Minister for Media Patrick O’Donovan has said people using television-streaming services such as Netflix are “paying enough” and “I don’t see any reason to put a levy on them at the moment and charge them any more.”
Mr O’Donovan was speaking as he prepares to bring proposals to Cabinet to block Coimisiún na Meán from imposing a levy on streaming services operating in Ireland.
The commission currently has the power to introduce a content levy without ministerial consent and there have been suggestions that the resulting funds could be used for independent TV productions in Ireland.
However, the Sunday Times reported that Mr O’Donovan is expected to bring proposals to Cabinet to amend legislation to ensure the commission cannot introduce a levy on streamers without Government approval.
On Sunday Mr O’Donovan said he is awaiting the outcome of discussions with Cabinet colleagues on the matter.
However, he added: “I think people that are paying for entertainment – whether it’s the RTÉ television licence or whether it’s the subscription to Rakuten or Netflix or Disney – quite frankly are paying enough and I don’t see any reason to put a levy on them at the moment and charge them any more to be quite honest about it.”
Asked on RTÉ’s The Week in Politics about other European countries like Denmark using such levies to fund native programming, Mr O’Donovan said: “It’s done by a lot of countries and it’s also not done by a lot of countries”.
He said there was “a lacuna in the law at the moment”, adding “the Minister should have the final say with regard to the imposition of a levy on the consumer and I’m going to redress that by way of the broadcasting Bill.”
Mr O’Donovan said: “People as I say are paying enough” and he also outlined how the taxpayer will be funding RTÉ directly to the tune of €725 million, as he put it “to keep the doors open”.
The taxpayer funding is part of measures aimed at supporting cash-strapped RTÉ in return for reforms at the national broadcaster.
Mr O’Donovan said people are being asked to pay the €160 TV licence fee and those who can afford to do so are also paying for streaming services.
“I don’t see why I would impose a levy on top of those people,” he said.
On Sunday night Fianna Fáil TD Malcolm Byrne expressed his opposition to the levy being blocked.
Mr Byrne said: “The proposed levy on streaming services is a vital element to support the development of the independent content creation sector in Ireland.”
He said the issue was considered in great detail by the Media Committee in the last Dáil adding: “We looked at how Article 13(2) of the EU Audiovisual Media Services Directive could allow for a levy to be applied to support local production and viewed it as an important mechanism to ensure Irish stories could be developed and to build our film and tv production sector.”
He said: “I’m strongly opposed to reports that new Arts and Media Minister O’Donovan is planning to move away from well considered and evidence-based policy approach.
“This is a hasty decision into which the Cabinet should not rush. We need to keep a focus on the long term potential of Irish TV and film content creation.”
