Government to withhold 40m euro funding until RTE produces reform plan

Irish Media Minister Catherine Martin has said she is withholding additional funding of 40 million euro from national broadcaster RTE until it produces its strategic vision for reform.

She added that the station will need to make cost savings of a further 21 million euro due to a fall in TV licence receipts.

Ms Martin said separate interim funding of just 16 million euro will be allocated to RTE in supplementary estimates before the end of the year.

RTE was plunged into crisis in June when the broadcaster revealed it had not correctly declared fees to its then-highest-paid earner, Ryan Tubridy.

The scandal widened as a series of other financial and governance issues emerged.

Earlier this year, prior to the emergence of controversies, RTE submitted a request for 34.5 million euro in additional interim funding for next year.

Since then, its revenues have taken a further major hit, with the broadcaster experiencing multimillion euro losses due to a fall in TV licence payments in the wake of the controversies.

Ms Martin told a post-Budget press conference that the State’s financial advice body, NewERA, had recommended 16 million euro in funding for RTE, in line with the recommendations of the Future of Media Commission.

She said it had also recommended an additional 40 million euro in relation to the shortfall of TV licences, but that is currently being withheld.

On withholding the 40 million euro, Ms Martin said: “That’s the piece where we need the strategic vision. So, we’re not committing to doing that until we see the reform plan.”

Ms Martin said she believes RTE’s director-general, Kevin Bakhurst, will produce a reform plan for the crisis-hit broadcaster in late October or early November.

She added: “The funding is still not going to be allocated in any shape or form until we see that strategic vision.”

The minister also revealed that the 40 million euro would not completely cover the projected shortfall in TV licence revenues of 61 million euro this year and next year.

She said this comes from a projected shortfall of 21 million euro in 2023 and a further 40 million euro next year.

The broadcaster operates on a dual-funding model, with approximately 55% of its income – or 200 million euro a year – brought in by way of the obligatory licence fee, which costs 160 euro a year for Irish households with a television.

Approximately 85% of revenue from TV licence fees goes to RTE to carry out its public service broadcasting commitments. It also earns money through commercial operations.

Asked about the 21 million euro gap between the withheld funding and the total shortfall, Ms Martin said RTE would need to make up the difference in cost savings.

She added: “Or it could be the case that TV licence figures recover.”

She said the 40 million euro funding would not be provided if the reform plan is not adequate.

“We want to see further cost-saving measures but also cost efficiencies where we’ve seen examples of waste,” she said. “We want to see a proper public service broadcaster.”

Ms Martin said any measures for privatisation or the closure of regional offices would be operational decisions for the director-general but added she did not want to see compulsory redundancies.

Asked about voluntary redundancies, she said this would require further assessment if it was suggested by RTE.

She said she has also asked for the strategic vision to include an analysis of the cost of leaving RTE’s Dublin campus in Donnybrook.

Elsewhere, the broadcaster confirmed that its chief financial officer, Richard Collins, has resigned.

Mr Bakhurst delivered the update to staff on Wednesday.

“Richard Collins has tendered his resignation as CFO of RTE. Richard will work on a handover and RTE is in the process of identifying a replacement CFO,” RTE said in a statement.

“Richard will assist in any ongoing processes to the extent that this may be required.

“We wish to thank Richard for his hard work and contribution to RTE over the past three years and to wish him every success in the future.”

Mr Collins was one of the RTE executives who appeared before Oireachtas committees to answer questions about the controversy engulfing the broadcaster.

In one committee appearance, Mr Collins said he was not sure what exactly he was paid, before stating that it was “in and around” 200,000 euro.

Mr Bakhurst had said in July that Mr Collins would be “working with us now for another couple of weeks” to help RTE provide documents to committees.

Ms Martin said she was informed by the director-general earlier this week that Mr Collins was likely to be leaving RTE, adding that she had no role in individual employment matters within the broadcaster.

She said she was not aware if Mr Collins received an exit package.

Asked if she was concerned about further revelations emerging following his resignation, Ms Martin said “light will probably be shed on that tomorrow” when RTE officials appear before the Public Accounts Committee.