sector generally. EU and Council of Europe (COE) legislation also impacts on the legal framework and the Division interacts with EU/COE institutions in this regard. The Division also has responsibility for the corporate governance of RTÉ, TG4 and the Broadcasting Authority of Ireland (BAI).

The Division is responsible for arranging for the collection of the TV Licence Fee by An Post and for the receipt of the TV Licence payment from the Department of Social Protection and making payments to RTÉ (approximately €195m per annum). The Division also manages Exchequer funding of TG4 and payments of 7% of the TV Licence Fee monies to the Broadcasting Fund. The 2011 Budget provided that about €10m of TV licence fee revenue would be diverted to TG4 with the latter’s Exchequer allocation reduced by an equivalent amount – this will require very early legislation in the next Dáil.

A key project for the Division is the rollout of Digital Terrestrial Television (DTT) and the switch-off of the Analogue System by Q 4 2012. It is crucial that this deadline is met to enable valuable spectrum to be released for faster mobile broadband purposes. More generally Broadcasting Division works closely with the Communications Division in relation to promotion of the digital economy.


Key Immediate Issues in Broadcasting Policy

The most significant issues to be addressed in 2011 are listed below. Issues are dealt with as appropriate in the text following:

· Obtain Government approval for Analogue Switch-Over (ASO) plan with necessary funding in place and initiate ASO marketing/information campaign.

· Oversight of rollout of Digital Terrestrial Television (DTT) through Digital Switch-Over Steering Group.

· Complete the regulatory process in regard to Ministerial consent for RTÉ’s proposals for new channels.

· Recommendation to Minister on foot of report from BAI on outcome of Expressions of Interest process (regarding identifying any potential new additional services for the DTT platform).

· Recommendation to Minister regarding response to the review and report undertaken by the BAI on the funding and performance of the Public Service Broadcasters (TG4 and RTÉ) in the fulfilment of public service objectives under Broadcasting Act, 2009.

· Finalisation of draft Director General and Chief Executive Officer contracts in regard to TG4, RTÉ and BAI with D/Finance and RTÉ.

· Continuing management of the receipts and payments of TV Licence fee monies (including enactment of legislation to enable payment of €10m approximately of TV Licence Fee monies to TG4 in line with measures outlined in Budget 2011).

· Comprehensive policy review of the Public Service Broadcasting Funding System.

· EU Audio-Visual Media Services (AVMS) Directive - evaluate operation of AVMS transposition legislation and new co-regulatory framework

· Complete review of the designation of events of major importance to society (i.e. free to air sporting events issue), taking account of the Indecon Report on the issue.

· Obtain EU approval for the BAI’s new Archiving Scheme under the Broadcasting Fund

· Continued liaison with the European Commission on State Aid case on foot of complaint from UPC in regard to Digital Terrestrial Television.


Corporate Governance

The Division is responsible for the corporate governance of the BAI, RTÉ and TG4.


Radio Teilifís Éireann (RTÉ)

Tom Savage (Chairman)

Noel Curran (Director-General)

RTÉ has a serious financial position to address. Their commercial revenue has fallen sharply and decisions in the 2011 Budget reduce its TV licence fee revenue by around €13 million. It is also required to fund the capital costs of DTT rollout. Whilst RTE has already undertaken significant reductions in costs, its financial position will require a further fundamental adjustment. Other private sector broadcasters and the print media have been critical of RTE’s access to Exchequer funding via the license fee regime.


Teilifís na Gaeilge (TG4)

Peter Quinn (Chairman)

Pól Ó Gallchóir (acting CEO)

The McCarthy Report recommended that TG4 should be partially funded directly from TV Licence Fee Receipts, thereby reducing the direct Exchequer subvention by €10m. In the context of Budget 2011, the Government decided that €10m of licence fee monies be reallocated to fund TG4 in 2011.

The current provisions of the Broadcasting Act 2009 do not give the Minister the option to pay any of these net monies received in licence fee receipts to any other body other than RTÉ. Accordingly, legislation will be required to give effect to the Government’s decision and it is proposed to draft a Bill to this effect.


Broadcasting Authority of Ireland (BAI)

Bob Collins (Chairperson)

Michael O’Keefe (Chief Executive)

The BAI was established on 1 October 2009 as an independent regulator for radio and television broadcasters in Ireland. The BAI assumed the key roles of the Broadcasting Commission of Ireland (BCI) and Broadcasting Complaints Commission (BCC).

The BAI comprises an Authority and two statutory committees dealing with Compliance and Contract Awards.

