How the Federal Council sees the future of SRG
Published: Wednesday, Jun 19th 2024, 17:51
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The Federal Council rejects the SVP's halving initiative, but wants to force the SRG to make savings by reducing the radio and television levy, as it decided on Wednesday. The most important questions and answers at a glance:
WHAT DOES THE SRG INITIATIVE DEMAND?
The federal popular initiative "200 francs is enough! (SRG initiative or halving initiative)" calls for the radio and television fee for households to be reduced to CHF 200 per year and for companies to be exempted from the fee altogether. Like the "No Billag" initiative, which was clearly rejected six years ago and called for the abolition of the radio and TV fee, this popular initiative also comes from SVP circles.
WHAT DOES THE FEDERAL COUNCIL SAY ABOUT THE REFERENDUM?
The Federal Council rejects the initiative because it believes it goes too far. The SRG's contribution would fall from the current CHF 1.25 billion to around CHF 630 million. According to the Federal Council, the resulting consequences for SRG's offering and its anchoring in the language regions would be too serious. SRG needs sufficient financial resources to be able to provide an equivalent journalistic offering in all language regions. A Yes to the initiative would damage the media sector as a whole, says Media Minister Albert Rösti.
DOES THE FEDERAL COUNCIL STILL SEE A NEED FOR ACTION?
Yes, as demanded by the initiators, he also wants to ease the financial burden on households and companies. The latter are increasingly paying for the use of paid domestic and foreign television services as well as audio and video streaming services. On the one hand, the Federal Council decided to gradually reduce the radio and television fee for households to CHF 300 per year by 2029. Secondly, around 80% of companies subject to VAT will be exempt from the levy from 2027. The state government is implementing this with a counter-project at ordinance level. No referendum can be held against this.
WHAT DOES THIS MEAN FOR SRG?
According to the Federal Council, the gradual reduction in the fee will give the SRG "leeway to plan and implement cost-saving measures". According to current estimates, SRG will still receive a levy share of around CHF 1.2 billion in 2029 - that is around CHF 120 million less than today. As the SRG will no longer be able to receive the cost-of-living adjustment in full or at all in future, this will also result in a reduction in revenue. According to Media Minister Albert Rösti, the SRG will already have to make savings from 2025 due to the loss of the cost-of-living adjustment.
WHAT SHOULD THE SRG DO WITHOUT?
This will not be discussed until later. The Federal Council has extended the current SRG concession until the end of 2028 - on the grounds that the financial framework for the public media service will only be clear after the vote on the SRG initiative. It will draw up the new SRG license in accordance with the available funds. In principle, the Federal Council will continue to support "a strong SRG", as it writes. However, it wants to focus its mandate more strongly on information, education and culture as well as on the public's new usage habits. The online offering is to be geared more towards audio and video content.
WHAT DOES THE SRG SAY?
According to earlier information, 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. The measure will 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.
WHAT ARE THE REACTIONS TO TODAY'S DECISION?
Left-wing circles in particular were outraged. With the amendment to the ordinance, the state government is creating facts even before the initiative has been discussed. Last but not least, this is contrary to democratic practices. The Swiss Syndicate of Media Professionals (SSM) was shocked. The national government is pushing through the controversial partial revision despite immense criticism, wrote the media union. Without consideration for the commissions, without necessity, without parliament and without a referendum, the Federal Council is depriving the public service of millions.
IS EVERYTHING NOW WRAPPED UP?
No. Parliament can no longer comment on the adopted amendment to the ordinance. However, it can override the Federal Council, for example by drawing up an indirect counter-proposal to the initiative at legislative level. This is certainly possible. The Federal Council's approach was heavily criticized during the consultation process. Many would like to see a discussion on the scope and content of the public service before the financial resources are quantified. If Parliament decides to make legal adjustments, the Federal Council will have to decide how to deal with the planned adjustments to charges at ordinance level and review them in light of Parliament's decision.
WHAT ABOUT THE PRIVATE MEDIA?
The Federal Council plans to exempt licensed local radio stations and regional television from the consequences of the fee reduction. The implementation of two parliamentary initiatives is still open. On the one hand, these provide for an increase in the share of fees for licensed local radio stations and regional television from the current 4% to 6% to 6% to 8%, and on the other hand for financial support for education and training, self-regulation of the sector and agency services.
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