Department of Finance blocked plans for Revenue to collect TV licence

Government sources have said enhanced fines and better IT solutions are the proposed methods to improve TV licence fee compliance. File photo

The Department of Finance blocked proposals to have the Revenue Commissioners collect the TV licence fee or to replace it with Exchequer funding.

Ahead of Cabinet signing off on the final model for the future funding of the media, government sources have said enhanced fines and better IT solutions are the proposed methods to improve compliance.

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Senior Government sources from across the coalition have confirmed that Finance Minister Paschal Donohoe’s objections have been accepted and this proposal, as well as the proposal to replace the licence fee with direct exchequer funding, are “now off the table”.

The Irish Examiner has learned that Mr Donohoe’s department ruled out any suggestion of the Revenue Commissioners taking on the collection of the fee on two grounds.

“Firstly, they have enough to be doing as it is and secondly, in the midst of a cost-of-living crisis, the idea of another tax being levied on people is politically untenable,” a senior government source said.

The matter will not now go before Cabinet until Tuesday week and will only proceed once agreement is reached between Taoiseach Micheál Martin, Tánaiste Leo Varadkar and Green Party leader Eamon Ryan. Such agreement is not yet present.

Mr Donohoe said on Wednesday that any revenue that will be lost if the TV licence fee is scrapped will have to be regained through additional measures.

He was responding to news that the Government will reject a key recommendation of the Future of Media Commission which calls for the end of the licence fee.

The recommendation also suggests that RTÉ's subsequent missing revenue will come from the Exchequer.

Mr Donohoe said Irish media outlets play an “exceptionally important part of our democracy and our society”.

“Alongside that, being in a position where we can indicate that we can abolish charges entirely and get rid of licence fees that do play an important role in the future of our media, I think it’s important to be open and honest about that as well,” he told RTÉ radio.

The TV licence brings in about €200m per year. If we get rid of that, that’s €200m that we’ve lost. 

"We have to find additional ways of getting that back and what I think the Government will be considering is, are there ways we can improve the collection of the licence fee, in which we can support it in the future and I’m sure the Government will be considering that and the report on the future of media commission very soon.”