Television licensing in the Republic of Ireland

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In the Republic of Ireland, a television licence is required for any address at which there is a television set. In 2008, the annual licence fee is €160.[1] Revenue is collected by An Post, the Irish postal service. The bulk of the fee is used to fund Radio Telefís Éireann (RTÉ), the state broadcaster.

Contents

[edit] Obligation

The licence must be paid for any premises that has any equipment that can potentially decode TV signals, even those that are not RTÉ's. The licence is free to anyone over the age of 70, some over 66, some Social Welfare recipients, and the blind. The fee for the licences of such beneficiaries is paid for by the state.

[edit] Collection and evasion

An Post is responsible for collection of the licence fee and commencement of prosecution proceedings in cases of non-payment. Licences can be purchased and renewed at post offices (in person or by post), or by using a credit card or debit card via a call centre or via the internet.[1] An Post receives commission to cover the cost of its collection service. As of 2004, An Post had signalled its intention to withdraw from the business.[2]

An Post maintains a database of addresses and uses this to inspect suspected cases of non-payment. Television dealers are required to supply details of people buying or renting televisions; this is no longer enforced as details supplied were unreliable.[3] There is no obligation on cable and satellite providers to supply details of subscribers.[4]

Inspectors, who are An Post employees, visit the premises to verify if TV receiving equipment is present. If speedy payment of the licence is not made following an inspection, court proceedings are commenced by An Post.[5] In 2002, the rate of licence-fee evasion was estimated at 12%.[6] In the Dublin region in that year, approximately 21% of detected evaders were summonsed for prosecution (6,000 cases);[7] approximately one third of these cases resulted in fines, averaging €174.[8] Only 4% of fined evaders followed up three months later had purchased a licence.[9]

[edit] Disbursement

TV licence fees make up 50% of the revenue of RTÉ. The bulk of the rest comes from RTÉ broadcasting commercials on its radio and TV stations.[10] RTÉ also sells programming to other broadcasting. Some RTÉ services, such as RTÉ 2fm, RTÉ Aertel, rte.ie, and the transmission network operate on an entirely commercial basis.

The licence fee does not entirely go to RTÉ. Expenses first deducted include the cost of collection (paid to An Post), and funding for the Broadcasting Commission of Ireland (BCI)[11] and the Broadcasting Complaints Commission (BCC).[12]

5% of the balance is used for the BCI's "Sound and Vision Scheme", which provides a fund for programme production and restoration of archive material which is open to applications from any quarter.[13] TG4 does not obtain licence fee revenue directly,[14] but does so indirectly as RTÉ is required to provide it with one hour's programming per day,[15] as well as other technical support. RTÉ's accounts express the cost of this as a percentage of its licence fee income,[16] amounting to 5.3% in 2006.[17]The remainder of TG4's funding is direct state grants[18] and commercial income.[16]

[edit] Criticism

The licence has been criticised both in principle and as regards its implementation.

It is opposed for being for being outdated in a world with an increasing variety of TV channels and audio-visual technologies.[19] Commercial television companies have alleged that RTÉ unfairly uses licence fee to outbid them for broadcast rights to foreign films, TV series, and sports events. RTÉ denies this. European Community competition law prevents state funding of commercial activity, and RTÉ's accounts charge for non-"public service" programming out of its commercial income rather than its licence fee subsidy.

The licence is condemned as a regressive tax,[20] where the majority of prosecutions are of people on low incomes.

