Oireachtas Joint and Select Committees

Thursday, 12 October 2023

Public Accounts Committee

Appropriation and Expenditure of Public Moneys by RTÉ (Resumed): Discussion

9:30 am

Mr. Kevin Bakhurst:

I thank the committee for the invitation to attend today. It has been a number of weeks since we last met and a lot has happened in that time. I hope the significant number of documents that we have provided to the committee have been helpful.

Recent events have marked a turning point in RTÉ with regard to our standards of governance. We have seen how easily trust can be shaken and we understand the urgency of the job to restore that trust. Since I took office in mid-July, both I and the new leadership team, working with staff across the organisation, have been working to do all we can to expedite the urgent reforms required to restore confidence in RTÉ.

I am pleased to share with the committee some of the reforms that are already in hand. We are working at pace to deliver RTÉ's strategic framework plan to Government by the end of the month. That outline plan will form the basis for consultation with the public, public representatives and staff. It will set out the stall for a better RTÉ, one that is better for audiences and better for Ireland. As we move towards delivery of that outline strategy, the committee should know that the focus on immediate and long-lasting reform remains sharp. As the committee knows, I have appointed the new interim leadership team. Key decisions now come to that full leadership team, not least decisions regarding top presenter contracts. We are now operating with full transparency with the board and we are in the late stages of consultation on the new register of interests and register of external activities, both of which will be key to maintaining perceptions of integrity and impartiality. We have completed one staff survey and have just launched another seeking views and suggestions as to how we can improve our overall governance standards.

We are managing our finances carefully and working to cut costs in the face of declining revenue from the TV licence. Recent initiatives, such as the freeze on recruitment of staff and stopping discretionary spending, alongside deferring some investment in digital and capital projects, have saved several million euro. RTÉ's commercial performance has been good. While cash reserves are solid for the short term, clearly, long-lasting reform of the broken funding system is urgently needed.

RTÉ is fully committed to the many reviews in place. As supplied to the committee, the two Grant Thornton reports regarding the misstatement of earnings to Ryan Tubridy are now concluded. A further two investigations intoToy Show The Musical and the voluntary exit schemes conducted by RTÉ in 2019 and 2021 are nearing completion, and it is hoped to conclude these reports by the end of this month. It is also hoped that the Mazars inquiry into the usage of the barter account within RTÉ and other related matters will be finished by early November. Finally, the work of the other two Government-appointed expert advisory committees on governance and culture and on HR and contractors have commenced, and I have instructed all divisions that their work is to be given full and swift co-operation.

The committee will also have noted that Richard Collins has resigned as chief financial officer, CFO. Due to various legal restrictions, I am not in a position to comment further on that matter but I can assure the committee that I will be moving to advertise for the role of CFO as soon as possible. This will be a priority appointment for the permanent leadership team, alongside the appointment of a new commercial director.

We are grateful that it has been confirmed that RTÉ will receive €16 million from budget 2424. This follows on from the recommendation made by the Future of Media Commission that interim funding would be required pending a proper reform of the licence fee, and we extend thanks to the various Members of the Houses of the Oireachtas who have publicly supported the importance of public service media being properly supported and funded. It is critical that the funding of public service media in Ireland is put on a more stable footing. This not only affects RTÉ but also the independent sector, which RTÉ plays a very important role in sustaining and showcasing.

I commend staff across RTÉ on continuing to deliver high-quality programmes and content to very large audiences, including news coverage, investigative journalism, live sport, such as the Rugby World Cup, the record numbers using RTÉ Player and the highly successful new season of “The Late Late Show” with Patrick Kielty. I am determined that RTÉ will be transformed so the public, the Government and our partners can have full confidence in RTÉ and its management. We understand that in order to achieve that, we need to share a compelling and credible plan as to how the organisation must and will change.

As I said, I confirm that RTÉ hopes to provide an outline framework for strategic reform around the end of this month, with a commitment to delivering a more detailed and costed statement of strategy by early next year. A strategic change of this scale requires considerable levels of financial modelling and deliberation. Among the elements being explored is the sale of more of the campus, which is an issue several members expressed an interest in. We are awaiting more up-to-date valuations but early indications are that a complete sale of the Donnybrook campus is unlikely and the repurposing of the current site will not be without challenges and significant cost.

We must rebuild an RTÉ that is trusted and enjoyed, one that is relevant and loved, and one that brings the country together for important national moments and events. Public service content, value for money and trust will be at the heart of a transformed RTÉ. My team and I are committed to the work that is required to deliver that.