Oireachtas Joint and Select Committees
Thursday, 9 July 2026
Public Accounts Committee
Raidió Teilifís Éireann - Exchequer Funding, Governance, Oversight and Reforms
2:00 am
John Brady (Wicklow, Sinn Fein)
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Today, we are engaging with Radió Teilifís Éireann, RTÉ, in advance of its coming into the remit of the C and AG and being directly accountable to the public accounts committee.
On behalf of the committee, I welcome officials from RTÉ: Mr. Kevin Bakhurst, director general; Mr. Adrian Lynch, deputy director general and director of audiences, channels and marketing; Ms Annette Malone, chief people officer; Ms Eleanor O'Shaughnessy, chief risk and compliance officer; and Mr. Robert Shortt, company secretary. We are also joined by officials from the Department of Culture, Communications and Sport, who are attending in a representative capacity: Mr. Stephen Ryan, principal officer, public service media governance and policy unit; and Mr. Adam Larragy, principal officer, public service media financing and performance unit. Finally, we are joined by officials from the Office of the Comptroller and Auditor General, including Mr. Seamus McCarthy, Comptroller and Auditor General, who is a permanent witness to the committee, and Ms Paula O'Connor, deputy director of audit. They are all very welcome.
Before we begin, I wish to explain some limitations to parliamentary privilege and the practice of the Houses as regards references witnesses may make to other persons in their evidence. The evidence of witnesses physically present or who give evidence from within the parliamentary precincts is protected, pursuant to both the Constitution and Statute, by absolute privilege. This means witnesses have an absolute defence against any defamation action for anything they say at the meeting. However, they are expected not to abuse this privilege and it is my duty as Cathaoirleach to ensure this privilege is not abused. Therefore, if witnesses' statements are potentially defamatory in relation to an identifiable person or entity, they will be directed to discontinue their remarks. It is imperative they comply with any such direction.
Witnesses are also reminded of the long-standing parliamentary practice that they should not criticise or make charges against any person or entity by name or in such a way as to make him, her or it identifiable or otherwise engage in speech that might be regarded as damaging to the good name of the person or entity.
I call the Comptroller and Auditor General, Mr. McCarthy, to give his opening statement.
Mr. Seamus McCarthy:
I obviously do not comment on RTÉ financial statements as of yet, but I will briefly refer to Vote 33 - Tourism, Culture, Arts, Gaeltacht, Sports and Media appropriation account, which is or was the source of funding for RTÉ in 2024.
The 2024 appropriation account for Vote 33 is presented under five expenditure programme headings that reflect the breadth of the Department's remit at the time. Programme E, broadcasting, recorded expenditure totalling €304.5 million in 2024. This included funding of €205.5 million issued to RTÉ in the year, from two programme subheads. Teilifís na Gaeilge received €61.5 million and the broadcasting fund, managed by Coimisiún na Meán, received €19.3 million.
Subhead E7 is titled Coimisiún na Meán and was previously used to fund the agency's activities before it began to receive industry levy income. The charge of €4.3 million reported for 2024 relates to payment by the Department of fines for late transposition of the 2018 EU audiovisual media services directive.
I drew attention to this loss in my audit report, and the committee may wish to pursue that matter with the Accounting Officer on another occasion.
Expenditure under the broadcasting programme is linked to the receipt of appropriations-in-aid from sales of television licences through An Post, and a contribution from the Department of Social Protection in respect of free TV licences for State pensioners. The TV licence receipts in 2024 totalled just under €195 million. This represented a drop of 3.2% on the €201 million received in 2023, and a cumulative drop of 11.8% from the €221 million in 2022.
Arising from standard Government accounting rules, the licence fee income is not formally ring-fenced for any specific purpose. However, there is statutory provision for the Minister for Culture, Communications and Sport to provide funding to RTÉ and to the broadcasting and media fund of amounts equivalent to the receipts. Subhead E3 is the licence-related funding for RTÉ, and amounted to €173.5 million in 2024. Separately, RTÉ received funding of €32 million under subhead E8, which represents Exchequer funding.
As members will be aware, the Broadcasting (Amendment) Bill 2026 proposes to provide a mandate for the audit by my office of RTÉ's financial statements and the establishment of direct accountability for the director general to this committee in respect of financial matters and value for money. I already audit TG4 and Coimisiún na Meán.
Significant changes are also proposed in the Bill in relation to the oversight of RTÉ and TG4 by Coimisiún na Meán and by the Department, and in relation to the operation of the broadcasting fund. Ensuring effective and practical reforms that strike the right balance between necessary operational independence for public service broadcasters and meaningful public accountability by their management is a complex challenge.
I understand the Bill is currently before Dáil Éireann. In anticipation of the passing of the Bill, staff from my office have met with the director general and other senior RTÉ officials to discuss practical steps we can take now to ensure that interim audit work in anticipation of the 2026 financial statements can commence at the earliest possible time. The focus of this early engagement is on overall systems and controls and the broader operating environment of RTÉ. Review of detailed financial or governance records or other data depends on the audit provisions of the Bill being enacted and commenced. I will keep the committee informed of developments in this regard, as required. I apologise for my non-broadcast-quality voice this morning.
John Brady (Wicklow, Sinn Fein)
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I thank Mr. McCarthy. Before I ask the director general to make his opening statement, I want to acknowledge the offer he made to come before our committee this morning. It was an offer we were only too glad to accept. The last time Mr. Bakhurst appeared before the committee was in 2023 and I am conscious that the necessary legislation to bring RTÉ under the remit of the Comptroller and Auditor General, and to ensure there is proper scrutiny from the Committee of Public Accounts, is making its way through the process and is due to move to Committee Stage in September. That legislation is necessary. It is critical to ensure that the serious issues we will discuss today at length can be properly and forensically reviewed through the Office of the Comptroller and Auditor General and properly scrutinised and held to account by the committee.
Mr. Bakhurst has engaged with the Office of the Comptroller and Auditor General in advance of this legislation going through and I am sure that openness will be shown here today. I am sure if there are any other issues that may be of concern in RTÉ, which will, ultimately, come out through the auditing by the Office of the Comptroller and Auditor General and potentially end up here before the committee, that Mr Blackhurst will be open and transparent with members today.
I ask Mr. Bakhurst, as set out in the letter of invitation, to deliver his opening statement, for which he has five minutes.
Mr. Kevin Bakhurst:
I thank the committee for the invitation to attend today. RTÉ fully recognises the committee's interest in the management of public funds and in the governance and accountability arrangements that underpin public service media. We welcome the opportunity to update the committee on the significant reforms undertaken over the past few years, the progress made in strengthening governance and oversight and the steps being taken in advance of the extension of the Comptroller and Auditor General's remit to RTÉ.
RTÉ’s latest attendance at this committee was in October 2023. I am pleased to assure committee members that since that time significant governance reforms have been undertaken, the new direction strategy is being implemented, there has been a strengthening of our financial position and a new organisation culture is being formed. In 2023, public trust in RTÉ fell to a record low. Thanks to the work I have just outlined, and the dedication and commitment of colleagues in the organisation and, indeed, the independent sector, we have made good gains in trust restoration, with public perceptions of the value that RTÉ offers to society now at a level higher than before the crisis.
The reforms undertaken since 2023 have not been about governance for its own sake; they have been about restoring trust, strengthening accountability and ensuring that RTÉ can continue to deliver value to the public. Significant progress has been made, although important work remains to be done. We are committed to completing that work and to ensuring that RTÉ operates to the highest standards of transparency, governance and public accountability. We have completed almost 80% of the expert advisory committee recommendations from 2024. The remaining elements are being implemented and embedded through enhanced assurance mechanisms, with completion expected during 2027.