The high cost of collection is presented as inefficient.[21] Licence inspectors' calling to people's doors is seen as intrusive.[21] The low rate of prosecution of non-payers is seen as allowing evaders a "free ride".[21][20] Alternative funding methods suggested include direct funding from general exchequer revenues,[21][20] or a levy on electricity bills on the model of Cyprus.[22]

A licence is required per address, rather than per person or per set. It has been considered unfair that the same licence fee applies to a single private dwelling as to a large commercial address, such as a hotel or a privately-owned business park. In 2003, there was negative comment after a crackdown on unlicenced television sets at holiday homes,[23] and proposals for a reduced-rate licence for seldom-occupied premises.[24]

RTÉ journalists largely support the existence of the licence, and lobby for greater increases in the fee, as being a revenue stream independent of the government and thus guaranteeing freedom from political influence and associated editorial bias.[25] The opposite claim has also been made: that an annual review of the licence fee by the Government leaves RTÉ liable to political pressure.[20]

A survey of public attitudes to public-sector broadcasting was carried out by the Economic and Social Research Institute in 2004.[26] The authors noted that "public discontent at the level and inherently regressive nature of the ad rem licence fee is noticeable by its absence, particularly in contrast to the difficulties associated with the introduction of some ad rem service charges, e.g. bin and water charges."[27] The associated opinion poll recorded agree:disagree percentages of 54:29 for the statement "Public Broadcasting should be financed by the licence fee."[28] Respondents were asked what level of monthly fee they would be prepared to pay to receive RTÉ if subscription access were hypothetically to replace the licence fee: the annualised mean and median household figures were €180 and €252.60, compared to the then licence fee of €150;[29] those watching more RTÉ programmes were more willing to pay.[30]

[edit] History

Television licences were introduced for the establishment of Telefís Éireann (now RTÉ) in 1962. Radio licences, abolished in 1972, had been introduced by the Parliament of the United Kingdom in 1904[31] prior to the creation of the Irish Free State in 1922. Non-compliance was widespread until the Wireless Telegraphy Act of 1926 when the Minister for Posts and Telegraphs was empowered to prosecute those with no licence.[32][33]

Although before 1962 there was no television licence as such, a television set fell under the definition of "wireless receiver"; thus someone possessing a television but no radio would have needed a wireless licence at the same fee as someone with a radio.[34] Conversely between 1962 and 1972, the possessor of a television licence did not need an additional radio licence.

In 1975, members of Conradh na Gaeilge, an Irish language activist group, began campaigning for an Irish-language television station. They adopted tactics learnt from Welsh language activists of Cymdeithas yr Iaith Gymraeg, including non-payment of the television licence, and non-payment of fines imposed for not having a licence. This campaign of civil disobedience ended in 1996 with the establishment of Telefís na Gaeilge (now TG4).[35]

Century Radio, Ireland's first licensed solely private-sector broadcaster, began broadcasting in 1990. Minister Ray Burke proposed allocating 25% of the television licence revenues to private-sector broadcasters. The government rejected this, but agreed instead to cap RTÉ's advertising income. A tribunal of enquiry later established that Oliver Barry, an investor in Century Radio, had given Burke a political donation of £30,000. The advertising cap was lifted in 1993.[36]

In the mid 1990s, proposals were floated to distribute funding (licence fee income or otherwise) among broadcasters based on content production, on the model of New Zealand. RTÉ successfully persuaded minister Michael D. Higgins against such a change[37]; although the Sound & Vision scheme now operated effectively provides this, at a low level.

The definition of television in the original licensing legislation presumed a wireless radio broadcast receiver, and it is unclear whether it extends to computers, internet devices, 3G cellphones, or other newer technologies. As of April 2007, Minister for Communications, Energy and Natural Resources Noel Dempsey proposed modernizing the definition to include newer technologies[38] The Oireachtas Joint Committee on Communications, Marine and Natural Resources cautioned against too broad a definition:[39]

The Joint Committee notes that the proposed changes to the definition and interpretation as to what constitutes a television set could have adverse effects on the perception of Ireland as a global leader in technological developments. The Joint Committee accepts that the introduction of additional forms of licence fee collection, in that regard, could negatively impact on the business sector.

