The passage of the Broadcasting Bill, which will establish the statutory environment for digital television and radio, is being delayed after fears were raised by local radio station interests that they would not have a transmission platform under the new digital system. E's transmission assets. The delay has been compounded by differing views of RTE and AIB Corporate Finance over the value of the State broadcaster's transmission assets.

The RTE estimate is understood to be about £100 million (€127 million) for its transmission system at Montrose and about 30 transmission sites around the State.

The difference of opinion has delayed the preparation of information documentation for potential bidders for the majority stake in Digico, the new transmission company to be given statutory authority by the Broadcasting Act.

Mr Enda Kenny, the Fine Gael spokesman on Arts, Culture, Heritage and the Islands, and a member of the Dail committee examining the legislation, said yesterday that legal advice was being taken on fears raised by the Independent Broadcasters of Ireland (IBI), representing TV3, 98FM and local radio stations. It is envisaged that RTE will control up to 40 per cent of Digico.

But in its submission on the Bill, the IBI states that independent local broadcasters must have "the same rights to equity" in Digico as RTE. It believes the local radio stations, in particular, will be vulnerable when the FM frequency is phased out and replaced by six digital sections, known as multiplexes.

"Under the Bill, RTE will have a 40 per cent share, giving it effective control over all six multiplexes.

"Local radio, which represents a majority of the listening audience, will not have a say in the company," the IBI states.

The fate of local radio "will lie in the disposition of Digico, which will be effectively controlled by RTE", it adds.