Finland’s YLE to Be Funded by Tax, Not License Fee

HELSINKI: Finnish parliamentary group leaders have decided to replace the 80-year-old license-fee system of funding for the Finnish Broadcasting Company (YLE) with a new tax model.

Starting in 2013, YLE will be funded by a fee that is collected by the Finnish tax authorities. The money will also be allocated in the future into a special radio and television fund. The sum will be progressive and specific for each taxpayer. It will no longer be tied to the ownership of a TV set.

According to the agreement the YLE tax will range between 50 and 140 euros for every adult member of a household with an income. The 252-euro licence fee is levied only once regardless of the size of the household.

"Uncertainty will no longer hinder the development of public service broadcasting, as the role of YLE is defined to suit current requirements," said Lauri Kivinen, the CEO of YLE. "It is of great importance for YLE that the financing model is updated and the administrative structure made clearer. These will form a basis for consistent long-term development of operations. Developing YLE will benefit all Finns."

"We aimed at a long-term solution that would secure our independence, and we seem to have achieved it. We are accountable to all Finns, our entire audience," Kivinen continued.

"The proposed financing model strongly promotes justice. At present a quarter of the households does not pay for YLE’s services, even though everybody uses them. The reform reduces the fee, on an average, by more than 80 euros per household as there will be more payers. For single person households the fee will be halved and the low-income households will not have any liability for payment.

"The current scope of operations can be secured by annual financing of 500 million euro. This is the level now being planned, and we can return to our normal rate of development. The deficits of 26.5 million last year and 7 million this year have forced us to target savings that should not be targeted. We have saved on things like domestic productions, IT investments, sports broadcasting rights and personnel," Kivinen added.

"Public service broadcasting should be built on independence, domestic materials, quality, reliability and variety. We now have an excellent opportunity to carry out our tasks to satisfaction. Still, we cannot have everything, which means that a healthy amount of choices must be made in the future as well."