[edit] Licence fee

Increases in the licence fee have been irregular. Only one happened between 1986 and 2001. Recent increases have been essentially index-linked.[40] The annual licence fees have been as follows:

year date television radio statute
colour monochrome
2008 1 January €160 S. I. No. 851/2007
2006 1 October €158 S.I. No. 404/2006
2005 1 April €155 S.I. No. 165/2005
2004 1 January €152 S.I. No. 720/2003
2003 1 January €150[41] S.I. No. 608/2002
2002[42] 1 January €107.00 €84.00 S.I. No. 396/2001
2001 1 September £84.50 (€107.29) £66.50 (€84.44)
1996 1 September £70 £52 S.I. No. 249/1996
1986 1 March £62 £44 S.I. No. 37/1986
1984 1 November £57 £39 S.I. No. 248/1984
1983 1 April £52 £34 S.I. No. 83/1983
1980 1 December £45 £27 S.I. No. 359/1980
1978 1 December £38 £23 S.I. No. 319/1978
1977 1 April £31 £18.50 S.I. No. 76/1977
1974 1 October £20 £12 S.I. No. 270/1974
1973 1 October £15[43] £9[44] S.I. No. 274/1973
1972 1 September £7.50[45] abolished S.I. No. 210/1972
1971 1 September £7·50[46] £1.50[47] S.I. No. 241/1971
1970 1 July £6 £1 10s S.I. No. 141/1970
1963 1 November £5 £1 5s S.I. No. 199/1963
1962 1 January £4[48] £1[49] S.I. No. 279/1961
1961 1 September £1 S.I. No. 174/1961
1953 1 April 17s 6d S.I. No. 55/1953
1940 1 June 12s 6d S.I. No. 117/1940
1934 1 October 10s[50] S.I. No. 249/1934
1927 July 1 free (blind) S.I. No. 54/1927
1927 January 3 10s (ordinary);

£1 (institutions);[51]
£5 (hostels);[52]
£1/week (entertainments);[53]
£5 (public advertisement)[54]

 S.I. No. 1/1927
1926 Some time between May 5[55]
and July 6[56]		 £1 (valve set)

10s (crystal set)[55][56]
1924 Some time between May 8[57]
and November 19[58]		 £1[57][58]
1922 July All licences withdrawn
owing to Irish Civil War[59]
Until July 1922 10s[59]