The BAI’s mission is to ensure a competitive, sustainable, high quality broadcasting sector in Ireland, offering diversity of choice. BAI regulates the public and commercial broadcasting sectors.

Some of the areas covered by the BAI’s remit include:

· Enforcement, including the power to apply to the courts to impose financial sanctions on broadcasters up to a maximum sanction of €250,000 for serious or repeated breaches of broadcasting standards.

· Licensing of broadcasting services.

· Consumer protection, including the promotion of media literacy; providing information on the availability of digital television services; preparing codes and rules including those relating to advertising, children’s advertising, etc.

· Oversight of public service broadcasting, including requirements to review RTÉ and TG4's performance and making recommendation on their funding.

The Authority uses an industry levy to meet its legitimate operational costs. This levy is applicable to public service as well as independent broadcasters.

The amount payable by the industry relates directly to the BAI’s annual budget. The amount payable by individual broadcasters is determined by applying the terms of a levy order issued by the BAI to each broadcaster’s net turnover. Any surplus in levy income can be refunded to industry.

The BAI has also submitted its proposed Budget for the period 2011-2013. There has been engagement with the BAI on this proposal. The key is to balance the legitimate funding needs of the BAI against placing an undue burden on the sector.


Digital Terrestrial Television (DTT) and Analogue Switch-Off (ASO)

Background

The analogue terrestrial TV network, operated by RTÉ Networks, provides ‘free to air’ reception of the four main national TV stations RTÉ 1, RTÉ 2, TV3 and TG4. In line with our EU obligations, this is to be switched off by the end of 2012 and replaced with a Digital Terrestrial Television (DTT) system.

Digital Terrestrial Television (DTT) allows the provision of more services and uses less space than analogue. This will result in spare radio spectrum becoming available (the so called “digital dividend”) which will be used for other services such as mobile broadband services.


DTT in Ireland

The availability to the public of the ‘free to air’ DTT network is a prerequisite to switching off the analogue signal and RTÉ has already rolled out the network to 90% of the population.

RTÉ plans to provide ‘free-to-air’ digital TV over two platforms – the terrestrial DTT platform and a satellite platform. The DTT network (Saorview) will cost €70m and will provide ‘free to air’ TV services to 98% of the population. The satellite network (Saorsat) is being developed to reach the remaining 2% of the population and will be available in the second half of 2011.

The RTÉ digital network will operate in parallel with the analogue network until the analogue network switches off at the end of 2012.

Consumer Issues

TV viewers will need to purchase either a set-top box which converts their existing television set to digital or a new digital television approved for the Irish Digital television network. In some cases, viewers may be required to make adjustments to rooftop aerials.


Analogue Switch-Off (ASO)

ASO in Ireland is to be achieved in Q4 2012. DCENR has established the Digital Switch-Over Steering Group to coordinate the switch-over from analogue to digital, ccomprising members from DCENR, BAI, RTÉ, RTÉNL and ComReg. This group has developed a detailed plan to deliver Analogue Switch-Off at the end of 2012.


National Information Campaign

The Government will need to ensure that TV viewers are given adequate time, information and assistance to upgrade to a digital TV service in time for ASO. This work is to be put out to public tender shortly. It is also likely that there will be a need for some form of financial assistance for vulnerable TV viewers in the transition to digital TV and this issue is currently being examined. It will require the approval of the Minister for Finance.


Decision regarding RTÉ’s New Channels

More channels can be provided on the DTT service than on analogue. In this context, RTÉ’s proposed new TV channels for the DTT service, comprising RTÉ News Now (a 24 hour news channel), RTÉ Two HD Select (a high definition version of RTE Two), RTÉ Plus (a time shifted version of peak time RTE One), RTÉjr (a daytime children’s channel), and RTÉ Aertel Digital (a digital version of the current teletext service). A full consultation on the public value of these channels was launched in late 2010 and the BAI conducted a sectoral impact assessment of the channels. The Minister’s decision was announced at end-February 2011.


BAI Expressions of Interest Process

In February 2011, an Order (S.I. 67 of 2011) was signed which directs the BAI to seek expressions of interest from broadcast content providers and other interested parties in providing content for the Digital Terrestrial Television Platform in Ireland. The aim is to encourage the provision of additional non-RTÉ channels on the new DTT service.


Carriage in Northern Ireland

In February 2010, an agreement was signed with the UK in respect of co-operation on digital switchover between Ireland and Northern Ireland. This agreement also provides for TG4, RTE 1 and RTE 2 to be carried over the DTT network in Northern Ireland from Q4 2012, making Irish public broadcast services available on an all island basis for this first time ever.


