It took more than 13 years, but a decision has finally been reached regarding the future funding model for public service media. In 2011, the Fine Gael-Labour government committed to reforming the TV licence fee due to the convergence of broadcasting technologies which was already transforming the media landscape. It promised to replace the fee with a new public broadcasting charge which would be applied to all households and businesses.
That never happened, and since then there has been political procrastination on an epic scale. Indeed, it is debatable whether the decision announced on Wednesday by Minister for Media Catherine Martin would have taken place were it not for the controversies which have beset RTÉ.
The Government has rejected the recommendation of direct Exchequer funding that it received two years ago from the Future of Media Commission, and which was supported by Martin. It has opted instead to formalise the ad hoc arrangement which had sprung up in recent years in response to recurring financial crises at RTÉ. The old television licence, deemed antiquated in 2011, has been preserved for the foreseeable future, with the inevitable annual shortfall topped up by Exchequer funding to a total of ¤725 million over the course of the next three years. Martin has said this will “meet the needs” of RTÉ's new strategy, although it falls ¤55 million short of what the broadcaster believes is required.
Taoiseach Simon Harris has described the new multi-annual commitment as an unparalleled guarantee of financial stability to a semi-state body. That ignores two realities. Firstly, there is nothing to prevent a future government from resiling from it. Secondly, the rationale for longer-term funding is not just that it mitigates against financial uncertainty (important though that is); it is to guard against undue pressure on public service media from the government of the day. It has not been explained how this core principle is to be protected in the long term. Nor is it clear what implications the annual allocation, which will be routed through Martin’s Department of Culture and Media, might have for other cultural organisations. If licence fee revenue declines further, how will that impact on the Arts Council, Screen Ireland and others?
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Martin has promised new initiatives to address Ireland’s high levels of evasion, including ¤6 million to An Post to improve levels of collection. but the reality is that the majority who pay their licence fee will continue to subsidise the substantial minority who do not. A universal charge paid by everyone could have permitted a reduced cost for those who are already compliant, while direct funding would have spread the burden more equitably. Neither option was without its disadvantages, but it is regrettable that the Government has opted instead for this unsatisfactory fudge.