Reduction of TG4 funding advised in €190m package

AN Bord Snip recommends savings of more than €190 million in the area of communications, including cutting direct funding for TG4.

Overall savings in the area would bring a reduction of €22.1m in current expenditure and €43.5m in capital expenditure.

It also identifies a once-off reduction of €125m in capital expenditure due to the deferment of expenditure on the rollout of the Metropolitan Area Networks over a three-year period.

The group recommends that the Communications Regulator (ComReg) and the new Broadcasting Authority of Ireland (BAI) be merged and funded by industry levies, effectively costing the exchequer nothing.

“It is inefficient for two regulators to operate in the communications and broadcasting sector given the growing convergence between these industries,” says the report.

The group recommends that TG4 should be partially funded from the TV licence feel with a consequential reduction in direct exchequer grants.

“On a phased basis, over a period of two to three years, TG4 should move towards receiving a significant contribution to funding its public service remit from the TV licence.

“There should be no consequential increase in the TV licence fee. Instead, both RTÉ and TG4 should, in the first instance, identify and implement cost savings, including potential for sharing facilities. The exchequer subvention to TG4 should be reduced from €36m in 2009 to achieve savings to the exchequer of €10m, at a minimum, when fully implemented,” the report states.

On energy, the group recommends that serious consideration should be given to the privatisation of Bord na Mona and said it was expanding beyond its original mandate into other areas including non peat-related energy generation and waste management.

“The group recommends that the operations of Bord na Móna should be reviewed with a view to realising the optimal return through rationalisation, asset disposal and, possibly, privatisation.

It also recommends the termination of Government-funded energy awareness programmes, saying this should be done by industry.

“Energy awareness should instead be promoted routinely by the energy companies and the Commission for Energy Regulation should impose a requirement on them to do so,” says the report.