Will reform of how the licence fee is collected really deliver for RTÉ?

Back in 2007, when ad spending was in full flow, licence-fee collection was a live issue and a bugbear for the media group.

At that time, media columns were full of predictions about the threat of the internet to traditional media. But it was almost stuff of sci-fi and few could imagine how Google, Facebook, YouTube, Netflix, TikTok and Twitter would so radically alter how we consume media.

Though RTÉ had no idea of the challenges which lay ahead, it was chasing that elusive uncollected licence-fee cash, raising concerns over “the level of evasion in licence-fee collection” several times, and claiming it was “twice that of Britain”.

It was announced that An Post, which collects the fee, had entered into a service level agreement (SLA) with the Department of Communications, which should have been a breakthrough for evasion levels.

But roll on 15 years and the mantra around An Post and the collection of the licence fee has only intensified.

Describing the licence fee earlier this year as utterly broken, Forbes’s estimate of what RTÉ is currently losing has been on the increase – as thousands of people now claim to have no traditional TV set, and therefore say they are not eligible for the charge.

“The licence-fee system in Ireland results in more than €60m in lost revenue every year. It’s not fit for purpose,” said an RTÉ spokesperson.

“This lost revenue is due to 15pc evasion (compared to 7pc in the UK), plus the growing number of households (about 13pc) who do not have a TV licence – but can still watch RTÉ programming on RTÉ Player.”

But how much extra money would a licence fee with better collection methods bring in?

An Post believes an evasion rate target in Ireland of about 10pc would be appropriate and in line with Northern Ireland and Scotland – rather than England, where evasion is around 6pc. Lowering it to this level would bring in around €11m, says An Post.

One senior broadcasting source familiar with RTÉ funding issues suggested at a broadcasting event some years ago that the amount RTÉ might hope to gain would be a fraction of the €50m/€60m headline figure.

From the perspective of RTÉ and the European Broadcasting Union (EBU), which represents public-service broadcasters in Europe, licence-fee collection by the Revenue Commissioners would be a gamechanger. However, Revenue is not in favour of becoming a bill collector, preferring to keep property tax as a one off.

Dropping the notion that the fee is a ‘television’ licence could also help RTÉ, and we may see greater detail on this in coming days.

According to the EBU, Ireland is one of the few European countries to still have such a narrowly defined charge for public-service media.

However, the timing is not good. A plan to rename it the ‘broadcasting charge’ lost political backing early in the last decade, at the time of the water charges controversy. The messaging around any broader charge would have to be delicately balanced.

The Future of Media Commission, which was first announced in late 2019, is supposed to have a 10-year view and to take in local radio and print media too. We’re now halfway through 2022, so the clock is ticking on the 10-year timeframe.

Will the Government deliver any big solutions to help RTÉ secure its future? Or deliver meaningful change for other media?

Dealing with the tremendous challenges facing broadcast and print media require vision and big thinking.

Maybe no one can get everything right. But will tweaks to the licence fee collection be a major breakthrough?

I suspect RTÉ may be back at Government Buildings sooner rather than later, airing some familiar problems.

Donohoe sees FDI clouds gathering

A nervousness about our reliance on multinationals seems to be creeping into the political agenda.

In a written answer in the Dáil last month, Finance Minister Paschal Donohoe said: “Against the backdrop of current geopolitical instability and uncertainty, the FDI environment is likely to face challenges over the coming years.

“The war in Ukraine may result in a reconfiguration of the global economy, while at the same time the pandemic has dealt a significant blow to globalisation.

“The extent to which this transpires will only be seen with time, but deglobalisation – should it occur – could result in lower levels of global FDI, with impacts on living standards and productivity in host countries.”

Indigenous companies have been saying for years that they are the key to Ireland’s economic stability – so hopefully it’s their time to shine.

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