Licence Fee Adjustment Process

The Broadcasting Act, 2009 provides that the BAI must undertake an annual review of a Public Service Broadcaster’s (RTÉ and TG4) performance against its public sector objectives and the adequacy of its public sector funding. The first such BAI review (which must also contain a recommendation in respect of an annual TV licence fee modification) has been submitted and the Minister will be required to publish a response on this matter shortly.


Collection of TV Licence Fees

An Post acts as the Minister’s agent in collecting TV licence fees. The Department has a multi-annual contract with An Post under which it pays An Post an agency fee or commission for its role in the collection of licence fee monies. The Broadcasting Act, 2009 provides that the collection contract could be put out to tender and this option will be examined in 2011. The Department has worked closely with An Post and RTÉ to introduce a range of new measures to improve the efficiency of licence fee collection by An Post. The focus has primarily been on reducing the level of evasion.

The ongoing oversight and management of this area involves a large amount of administration. This and the ongoing difficulty in satisfactorily dealing with the level of evasion (somewhere between 10-15%) has lead to the Division initiating a comprehensive policy review of the funding of the Public Service Broadcasters with a view to developing proposals that could in time see the end of the current TV Licence-based system of funding.

Almost a third of licence fees relate to ‘free licences’ and are now paid directly by Department of Social Protection. This transfer to RTE has been frozen at 2010 levels so over time RTE will not get the benefit of new free licences which are issued – there is no impact on qualification for a free licence.


Review of Major Events

A review, in accordance with Section 173 of the Broadcasting Act 2009 was initiated on the possible designation of additional events on 18 April 2009.

Following this process the then Minister proposed on 30 April 2010 that some events be added to the list of designated events and invited comments from the public and interested parties:

Gaelic Games - Provincial Finals in the Senior Football and Hurling Championships; All Ireland Championship Senior Football and Hurling Quarter finals and Semi finals.
Rugby - Ireland’s games in the Six Nations Rugby Football Championship (move from deferred to live basis); European Rugby Cup (qualifiers, pre quarter final stages, quarter finals, semi finals and final when an Irish team is participating) live.
Horse Racing - The Cheltenham Festival.

To expedite evaluation of the submissions received, the Minister appointed Indecon consultants to examine the proposal to revise the listed events. Indecon has submitted its report to the Department.

An early decision on how to proceed on this matter is now necessary.


Broadcasting Fund Schemes

The Broadcasting Act, 2009 assigned responsibility to the BAI to develop and administer funding schemes designed to support the production and transmission of high quality programming based on Irish culture and heritage. These are funded from an allocation of 7% of the net television licence fee receipts. An allocation of €14.7m was paid to the Fund in 2010.

EU approval was sought during 2010 in respect of a new funding scheme for the archiving of programme material. The Division is currently in contact with the European Commission on the Scheme and it seems likely now that a minor amendment will need to be made in 2011 to the Broadcasting Act 2009 to enable the scheme to obtain State Aid clearance from the Commission.


Audiovisual Media Services Directive

The transposition of Audiovisual Media Services Directive was completed in 2010 with the enactment of the European Communities (Audiovisual Media Services) Regulations 2010.

The Directive covers all audiovisual (AV) media services, including traditional TV (linear service) and on-demand (non-linear services) irrespective of the technology used to deliver the content. The distinction between linear and on-demand services is the basis for a graduated regulatory approach. In a two-tier system, the Directive acknowledges a set of core societal values applicable to all AV media services, but provides lighter regulation to on-demand services where the users decide on the content and time of viewing.

The on-demand provisions of the Directive are addressed in the European Communities (Audiovisual Media Services) Regulations 2010 which provides for on-demand audiovisual media service providers to develop advertising codes of conduct in co-operation with the Broadcasting Authority of Ireland.

http://www.dcenr.gov.ie/Corporate+Units/Minister/Ministers+Brief/Broadcasting.htm

Radio Spectrum

In July 2010, the then Minister decided that analogue television services would be switched off by December 2012. The impact of this decision is that valuable spectrum in the 800 MHz frequency band will then become available for telecommunications use. The Commission for Communications Regulation (ComReg) is currently consulting on the prospect of a single auction in Q4, 2011 for the release of spectrum in the 800, 900 and 1800 MHz frequency bands. Two companies however have telecommunications licences in the 900 MHz frequency which expire in May 2011. In order to allow the entire spectrum to be auctioned and released together, ComReg is proposing to issue 900 MHz interim licences (to January 2013) to these two companies comprising the same amount of spectrum as in their current licences.

http://www.dcenr.gov.ie/Corporate+Units/Minister/Ministers+Brief/Communications.htm