asked the Minister for Communications the measures which were taken to establish whether or not demand exists nationally for the National Commercial Television Channel, which was announced by him at the Fianna Fáil Ard Fheis; if he has undertaken any research to establish if sufficient advertising would be available to fund the new channel without adversely affecting RTE and leading to a major increase in licence fees; and if he will make a statement on the matter.

The Government are satisfied that there is sufficient interest in the potential for establishing a third television channel which would be independent of RTE to warrant offering a franchise for the service and that at the end of the day this is the most effective way of testing demand for such a service. The Government's intentions in this regard are part of their policy for the broadcasting sector of providing opportunities for greater choice of service and plurality of views and opinions, of exploiting new opportunities created by new technologies, of providing greater competition in the broadcasting sector as in the other areas previously confined to the State, and of offsetting the imbalance which arises from the increasing number of external services becoming available here.

While the proposed new service will undoubtedly have some impact on RTE advertising revenue, I am not so pessimistic as to believe that it will have unduly adverse consequences for RTE, or that it will necessitate the "major increases" in licence fees which the Deputy fears.

I take it that no scientific survey or test of the market has been carried out to see whether it could bear another national commercial channel. The Minister is aware, I am sure, that even at present UTV, for instance, draw advertising from the Republic of Ireland and that any further competition for that type of advertising is bound to have an effect on the revenues of RTE. Does he foresee the effect of that being an increase in licence fees?

No, I do not see that arising. I do not see the major increases referred to in the Deputy's question arising at all. There has not been an increase in licence fees since 1986. I believe that RTE will tackle the competition. They are already responding in a positive way to the potential competition, both in radio and television. I have full confidence in the ability of the management and staff of RTE to respond in a positive way. When the Deputy mentions UTV, that is just one of many stations coming in. The Government take the view that it is important we offset this imbalance arising from the increasing number of these external services becoming available here through satellite and the other channels.

When the Minister speaks about offsetting, what exactly does he mean by offsetting these external stations, let us call them? Is he talking about news, points of views expressed, or what exactly is he talking about?

I am talking about the Irish ethos as distinct from the imported.

So UTV is an imported ethos?

Could the Minister assure the House that there will be legislation brought before us before any change of this nature will be made? Secondly, specifically on the question of advertising revenue, has he estimated the total pool and what will be necessary for this channel?

Yes, there will be legislation and I have estimates of the figures but they are really not relevant, merely estimates. The demand for any new product in relation to advertising potential and so forth is more latent than explicit at this time. While the estimates are there, I am assured by those in the industry that it is more than sufficient to carry a new station.

A Cheann Comhairle——

May I ask——

Please, Deputies, I shall hear a final question from Deputy Pat O'Malley. I want to make progress on other questions.

Will there be any requirement on this new television station to carry public service broadcasting programmes in their schedule?

Public service as distinct from public sector broadcasting, yes.

Could I just——

I call Question No. 2.

2.