Annual Report 2015

ANNUAL REPORT 2015 TABLE OF CONTENTS About the BAI 5 Chairperson’s Statement 7 CEO Review 9 The Authority 11 Contract Awards Committee 12 Compliance Committee 13 Finance Audit & Risk Committee 14 Organisational Structure 15 Ensuring Diversity 17 Ensuring Plurality 27 Influencing and Communicating 29 Strengthening the Transparency and Accountability of Broadcasters 35 Facilitating Learning and Development in the Broadcasting Sector 41 Promoting Responsible Broadcasting and Empowering Audiences 45 Governance and Organisational Development 49 BAI Financial Statements 53 BFS Financial Statements 79 ABOUT THE BAI The Broadcasting Authority of Ireland was established — providing a regulatory environment that: under the Broadcasting Act 2009 (“the 2009 Act”) on – sustains independent and impartial journalism; 1st October 2009. – sustains compliance with employment law; The Act sets out a range of general and specific – protects the interests of children; objectives for the BAI and specifies that its constituent – facilitates a broadcasting sector which is parts, in performing their functions, “shall endeavour responsive to audience needs and accessible to ensure: to people with disabilities; — that the number and categories of broadcasting – promotes and stimulates the development of services made available in the State best serve the Irish language programming and broadcasting needs of the people of the island of Ireland, bearing services. in mind their languages and traditions and their Throughout 2015, the BAI continued to implement and religious, ethical and cultural diversity; support the goals captured in its Strategy Statement — that the democratic values enshrined in the for the period 2014–2016. Cognisant of the evolving Constitution, especially those relating to rightful media landscape, the interests of the viewing and liberty of expression, are upheld; and, listening public remained a central focus for the BAI — the provision of open and pluralistic broadcasting in its activities. Key goals, such as securing access for services.” viewers and listeners to a diverse range of programming and views, in terms of both outlet and source, went The Act also sets out a range of other objectives for unchanged. Being aware of the growing number of the Authority which include: people accessing programming in a new way, the BAI — stimulating the provision of high quality, diverse, reflected on how to position itself as a regulator in the and innovative programming; new media environment and sought to explore new ways of supporting the broadcasting sector to serve — facilitating public service broadcasters in the audiences. Using the strategic themes of its current fulfilment of their public service objects; Strategy Statement as a framework, the BAI Annual — promoting diversity of control in the commercial Report details the organisation’s activities, and the and community sectors; progress made in the implementation of its work plan during the year. BAI | ANNUAL REPORT 2015 3 CHAIRPERSON’S STATEMENT I am honoured to present the annual report of the Looking at broadcasting today, Reith would probably Broadcasting Authority of Ireland for 2015. The be disappointed that one of his trio of imperatives period under review coincides with the first year of – to entertain – has taken pole position and often the tenure of the new Board which in January 2015 crowds out the other two. Informing, educating and replaced the inaugural Authority appointed under entertaining are not mutually exclusive: they are, or the Broadcasting Act, 2009. This report presents should be, complementary. compelling evidence that the transition has been negotiated smoothly and successfully. Edward R Murrow, another of the early pioneers, voiced the frustration of many in his profession when he Following an extensive induction process, the new complained that ‘if we were to do the second coming Authority set about its work. 2015 has been another of Christ in colour for a full hour, there would be a successful year, thanks in no small measure to the considerable number of stations which would decline energy and commitment of the members of the Board to carry it on the grounds that a Western or a quiz and the statutory committees, and the admirable show would be more profitable’. Irish broadcasters professionalism of the staff. The constructive in all sectors are familiar with this commercial reality collaboration between board members, staff and and the constraints that it imposes. These constraints stakeholders is a striking feature of the work of the BAI have increased in recent years due to the recession, and one which contributes greatly to its effectiveness. cutbacks in public funding and increased competition I congratulate all concerned. from abroad. While there were signs of a recovery in advertising revenue during 2015, its impact was We live in an age of uncertainty. It is something of dissipated to a considerable extent by opt-out a cliché that broadcasting is undergoing a period of advertising from abroad. Creative ways of addressing rapid change. No