On the HR front, the substantial review of employee classifications is also almost complete. RTÉ’s policy of employment first has extended to on-air presenters, with the transitioning of more than 30 presenters to employment, refining approval protocols and aligning all contractor decisions with employment legislation and best practice. Parallel progress has been achieved in concluding PRSI classification matters with the Department of Social Protection, with 90% of cases finalised and key appeals successfully informing future determinations. New processes in operation should ensure that kind of ambiguity never arises again. The new remuneration policy, which incorporates the expert advisory committee's recommendations, was formally approved by the board earlier this year. More work lies ahead to ensure that our remuneration framework, aligned with the organisation’s new role and grade review, is clearer and offers clear pathways for those who wish to progress further.
Historical employment and contracting arrangements within RTÉ evolved over many decades and, in some cases, lacked the consistency and clarity that would rightly be expected today. Addressing these legacy arrangements is complex, particularly in an organisation with over 160 employment grades and multiple categories of engagement. Nevertheless, the RTÉ leadership team remains committed to resolving outstanding issues transparently, ensuring compliance and providing a fair and consistent framework for staff and contractors alike.
In terms of where we are strategically and financially, we are now in the second year of the new direction strategy. A formal transformation programme has been devised and continues to be executed with oversight from the RTÉ board. We have continued to develop our digital offering. The RTÉ Player is now attracting record numbers, we have just launched our new news app, with 3.1 million downloads to date and approximately 700,000 unique users a week, and in the coming months will be launching our new audio app, which will feature new podcasts as created and commissioned by our podcast unit.
RTÉ has reversed the trend of reporting deficits and strengthened our financial position. This result has been driven by tighter cost controls and supported by our new commercial strategy, which has driven digital revenue and is paying dividends. It is underpinned by the multi-annual funding commitment that was made in 2024. That certainty has enabled proper planning and contracting and we appeal very strongly that a similar commitment be made in 2027 when this next comes up for review. As highlighted by a recent review undertaken by Coimisiún na Meán, there remains a recognised funding challenge for public service media in Ireland. The commitment to the first multi-annual funding agreement was a critical step in addressing this funding volatility.
For its part, RTÉ is delivering, as evidenced in the formal performance commitments which we have supplied to the committee. RTÉ met 96% of its performance commitments in 2025, compared with 90% in 2024.
This reflects continued improvement in the organisation's ability to translate strategic objectives into measurable delivery. Our capital investments and strategic projects work is on budget and on track. The new HR system was tendered for last year and is expected to be completed in early 2027. This will be a valuable tool in generating better quality real-time data and reporting on a range of HR-related issues.
It is also worth highlighting that all of this work continues within a robust structure of oversight, reporting and accountability, as illustrated in the briefing note supplied. The C and AG has formally commenced the audit of RTÉ's financial statements, with effect from 1 July 2026, in anticipation of the enactment of the Broadcasting (Amendment) Bill 2026. Strengthened governance structures, enhanced financial controls, expanded audit and risk oversight, improved reporting arrangements and greater transparency are all intended to ensure that RTÉ is fully prepared for this important change in accountability.
RTÉ continues to offer a valued public service. Access to news and current affairs, national culture, sport, content in the Irish language and the broader provision of programming of public service value form the bedrock of the New Direction strategy and the promises made by RTÉ in relation to the funding agreement made in 2024. RTÉ delivered 45 of the 50 most watched television programmes in 2025. It serves over 2 million radio listeners each week and, along with local radio, it is jointly the country's most trusted news source. Alongside this, we continue to invest in Irish language content and provide a wide array of free-to-air sports, original drama and investment in the independent production sector. These outcomes demonstrate the public value that RTÉ continues to provide. The momentum around organisation transformation continues. We are committed to ensuring that RTÉ remains relevant and viable and a key part of life in Ireland.
John Brady (Wicklow, Sinn Fein)
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I thank Mr. Bakhurst. We will suspend the meeting at about 12.45 p.m. for a break of 15 minutes or thereabouts. We will resume shortly afterwards. I now open the floor to members. The lead speaker today is Deputy Boland, who has 15 minutes. All other speakers will have ten minutes. If time permits, we will allow members back in for a shorter second round of supplementary questions.
Grace Boland (Dublin Fingal West, Fine Gael)
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The witnesses are all very welcome. I am very glad to hear the radio figures. It is clear that video has not killed the radio star. That is very positive. In an age of misinformation and disinformation, trust in media sources has never seen so important. We are three years into these reforms but I am not hearing a credible plan for RTÉ to sustain itself. What does that look like? What will RTÉ look like? Will it continue to need to rely on State funding?
Mr. Kevin Bakhurst:
As we know, in the case of RTÉ, public service media is funded by both public funding and commercial funding. That has been the case for decades. We are driving commercial funding as hard as we can but, in the end, in our view, public service media is a public good and requires public investment. The Deputy touched on trusted news and current affairs programming. An awful lot of what we provide is not commercially attractive. It is a public service. In my view, it is a really important part of what a public service media organisation provides to society. There is a decision for every society to make, which is-----
Grace Boland (Dublin Fingal West, Fine Gael)
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What is the number RTÉ will be going to the State with in 2028?
Grace Boland (Dublin Fingal West, Fine Gael)
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It is two years out.
Grace Boland (Dublin Fingal West, Fine Gael)
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Surely RTÉ has made some assessment as to what it is likely to-----
Grace Boland (Dublin Fingal West, Fine Gael)
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Is the plan that there will always be a need for a substantial amount of funding from the State?
Grace Boland (Dublin Fingal West, Fine Gael)
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Can RTÉ reduce its costs?
Grace Boland (Dublin Fingal West, Fine Gael)
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After three years of reform, I am not hearing the plan.
Grace Boland (Dublin Fingal West, Fine Gael)
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Will the amount of public funding be reduced as RTÉ gets its house in order?
Mr. Kevin Bakhurst:
There are choices to be made by the regulator, the Oireachtas and the Government. We have a very wide remit to deliver, much of which costs quite a lot of money but makes no money commercially. This includes Irish-language content, arts and culture, news and current affairs, investigative journalism and high-quality documentaries. None of those are cost free. They need some sort of public funding. Whether that public funding comes via the current licence fee arrangement with some direct funding or via a new way of funding the organisation will, in the end, be a question for the Department, the Oireachtas and this committee. However, we will need public funding unless we drastically reduce our remit, which is not our intention at the moment.
Grace Boland (Dublin Fingal West, Fine Gael)
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Let us get into the organisation. I understand that there is another external consultation ongoing into the review of the organisation, the news production media division and other divisions. When and why were those consultants appointed?
Grace Boland (Dublin Fingal West, Fine Gael)
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When were these consultants appointed?
Grace Boland (Dublin Fingal West, Fine Gael)
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That had not been done previously. There had been no review of the news organisation. Is that correct?
Grace Boland (Dublin Fingal West, Fine Gael)
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Will the final report be published?
Grace Boland (Dublin Fingal West, Fine Gael)
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It will be published publicly.
Grace Boland (Dublin Fingal West, Fine Gael)
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In the procurement of such services, does RTÉ comply with the same rules as other State organisations?
Grace Boland (Dublin Fingal West, Fine Gael)
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It is fully compliant.
Grace Boland (Dublin Fingal West, Fine Gael)
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On procurement in general, something the committee considers is whether any element of a Department's or agency's procurement is non-compliant. Does Mr. Bakhurst have an assessment of the level of non-compliant procurement in RTÉ? Every agency has some level.
