Parliamentary working group reduces funding and promotes transparency of Finnish Broadcasting Company

A parliamentary working group tasked with assessing the public service duties and funding of the Finnish Broadcasting Company (YLE) published its report on 12 September 2024. The working group proposed cuts to YLE's funding and amendments to Act on the Finnish Broadcasting Company concerning transparency and security of supply.

The working group proposed that the annual index increases to YLE’s funding be frozen for three years in 2025–2027. In practice, YLE’s funding in 2027 would be EUR 47 million lower than if the index increases were carried out. The value-added tax paid by YLE on its appropriation would be changed from the current 10 per cent tax rate to a 14 per cent tax rate from the start of 2026. The impact of this increase would be about EUR 19 million a year.

The working group also tasked the Government with examining the basis for the public broadcasting tax to ensure that YLE’s appropriation and the revenue from the tax correspond more closely to each other in future.

The parliamentary working group proposed amendments to the Act on the Finnish Broadcasting Company concerning security of supply and transparency. YLE's duties under the act would be supplemented so that, in addition to operating television and radio broadcasting, YLE would be obligated to prepare for other broadcasting in emergency conditions.

A new section would be added to the act providing that YLE would in future be obligated to actively publish information on its activities and finances as extensively as possible. The publication of information would be subject to other legislation, such as source protection. YLE’s Administrative Council would oversee the implementation of the transparency obligation.

The working group also proposed that YLE should increase its acquisitions of domestic productions from independent producers as well as acquisitions of production services and other domestic remuneration. Purchases should be increased by 15–20 per cent by 2030 compared to the average of corresponding purchases during 2021–2023.

The working group tasked the Government with examining the regulatory environment for commercial media. In addition, the Government is to ensure that support for newspaper delivery continues in order to safeguard the availability of information and the diversity of news services. 

The working group highlighted the investment obligation for on-demand programme services laid down in EU legislation and encouraged the Government to carry on with work to enact a national investment obligation in Finland. It also tasked the Government with looking into concrete measures to promote commercial media. In particular, the findability of domestic media services should be improved in line with the EU's Audiovisual Media Services Directive. The working group also proposed putting production incentives for the audiovisual industry on a permanent footing.

Working group established under Government Programme

The Government established the parliamentary working group on 12 October 2023 in accordance with the Programme of Prime Minister Petteri Orpo’s Government. The working group was tasked with evaluating YLE’s funding, its relationship with commercial media and the need to amend the Act on the Finnish Broadcasting Company.

The parliamentary working group consisted of representatives of all the parties in Parliament. The working group was chaired by Member of Parliament Matias Marttinen (National Coalition Party). The working group met 33 times. In its meetings, it consulted a wide range of media companies, organisations, researchers and other stakeholders.

The Act on the Finnish Broadcasting Company lays down provisions on YLE’s activities and public service duties. The Administrative Council, which consists of Members of Parliament from parliamentary parties, is responsible for supervising YLE and for seeing to the implementation of YLE’s duties.

Established practice is that the preparation of changes to YLE’s duties, funding and supervision are carried out through a parliamentary process, in other words with the participation of every party in Parliament.

Next steps

Legislative projects will be launched to implement the amendments proposed by the parliamentary working group. The legislative amendments will be prepared by public officials at the Ministry of Transport and Communications and the Ministry of Finance. The reports required by the working group will also be started by public officials.

Inquiries:

Roosa Patrakka, Senior Specialist, [email protected], tel. +358 295 342 192
Eero Salojärvi, Senior Specialist, [email protected], tel. +358 295 324 123
Sini Wirén, Director of Unit, [email protected], tel. +358 295 342 532