RTÉ transmission network may be sold, says Ryan

RTÉ’S TRANSMISSION network could be sold off following the investment of €70 million of public money in the development of digital…

RTÉ’S TRANSMISSION network could be sold off following the investment of €70 million of public money in the development of digital technology, Minister for Communications Eamon Ryan has indicated.

Mr Ryan has said he would be opposed to the privatisation of the ESB, Bord Gáis and An Post, if recommended by the State assets review group appointed by Minister for Finance Brian Lenihan last week. However, he said the review group would be “absolutely right” to look at the future ownership of RTÉ’s transmission network, whether it was with a view to selling it or separating it fully from RTÉ’s broadcasting division.

Mr Ryan said he was “looking forward” to debating the matter with the review group, the Commission for Communications Regulation (ComReg) and RTÉ.

He was speaking yesterday after outlining plans for the switch-over from analogue to digital television by the end of 2012. Viewers who do not have a digital-enabled television will have to buy a new set or a conversion device.

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The construction of a network of 51 digital masts across the country is being fully funded by RTÉ at a cost of €70 million.

Mr Ryan said he was “very confident” RTÉ had the capital resources to meet the cost. However, he said he was disappointed there was no commercial investment in digital television.

The Broadcasting Commission of Ireland had reached licensing agreements with Denis O’Brien-led consortium Boxer and another company, OneVision, to provide digital terrestrial television, but neither came to fruition.

“I would have liked to see something like a Boxer or OneVision up and running,” Mr Ryan said, “but it wasn’t possible to get agreement.”

The private companies had both planned to broadcast British terrestrial channels on their services. British channels will not be offered on the RTÉ service announced by Mr Ryan yesterday.

The RTÉ service will provide seven to nine channels including RTÉ, TV3 and TG4 as well as national radio channels. There was also the prospect of a film channel, Mr Ryan said.

The 51 masts would ensure digital terrestrial coverage for 98 per cent of viewers, the remaining 2 per cent living in remote rural areas would be served by digital satellite, also provided by RTÉ.

Mr Ryan said he did not envisage any increase in the licence fee to help RTÉ pay for the new service. The cost of new televisions or adaptors would be borne by customers, but he said he would consider a subsidy for pensioners.

Separately, Mr Ryan announced the Cabinet had this week agreed an energy retrofitting programme to upgrade one million residential, public and commercial buildings by 2020. He said he intended to allocate €70 million in 2011, and €100 million in each of the years 2012 and 2013 to a fund to provide the upgrades.

The average reduction in an electricity bill following the upgrade would be €700 a year. The Sustainable Energy Authority Ireland estimates for every €100 million invested, 5,000 direct and indirect jobs are supported.

Meanwhile, Fine Gael energy spokesman Leo Varadkar claimed the Fianna Fáil-Green coalition was at “loggerheads” over plans to sell semi-State assets. He said Mr Ryan’s opposition to the sale of the ESB, Bord Gáis and An Post was “at odds” with Mr Lenihan.

Mr Varadkar accused Mr Ryan of being a “total fantasist when he claimed that our semi-States are delivering”.

Mr Varadkar said “there is no strategic interest for the State in owning three different companies that generate power and two that retail electricity”.

Olivia Kelly

Olivia Kelly

Olivia Kelly is Dublin Editor of The Irish Times