Grace Boland (Dublin Fingal West, Fine Gael)
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Does Mr. Bakhurst have a number for me?
Grace Boland (Dublin Fingal West, Fine Gael)
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RTÉ would be the only organisation or Department to come before this committee that did not.
Grace Boland (Dublin Fingal West, Fine Gael)
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I would appreciate it if RTÉ were to write to the committee to follow up.
Grace Boland (Dublin Fingal West, Fine Gael)
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What is the optimal number of employees?
Grace Boland (Dublin Fingal West, Fine Gael)
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I am struggling here. After three years of not hearing about a proper financial operating model or plan, I am not hearing a target number of employees.
Grace Boland (Dublin Fingal West, Fine Gael)
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I am not hearing figures. I am not hearing the numbers.
Grace Boland (Dublin Fingal West, Fine Gael)
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Where are we with that?
Grace Boland (Dublin Fingal West, Fine Gael)
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How many availed of voluntary redundancy last year?
Grace Boland (Dublin Fingal West, Fine Gael)
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When did RTÉ submit the voluntary redundancy scheme for this year to the Department of Culture, Communications and Sport?
Grace Boland (Dublin Fingal West, Fine Gael)
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It is now July. When did RTÉ submit it?
Grace Boland (Dublin Fingal West, Fine Gael)
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No. When did RTÉ submit the application for 2027?
Grace Boland (Dublin Fingal West, Fine Gael)
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That is a bit late.
Grace Boland (Dublin Fingal West, Fine Gael)
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How many people is it envisaged will avail of redundancy under the scheme?
Grace Boland (Dublin Fingal West, Fine Gael)
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What is the number?
Grace Boland (Dublin Fingal West, Fine Gael)
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How are we ever going to get to 400?
Grace Boland (Dublin Fingal West, Fine Gael)
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Why is it being done piecemeal at a snail's pace?
Grace Boland (Dublin Fingal West, Fine Gael)
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Mr. Bakhurst is saying that people are not applying for redundancy.
Grace Boland (Dublin Fingal West, Fine Gael)
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It does not really add up.
Mr. Kevin Bakhurst:
Sorry; as you change the organisation, you cannot let people go until you put some content out into the independent sector. That cannot be done overnight. You cannot put stuff into the independent sector until people have exited the organisation. It has to happen over a period of time as you change the organisation.
Grace Boland (Dublin Fingal West, Fine Gael)
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The transformation programme is becoming a permanent programme.
Grace Boland (Dublin Fingal West, Fine Gael)
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Let us move on to outsourcing as against in-house production. Does RTÉ prepare full business cases comparing the costs of in-house production against the costs of outsourced production for every single programme that is outsourced?
Does RTÉ publish those business cases?
Mr. Kevin Bakhurst:
We do a business case for each programme but, as the Deputy will be aware, public value is not only a question of cost, which is extremely important, but also a question of delivering the best quality programme for our audiences, so there are a number of factors that go into those decisions. It is not simply the cost because the value of something is not just how much we pay for it; it is what the value is to the audience as well. The answer is that for each individual major programme that is outsourced, or major area that is outsourced, we absolutely do a business case.
Grace Boland (Dublin Fingal West, Fine Gael)
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For example, as regards "Up for the Match", was there a cost-benefit analysis of-----
Grace Boland (Dublin Fingal West, Fine Gael)
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What was the result of that? How much money is RTÉ saving by outsourcing?
Grace Boland (Dublin Fingal West, Fine Gael)
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Is that necessary? Is it actually costing more to outsource?
Grace Boland (Dublin Fingal West, Fine Gael)
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At a time when RTÉ-----
Mr. Kevin Bakhurst:
Sorry, may I just have a chance to answer the question, please? You take creative decisions on what is best for the audience. "Up for the Match" has not changed for a number of years. It is a programme that is pretty successful. We think it could be more successful and more ambitious, so the way we have done that is to put it out for ideas to the independent sector. There was a proper process that was gone through and a request for ideas. We chose the very best creative idea, and that is live from Croke Park. If you do an outside broadcast, OB, it inevitably will add a bit of cost to it, but it will be a better programme for the audience. That is the objective.
Grace Boland (Dublin Fingal West, Fine Gael)
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It would be very important that RTÉ write to this committee and give us an overall figure in terms of all the programmes that have been outsourced and whether there is any cost saving to RTÉ in the outsourcing of those programmes.
Grace Boland (Dublin Fingal West, Fine Gael)
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Of outsourcing.
Grace Boland (Dublin Fingal West, Fine Gael)
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What is the cost saving?
Grace Boland (Dublin Fingal West, Fine Gael)
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I asked Mr. Bakhurst what the cost saving is. I want to know what the cost saving is of outsourcing these programmes.
Grace Boland (Dublin Fingal West, Fine Gael)
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When you do a cost-benefit analysis-----
Grace Boland (Dublin Fingal West, Fine Gael)
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-----you assess how much it costs-----
Grace Boland (Dublin Fingal West, Fine Gael)
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-----to in-house it and you assess how much it is going to-----
Grace Boland (Dublin Fingal West, Fine Gael)
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But my understanding is that part of outsourcing these was to achieve some cost-----
Grace Boland (Dublin Fingal West, Fine Gael)
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-----reduction or cost-efficiency.
Grace Boland (Dublin Fingal West, Fine Gael)
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So there is no cost saving to the taxpayer whatsoever.
Grace Boland (Dublin Fingal West, Fine Gael)
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I want to know what that total figure is, whether it is-----
Grace Boland (Dublin Fingal West, Fine Gael)
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Yes, but I want to know whether it is a minus or a plus to the taxpayer on the cost-benefit analysis.
Grace Boland (Dublin Fingal West, Fine Gael)
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Okay, let us move on.
Grace Boland (Dublin Fingal West, Fine Gael)
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No, sorry. We are moving on.
Grace Boland (Dublin Fingal West, Fine Gael)
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I want to move on to transport and hospitality. Is there a framework as to the use of limousines and why someone would be offered a limousine as opposed to a taxi?
Grace Boland (Dublin Fingal West, Fine Gael)
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It is a documented business case.
Grace Boland (Dublin Fingal West, Fine Gael)
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Is the procedure one that any employee of RTÉ could find so they would know whether-----
Grace Boland (Dublin Fingal West, Fine Gael)
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RTÉ does not have a written procedure as to the use of taxis and limousines.
Grace Boland (Dublin Fingal West, Fine Gael)
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Why does RTÉ not have a written procedure?
Grace Boland (Dublin Fingal West, Fine Gael)
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That is not good enough. You have to have clear written procedures to avoid abuse.
Grace Boland (Dublin Fingal West, Fine Gael)
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But how do people know?
Grace Boland (Dublin Fingal West, Fine Gael)
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Are any employees of RTÉ ever eligible for limousines?
Grace Boland (Dublin Fingal West, Fine Gael)
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Why a limousine over a taxi?
Grace Boland (Dublin Fingal West, Fine Gael)
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The cost difference is huge.
Mr. Kevin Bakhurst:
It is not huge, actually. If you book a taxi and it has to wait for a few hours, it is not necessarily a huge difference in cost. The Deputy will have seen from the documents we have provided that our spend on professional drivers has gone down 50%, roughly, in the past three years, so there is a tight control-----
Grace Boland (Dublin Fingal West, Fine Gael)
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RTÉ is in a crisis.
