A private operator could soon be in charge of chasing TV licence fees
The government is gearing up to put the service – currently handled by An Post – out to tender.
A PRIVATE COMPANY could soon be tasked with carrying out TV licence inspections as the government struggles to bring down rates of fee evasion.
Communications Minister Denis Naughten is bringing the Broadcasting Amendment Bill before Cabinet today. If enacted, the proposal would allow for a tender process to be rolled out for a new ‘TV licence agent’.
The change in legislation will move the responsibility for TV licence inspections away from An Post.
The semi-state postal operator currently carries out all TV licence sales and inspections. However, it is a loss-making service for the organisation – costing An Post an estimated €12 million per year, which includes the salaries for 46 TV licence inspectors.
Putting the contract out to tender is viewed in government as the first step in tackling fee evasion, the rate of which stands at nearly 14% – although the proportion of charges going unpaid has declined slightly in recent years.
The new collection agent will also be tasked with collecting unpaid fees, which amount to around €40 million every year.
While An Post can still apply for the tender and sell TV licences, it’s expected that a private operating company will take over the task.
UK lead
Ireland is following the lead of the UK, which has outsourced the majority of the administration of TV licensing to a private company – Capita Business Services.
Last week, the company came in for criticism from the UK’s Public Accounts Committee, which said the corporation must “rapidly” change its approach to collection.
The firm, which is paid £59 million a year to collect fees for the BBC, was attacked for what was described as “poor” performances by TV licence collectors.
While the detail of the tender for Irish TV licence inspections has yet to be finalised, it’s understood that any operator looking to win the contract would have to submit a detailed business plan as to how it plans to cut licence-fee evasion rates.
The minister had previously weighed the option of extending the €160 annual licence fee to electronic devices, with a licence number potential needed to access the RTÉ player.
However the proposal has since been scrapped as the system was viewed as being too difficult to enforce.
Written by Christina Finn and posted on TheJournal.ie
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