[edit] References

  1. ^ a b Personal Customers / TV licence. An Post. Retrieved on 2008-05-02.
  2. ^ Purcell, John (January 22 2004). Television Licence Fee Collection (PDF) §2.12. Comptroller and Auditor General. Retrieved on 2007-09-21.
  3. ^ Purcell, §2.35
  4. ^ Purcell, §2.37
  5. ^ Purcell, pg. 34, Figure 3.5
  6. ^ Purcell, §2.5
  7. ^ Purcell, §3.62
  8. ^ Purcell, §3.68
  9. ^ Purcell, §3.70
  10. ^ Licence Fee: FAQs. Radio Telefís Éireann. Retrieved on 2007-09-21.
  11. ^ Broadcasting Authority (Amendment) Act, 1976, §8 (21 December 1976). Retrieved on 2007-11-06.
  12. ^ Broadcasting Act, 2001, §23 (14 March 2001). Retrieved on 2007-11-06.
  13. ^ Broadcasting (Funding) Act 2003 (23 December 2003). Retrieved on 2007-11-06.
  14. ^ Submission to the Joint Oireachtas Committee on Communications, Marine and Natural Resources on the Broadcasting Act. Screen Producers Ireland (2005-07-13). Retrieved on 2007-11-06. “Operating under the statutory umbrella of RTÉ, TG4 however does not receive its funding from licence fee revenue but rather from Department of Finance discretionary spending.”
  15. ^ Broadcasting Act, 2001, §47 (14 March 2001). Retrieved on 2007-11-06.
  16. ^ a b Europe Economics, London; Curtin Dorgan Associates, Dublin & PricewaterhouseCoopers, Dublin (2004-12-01). The effect of RTĒ’s licence fee income on broadcasters and on the advertising market in Ireland (PDF) p.10, §3.9. Department of Communications, Energy and Natural Resources. Retrieved on 2007-11-06. “It is dependent on a combination of Government funding, commercial income (airtime sales) and support in kind rather than in cash from RTÉ. With input from TG4, RTÉ decides what content (totalling 365 hours) it will provide to TG4 - and it gives TG4 this content annually. It also gives TG4 technical support. RTÉ then costs these contributions up and expresses them as a percentage attribution to TG4 of licence fee income.”
  17. ^ Radio Telefís Éireann ANNUAL REPORT & GROUP FINANCIAL STATEMENTS 2006 (PDF) p.25. Radio Telefís Éireann (22 March 2007). Retrieved on 2007-11-06.
  18. ^ Broadcasting Act, 2001, §51 (14 March 2001). Retrieved on 2007-11-06.
  19. ^ O'Malley, Fiona (2007-01-10). Proposed Broadcasting Bill: Hearings p.2. JOINT COMMITTEE ON COMMUNICATIONS, MARINE AND NATURAL RESOURCES. Retrieved on 2007-11-28. “F. O'Malley: Is it not anachronistic for the Department to impose a television licence? Have we gone beyond licensing? Given that the Government is always interested in revenue, is there an alternative suggestion as to how we might raise the revenue if licensing is no longer possible?”
  20. ^ a b c d Government of Ireland (26 November 2003). Broadcasting (Funding) Bill 2003 [Seanad : Second Stage (Resumed)], Dáil Éireann Parliamentary Debates, Volume 575, p.439. Retrieved on 2007-11-28. “Mr Eamon Ryan: ... Historically, 8% of the licence fee receipts have been accounted for by An Post's collection costs. It is a very expensive cost. Just 92% of the sum of over €100 that we pay for a television licence will be expended on broadcasting. It is something that we have to address seriously. I propose a much simpler system of funding which is guaranteed by the State through the general taxation system on an index-linked basis. The fund would be set in stone and would not be open to political interference in the budget each year. The moneys would be provided from central Exchequer expenditure. The fundraising and allocation aspects of such a system would be more efficient. One would not have the huge cost of collecting the licence fee and the endless television advertisements would not have to be paid for. Such advertisements remind people, for example, that they have to have a licence for their fourth television in their country home. The incredibly cumbersome present licence collecting system would no longer be needed. The system I propose would be much fairer. Under the present system, an unemployed person or a person with a very low income, for example, has to pay the exact same licence fee as their next-door neighbour who might be earning €500,000 per year. The licence fee is a regressive stealth tax.” 
