Oireachtas Joint and Select Committees

Wednesday, 22 May 2013

Joint Oireachtas Committee on Transport and Communications

Budgetary Position and Editorial Policy: Discussion with RTE

10:15 am

Ms Breda O'Keeffe:

I thank Deputy Colreavy for stating that RTE is doing a good job. It is welcome to have that recognised.

In terms of low-hanging fruit, the orchard is definitely bare. We will report a deficit in excess of €60 million for 2012, the majority of which has to do with a one-off, large restructuring charge. That charge was necessary to downsize RTE yet again. In 2013, our cost base will be in the order of €314 million, almost 30% lower than it was in 2008. This is significant. We have tried to make cuts strategically so that they do not affect the audience. Obviously, the audience sees the effect, but it is a question of minimising that effect.

It is important to note that, in making the cuts, one of the metrics we used related to the first-run hours of transmission of indigenous-made programmes. We have worked on maintaining those hours. Although there has been a reduction, it has amounted only to approximately 6% on RTE 1 and RTE 2. We have focused the cuts on other areas where, as far as is possible, programme output is not affected. However, making cuts of this level eats into the programmes and the types of programme we make.

RTE's restructuring in 2011 and 2012 has reduced our headcount by 20%, lowering our operating cost base to a sustainable level for 2013 and beyond. As to whether we need to do more, we must watch the income landscape and how we perform in that respect. The restructuring has assisted us in our target of breaking even in 2013.