Sir, - Recent newspaper articles and statements in Dail Eireann by Ms Sile de Valera suggest that a decision by Cabinet in respect of the application by RTE for a £50 increase in the licence fee may occur in the coming weeks. Yet there has been little, if any, consultation or proper public debate on the surrounding issues, including the type of service the Irish public wants of the public service broadcaster and the impact of any proposed increase on the public or on RTE's direct competitors. In the UK, by contrast, when the BBC made a similar application just two years ago, the Labour government set up an independent review panel. After six months of public consultations with all parties, including the public, this made recommendations to government, which were published. In Ireland, the issue is shrouded in mystery.
An edited version of the RTE application has been made available. The Minister in charge has appointed an accountancy firm with restricted terms of reference to examine the application and report back to her. Following an initial report, it is now set to report on additional information requested from RTE. All this behind closed doors with little or no consultation with those most affected - the public and the independent broadcasting sector.
RTE's licence fee is of enormous concern to TV3. The proposed £56 million increase represents a 70 per cent rise in State funding which, if granted with no clear basis for its purpose or transparent accountability for its use, threatens the existence of TV3 and may close the market to Irish-based independent broadcasters.
TV3 does not oppose the licence fee nor does it lay any claim to it. It is the absence of any definition of "public service broadcasting" or requirement for accountability that is unacceptable. TV3 believes the licence fee is in part used to subsidise RTE in the competitive commercial marketplace - a view that the EU Commission has recently confirmed as "grounded" and deserving of "further in-depth analysis".
There are a number of clearcut public service activities, such as the often cited orchestra, that benefit from the licence fee with quantifiable costs attached. Beyond these costs, the justification for the considerable surplus licence fee should rely on the principle that the funds are used to produce original Irish TV programming. Without having to debate the issue of what kind of programmes these should be, this definition would radically improve the current position. It would also offer clear accountability, as RTE would then be in a position to provide a direct line of sight between the licence fee funds and the cost of producing specific programmes.
The onus is clearly on the Minister to put in place an effective arm's-length and transparent system of accountability with regard to the licence fee expenditure. Without this, in the context of the likely increase, we suffer the double jeopardy of the independent broadcasting sector being stiffed by subsidised competition and a diversion of public funds - some to foreign rights owners - that would otherwise finance original Irish TV programming.
Most Irish viewers agree that the market may not supply everything that is necessary for a thriving broadcasting environment; a properly funded public service broadcaster is an integral part of it. But it is equally important to ensure that the public is consulted on such programming. Therefore, we believe the Government should publish the findings of the independent consultancy on the licence fee application and consult the public and the broadcasting sector as a whole on the future shape of the service before any decision is made on the proposed increase. - Yours, etc.,
James Morris, Chairman, TV3, Westgate Business Park, Dublin 22.