Grace Boland (Dublin Fingal West, Fine Gael)
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It is supposed to be tightening its belt, so I am not going to applaud Mr. Bakhurst for that.
Grace Boland (Dublin Fingal West, Fine Gael)
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Are taxis not sufficient for them?
Grace Boland (Dublin Fingal West, Fine Gael)
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What are these non-taxable hospitality vouchers-----
Grace Boland (Dublin Fingal West, Fine Gael)
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-----that employees avail of? There is about €2.5 million in non-taxable hospitality vouchers. Can anyone speak to them?
Grace Boland (Dublin Fingal West, Fine Gael)
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I do not know what they are either. That is why I am asking Mr. Bakhurst.
Grace Boland (Dublin Fingal West, Fine Gael)
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What?
Grace Boland (Dublin Fingal West, Fine Gael)
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Mr. Bakhurst does not know where €2.5 million is going.
Grace Boland (Dublin Fingal West, Fine Gael)
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Yes.
Grace Boland (Dublin Fingal West, Fine Gael)
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These are non-taxable vouchers issued to employees. What is the procedure around that? What is the framework? The witnesses cannot even tell me where €2.5 million is going.
Grace Boland (Dublin Fingal West, Fine Gael)
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Sorry. There was a substantial increase over 2023. It was €1.2 million in 2023 and increased to €2.4 million in 2024.
Grace Boland (Dublin Fingal West, Fine Gael)
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Sorry, a voucher for what?
Grace Boland (Dublin Fingal West, Fine Gael)
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Then why is €319,000 of that down here as business?
Mr. Kevin Bakhurst:
Some of those would involve staff who would get hospitality vouchers to use in the RTÉ canteen if, for example, they have guests in or children in for a particular programme or whatever. They can use that to pay for food and drink inside RTÉ or, for example, for guests who come in for some of the big programmes where there is hospitality.
Grace Boland (Dublin Fingal West, Fine Gael)
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This is a continuing liability, so is there a framework around the use of these vouchers?
Grace Boland (Dublin Fingal West, Fine Gael)
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A written framework?
Grace Boland (Dublin Fingal West, Fine Gael)
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Can Mr. Bakhurst please provide that to the committee?
Grace Boland (Dublin Fingal West, Fine Gael)
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In terms of Montrose, what is the plan?
Mr. Kevin Bakhurst:
The plan, which we are in the middle of trying to deliver at the moment, is that we are going to downsize in Montrose to one end of the campus and try to dispose of the rest of the campus. We are going to be in a smaller premises on Montrose within the next six or seven years, hopefully.
Grace Boland (Dublin Fingal West, Fine Gael)
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When will we see the plan?
Grace Boland (Dublin Fingal West, Fine Gael)
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RTÉ might update the committee-----
Mr. Kevin Bakhurst:
We absolutely will do so. This is going to be a significant thing for RTÉ because we do want to downsize and we want to reduce overheads, and that will be the appropriate thing to do as the organisation gets smaller. At the same time, we will be looking to sell a significant amount of the campus at Montrose as well in due course, which we obviously need to get Government permission to do. We have already entered into early discussions with the Land Development Agency about that.
Paul Murphy (Dublin South West, Solidarity)
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I thank the witnesses for coming before us. I want to start with TV licence payment and non-payment figures. Could the witnesses tell me the number of households that should be paying the TV licence, legally speaking, who are not currently, as both a total figure and a percentage?
Mr. Kevin Bakhurst:
I will give the Deputy the percentage figures. As he will have seen from the paper, there are three categories of people you would be looking at. There is the TV licence evasion rate, which is around 18%, and then there are the households that say they either do not have a TV or are using broadband to connect to the TV, which is a significant loophole in this country that overall, between them, has grown significantly. Those figures are 20% now.
Paul Murphy (Dublin South West, Solidarity)
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Mr. Bakhurst is saying 18% of those who should be paying their TV licence are not.
That is a significant understatement of the rate of non-payment, which is a combination of people not being able to afford to pay a regressive tax and a conscious boycott. I will give Mr. Bakhurst my figures. He can tell me where I am wrong from his perspective, and we can dig into it. The total number of potentially liable households in the State is 1.97 million. A total of 11% of those do not have TVs. That is minus 217,000. That leaves us at about 1.77 million. The Department of Social Protection pays for about 500,000 licences. That leaves us at about 1.25 million. A total of 768,000 people in 2025 paid for a TV licence. That leaves about 485,000 not paying who are eligible. The rate of non-payment rather than being 18% is 39%. Where have I gone wrong with that figure?
Paul Murphy (Dublin South West, Solidarity)
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It starts off at about 2 million and lose those who do not have TVs-----
Paul Murphy (Dublin South West, Solidarity)
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We start with about 2 million. About 217,000 do not have TVs. That leaves us with 1.77 million. The Department of Social Protection takes care of 500,000. We know 768,000 people pay the TV licence. That leaves about 485,000 who are not paying. A total of 485,000 out of 1.25 million is about 39% rate of non-payment.
Paul Murphy (Dublin South West, Solidarity)
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Yes. Is Mr. Bakhurst is saying that if a person has a TV that accesses the television channels via broadband, he or she is not eligible to pay the TV licence?
Paul Murphy (Dublin South West, Solidarity)
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Is Mr. Bakhurst saying that the Department, which issues ads saying, "If you have a television, you must have a TV licence", is wrong? These ads are played regularly on RTÉ. It says very clearly that if you have a TV, you must have a TV licence.
Paul Murphy (Dublin South West, Solidarity)
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Is Mr. Bakhurst saying that the tvlicence.ie website, which states that if you have a television, "it is your legal obligation to have a valid TV licence" is wrong?
Paul Murphy (Dublin South West, Solidarity)
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Let us forget about the tablet and player; this is about people with a TV. If I have a TV and I access web-only services and pay the TV licence, do I get my money back? I listen to all these ads telling me that if I have a TV, I have to pay a TV licence. The Government website says very clearly that if a household has a TV that it has to pay a TV licence. Do I get my money back?
Paul Murphy (Dublin South West, Solidarity)
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You do not get your money back, do you? Let us be honest.
Paul Murphy (Dublin South West, Solidarity)
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RTÉ is misstating the law in order to make-----
Paul Murphy (Dublin South West, Solidarity)
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Sure.
Mr. Adrian Lynch:
From a messaging point of view, you have got to be as clear as you can be. What this demonstrates is that technology has moved beyond the current legislation and how we capture it. That was gone into in detail in the Future of Media Commission. It was the biggest review of public service media in decades. There are all sorts of anomalies within the system. We all know that. From a messaging point of view, you cannot have all those nuances, I am sure the Deputy will appreciate, in a simple piece of commercial messaging.
Paul Murphy (Dublin South West, Solidarity)
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I believe RTÉ is misstating the nuances and I believe the reason it is doing it is to make the non-payment figures look less bad than they are. The Broadcasting Act 2009 states: ""television set" means any electronic apparatus capable of receiving and exhibiting television broadcasting services broadcast for general reception...". The key point is "capable of receiving and exhibiting". People do not have to be accessing TV via it, but the device needs to be capable. Any TV is capable of receiving these services.
Paul Murphy (Dublin South West, Solidarity)
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The incentive is to make it look like there is not a massive boycott of the TV licence happening, which is very clear.
Paul Murphy (Dublin South West, Solidarity)
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Almost one in two people are boycotting the TV licence for one reason or another rather than one in five.