one can predict the outcome but the this problem need to be explored as a matter of urgency. direction is clear: the future environment will be radically different from anything we are familiar with. It is timely This year’s funding reviews of the public service then to take a bearing on some key issues in relation broadcasters, required under the Broadcasting Act, to where we have come from and where we would like have again shown that they are doing more with less to go. Coincidently, the ongoing review of the BBC but that they would both benefit from increased Charter has brought into renewed focus the vision of funding. This is more likely to be forthcoming in the some of the early pioneers of broadcasting. It was John context of a revised funding mechanism. The existing Reith, first Director General of the BBC, who coined the TV licence no longer reflects the ways in which we memorably concise mission statement for his fledgling receive and view TV programmes. This is confirmed by service – to inform, to educate and to entertain. Reith the Reuters Institute research which was funded by the has been rightly criticised for his paternalism but his BAI on how Irish people access news. A broadcasting motto continues to provide a relevant assessment charge would more accurately reflect this reality, while yardstick for broadcasting services everywhere. at the same time addressing the ongoing problem of evasion and generating additional income to support quality broadcasting. 4 BAI | ANNUAL REPORT 2015 The BAI is committed to fostering high quality, culturally It is arguable that broadcasting has made least progress relevant content across a range of genres. The Sound in relation to its mission to educate, certainly in Ireland. & Vision Scheme, funded from the licence fee, has I believe that much remains to be done in this regard. had a significant impact in a difficult financial climate. Radio and TV have been superseded by the revolution Approximately €80 million has been allocated over the in digital technologies which has transformed on- past six years to more than 1,500 separate projects. line education, synchronous and a-synchronous. The new Sound & Vision 3 Scheme, launched in January, Broadcasters still have a contribution to make, both will see more than €24 million in funding made available generally in terms of being an ‘educative force’ and, through five rounds in 2015 and 2016. more particularly, in relation to media literacy. Informing listeners and viewers, and providing a variety of voices The role of broadcasting in informing the public goes and viewpoints, all demand an informed and discerning beyond merely reporting the news. It embraces plurality audience. Media literacy empowers people with the skills and diversity. The BAI has a particular role in promoting and knowledge to understand and critically evaluate both and takes this responsibility seriously. We intend media content. This is indispensable for active citizenship to revise the existing policy on ownership and control and a truly participatory democracy. and to develop a new policy on plurality. During the year, public plurality events were held in DCU and in Cork and For our own part, the BAI’s strategic objectives commit important BAI funded research on Hearing Women’s to supporting measures to build the competence of Voices was launched. This and other planned research viewers and listeners to understand, interact and will be used to inform policy development. participate in the media environment. This will be a key area of focus for the Authority in 2016 and beyond, The Competition and Consumer Protection Act, 2014 with the development and implementation of media gave the Authority new responsibilities in this area. literacy policy. A review of the position in relation to ownership was completed during the year, with the assistance Harold Nicholson famously dismissed Lord Reith as of Communications Chambers. This will provide an ‘autocratic, prudish and elitist’. Be that as it may, he did important benchmark in relation to any future changes. envisage radio and television being ‘a cultural, moral This year saw the entry of two major media companies and educative force’ which would bring all classes of into the Irish market, with changes in ownership of TV3 the population together and help in the creation of and UTV, which required the approval of the BAI. Both an informed and enlightened democracy. It was and were considered at length and approved. The Authority remains a noble vision. is intent on ensuring that the changes will see no diminution in Irish content. Professor Pauric Travers Cathaoirleach BAI | ANNUAL REPORT 2015 5 CEO REVIEW 2015 was another exciting year for the BAI. It was our The year had begun with an expectation of new first full year under the direction of the current Board broadcasting legislation which would explore and statutory committees. It was also the middle year of mechanisms for improving the collection rate for the our three year strategy covering the period 2014-2016.

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