Ahern plans to abolish 3% levy on local radio

A FIANNA Fail government will abolish the levy independent radio stations have to pay to the Independent Radio and Television…

A FIANNA Fail government will abolish the levy independent radio stations have to pay to the Independent Radio and Television Commission, the party leader, Mr Bertie Ahern has announced.

He told an audience of local radio executives and other media interests at the inauguration of the national radio news service, Independent Network News (INN), that he could not understand why a local radio interest was the only one paying a levy to the state.

Every independent station pays the IRTC 3 per cent of its income, which is the only source of funding for the regulatory body.

Local radio stations, and Radio Ireland, pay a levy every year, which amounts to between £600,000 and £650,000.

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If the IRTC is to be funded from the Exchequer, Mr Ahern will have to bring in legislation as the Broadcasting Act which established the IRTC says that it must fund itself.

Mr Ahern said he had no plans to direct some of the licence lee, currently paid entirely to RTE, towards local radio. Mr Ahern launched the new news service by switching on a radio for the first INN bulletin at 9 a.m. Reporter Mr Iarla Mungay read the first headlines. The national service was provided by Century Radio until it collapsed in 1991. Since then a news service has been available from 98FM in Dublin with its IRN service and more recently was joined by a service from FM104, also in Dublin.

Radio Ireland suffered a major setback this year when it failed to secure agreement to supply local radio stations with news. That would have given the station a ready made network and a financial contribution to its own news service.

Local stations went ahead and established their own service, with each station owning shares in the service. INN will have 15 journalists in Dublin and access to stories from newsrooms around the country.

The news editor and managing director, Mr Andrew Hanlon, is a former head of 98FM's nationwide service and his deputy is Ms Mary Kerrigan, a former deputy editor of the Sunday Press and former press officer with Fianna Fail. She is also the business and economics correspondent.

Mr John Cooney, a former political correspondent with The Irish Times and Irish Press, is the political correspondent. Ms Ann Cadwallader, the Northern Correspondent, worked in Northern Ireland for both the BBC and the Irish Press.

The Crime and Security correspondent is Mr Chris Finnegan, a former general secretary of the Garda Federation.

Mr Hanlon said the service would be supported by 2 1/2 minutes of advertising a day. INN can reach greater numbers every day than some of RTE Radio 1's top programmes, such as the Gay Byrne Show.

It means local radio can now offer time to national advertising campaigns.

Income from the 2 1/2 minutes a day, or 30 seconds per news bulletin, will give INN an income of £750,000.

Mr Hanlon hopes to develop the service by offering fuller news and current affairs coverage.

The style will be more conservative than that of 98FM or FM104.