Paul Murphy (Dublin South West, Solidarity)
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Interestingly, RTÉ changed its briefing. The original briefing that we got said one thing in terms of it. It stated "According to Nielsen that the estimated population of the proportion of households who are no TV homes stands at 424,000 or 20.8%." RTÉ updated its briefing to change that, because that is not accurate, to distinguish between 11% that are no TV - and we all agree that they do not have to pay the TV licence or legally they are not meant to pay the TV licence - and then it said that there are 10% who have a TV but receive their signal through broadband.
Paul Murphy (Dublin South West, Solidarity)
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Is it the Department's position that if a household has a TV and it is broadband only contrary to all the ads, it is not required to pay a TV licence?
Mr. Adam Larragy:
It is subtly in the definition of the web TV. The Deputy cited the definition of a "television set". The Act provides for exemptions. Two exemptions are set out in ministerial order. Exception one is a size exception, for example, small devices. The second exception is a technology exemption. A device capable of accessing television services by means of the publicly available Internet only would not be liable. In that category of web TV, that is probably subtly there for the individual while they might be accessing TV only via broadband, the television set might still be capable of receiving service. It might have digital TV tuner and could get Saorview. Regarding the individual's liability, it is for the individual to check if he or she has a liable television set. These are figures coming from a survey. When we get to the individual level, people would have to check. That is the position in terms of the exceptions.
Paul Murphy (Dublin South West, Solidarity)
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The Department does not accept that necessarily that the 11% or 10% who are described by Nielsen as being web-only that they are all exempt from it. If they go into a shop and buy a regular TV and they do not hook it up to any TV service, nonetheless if it has the capacity, they are meant to pay it.
Mr. Adam Larragy:
The overall category in the Nielsen study is useful. When we get down to the individual level, there is no data on the individual television itself. In fairness, it is a very important category because there will be a lot of people in that category whose television or the device that they have can only access services by broadband. There is a subtlety that within that category could be a certain number of people who, as the Deputy said, have purchased a smart TV with a digital tuner. When we get down to the granularity of the device, the issue is that these surveys are not a device granular survey. However, it is a very useful category to use because there will be a huge amount of those smart TVs and web TV households that have a TV that can only access via the broadband so it would not be liable. I would not want to give the impression that everyone within that category would or would not. We just do not know the types of TV sets that people have.
Paul Murphy (Dublin South West, Solidarity)
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If I go into a shop and look at the TV sets, the vast majority of TV sets that are TVs rather than computer monitors have the capability of accessing TV regularly. Is that not the case?
Paul Murphy (Dublin South West, Solidarity)
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I wish to go back to Mr. Bakhurst. Does he agree with the recommendation of the Future of Media Commission that "a taxation-based approach offers the best prospect for a sustainable, future-proofed, equitable and publicly acceptable funding model"? In other words, we should do away with this regressive TV licence and we should properly fund public broadcasting - RTÉ and others - by taxation.
Mr. Kevin Bakhurst:
This is never going to be a matter for RTÉ. It is going to be a matter for the Deputies in the Oireachtas and the Government. The Future of Media Commission's recommendations were extremely well-developed and thought through. The vast majority have been enacted. The Deputy touched on a point that is very important. There is a confusion about whether a licence is needed for some TVs. In the UK, if a person watches something via BBC iPlayer, they need a TV licence. Here if you watch something on the RTÉ Player, you do not.
Increasingly, we have got millions of people watching via the player, so there is a loophole there. There is no doubt that at the very least, what devices you watch it on and so on needs to be addressed.
The other thing I will say to the committee and to people is that it is called the TV licence but, do not forget, increasingly it pays for online content, the news app and radio content as well. It is not just about TV programmes. I know that it is based on the TV, as the Deputy spent a long time talking about, but it argues that it needs to be looked at to future-proof the legislation. Whether it is direct taxation, a household charge or a reformed version of the TV licence, it needs to be updated to reflect viewing habits.
Joanna Byrne (Louth, Sinn Fein)
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I will go back to RTÉ's transport services expenditure. I know some of this has been touched on already. We are looking at the figures in the correspondence provided by RTÉ to the committee and there was nearly €250,000 spent on limousine services over the past five years. What types of cars are they? Are they all limousines?
Joanna Byrne (Louth, Sinn Fein)
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Are limousines included in that?
Joanna Byrne (Louth, Sinn Fein)
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It is a "Yes" or "No" question.
Joanna Byrne (Louth, Sinn Fein)
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Surely, if RTÉ books a car, it specifies what type of car or category it needs.
Joanna Byrne (Louth, Sinn Fein)
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RTÉ does not specify the type of vehicle at all.
Joanna Byrne (Louth, Sinn Fein)
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Does RTÉ select which one-----
Joanna Byrne (Louth, Sinn Fein)
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That surely does not stack up. If RTÉ goes to book a car to bring a presenter, as Mr. Bakhurst alluded to earlier, who is being collected from the airport, if the driver turns up in a minivan that is able to facilitate equipment-----
Joanna Byrne (Louth, Sinn Fein)
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RTÉ does specify what type of car.
Joanna Byrne (Louth, Sinn Fein)
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Mr. Bakhurst just said that RTÉ does not.
Joanna Byrne (Louth, Sinn Fein)
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Does the senior leadership team of RTÉ avail of limousine services?
Joanna Byrne (Louth, Sinn Fein)
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Never, at all.
Joanna Byrne (Louth, Sinn Fein)
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Does Mr. Bakhurst?
Joanna Byrne (Louth, Sinn Fein)
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Coming to the taxis, we have been provided with correspondence for one taxi firm for 2025. Is that the only taxi firm that RTÉ uses?
Joanna Byrne (Louth, Sinn Fein)
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RTÉ has contracts with a couple of firms, but only the expenditure for one taxi firm was provided to us in correspondence.
Joanna Byrne (Louth, Sinn Fein)
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Did RTÉ use an additional taxi firm in 2025?
Joanna Byrne (Louth, Sinn Fein)
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There either was or was not. RTÉ was asked to provided the correspondence. We have been provided with-----
Joanna Byrne (Louth, Sinn Fein)
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-----€318,000 worth of taxi services with one taxi firm, and no Ubers or additional contracts.
Joanna Byrne (Louth, Sinn Fein)
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Was there anything additional to the €318,000 on taxis for 2025?
Joanna Byrne (Louth, Sinn Fein)
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I am going to move onto the World Cup qualifying match in Czechia. I know we covered some of this when Mr. Bakhurst attended the media committee, but this committee sought additional information from RTÉ in advance of this sitting. I have to put it on record, as I did publicly last week when the correspondence was presented to us, that I take great exception to the correspondence provided by RTÉ where it stated that given this was the first time that Ireland sought to qualify for the FIFA World Cup since 2002, there was a strong public interest in this match. That comment is a huge disservice to Irish footballers from the past. I am sure they would attest to Mr. Bakhurst that they sought to qualify in every competition. I know that Mr. Bakhurst is going to come back to me with something, but it is in black and white-----
Joanna Byrne (Louth, Sinn Fein)
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I think RTÉ has let itself down with poorly worded communication.
Joanna Byrne (Louth, Sinn Fein)
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I understand what RTÉ meant but that is not what it says.
Joanna Byrne (Louth, Sinn Fein)
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I have to pull that up as a football fan.
Joanna Byrne (Louth, Sinn Fein)
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I would be letting the Irish footballers that I support down if I did not. Can Mr. Bakhurst tell me how much RTÉ pays for the UEFA Champions League rights a year?
