Authors will receive royalty payments each time a book is borrowed from a public library, under a new Bill published by the Government.
The scheme will be funded by the exchequer rather than the libraries, and the public will not have to pay to borrow a book.
If passed, the legislation will finally bring Ireland in line with EU laws on public lending rights (PLR). In January the European Court of Justice ruled that, by refusing to pay authors for the borrowing of their books, Ireland was in breach of an EU directive on lending rights.
The Irish Writers' Union, which has campaigned for a change in the law, has welcomed the Bill. "We welcome the fact that it will be funded by the exchequer," said executive committee member and writer Anthony P Quinn. "One of the arguments often thrown up against us, even by writers, was that libraries won't buy our books if royalties must come out of their budget."
While the Bill will be brought first to the Seanad by Minister for Trade and Commerce, Michael Smith, should it be passed the scheme will be regulated by the Department of the Environment, which has responsibility for public libraries. It will be administered by the Library Council.
The proposed Bill estimated that it will cost €600,000 to set up the scheme, much of which will go into providing appropriate computer software to libraries.
It also estimates that it will then cost approximately €1.1 million per year to cover administration of the scheme and payment of royalties to authors.