The government has rejected the main recommendation of its Future of Media Commission, which was tasked in 2020 with developing recommendations on public funding and other supports to sustain Irish media.

In its report, the Commission urged the government to introduce a new public funding model from 2024 by replacing the current TV Licence system with Exchequer funding derived from general tax revenue.

However, ministers have rejected this proposal.

Catherine Martin, the minister in charge of media, said government will be adopting 49 of the 50 Commission’s recommendations, but wants an “alternative approach” to the Commission’s recommendation on a new funding model.

Minister Martin explained: “Key among the report’s recommendations is reforming and enhancing the TV licence. The government has decided that in order to maintain a direct link between media and the public they serve, and to minimise the risk of actual or perceived political interference in media independence, the TV licence will be maintained but overhauled.

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"Work will commence immediately on setting out the legislative and administrative changes required to ensure the TV licence system is more equitable, relevant and sustainable.

“The reform of the TV licence will aim to align with changing viewing habits, tackle evasion, streamline the collection and payment regime, and thereby provide a more sustainable level of funding for the sector.

"The new funding arrangements will be accompanied by increased transparency, accountability and oversight, with an expanded role for Coimisiún na Meán and NewERA.”

Martin added that a new Media Fund will be established to support the wider media and journalism sector at local, regional and national levels, and will be open to broadcast, print and online media.

“The fund will allow for the provision of supports on a platform-neutral basis, and enable the targeting of supports for particular content, such as culture or news, or areas of particular need, for example at community or local level,” she explained.

Martin added that government has agreed on the need for interim funding for RTE, which will be decided as part of the budgetary process. The proposed Media Fund will also be discussed as part of that process, she said.

“I will now ask the BAI to commence work on designing the new fund. I anticipate that the priority in the immediate term will be the local democracy and courts reporting schemes. I expect that these first two schemes will be available to the sector in 2023.

“In the coming weeks, the Public Appointments Service will advertise Commissioner posts for the new regulator, Coimisiún na Meán, that I am establishing under the Online Safety and Media Regulation Bill.

“Among the posts advertised will be a Media Development Commissioner who will lead on the development and roll out of these schemes, ensuring that there is the institutional capacity to deliver for the sector.”

Taoiseach Micheál Martin stated: "The Commission has established that high-quality, independent journalism and a pluralistic media is vital to a healthy democracy and social cohesion.

"Today’s government decision to overhaul the TV licence and to target additional investment into media in Ireland marks a new departure, both for public service broadcasters and for commercial and community print, online and broadcast media.

"The government is determined to do everything we can to ensure that Ireland’s media continues to deliver high quality public service content at local, regional and national levels.”

Taxation proposals

A Commission proposal accepted by government relates to taxation. In relation to Public Service Content Providers, the Commission recommended:

+ Reduced or zero VAT rate for newspapers and digital publications, contingent on agreement at EU level in relation to amendments to the EU VAT Directive

+ Tax measures that facilitate transformation to reader revenue or membership models

+ Allowing eligible not-for-profit media organisations to qualify for charitable status under the Charities Act 2009, and support media organisations seeking to transition from a commercial to not-for-profit model

+ Tax exemptions for investment in not-for-profit media entities.

Newspapers' reaction

The Future of Media report was welcomed by DMG Media Ireland.

“As a multimedia publisher we will always place quality content at the centre of our print and digital brands. The Commission report acknowledges the importance of career professional journalism to society at large. We now need to see a clear path to ending the taxation on reading in Ireland,” said CEO Paul Henderson. 

NewsBrands Ireland, the representative body for Ireland’s national news publishers, noted that since the Future Media report was finalised last year, changes have been made to the EU VAT Directive, allowing print and digital newspapers to be zero rated for VAT.

NewsBrands CEO Ann Marie Lenihan commented: “Several European countries already apply a zero rate in support of journalism whilst also providing a range of other supports.

“The most significant decision that the government can make to immediately support the news publishing industry would be to introduce a zero rate of VAT on print and digital newspapers in Budget 2023.

“Given the huge structural challenges the sector facts, its importance to our democracy and the absence of any economic supports currently, reducing the VAT rate to zero will immediately enhance the viability of the Irish news publishing industry and facilitate the ongoing investment required to ensure citizens have access to fact-checked, trusted journalism.”

Local Ireland, the association representing 32 paid-for weekly newspapers around the country, noted several encouraging aspects to the report, including the recognition of local news publishers as public service content providers.

Executive director Bob Hughes stated: “We have waited almost year for the report to be published, so there should be minimum delay in implementing the Commission’s recommendations. “The government has an opportunity to offer immediate support for news and digital publishers by abolishing the current 9% VAT rate and bringing it down to 0% in this September’s budget.

“This would allow for greater investment in journalism and digital transformation and would help preserve jobs in a sector that has seen its workforce reduced by half over the last 20 years.”

Media Fund

To support the wider media sector and strengthen its plurality, the Commission has recommended that the Broadcasting Fund overseen by the BAI should be converted into a platform-neutral Media Fund that is extended to include news and current affairs and support a range of schemes for public service content providers, including:

+ An enhanced Sound and Vision Scheme

+ Local Democracy Reporting Scheme

+ Support for Digital Transformation

+ News Reporting Schemes

+ Courts Reporting Schemes

+ Access and Training Scheme

+ Community Media Scheme.

The Commission envisaged that pending the establishment of the new statutory basis for public funding from 2024 – which won’t be happening - additional public funding for the Broadcasting / Media Fund should be increased to €30m in each of 2022 and 2023.

The Commission report also recommends that RTÉ and TG4 should receive targeted public investment to enable them to undertake capital investment, and that both organisations should be subject to formal oversight by the New Economy and Recovery Authority (NewEra).

The Commission also called for RTÉ’s total public funding to increase from €211m in 2021 to €214m in 2023, and that TG4’s taxpayer subsidy should rise from €41m in 2021 to €49m in 2023.

More state oversight

Minister Martin and her colleagues also seem to have taken on board the Commission’s proposal that government should legislate by 2024 for an independent assessment system for public funding, on a multi-annual basis, for Public Service Media and Public Service Content provision.

According to the report: ”The BAI/Media Commission’s role in this, and in holding Public Service Media to account for expenditure, should be strengthened.

“The Commission recommends that government provides a statutory basis for the Media Commission’s expanded remit.

"The statutory objectives and functions of the Media Commission, as currently provided for in the General Scheme of the Online Safety and Media Regulation Bill, should be reviewed by the Implementation Group, following which appropriate legislative amendments should be introduced by 2024 to enable the Media Commission to fulfil the expanded role envisaged for it by the Future of Media Commission.”