Mayo TD Dillon favours adopting Danish TV licence system where low earners pay less

The TV licence fee should be reformed and Ireland should adopt a model like the one used in Scandinavia with high earners paying more, according to Fine Gael TD Alan Dillon.

The Castlebar based representative favours a system where the money is collected by Revenue from citizens and he believes low earners should pay nothing or less.

Tánaiste Micheál Martin has today also suggested Revenue collecting the money could work positively.

Deputy Dillon has also insisted local media outlets such as regional radio stations and newspapers should benefit from the new model.

There has been a significant decrease in the amount of people paying the fee due to several RTÉ scandals, including Toy Show The Musical, which lost the broadcaster €2.2million.

The number of TV licence fees purchased last year fell by 13 per cent - or 123,000 licences -according to Media Department of figures.

It represents a revenue loss of €19 million.

Deputy Dillon, an Oireachtas Media Committee member, questioned former RTÉ presenter Ryan Tubridy late last year over the payments controversy and he believes radical changes are necessary.

“I think it is widely accepted the current licensing system is outdated, it is not collecting revenue from everyone who is watching TV,” he said. “I know from the recent debacle that has hit RTÉ it has now become a very unpopular tax so certainly reforming it would be crucially important to make it fairer and more equitable.” Deputy Dillon said they need to be realistic about the challenges of reforming the levy and the Government are taking their time to consult with stakeholders and devise fair and workable changes.

“I think central to this is a sustainable funding model for the national broadcaster RTÉ, but also, those of us who engage with independent broadcasters and local media,” he said. “I think there is a need that the funding also needs to extend to the likes of TG4, Virgin Media and other media organisations at a national and a regional level including local independent radio and print that contribute to public service media content.” Deputy Dillon stated he has considered how the licence fee system can be restructured.

“I have looked at the approach taken by countries, the likes of Denmark and Finland, who have transitioned towards a slide and scale concept model of public funding, he said. “These countries have adopted a media charge that is more inclusive and reflects the current digital landscape.” Deputy Dillon explained both countries fund their public service media exclusively from public and he believes this would potentially result in a fairer system.

“The slide and scale system in Finland is a progressive broadcasting tax so lower income individuals would pay less or nothing while those who can contribute the most and businesses would pay more,” he added.

Deputy Dillon said another positive is that this change would certainly widen the tax base.

“I would feel that Revenue are probably the best qualified to implement such a system and the model could potentially alleviate the need for RTÉ to heavily rely on their commercial income allowing them to prioritise public service content without compromising its financial stability,” he added.

Media Minister Catherine Martin favours funding RTÉ through Exchequer funding.

Tánaiste Micheál Martin has said if Revenue collected the money it could be lowered down from the current rate of €160 per year.

The Oireachtas Media Committee are due to meet again next Wednesday.

Deputy Dillon believes former RTÉ board members and current board members should all be named and referenced in the reports.

He said former director general Dee Forbes should also appear or offer some insight as she is “central to the biggest scandal to hit” the national broadcaster.

“Dee Forbes insight is critical to further understand the decisions that were taken,” he added. Meanwhile, Sinn Féin Mayo TD Rose Conway Walsh insisted wages for the high earners at RTÉ are too high and they need to be lowered.

“I am not convinced by arguments that these wages are the going rate in the private sector and that RTÉ would lose out if there were not willing to pay them,” she said. “I believe in the importance of a public broadcast service, but the public need to have faith in the way it is run and finances are managed.” She stressed no public body should be able to use a limited commercial operation to hide from public accountability and scrutiny.

“Last year in response to scandal I brought forward legislation to bring RTÉ under the remit of the Comptroller & Auditor General,” she added.

Deputy Conway-Walsh said this is common practice for public bodies even other commercial public bodies.

“That is one practical step the government could take to increase transparency and rebuild trust,” she said. “The licence fee is an outdated and regressive method of funding public service media and it is charged at a flat rate of €160, regardless of household income.”