  21. ^ a b c d McDonagh, Patricia. "'Licence fee system should be scrapped'", Irish Independent, November 16 2007. Retrieved on 2007-11-28. "Fine Gael's communications spokesman, Simon Coveney, said people are being forced to pay for the estimated 16pc of households that are not willing to pay the licence fee. ... Instead of the current intrusive and inefficient system of collecting money to finance public service broadcasting, the Government could finance it through general taxation, Mr Coveney said." 
  22. ^
  23. ^ Proposed Broadcasting Bill: Definition of Television and Collection of Licence Fee.. JOINT COMMITTEE ON COMMUNICATIONS, MARINE AND NATURAL RESOURCES (2007-01-10). Retrieved on 2007-11-28. “Mr. Hayes: When I joined RTÉ I asked whether a television licence was required for a holiday home. ... Up to 2003 that is not how it was interpreted because people did not understand that was the law. ... Senator Finucane: Despite the fact these televisions may only be used for two months in the year [...] I think it is unfair.”
  24. ^ Government of Ireland (24 April 2007). Written Answers. - Television Licence Fee., Dáil Éireann Parliamentary Debates, Volume 636, p.439. Retrieved on 2007-11-28. 
  25. ^ "RTÉ journalists' concern at fee", The Irish Times, 2001-07-07. Retrieved on 2007-11-28. 
  26. ^ "Irish Public Service Broadcasting: A Contingent Valuation Analysis" (PDF) (Winter, 2004). The Economic and Social Review, 35 (3): pp.321–350. ESRI. 
  27. ^ Delaney & O'Toole, p.323
  28. ^ Delaney & O'Toole, p.333
  29. ^ Delaney & O'Toole, p.347
  30. ^ Delaney & O'Toole, p.348
  31. ^ The Wireless Telegraphy Act, 1904. (4 Edw. 7, c. 24); renewed by The Wireless Telegraphy Act, 1906. (6 Edw. 7, c. 13); continued by the Expiring Laws Acts 5/1922, 47/1923, 60/1924, and 41/1925
  32. ^ Government of Ireland (16 December 1926). WIRELESS TELEGRAPHY BILL, 1926—SECOND STAGE, Seanad Éireann Parliamentary Debates, Volume 8, pp.81–82. Retrieved on 2007-09-20. “Mr. WALSH: ... I had no alternative but to take steps to expedite the collection of licence fees, which is the main source of revenue. There are, I believe, something like 40,000 wireless users in this State. We have so calculated the number at any rate, and of these only about 4,000 have so far been good enough to pay the small licence fee of 10s.” 
  33. ^ Wireless Telegraphy Act, 1926 (24 December 1926). Retrieved on 2007-09-21.
  34. ^ Government of Ireland (19 June 1957). Ceisteanna—Questions. Oral Answers. - Radio Éireann Revenue., Dáil Éireann Parliamentary Debates, Volume 162, p.1094. Retrieved on 2007-09-21. “MINISTER for POSTS and TELEGRAPHS (Mr. Blaney): There is no separate television licence; a television set is covered by the ordinary wireless receiving licence.” 
  35. ^ Hourigan, Niamh (2007). "The Role of Networks in Minority Language Television Campaigns", Minority Language Media: Concepts, Critiques, and Case Studies. Multilingual Matters, pp.74–77. ISBN 1853599638. 
  36. ^ Corcoran, Farrel John (2004). RTÉ and the Globalisation of Irish Television. Intellect Books, p.46. ISBN 1841500909. 
  37. ^ Corcoran, pp.47-52
  38. ^ Proposals for Legislation in Relation to Broadcasting PART 6: Television licence 51: Interpretation. Retrieved on 2007-09-21.
  39. ^ Houses of the Oireachtas Joint Committee on Communications, Marine and Natural Resources Tenth Report: Considerations, recommendations and conclusions on the Joint Committee’s consultation on the draft General Scheme of the Broadcasting Bill. (PDF) pp.59–61 (April 2007). Retrieved on 2007-09-21.
  40. ^ Department of Communications, Energy and Natural Resources (2006-05-29). Television Licence Fee Reviews. Retrieved on 2007-10-08. “As part of the Programme of Public Sector Broadcasting Reform, the Government decided that the RTÉ licence fee adjustment would be reviewed annually. A mechanism to allow for annual changes to the licence fee, using the CPI-X formula (i.e. the Consumer Price Index less a specified figure) was introduced by the Government in 2002.”
