O’Brien proposes new radio station

THE multi-millionaire businessman Denis O’Brien wants the Government to allow the setting up of a second national commercial radio station.

In a submission to the Government’s review on broadcasting, the former Esat Digifone boss, who owns Dublin station 98FM and has stakes in Spin FM, Newstalk 106 and East Coast Radio, said there is a “strong case” for a new national station to be set up to compete with RTÉ and Today FM.

“The rationale, first decided on in 1988, for a single commercial national licence in Ireland no longer holds in the very different economic and cultural environment of the country in 2004,” Mr O’Brien wrote in his submission. A second licence could be a huge money spinner if ever given out. After initial teething problems, Today FM was eventually sold for close to €65 million in 2001 to Scottish Radio Holdings and is now making healthy profits.

On the issue of competition, Mr O’Brien says the current regulatory framework is “satisfactory” but wants the rules on cross ownership to be reviewed.

The multi-millionaire businessman is also against any plan to make broadcasters pay for radio spectrum. He said any fees imposed would be a “stealth tax” and “short-sighted, counter-productive and damaging to the development of the independent sector, which currently employs over 900 people throughout the country and which contributes significant tax revenues to the Exchequer.”

On the issue of auctioning future radio licences, a move that could net the Exchequer millions in one-off gains, he said it could have a negative long-term impact as broadcasters would be under pressure to recoup the outlay.

The submission adds that it would also create a negative view of the Irish media.

The submission also recommends a review of the public service remit of independent stations (such as the requirement that they broadcast 20% news and current affairs).

It says RTÉ has a huge advantage over the private sector because of the licence fees and many stations are finding it costly to meet the 20% rule.

The submission was made to the Department of Communications, Marine and Natural Resources as part of the review of the Ox Report, which was commissioned by the Department.