03/03/2005 - 19:40:54
The Government was tonight carefully considering a ruling that the funding of public service broadcasting in Ireland breaches European Union rules on fair competition.
Communications Minister Noel Dempsey said he would consult with legal experts and RTE and respond within the month deadline set by the European Commission.
“The recommendations proposed by the Commission are of a detailed legal and regulatory nature which I will carefully consider with the advice of the Attorney General and RTE over the next month, by which stage a reply is required by the Commission,” he said.
“However, I do welcome the fact that the Commission has found that the financial measures granted in favour of RTE and TG4 constitute existing aid and that the licence fee is lawful under EU law.”
Similar warnings were also issued today to the Dutch and German governments.
A Commission spokesman explained: “Having examined allegations from several complainants, the Commission’s preliminary view is that the current financing system in these member states is no longer in line with Treaty rules requiring member states not to grant subsidies liable to distort competition.
“The member states concerned now have the opportunity to submit their comments and to propose changes to the financing regime for public broadcasters.”
The Commission inquiry into the three countries follows a Brussels edict in 2001 on how EU state aid rules should apply to public sector broadcasting.
The rules say the arrangements must ensure state funding does not spill over into effectively bankrolling the commercial activities of public broadcasters.
Public broadcasting in France, Italy, Spain and Portugal has already fallen foul of the rules, with changes made to meet Commission demands that such financing regimes respect “fundamental principles of clarity, transparency and market behaviour”.
A Commission statement this afternoon declared: “The Commission now asks Germany, Ireland and the Netherlands to implement these same principles – clear definition of the public service remit, separation of accounts distinguishing between public service and other activities and adequate mechanisms to prevent overcompensation of public service activities.
“Member states also need to ensure that commercial activities by public broadcasters are in line with market principles. Finally, there should be an independent national authority checking compliance with these rules.”
The Commission spokesman said fines did not necessarily follow from the action and said that if the three governments adopted the measures demanded, the Commission would close the case.
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