Joanna Byrne (Louth, Sinn Fein)
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When RTÉ is audited by the Comptroller and Auditor General-----
Joanna Byrne (Louth, Sinn Fein)
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It is my understanding that RTÉ pays €3.5 million a year for these rights to a competition that no Irish teams play in. As a football fan, I feel that money could be better spent on broadcasting and promoting our domestic league. Has Mr. Bakhurst anything to say on that?
Joanna Byrne (Louth, Sinn Fein)
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I am not necessarily talking about the Irish national teams here. I am talking about domestic football.
Joanna Byrne (Louth, Sinn Fein)
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I am going to come to that.
Joanna Byrne (Louth, Sinn Fein)
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It depends on what audience RTÉ is facilitating. The League of Ireland was forced to move away from the State broadcaster because RTÉ refused to show games on a weekly basis.
Joanna Byrne (Louth, Sinn Fein)
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That is true.
Joanna Byrne (Louth, Sinn Fein)
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I feel that is a really sad indictment on RTÉ-----
Joanna Byrne (Louth, Sinn Fein)
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Did RTÉ not get a chance?
Joanna Byrne (Louth, Sinn Fein)
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Does Mr. Bakhurst get where I am coming from? We had Shamrock Rovers Football Club in qualifying matches last week and this week and they were not shown on our State broadcaster. We have Bohemian Football Club starting its European football adventure this evening and that is not being shown on our State broadcaster. All the while, if I am correct with these figures, and I stand to be corrected but it is in and around this, we are paying €3.5 million. We are paying that money to UEFA for Champions League football that no Irish football teams are playing in. Only seven games in the FAI Cup are shown on RTÉ. This is in comparison to TG4, which shows 17 women's premier division and women's FAI Cup games on a fraction of the budget that RTÉ gets from the State, and we have got Virgin Media showing 36 games and doing an incredible job trying to promote our league.
Joanna Byrne (Louth, Sinn Fein)
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No. There is no balance here. There is absolutely no balance.
Joanna Byrne (Louth, Sinn Fein)
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It is not comparable in any way, shape or form. I put it to Mr. Bakhurst that it is not the role of a State broadcaster funded by the taxpayer to pay €3.5 million for Champions League rights to UEFA, which is facilitating the terror state of Israel, might I add, to play in international competitions. Mr. Bakhurst said it himself; there is not one other European country that pays for these rights funded by public money.
Joanna Byrne (Louth, Sinn Fein)
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You did say that. You did because I picked you up on it when I said I would come back-----
Joanna Byrne (Louth, Sinn Fein)
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We are the only State broadcaster that buys the Champions League's rights. No other country in the world would spend taxpayers' money to watch English teams playing football week in, week out-----
Joanna Byrne (Louth, Sinn Fein)
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-----while ignoring its own domestic football.
Joanna Byrne (Louth, Sinn Fein)
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I argue with Mr. Barkhurst that RTÉ does ignore it. If we look at the UK, for example, international football is shown on the BBC - no Champions League.
Joanna Byrne (Louth, Sinn Fein)
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What is the difference?
Joanna Byrne (Louth, Sinn Fein)
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It is shameful.
Joanna Byrne (Louth, Sinn Fein)
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I ask you to take away from this-----
Joanna Byrne (Louth, Sinn Fein)
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I am not talking about the World Cup.
Joanna Byrne (Louth, Sinn Fein)
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That is not the point of my dispute, Mr. Bakhurst.
Joanna Byrne (Louth, Sinn Fein)
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I am specifically talking about the League of Ireland and a domestic game that I and thousands of other people show love and support towards on a weekly basis. We are being neglected by our State broadcaster.
Joanna Byrne (Louth, Sinn Fein)
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The League of Ireland has been neglected by our State broadcaster.
Joanna Byrne (Louth, Sinn Fein)
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I do not believe that is correct. If that is the case, RTÉ should go back and rebid, stand up as our State broadcaster and support the League of Ireland and domestic football in this country.
Joanna Byrne (Louth, Sinn Fein)
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I want to move onto the Broadcasting (Amendment) Bill. As Mr. Bakhurst knows, I am a member of the media committee and was part of the engagement on that process. What steps is RTÉ taking to prepare for the legislative changes that are due to come?
Joanna Byrne (Louth, Sinn Fein)
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What are they?
Mr. Kevin Bakhurst:
We are preparing across the organisation for legislative changes, in particular the spend with the independent sector we have to prepare for. We are preparing for the arrival of the C and AG. We had an initial meeting with him. There is a whole range of preparations going on for the Broadcasting Bill. Does Mr. Lynch want to say any more?
Mr. Adrian Lynch:
It obviously depends on which aspect because there is so much in that Bill that is significant.
There are work streams on each part. We have been engaged, obviously, with Mr. Larragy on an ongoing basis for the last year to look at the implications, what needs to be put in place and so on.
Joanna Byrne (Louth, Sinn Fein)
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Will RTÉ continue to be audited by a private firm as well as the Comptroller and Auditor General?
Joanna Byrne (Louth, Sinn Fein)
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For what reason?
Mr. Kevin Bakhurst:
We have to be because we have a commercial wing and that is not within the Comptroller and Auditor General's remit. Part of our discussion with the C and AG's staff is how they will closely work with the private audit firm and, we hope, not duplicate where they can avoid duplicating.
Joanna Byrne (Louth, Sinn Fein)
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All right. Thank you, Chair.
Mr. Adrian Lynch:
The vast majority of public service media companies in Europe bid for the Champions League. The BBC would love to have the Champions League. The rights cost in the UK is somewhere north of £1 billion. That is really important to say. It gets significant audiences and people pay their €12 a month. For a certain demographic, namely, 15- to 34-year-olds this is a really strong connection with RTÉ and that has to be said. As the Director General said, we were in a very competitive bidding process, like all these processes, to get those domestic rights, and we lost. That is the reality.
Joanna Byrne (Louth, Sinn Fein)
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If you will indulge me in this for a minute, Chair-----
John Brady (Wicklow, Sinn Fein)
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Just briefly.
Joanna Byrne (Louth, Sinn Fein)
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-----on Mr. Bakhurst's comments on the bidding for the League of Ireland fixtures, can he provide us with any documentation on that to prove RTÉ did not refuse to show a match a week, and that was the breakdown?
Joanna Byrne (Louth, Sinn Fein)
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That is what Mr. Bakhurst said.
Mr. Kevin Bakhurst:
Yes, I know it is what I said. We bid to show the same amount, the same sort of split with Virgin Media we had previously had and that was our understanding of what the outcome of the process was going to be. Then we were just told "No, sorry, we have got to bid to show them every Friday night and you are out of it".
Joanna Byrne (Louth, Sinn Fein)
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Does Mr. Bakhurst know how many thousands of people support League of Ireland clubs every Friday night?
Joanna Byrne (Louth, Sinn Fein)
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It is a huge number. Mr. Bakhurst may want to educate himself. It is the highest participation sport in the country. I stand over the comments I made to him. I really feel the domestic football community and the League of Ireland family are neglected by RTÉ. Can Mr. Bakhurst provide any documents on the bidding process-----
Joanna Byrne (Louth, Sinn Fein)
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-----to the committee, please?
Joanna Byrne (Louth, Sinn Fein)
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If not we will be following up on it. I thank the Chair.
James Geoghegan (Dublin Bay South, Fine Gael)
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I thank the witnesses for being here. To come back to the voluntary exit programme, am I correct that the organisation must get to 400 in that programme by 2028?
James Geoghegan (Dublin Bay South, Fine Gael)
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Is it correct that the voluntary exit programme only started in 2025?
