Ministerial sign-off would be required for a levy on television streaming services such as Netflix under proposals approved by Cabinet on Tuesday.
Minister for Media Patrick O’Donovan said at the weekend that people using such services are “paying enough”, and he does not see “any reason to put a levy on them at the moment and charge them any more”.
A levy of this type had been mooted by Ireland’s media and online content regulator, Coimisiún na Meán, which presented Mr O’Donovan with a feasibility study for an audiovisual content levy and fund earlier this year.
Such levies are in place in some other European countries.
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At the weekend, Mr O’Donovan said there is “a lacuna in the law”, and that the Minister, rather than Coimisiún na Meán, should have the “final say” on the imposition of a levy.
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His comments prompted opposition from Fianna Fáil TD Malcolm Byrne, as well as concern from some in the television industry amid an expectation that a levy could fund independent Irish productions.
The media commission indicated in recent days that ministerial approval was already required for a content levy.
It said in a statement that under the “Online Safety and Media Regulation Act 2022, any scheme for any audiovisual content levy prepared by Coimisiún na Meán would need to be approved by the Minister”.
However, Mr O’Donovan’s department referred to a need to change the Broadcasting Act of 2009 to ensure ministerial sign-off is required for a levy.
A spokesman for the Department of Media said that following the Minister’s consideration of the Comisiún na Meán feasibility study, he is “of the strong view that there is a real risk that any levy imposed on providers of streaming and broadcasting services will ultimately be passed on to consumers in the form of higher prices”.
“In the context of recent international developments and ongoing cost-of-living pressures, the Minister believes that now is not the right time to risk imposing further charges on consumers,” the spokesman said.
The department said the proposed legislative amendments alter existing provisions that allow Coimisiún na Meán to impose a levy on providers of audiovisual media services without political oversight.
Ultimately, any finalised legislation, including Mr O’Donovan’s proposals, will have to be approved by the Oireachtas.
The department spokesman said the Minister is “strongly supportive of the development of the independent production sector in Ireland”. The independent production sector receives “significant supports” through various State-supported initiatives, he added.
