COMMUNICATIONS Minister Pat Rabbitte has said he won’t bail out struggling radio stations – despite a desperate plea for help.
Highland Radio and Ocean FM are part of a group of local commercial radio stations which issued a statement several months ago asking for cash from the new TV license which every household in Donegal will have to pay.
But Mr Rabbitte said he can’t be expected to bail out radio stations which made a fortune during the boom.
He’s expected to protect RTE.
“In line with my responsibilities for the broadcasting sector, I have met with various representative bodies, including the Independent Broadcasters of Ireland (IBI), since my appointment as Minister and these meetings have included discussion of the IBI’s proposals regarding public funding,” said the Minister.
“I remain to be convinced that the distribution of public funds to independent commercial broadcasters represents a sound proposition in terms of policy for the sector.
“Moreover, there remain substantial legal questions as to whether using public funds in this way is possible at all. These stations were founded as commercial operations with creating a profit for their owners as their primary objective.
“Station owners sought and accepted licences on clear commercial terms. In many cases, their success in the licence application process was assisted by the voluntary commitments they gave in regard to the provision of public service type content, over and above that required by the relevant legislation.
“The fact that some of these stations are now undergoing an understandable degree of financial stress does not mean that the State should immediately step in and provide funding – they are and remain commercial companies.
“Moreover, it should also be noted that the very popularity of these stations in the communities they serve is, in many cases, as a distinct result of the local news content and current affairs type programming that they provide and which, in turn, gives them a powerful advertising presence and thus earning potential.
“As the economy recovers, it is to be expected that this commercial pressure will ease as advertising revenues recover apace.”
The Minister added: “The Broadcasting Authority of Ireland (BAI) is presently engaged in the first ‘5 year review’ of the funding of public service broadcasting corporations, RTÉ and TG4, under Section 124 of the Broadcasting Act 2009.
“As part of this review, the Authority will examine the impact of further ‘top slicing’ of the available licence fee fund on the ability of these two broadcasters to deliver on their statutory public service mandates. The findings of this review will be used to inform my Department’s policy making in this area.”
Both Donegal broadcasters – Ocean and Highland – could lose their broadcasting licenses if new bids from new companies succeed in the autumn.