Outcome of deliberations will definitely not please all

As the new-look Broadcasting Commission of Ireland considers possible changes to its rules governing media ownership, it faces…

As the new-look Broadcasting Commission of Ireland considers possible changes to its rules governing media ownership, it faces one certainty: it will not please everyone.

The 33 submissions made to the body reflect a broad spectrum of opinion on the manner in which broadcast and telecommunications media should be controlled in the future.

At one end, it is suggested the agency, previously known as the Independent Radio and Television Commission, should withdraw entirely from takeovers and consolidations, leaving such matters to the Competition Authority if necessary. At the other, it is argued the IRTC should be more active in investigating the influence of individuals and companies in the sector. The BCI will publish a summary of the submissions next Wednesday before a board meeting in late-September when a review of ownership rules begins in earnest.

Looming over its shoulder are two major takeover bids: Ulster Television's attempt to increase its shareholding in Cork's most listened-to radio station, County Sound to 100 per cent; and Scottish Radio Holdings attempt to do likewise with the State's biggest independent radio station, Today FM.

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The firms are both trying to build up their commercial interests in Ireland in an attempt to challenge RT╔'s dominant market position in the broadcasting sector. UTV succeeded earlier this year in buying 60 per cent of County Sound despite BCI rules which state an existing media outlet may not hold more than 27 per cent of another media concern. SRH, meanwhile, is the second largest regional newspaper publisher in the Republic although it is said to be selling Ireland on Sunday, the national paper it bought just two years ago, to Associated Newspapers, the publishers of the Daily Mail in Britain.

In addition to the 27 per cent cap, the BCI operates rules demanding "local" ownership of radio licences and a restriction whereby no single interest (including a combined family interest) should exceed 46 per cent of any one sound broadcasting service.

The rules are applied on a case-by-case basis and can be waived, as in the case of the UTV/Country Sound deal, if the BCI believes it is warranted.

Not surprisingly, both UTV and SRH strongly criticise the these arrangements in their submissions, arguing the rules militate against diversity in broadcasting.

"We believe the time is right," said Scottish Radio, "for the (BCI) to remove many of the ownership impediments considered sensible at the birth of the current independent radio system, but now widely felt to be outmoded, unduly restrictive, but more cr ucially against the public interest, and certainly not conducive to the continuing growth of a vigorous and dynamic independent broadcasting sector." The firm's main argument is that cross media ownership does not militate against diversity of output. Rather, it "enables economies of scale and ensures continued investment in essential programming".

UTV and Today FM make similar claims, the latter emphasising that "the guidelines in relation to ownership should be revised to allow 100 per cent ownership of the shares by a single individual or company." One issue raised is whether the BCI is the appropriate body to consider questions of ownership. Both Today FM and SRH argue such considerations should rest instead with the Competition Authority.

The authority, in its submission, is silent on this issue. However, it makes clear it believes the BCI's rules are outdated and possibly anti-competitive. The Irish Times Ltd, the only print media organisation to make a submission, argued for a variety of factors to be taken into account, rather than just holding percentages, when it came to deciding on takeovers.

"The use of blackline tests are useful but should not be the sole criteria in measuring pluralism and diversity," The Irish Times submitted. "Blackline tests are often too rigid and do not take into account the direct or indirect influence that an undertaking or individual may have despite having a low level of control in percentage terms. For example, there is little doubt that Sir Anthony O'Reilly has significant influence over the Valentia consortium and yet his level of control in percentage terms is a mere 5 per cent." (It made its comments ahead of yesterday's Valentia document which showed Sir Anthony is a 3.7 per cent shareholder in the consortium.)

Arguing for fewer "undue barriers" in the marketplace was Chorus, the second largest cable operator in Ireland which is 50 per cent owned by Independent News & Media. Lots of food for thought for the BCI's board members who face a new era with the enactment of the Broadcasting Act 2001 today. They are due to complete their review by late October.