The Revenue Commissioners will have no role in collecting the television licence fee, which is to be retained and supplemented by a multiannual funding stream provided to RTÉ by the exchequer under a deal agreed in principle between Ministers this week.
It had been suggested that collecting the licence fee would transfer to Revenue in an effort to improve levels of compliance – however, multiple senior Coalition sources said this would now not happen.
Last month Minister for Arts and Media Catherine Martin said such a move would be “unpalatable”. Tánaiste Micheál Martin had previously said the €160 a year charge could be brought down if it was collected by Revenue.
Instead, it is understood that the Coalition is to examine improvements to the existing collection system to deliver an increased level of funding being gathered.
Sources would not be drawn on Thursday night on what this might entail – but any moves to broaden the charge and make more households eligible for it could be politically toxic as the country heads towards a general election.
The final decision on the future funding of RTÉ is subject to revision and agreement of the three Coalition leaders, but a political settlement on the divisive issue now appears to be on the cards, with a paper being prepared for party leaders.
It was seen as too risky to introduce a Revenue-collected charge – primarily because it is a fee rather than a tax, but also because it would likely be unpopular with the public to bring something on stream resembling the local property tax (LPT), which is administered by Revenue.
The deal agreed in principle contains multiannual exchequer funding streams, meaning RTÉ will not be subject to annual rounds of deal-making at budget time. It is understood Ms Martin argued for this on the basis that it would offer significantly increased financial stability for the national broadcaster.
However, it stops short of moving towards a fully exchequer-funded system as favoured by the Dublin Rathdown TD after strong resistance from the Department of Finance and the Department of Public Expenditure, as well as Fianna Fáil leader Mr Martin.
Speaking in Blenheim Palace, Oxfordshire, Taoiseach Simon Harris indicated openness to a hybrid model of exchequer funding and the licence fee – saying he was hopeful of a resolution to the long-running issue soon.
“This saga has gone on for far too long,” he said. “It’s now important that we bring finality to the question of how we fund public-service broadcasting.” He said there were two options: “You go with some sort of reformed licence model or you go with direct exchequer funding. But actually that’s a straw-man way of doing it. Perhaps there is a way in the middle.”
He added that he did not want to see taxpayers having to put their hands in their pockets and pay more money. Mr Harris said engagement on the issue was ongoing and he expected the Coalition leaders to be in a position to bring a proposal to Cabinet next week.
Sinn Féin criticised the decision to retain the licence fee. Cork North Central TD Thomas Gould said its retention was a “shocking indictment of this Government’s failure to act”, and accused Ms Martin of showing “that she is not in control of her own department or brief”. The party said that the broadcaster must come under the remit of the Comptroller and Auditor General if it is the only State body to receive multiannual public funding.
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