TV licence fee direct payment is of ‘central importance’, says Minister for Finance Jack Chambers

The new Minister for Finance Jack Chambers has set out his stall in advance of Budget negotiations with fellow ministers warning that they will need to prioritise their asks and that he is “well able to say no in the national interest.”

Meanwhile, on his first full day in office, Mr Chambers outlined his preference for keeping some form of TV licence fee ahead of a Government decision on the future funding of RTÉ which is due to be made within weeks.

His views are in line with those in Government like Tánaiste Micheál Martin and Minister for Public Expenditure Paschal Donohoe who are opposed to direct exchequer funding for public service broadcasting as favoured by Green Party Minister for Media Catherine Martin.

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On RTÉ Mr Chambers said: “I’ll be engaging with Minister Martin on the decision on the future funding of RTÉ in the next two weeks.”

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“Government wants to make a decision on this, this summer.

“But I think maintaining a direct payment or contribution from the Irish public is of central importance.

“If the TV licence or the contribution of the Irish public is abolished, that that money will have to be found elsewhere.

“And in the context of tight expenditure demands and the need for prioritisation amongst ministers, I think that the model in my view will have to involve an ongoing contribution from the Irish public.”

The upcoming Budget, the last of the current Coalition, is seen as crucial ahead of a looming general election with an expectation among many observers that it will be another giveaway package before the country goes to the polls.

At a press conference at Government Buildings Mr Chambers was asked about reports of demands from within Government for a reduction of the VAT rate for the hospitality sector to 9 per cent and cuts in capital gains tax.

He said: “Responsible and careful economic management is at the core of what I’ll be bringing as Minister for Finance.

“And I’m well able to say no in the national interest.

“I think that has to be the absolute core principle for me as Minister for Finance.”

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The Fianna Fáil TD added: “We have to plan for the long term and that’s why in addition to making decisions on expenditure increases or around changes to taxation”.

He indicated he would put money aside for the Future Ireland Funds and the Climate, Infrastructure and Nature Fund set up by his predecessor Michael McGrath.

Mr Chambers said that ahead of the Budget ministers will have to “prioritise their asks” with Minister Donohoe.

Asked if he was ruling out a cut to the VAT rate for the hospitality sector he said: “we’ll engage with all sectors.”

He said the upcoming Summer Economic Statement which sets the tax and expenditure parameters of the Budget and he said there will be a “very focused tax package and Government will have to consider the wider asks.”

“Obviously we want to give workers and families a break in the context of income tax reductions but we have to be careful around that.”

He emphasised his approach will be focused on protecting the long-term interests of the Irish economy.

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