Levy on Broadcasting

Oireachtas Communications Committee Calls for Levy on Independent Radio Stations to be Cancelled Pending Proper Consideration

3 March 2010

The payment of the proposed levy by independent TV and radio stations to the Broadcasting Authority of Ireland (BAI) must be postponed so a proper review of the issue can take place, the Oireachtas Committee on Communications, Energy and Natural Resources has insisted today.

Committee members expressed their outright opposition to the levy on the independent TV and radio sector as it is currently envisaged and passed a unanimous motion calling for the annulment of the Statutory Instrument which would give effect to the levy.

The Committee is seeking this suspension so it can properly examine the accounts of the BAI in order to establish on what basis this increase is being sought and if it is necessary.

The BAI is seeking an increase in its annual budget to €7.6 million which represents a 27% increase. This measure is to be funded by an increased payment by independent media outlets.

Committee Chairman, MJ Nolan TD said
“The Committee is extremely concerned by the damaging impact this higher payment could have on the independent media sector, particularly local radio stations. Many local radio stations are already struggling to survive and are operating on a knife edge owing to significant downturns in their advertising revenue. In many cases local stations have lost up to 35% in advertising income and have already had to make people redundant.

We have heard reports that some stations have had to drop their wages in order to continue to exist, so any further increase in their costs could have serious implications and would likely result in more job losses.

Local radio stations provide an invaluable service for communities all over Ireland and we feel their continued existence is vital. For this reason, we feel that the rise in the levy is neither practical nor fair given the current economic realities.

Therefore, our motion has called for the annulment of the Statutory Instrument which would introduce the levy and calls for this Committee to be given time to scrutinise the measure to reviewing its cost effectiveness.”

The Broadcasting Authority of Ireland (BAI) was established on October 1st 2009, as an independent regulator for radio and television broadcasters in Ireland.