Ahern considers auctioning radio licenses to raise funds for Exchequer

COMMUNICATIONS Minister Dermot Ahern says he is considering changing the way radio licences are awarded in Ireland, with a possible move to auctioning to the highest bidder.

Speaking at a conference in Athlone yesterday, Mr Ahern said the current process has served Ireland well, but he was still looking at other possibilities, including auctions, which have the potential to raise millions for the Exchequer.

“While the existing regime works well and has been a success, we need to ensure that good procedures are in place and that the lessons learned from regulatory models both here and abroad are bought to bear.”

A report by OX Consultants, commissioned by the department earlier this year, concluded that the auction process, instead of the existing “beauty parade,” could speed up the awarding of licences as well as returning money to the taxpayer. Several radio stations have changed hands in recent years, netting tens of millions for their shareholders but nothing for the Government.

The OX report considered several other areas, including objectivity in awarding licences and a system for speeding up the process for an incumbent station when there are no competitors for the radio franchise.

Mr Ahern said: “We all know licensing local radio services is a particularly sensitive matter, especially in the actual franchise areas involved. I want to emphasise the necessity for independence and objectiveness in licensing. The Oireachtas has clearly determined that radio licensing decisions should not be taken by politicians but by an independent regulator. I agree completely with this principle. Assigning licensing decisions to an

independent body helps to ensure that decisions are free from influence and are fair.” Mr Ahern added: “One challenge we face is that of ensuring the appropriate balance in radio offerings to the Irish listener. We need to make sure that there is a suitable mix of public service radio, independent commercial radio and community and special interest radio. C ommunity radio and special interest stations are also a vital element in developing a rich and diverse sector capable of meeting the needs of the wider community.”

Another finding of the OX report was the introduction of a “penalty points system” for stations that failed to meet the guidelines of their licences.

The report said that if a station exceeded a number of points it would have its licence suspended or withdrawn altogether.

The department is engaged in a public consultation process on the report. Submissions will be taken until the end of this month.