One of the functions of the BAI, as set out in Section 33 of the Broadcasting Act 2009, is to impose a levy on public service broadcasters and broadcasting contractors to meet the expenses properly incurred by the Authority and the statutory committees in the execution of their statutory functions.

The precise terms attaching to the levy, including the method of computation and payment terms, are set out in a levy order made by the BAI - Broadcasting Act 2009 (Section 33) Levy Order 2010 (Statutory Instrument No 007 of 2010) which was laid before both Houses of the Oireachtas on the 19th of January 2010 for a period of twenty-one sitting days.  A copy of the Levy Order is enclosed.

BAI Levy Model (Key Features)

The BAI levy model is cost-recovery in nature, i.e. the baseline levy percentage is set at a level to ensure full recovery of the costs properly incurred by the Authority and its constituent committees.

As a result, the levy computation must have full regard to the qualifying incomes of public service broadcasters and broadcasting contractors required to pay the levy as well to the operating costs of the Authority for the relevant period.

An additional feature of the BAI levy model is a sliding scale element, whereby the levy amount paid (expressed as a percentage of total qualifying income) falls as the value of qualifying income rises.

This feature is intended to reflect the fact that, other things being equal, the minimum or fixed costs of regulation are smaller as a proportion of total qualifying incomes for larger entities.

Details of the process by which the levy will be calculated are provided in Schedule 1 of the BAI Levy Order.

The BAI levy model also incorporates a de minimis rule, which ensures that all broadcasters make some contribution towards their costs of regulation.

Full details are contained in Schedule 1 of the enclosed Levy Order.

Role of PricewaterhouseCoopers (PwC)

The BAI has engaged PwC to administer the levy collection process. The BAI has  instructed PwC to minimise the administrative burden imposed on levy payors, while simultaneously assuring the probity of the levy collection process. 

BAI Levy 2009

BAI costs for this period have now been finalised.  The BAI has been requested by the Department of Communications, Energy and Natural Resources to engage with them in discussions regarding the implementation of the levy order covering this period.  Pending the outcome of these discussions, the BAI will not be issuing invoices for the period. 

BAI Levy 2010

Invoices for Q1 2010 will not be sent to public service broadcasters and broadcasting contractors pending approval of the revised budget by the Authority.  Levy payments will be calculated on the basis of the revised budget and it is anticipated that invoices will be sent out on 30th or 31st March.

Queries and questions

All levy-related questions may be addressed to:

Caroline Brady at (01) 792 7569 or caroline.m.brady@ie.pwc.com