James Geoghegan (Dublin Bay South, Fine Gael)
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Mr. Bakhurst said that 67 were done in 2025. When he was before the Oireachtas media committee in May, he said RTÉ had not yet submitted the business case for 2026? Is that correct?
James Geoghegan (Dublin Bay South, Fine Gael)
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The business case was then submitted on 17 June.
James Geoghegan (Dublin Bay South, Fine Gael)
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Now the witnesses are saying they are looking for between 40 and 60. That is not including retirements.
James Geoghegan (Dublin Bay South, Fine Gael)
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So RTÉ will have fewer people through the voluntary exit scheme in this calendar year than in the previous one, notwithstanding the fact there are 300 applications.
Mr. Kevin Bakhurst:
We hope to exceed that amount, but you have to put in an estimate of what you think you can get out given the changes that are going on within the organisation, and that you can afford to get out as well because, to be clear, this is paid for out of the overall funding as well. There is not special money that comes with it. We pay for it out of the overall funding of RTÉ. We need to know what we can afford to get out in any given year as well.
James Geoghegan (Dublin Bay South, Fine Gael)
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For argument's sake, let us take 2025, 2026, 2027 and 2028. Four times 60 is 240, so where is the 400? How is RTÉ getting to 400 if it is going at this rate?
James Geoghegan (Dublin Bay South, Fine Gael)
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Mr. Lynch is walking back the 400 number.
James Geoghegan (Dublin Bay South, Fine Gael)
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He just did there.
James Geoghegan (Dublin Bay South, Fine Gael)
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He did it very eloquently, as we have seen in his appearances at previous meetings of this committee-----
James Geoghegan (Dublin Bay South, Fine Gael)
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-----but he did walk it back.
James Geoghegan (Dublin Bay South, Fine Gael)
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Could he clarify then whether RTÉ is getting to 400 by 2028 or not?
James Geoghegan (Dublin Bay South, Fine Gael)
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With 300 live applicants.
James Geoghegan (Dublin Bay South, Fine Gael)
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In the first year, Mr. Lynch said RTÉ had 67, not 97.
James Geoghegan (Dublin Bay South, Fine Gael)
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Let us not confuse matters. Is the 400 to do with voluntary exit programmes or is it to do with-----
James Geoghegan (Dublin Bay South, Fine Gael)
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Please be clear, really clear.
James Geoghegan (Dublin Bay South, Fine Gael)
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It cannot be that complicated.
James Geoghegan (Dublin Bay South, Fine Gael)
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The 400 represents both retirements-----
James Geoghegan (Dublin Bay South, Fine Gael)
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-----and people who have applied to the scheme.
James Geoghegan (Dublin Bay South, Fine Gael)
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And on the current pace the organisation is going to get to about 240 on the VEP.
James Geoghegan (Dublin Bay South, Fine Gael)
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What is the retirement number?
James Geoghegan (Dublin Bay South, Fine Gael)
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That was my next question.
Mr. Kevin Bakhurst:
This is not a linear process where we can say, year by year, it is going to be a certain amount because along the way during the strategy there are going to be some very big decisions to be taken about particular things such as the future of "Fair City", and so on. As I said, we need to be very careful each year that we only let those people go where the output is either being stopped or is being done externally. I would much rather do it in one go rather than over four or five years but it is not like that.
James Geoghegan (Dublin Bay South, Fine Gael)
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Does Mr. Bakhurst anticipate then that there will be a year, be it 2027 or 2028, when the number of voluntary exits will be much larger than in 2025 and 2026?
James Geoghegan (Dublin Bay South, Fine Gael)
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What will that largely relate to? Which area of RTÉ will it be, or will it be a mixture of all areas?
James Geoghegan (Dublin Bay South, Fine Gael)
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When Deputy Boland was asking about reviews, Mr. Bakhurst mentioned RTÉ was carrying out two, namely, the news organisation review and the operations review. Maybe he can elaborate. Would the operations review currently taking place feed into those big decisions he is talking about on future voluntary exit programmes?
Mr. Kevin Bakhurst:
It will feed into that because part of each of the reviews is looking at what is best practice but also looking at where there are opportunities for efficiencies and changes we can make, whether teams are the right size and there are other new technologies we could introduce to drive efficiency.
James Geoghegan (Dublin Bay South, Fine Gael)
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Which of the reviews does Mr. Bakhurst think are more significant to the voluntary exit programme? Is it the news organisation review or the operations review?
Mr. Kevin Bakhurst:
At the moment probably operations. I say that because we have always made clear during the strategy that news and current affairs will always be made in-house. From what I have seen the reviews so far and certainly from what I have heard from staff and managers, the core operation in the newsroom is a very efficient, digital-first operation so if we carry on doing that in-house, there is limited room, probably, for efficiencies there whereas there might be more room elsewhere. I should add on reviews that we have done a radio-audio review that we did not bring a consultant in for because it was more straightforward and we felt we had the right people to do it in-house. We look for opportunities and if we have the right people to do it in-house, we can do it in-house.
James Geoghegan (Dublin Bay South, Fine Gael)
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On the operations review, am I correct that is being carried out by a Bruce Baron?
James Geoghegan (Dublin Bay South, Fine Gael)
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Is he currently in operations at the BBC, or he was?
James Geoghegan (Dublin Bay South, Fine Gael)
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He was in the BBC. Is Mr. Bakhurst aware of members of staff at RTÉ having concerns about this review? Is that something that has come to their attention?
James Geoghegan (Dublin Bay South, Fine Gael)
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What does Mr. Bakhurst have to say on that?
James Geoghegan (Dublin Bay South, Fine Gael)
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A big part of Mr. Bakhurst's arrival, if he does not mind me saying, was all about cultural change, transparency and people in the organisation buying into the organisation.
James Geoghegan (Dublin Bay South, Fine Gael)
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So my question was first whether he is aware of those concerns-----
James Geoghegan (Dublin Bay South, Fine Gael)
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-----in relation to the Bruce Baron review.
James Geoghegan (Dublin Bay South, Fine Gael)
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Second, what has he to say about those concerns?
Mr. Kevin Bakhurst:
Mr. Lynch is overseeing it. Yes, we have had a number of letters from SIPTU members in different parts saying they are concerned about the review - primarily that it was, in some cases, not communicated to them properly by their managers, which I accept. I was talking to the staff engagement group about this exact matter yesterday. In the end-----
James Geoghegan (Dublin Bay South, Fine Gael)
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I am sorry, but when Mr. Bakhurst says he accepts, is he saying his managers underperformed in not communicating correctly to the staff in relation to the Bruce Baron review?
James Geoghegan (Dublin Bay South, Fine Gael)
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How have we arrived at a situation like this, where, once again, cultural change is reportedly taking place in RTÉ, yet a series of workers within the organisation, Mr. Bakhurst's managers, for whom he is responsible, are not implementing the kind of culture Mr. Bakhurst says he wants in the organisation? I want to address this to the CEO. How can this happen under his watch? He cannot keep coming back and apologising for another culture failure.
James Geoghegan (Dublin Bay South, Fine Gael)
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How will that be remedied?
James Geoghegan (Dublin Bay South, Fine Gael)
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That is not a remedy. I am not saying "things". This is a specific issue. There is a review currently being carried out by Bruce Barron. As I understand it, he appeared on live studio floors without members of staff knowing who he was or what his role was.