  41. ^ Price for "Television Licence": monochrome/colour distinction abolished
  42. ^ Prices rounded down upon the changeover to Euro currency
  43. ^ "BROADCASTING (TELEVISION) RECEIVING LICENCE (COLOUR AND MONOCHROME)"
  44. ^ "BROADCASTING (TELEVISION) RECEIVING LICENCE (MONOCHROME ONLY)"
  45. ^ "Broadcasting (Television) Receiving License"
  46. ^ "BROADCASTING (TELEVISION) RECEIVING LICENCE (INCLUDING SOUND RADIO BROADCASTS)"
  47. ^ Fee was unchanged from 1970 but currency had been decimalised
  48. ^ "BROADCASTING RECEIVING LICENCE (INCLUDING TELEVISION)"
  49. ^ "BROADCASTING RECEIVING LICENCE (EXCLUDING TELEVISION)"
  50. ^ i.e. the higher-priced categories of 1927 were abolished; the blind exemption remained.
  51. ^ S.I. No. 1/1927 §1(b): "Schools and Institutions, as, for example, Colleges, Convents, Hospitals, Convalescent Homes, Boarding Houses, etc."
  52. ^ S.I. No. 1/1927 §1(c): "Hotels, Restaurants, Cafés, Clubs, Public Houses, etc."
  53. ^ S.I. No. 1/1927 §1(d): "Public Entertainments, e.g., Public Halls, Cinemas, Bazaars, etc., open to the public on payment of a charge"
  54. ^ S.I. No. 1/1927 §1(e): "Loud Speaker Station for outside free public reception of broadcast matter as an advertisement or demonstration"
  55. ^ a b Government of Ireland (5 May 1926). FINANCIAL RESOLUTIONS—REPORT. - RESOLUTION No. 9., Dáil Éireann Parliamentary Debates, Volume 15, p.1121. Retrieved on 2007-09-24. “Mr. BLYTHE: ... It is for that reason that I favour the reduction of the crystal set licence fee to ten shillings.” 
  56. ^ a b Government of Ireland (July 6 1926). SHOP HOURS (DRAPERY TRADES, DUBLIN AND DISTRICTS) BILL, 1926. - APPROPRIATION BILL, 1926—SECOND STAGE., Seanad Éireann Parliamentary Debates, Volume 7, p.742–3. Retrieved on 2007-09-24. “MINISTER for POSTS and TELEGRAPHS (Mr. Walsh): ... In the case of a licence fee the poor man who buys a set for 10/- or 12/- has to pay an annual fee of 10/-” 
  57. ^ a b Government of Ireland (19 May 1925). CEISTEANNA—QUESTIONS. ORAL ANSWERS. - DUTY ON WIRELESS SETS., Dáil Éireann Parliamentary Debates, Volume 11, p.1728. Retrieved on 2007-09-21. “MINISTER for POSTS and TELEGRAPHS (Mr. Walsh): ...The annual licence fee of one pound was sanctioned by the Minister for Finance in accordance with the recommendation of the Special Committee of the Dáil on Broadcasting, whose report was adopted by the Dáil [on May 8 1924].” 
  58. ^ a b Government of Ireland (November 19 1924). CEISTEANNA—QUESTIONS. ORAL ANSWERS. - WIRELESS RECEIVING LICENCES., Dáil Éireann Parliamentary Debates, Volume 9, p.1192. Retrieved on 2007-09-24. “MINISTER for POSTS and TELEGRAPHS (Mr. Walsh): The fee for an ordinary wireless receiving licence in the Saorstát is £1 per annum” 
  59. ^ a b Government of Ireland (3 August 1923). INTOXICATING LIQUOR BILL. - WIRELESS BROADCASTING., Dáil Éireann Parliamentary Debates, Volume 4, pp.1953–4. Retrieved on 2007-09-21. “The PRESIDENT: After the transfer of the Post Office Services from the British Government on the 1st April, 1922, permits for the installation and working of Wireless receiving apparatus were issued by the Irish Postmaster-General to experimenters and other persons who complied with the conditions laid down as regards the apparatus and aerial to be used and on payment of a fee of 10s. a year. On the outbreak of the disturbances in the country in July, 1922, these permits were withdrawn at the request of the Military Authorities and all persons in possession of wireless apparatus were required to surrender it to the Post Office for safe custody. The sale, importation or manufacture of wireless apparatus was also prohibited. This general prohibition against the use of wireless apparatus has not yet been removed. For some time past, however, special permits have been given on specified conditions with the approval of the military authorities for wireless receiving demonstrations at fetes and other entertainments organised for charitable and public objects.”