Minister for Finance Brian Lenihan has established a specific Group to examine state assets and liabilities and to advise him on how the assets can be better used or disposed of to support economic growth and national investment priorities. The Group, chaired by co-author of last year’s so-called ‘Bord Snip Nua’ report, has already begun its task of examining selected public-sector assets, including commercial State companies such as RTÉ, ESB and TG4.
The Group has been asked to provide an interim report to the Minister for Finance before the end of the year. A release from the Department of Finance states that, as part of the review process, all relevant stakeholders will be consulted and submissions from the public and interested parties will be sought.
The Review Group’s interim list of assets to be reviewed includes, as previously mentioned, broadcasters RTÉ and TG4. Last year’s Special Group on Public Service Numbers and Expenditure Programmes document co-written by Colm McCarthy and also mentioned both groups, calling for “a study of the interrelationship of the RTÉ Group, TG4 and other broadcasters to see what efficiencies and strategic benefits could arise from greater cooperation between broadcasters,” as an alternative to merging ComReg and the BAI which has not yet come to pass.
The document further suggested a partial funding of TG4 directly from TV Licence payment and the reduction of the direct Exchequer subvention. It was explained that this change could be carried out on a phased basis, over a period of 2 to 3 years so that TG4 could move towards receiving a significant contribution to funding its public service remit from the TV Licence. The suggestion ends saying: “There should be no consequential increase in the TV Licence fee. Instead, both RTÉ and TG4 should, in the first instance, identify and implement cost savings, including potential for sharing facilities. The Exchequer subvention to TG4 should be reduced from €36m in 2009 to achieve savings to the Exchequer of €10m, at a minimum, when fully implemented.”
As outlined above the Minister has appointed UCD’s Colm McCarthy as Chair of the group. The other members are Donal McNally, Second Secretary General Department of Finance, and Alan Matthews Professor of European Agricultural Policy at Trinity College Dublin.
In carrying out their charge the following Terms of Reference have been set out for the Group:
- To consider the potential for asset disposals in the public sector, including commercial state bodies, in view of the indebtedness of the State;
- To draw up a list of possible asset disposals;
- To assess how the use and disposition of such assets can best help restore growth and contribute to national investment priorities; and
- To review where appropriate, relevant investment and financing plans, commercial practices and regulatory requirements affecting the use of such assets in the national interest.
A full preliminary list of the assets to be reviewed by the Group is available on the Department of Finance web site at http://www.finance.gov.ie. Colm McCarthy tells IFTN that the Review Group will not comment on the report until its completion. RTÉ has declined to comment on the news and a spokesperson for TG4 was unavailable to comment. For more information about the State Assets review group visit http://www.finance.gov.ie/viewdoc.asp?DocID=6399
