A row has erupted between the coalition parties about the so-called ‘Netflix levy’, writes Craig Hughes.
Communications Minister Patrick O’Donovan, a Fine Gael TD, has been resisting demands for a tax on streaming services, as he believes that the public should not have to pay more for online entertainment.
However, the Oireachtas Media committee yesterday voted in favour of a streaming tax being included in the proposed Broadcasting Amendment Bill, with Fianna Fáil firmly in favour.
Fianna Fáil TDs Malcolm Byrne, Pádraig O’Sullivan and Fianna Fáil Senator Alison Comyn voted alongside Sinn Féin TD Joanna Byrne and Green Party Senator Malcolm Noonan in favour of the levy.
In June, the committee was told by Roderick Flynn of the DCU Institute of Future Media, Democracy and Society that a levy of 3% would equate to about €20m per year in funding for public content and add about 30cent per month on a standard Netflix subscription.
A report for Coimisiún na Meán in May showed that the Government was advised to introduce a charge "at different levels for different types of operator," which would increase over time.
When the committee met in private yesterday, all four Fine Gael members attended. However, a consensus could not be reached with the five other committee members present regarding the text relating to the broadcasting levy.
A vote was insisted upon by Fine Gael, which is not normal practice for committee reports which are typically done by consensus.
Speaking to the Irish Daily Mail last night, Byrne said that Fianna Fáil had been very clear on its position on the levy.
"The committee restated its position as it has always held that we should introduce a levy which would support the development of Ireland’s film, television, animation and content creation sector.
"This was backed by every witness to our committee on the planned legislation.
"The Fianna Fáil members are strongly committed to supporting the independent production sector in Ireland," he said.
One committee source pointed out that the incident exacerbated the tension between Byrne and his Wicklow-Wexford Fine Gael colleague Brian Brennan, who is also on the committee.
However a Government source said that they didn’t expect there to be any lasting fallout over the issue as they did not believe the three Fianna Fáilers would vote against the legislation, even if the levy was excluded.
"It isn’t a good look, I’m surprised it even got to a vote as these things are done by consensus normally. There’s nothing binding about a committee report recommendation," the source said.
"Now, if they [the three Fianna Fáilers on the committee] voted against the legislation when it comes before the Oireachtas, well then that would be a very different story, but I don’t see that happening."
(Pic: Jaque Silva/SOPA Images/LightRocket via Getty Images)
