Mr. Adrian Lynch:

As interim deputy director general, I thank the Cathaoirleach and members of the committee for the opportunity to appear again before them today. The misstatement of fees paid to Ryan Tubridy by RTÉ has precipitated the single biggest crisis in the history of RTÉ. RTÉ takes full responsibility for these misstatements and the events that led to them.

In relation to 2017, 2018 and 2019, how or why these inaccuracies occurred is the subject of Grant Thornton's current review. We await the findings and are committed to taking appropriate action in response and to update this committee again. Again, to be clear, RTÉ takes full responsibility for these misstatements. In relation to the misstatements for 2020 and 2021, for which RTÉ takes full responsibility, a number of comments were made in this chamber on Tuesday which we feel bear clarification. First, regarding the e-mail that was sent by the former CFO of RTÉ to NK Management on 20 February 2020, RTÉ does not accept that a contractual commitment was given to underwrite the commercial agreement in this e-mail. Second, regarding the proposal to underwrite Mr. Tubridy's payments, RTÉ again states that the request was known within RTÉ. However, the commitment to do so was not widely known. RTÉ’s position is that until the verbal commitment was given by the former director general during the call of 7 May 2020, it had not agreed to underwrite the €75,000 payment per contract year. Third, in relation to some of the commentary made here last Tuesday, RTÉ must clarify that the proposal to underwrite these payments was central to the contractual negotiations between RTÉ and Mr. Tubridy. We believe that the substantive contract would not have been signed without the additional commercial agreement or the underwriting. Moreover, we contend that the payments of €75,000 per year for the second and third year of the commercial contract were pursued by NK Management despite it knowing that the Renault contract was no longer in place.

Having addressed those issues, it is crucial that the newly constituted interim leadership team, under the leadership of the newly appointed director general, Mr. Kevin Bakhurst, is fully focused on understanding how failures in culture, transparency and governance allowed these circumstances to come about, including by participating in the Government’s announced reviews and responding to the requests and queries of this committee.

I assure the committee that, arising from the regrettable events of recent weeks, clear and transformative lessons have already been learned. First, on governance, we have learned that silent structures at executive board level meant that RTÉ was particularly vulnerable to single points of failure in respect of key decisions and financial oversight. That will change with a review of general governance and a detailed review of procedures on approving payments. This will involve changes on the financial limits relating to approvals, and new checks and balances will apply in financial systems across the organisation at all levels. Second, on separation, RTÉ will never again act as an intermediary or broker between a presenter and a third party. All contractual arrangements will be captured in writing in a single contract without side letters. Third, on transparency, RTÉ will be transparent and consistent around the disclosures of top earnings. We are determined to change the culture around how we deal with agents and third parties with a view to conclusively bringing down the fees to top earners and placing them within a clear framework for deciding what those fees should be. Moreover, the register of interests will be a vital tool in the march towards greater transparency.

One aspect that has garnered attention here and in the media is the barter account. The barter account is a useful commercial trading tool. It generates income that is reinvested in public service media. It will continue to do this but purchases by RTÉ against the account ceased in April and will no longer return. Surpluses from the account will simply be cashed out, returned to group revenue and reinvested. Where client representation is required, this will be from a separate budget line, which is to be agreed with central finance oversight.

We must now focus on RTÉ’s future, one that is worthy of our talented hardworking staff, restores the trust and confidence of the Irish public and befits the fundamental role of public service media to our community and democracy. We are committed to emerging as an RTÉ with the structures, attitudes, culture and operations to make that future happen.