New Finance Minister Jack Chambers sets out his preferred option for TV licence fee – but doesn’t want €160 charge to rise
His position is at odds with Media Minister Catherine Martin and the Green Party, who are pushing for the charge to be scrapped.
The Coalition is at a crossroads as it is due to make a decision on future reform of RTÉ, due in a couple of weeks. The Media Committee is next week expected to recommend for the charge to be scrapped and RTÉ funded independently through the newly established Comisiún na Meán.
“I don’t believe there should be an increase in the TV licence fee in the context of reform or a new model which is developed,” said Minister Chambers. He was speaking at Government Buildings as he and assembled media were soaked by heavy rain on Thursday afternoon.
He did not answer questions on whether the charge should be lower, but said the TV licence is “an important income source for the State and for public service broadcasting”.
He said he will be in talks with the Media Minister on reform of the TV licence in the next two weeks.
“I think maintaining a direct payment or contribution from the Irish public is of central importance, if the TV licence or the contribution from the Irish public is abolished, that contribution will have to be found elsewhere,” he said.
The Dublin West TD said the new funding model, in his opinion, will have to involve an “ongoing” contribution from the public.
His position is the same as that of his predecessor, Michael McGrath, and has been the Fianna Fáil position. Tánaiste Micheál Martin has suggested previously that if Revenue collects the TV licence instead of An Post the €160 fee should decrease.
Fine Gael is believed to be in favour of a hybrid model which would see annual exchequer funding as well as a form of the TV licence, paid each year by households.
The new Minister for Finance promised to bring “careful economic management” in finalising the summer economic statement over the next two weeks.
The Government is then expected to announce a “giveaway Budget” in the autumn ahead of an impending general election.
“Responsible and careful economic management is at the core of what I’ll be bringing as Minister for Finance,” he said.
Fine Gael Enterprise Minister Peter Burke has also already expressed an interest in bringing down the VAT rate for the hospitality sector to 9pc.
“I’m well able to say no in the national interest,” said Minister Chambers.
“We have to plan for the long term and that’s why in addition to making decisions on expenditure increases or around changes to taxation, we need to plan for the long term.”
He said when deciding tax cuts, the Government will have to be mindful of “the wider economic picture” as well as the risks to the Irish economy, such as deglobalisation.
He said ministers will have to prioritise their spending asks.
“We want to give workers and families a break in the context of income tax reductions but we have to be careful around that,” he said.
