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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Illegal Radio Stations.

Illegal radio stations and advertising revenue

Summary

The Minister estimated that about 70 illegal stations operate, collecting £3.5–£4 million in annual advertising revenue, based on a 1986 consultancy study. Questions covered whether that revenue could sustain licensed stations, the stations’ tax and rights obligations, and whether illegal operators’ experience would count in future licensing; the Minister said these matters would be addressed by the Bill due the next day.

asked the Minister for Communications the estimated number of illegal radio stations now operating; and the estimated value of advertising revenue collected by them.

Comment on this
Ray Burke Mr. R. Burke Fianna Fáil

It is estimated that there are about 70 such stations operating at present at various locations in the country, although the number can vary from month to month.

The value of advertising revenue collected by illegal broadcasting stations is estimated at between £3.5 million and £4 million per annum.

Comment on this

Does the Minister expect that this number can survive on the average revenue implied by his reply if they pay their full tax and dues to the various performing sectors? Does the Minister believe that companies that have operated illegally should be given any credit for their experience in assessing their suitability to broadcast in the future?

Comment on this
Ray Burke Mr. R. Burke Fianna Fáil

The last point made by the Deputy is a matter for the new legislation which will be published tomorrow. In relation to paying for performing rights and so on it has not been the practice of the Department to examine these companies because they are illegal stations and come and go overnight. We have knowledge of some of them but they are illegal stations and we are not in formal contact with them.

Comment on this
Jim Mitchell Mr. J. Mitchell Fine Gael

Does the Minister think that 60 or 70 legal stations could survive on an advertising pool of £3.5 million to £4 million?

Comment on this
Ray Burke Mr. R. Burke Fianna Fáil

That is a matter for tomorrow when we publish the Bill.

Comment on this

Is the Minister satisfied that his estimates of the earnings of these illegal stations is accurate given that in many cases they do not keep records and do not pay VAT, PRSI or PAYE?

Comment on this
Ray Burke Mr. R. Burke Fianna Fáil

They have been operating illegally. This disgraceful situation has been going on for ten years and I want to clear it up. The figure is not my own. It is from a consultancy study commissioned by the interim local radio commission in 1986 which estimated the amount of advertising revenue going to the illegal radio stations. It was their estimate that I gave to the House.

Comment on this