Federal Council reduces media fee to CHF 300 per year from 2029
Published: Wednesday, Jun 19th 2024, 15:20
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The Federal Council is reducing the radio and television fee from CHF 335 to CHF 300 for private households from 2029 and is abolishing the fee for small and medium-sized enterprises from 2027. This was decided on Wednesday - despite widespread criticism during the consultation process.
Media Minister Albert Rösti is sticking to the plans he outlined at the beginning of November 2023. By lowering the radio and television fee, he wants to take the wind out of the sails of the popular initiative "200 francs is enough! (SRG initiative)" from SVP circles. This initiative wants to reduce the media levy to CHF 200 and exempt companies from the levy altogether.
A Yes vote to the initiative would reduce the share of SRG's budget accounted for by levies from the current CHF 1.25 billion to around CHF 630 million. SRG broadcasters would face unprecedented cuts in staff and programming.
SRG has to make savings anyway
The Federal Council rejects the petition for a referendum. "The SRG needs sufficient financial resources to be able to provide an equivalent journalistic offering in all language regions," it wrote on Wednesday. The consequences of the initiative for the SRG's offering and its anchoring in the language regions would be too serious.
However, it also wants to ease the financial burden on households and companies. On the one hand, the Federal Council is gradually reducing the annual household tax - from CHF 335 to CHF 312 from 2027 and to CHF 300 from 2029. Secondly, around 80 percent of companies subject to VAT will be exempt from the levy from 2027 - the limit for paying the company levy will be increased from the current CHF 500,000 annual turnover to CHF 1.2 million.
"This gradual reduction in the fee gives the SRG scope to plan and implement cost-saving measures," writes the Federal Council. According to earlier information, the SRG assumes that the reduction of the media levy to CHF 300 will lead to a reduction in revenue of around CHF 240 million and a reduction of around 900 SRG jobs in all regions.
According to SRG, the measure would also have an impact on sports coverage at major events. The number of Swiss series and films supported and the broadcasting of cultural events would have to be reduced.
Parliament wants to discuss mandate first
The corresponding dispatch will now go to Parliament. It can decide for itself whether and - if so - how it wants to ease the financial burden on households and companies. An indirect counter-proposal at legislative level is conceivable, for example. In this way, the Councils could also override the Federal Council's decision, especially as the gradual tax reduction it has decided on will only take effect from 2027.
A correction is realistic because the two responsible parliamentary committees unanimously opposed the Federal Council's approach during the consultation process. They argued that the Federal Council should first submit a revision of the SRG license or the performance mandate for consultation and only then determine the level of the radio and television fee.
The tenor of the debate was that an immediate reduction in the media levy would restrict parliament's room for maneuver with regard to discussing the SRG initiative or the halving initiative. Even the SVP members of the parliamentary telecommunications committees were critical of the Federal Council's approach. Before the financial resources are quantified, the scope and content of the public service must be discussed.
Focus on information, education and culture
According to the Federal Council's plans, the new SRG license will only be granted after the vote on the halving initiative. The people and cantons are likely to decide on this in 2026. The national government is therefore extending the current SRG license until the end of 2028.
The financial framework for the public media service will only be clear after the vote on the SRG initiative, writes the Federal Council. Accordingly, it will draw up the new SRG concession in line with the available funds.
The plan is to focus SRG's mandate more strongly on information, education and culture as well as on the audience's new usage habits. The online offering is to be geared more towards audio and video content.
©Keystone/SDA
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