An annual fund of €8 million withheld from TV licence fee revenues and made available to privately owned broadcasters was set up by the Minister for Communications, Mr Ahern, against advice from his own officials, writes Emmet Oliver.
According to documents released under the Freedom of Information Act, the decision to withhold 5 per cent of the licence fee (€8 million annually) from RTÉ was strongly opposed by the Minister's own head of broadcasting policy.
The documents quote a senior official warning the Minister that creating such a fund would fundamentally alter the broadcasting landscape in this State.
Mr Ciarán Ó hÓbáin, head of broadcasting policy at the Department, said in a memo dated November 25th, 2002, that there was a "compelling case" against making any of the licence fee available to privately owned broadcasters.
"Moving from a position where the licence fee proceeds are paid to the national public service broadcaster is a major decision in principle.
"The degree to which the move is made, i.e., 5 per cent of revenues, is not particularly important. Once the principle has been established that private broadcasters can benefit from the proceeds of the licence fee, then the Irish broadcasting landscape will have changed dramatically," he said.
He is also quoted as saying that creating such a fund would hamper RTÉ. "If this decision is taken now, in practical terms what it would mean is that RTÉ could get an increase in the licence of €43 for 2003 and then lose up to €7.50 of the value of each licence fee collected thereafter."
He also warned that private broadcasters were already engaged in broadcasting of a public service nature because of their contracts with the Broadcasting Commission of Ireland.
RTÉ's director general, Mr Bob Collins, is quoted as being alarmed and apprehensive about the idea. "Certainly there was no consultation with RTÉ," a letter from Mr Collins to the Department in early December states.
He also warns that the "principal beneficiaries" of any such fund would be "shareholders of companies located outside the State".
However, on December 11th, the Minister went ahead with his plans. Explaining why he created the fund, Mr Ahern said it was needed because of the "existence of a significant variety of new players in the market".
He said the fund was needed to "incentivise and encourage the production of more innovative and better indigenous programming".