James Geoghegan (Dublin Bay South, Fine Gael)
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Is it not the difficulty-----
James Geoghegan (Dublin Bay South, Fine Gael)
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No, you cannot, because I ask the questions. Is it not the difficulty-----
James Geoghegan (Dublin Bay South, Fine Gael)
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You can answer the question; just let me frame it. Is it not the difficulty that Mr. Bakhurst has acknowledged that his senior managers did not communicate to staff properly about this Bruce Barron review and that they have concerns in relation to it? Mr. Bakhurst is saying that my briefing is incorrect but if there is no transparency for the people who work in the organisation as to what the purpose of the review is, of course rumours and whatever else will emerge in relation to it. Mr. Bakhurst has to accept that is what happens when the culture of transparency dies.
James Geoghegan (Dublin Bay South, Fine Gael)
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What is the remedy for this specific issue in respect of the Bruce Barron review? What is the remedy for the challenge that Mr. Bakhurst has identified?
Mr. Kevin Bakhurst:
Interestingly, when I met the staff engagement group yesterday I was told by one person from operations that it was very well communicated to them. Their suggestion was that we send a similar communication out now to explain what the review is about to the whole of operations, so that we can make sure everyone has it, rather than relying on individual mangers to brief them properly, which is what we did rely on.
James Geoghegan (Dublin Bay South, Fine Gael)
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If I understand correctly, Mr. Bakhurst is saying that it was well communicated to one part of the organisation.
James Geoghegan (Dublin Bay South, Fine Gael)
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Why was it done differently by other managers?
James Geoghegan (Dublin Bay South, Fine Gael)
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Is it the junior managers' fault for not divulging the information correctly?
James Geoghegan (Dublin Bay South, Fine Gael)
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Is this operations review now over?
James Geoghegan (Dublin Bay South, Fine Gael)
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For the staff who felt it was not communicated to them well, which Mr. Bakhurst has acknowledged, what level of understanding about this review will they now receive?
James Geoghegan (Dublin Bay South, Fine Gael)
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Mr. Lynch is bursting to get in.
James Geoghegan (Dublin Bay South, Fine Gael)
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I was talking only about the Barron review. I ask Mr. Lynch to deal just with the Bruce Barron organisation review and not the news review. That is an issue I will come back to.
Mr. Adrian Lynch:
There are two steps to the answer because they are interrelated. About 380 people work in the news division. The consultant met over 200 of them on a one-to-one basis. What was the thinking behind that? The consultant has done lots of news rooms around Europe. He said to me that one of the keys-----
James Geoghegan (Dublin Bay South, Fine Gael)
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I have not heard any concerns about this review, so I do not know why Mr. Lynch is talking about the good review. I am asking him to talk about the Bruce Barron review.
John Brady (Wicklow, Sinn Fein)
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As briefly as you can, because we are over time here.
James Geoghegan (Dublin Bay South, Fine Gael)
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I do not know why Mr. Lynch cannot deal with it.
Mr. Adrian Lynch:
I will if I am allowed to answer. The consultant said that the key thing was that junior members of staff needed to be involved in this. This was why he talked to 200 people. That went fine. Obviously, there was a communication disconnect in terms of the operations. Part of that is the fact that not everybody in operations is on email. We have gone back and spoken to the managers. There was very clear email communication which reflected the terms of reference of the review. We have now gone further and shared the terms of reference of the review with the union as well, for everybody to see. There is complete transparency regarding what the review is about.
Aidan Farrelly (Kildare North, Social Democrats)
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Will the witnesses share the terms of reference with the committee as well?
Aidan Farrelly (Kildare North, Social Democrats)
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How long has this review been ongoing?
Aidan Farrelly (Kildare North, Social Democrats)
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Yes.
Aidan Farrelly (Kildare North, Social Democrats)
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How was the tender process initiated?
Mr. Adrian Lynch:
Both of these reviews are under €50,000 so it was a request for quotation, RFQ, and they were put out to the marketplace. There was full procurement in both cases. It is not a case of expensive consultants coming in who are costing hundreds of thousands of euro. It is actually a case of sourcing people within the marketplace who have the expertise and understanding to go into the news room or operations. They are not about simply slash-and-burn rationalisation. This is about multi-skilling and the future. It is not simply about operational efficiency.
Aidan Farrelly (Kildare North, Social Democrats)
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How did Mr. Lynch go to the market place to find the best-suited people?
Mr. Adrian Lynch:
It was through a number of different avenues. One was the European Broadcasting Union. This represents public service media companies across Europe. It is key because it has a very good network. That was one way. It was just through networks, trying to find who would be good. I had never met either of the individuals before. I want to be clear about that. It was a matter of sourcing people with expertise. If someone is going into a news room, for example, with 300 experienced journalists-----
Aidan Farrelly (Kildare North, Social Democrats)
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I understand that. When is the report on this review expected?
Aidan Farrelly (Kildare North, Social Democrats)
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I assume those will be shared with the committee once they are published.
Aidan Farrelly (Kildare North, Social Democrats)
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Mr. Bakhurst said that RTÉ is not a tin-pot organisation. I think that, of all the adjectives that have described the organisation's expenditure in recent times, that was probably not one with which RTÉ was labelled. However, it is the nature of the questioning and the work we do in this committee. In the Irish Examiner today Louise Burne confirms that the Minister has said that under no circumstances will there be a second three-year rolling programme. It struck me that Mr. Bakhurst and the Minister seem to be communicating via the media over the past couple of days. What is the nature of Mr. Bakhurst's relationship or engagement with the Minister?
Mr. Kevin Bakhurst:
I have a good relationship with the Minister. I have not been communicating via the media. I put out a statement yesterday because there was one report in one newspaper that was wholly inaccurate. We wanted to correct it before we appeared before the committee. We did get bids for interviews and I said that I was not going to do any interviews before the committee, as I thought it would be discourteous, but-----
Aidan Farrelly (Kildare North, Social Democrats)
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Had Mr. Bakhurst heard the Minister's sentiments before reading about them this morning in the Irish Examiner?
Aidan Farrelly (Kildare North, Social Democrats)
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There is no need to discuss them. He said that under no circumstances will there be an additional three-year rolling programme. Where does that leave Mr. Bakhurst in terms of the organisation's commercial standing to make up that potential deficit?
Mr. Kevin Bakhurst:
As I have said before, the multi-year funding deal has been critically important for us having the confidence to deliver the strategy. I have said before to a number of senior politicians that it is a five-year strategy. We need to know what the income is year to year if we are going to make significant investments in digital and if we are going to make significant commissions in expensive things like high-quality drama and buying sports rights. Having some degree of security and certainty is critical to the successful running of the organisation. By the way, it drives enormous efficiencies when we can sign three-year deals for programmes or four-year deals for outside broadcasts, or whatever. It is the most efficient way to operate.
Aidan Farrelly (Kildare North, Social Democrats)
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Mr. Bakhurst mentioned the risk of AI determining the number of jobs in RTÉ to attain the perfect employment level. What jobs will AI take at RTÉ?
Aidan Farrelly (Kildare North, Social Democrats)
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Is Mr. Bakhurst open to considering AI?
Mr. Kevin Bakhurst:
We have to be open to it. We have to embrace every new technology. I say that alongside saying that I have deep respect for the quality of the people working there and their abilities in doing their jobs. In the end, particularly in areas like journalism, we will always have human oversight of journalistic decisions. However, already there are some processes where-----
Aidan Farrelly (Kildare North, Social Democrats)
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What does "human oversight of journalistic decisions" mean, as opposed to "human journalists"? What is "human oversight"?
Mr. Kevin Bakhurst:
It means that we have editors, journalists and producers who are doing the work. They may use AI tools but, in the end, the humans will do the journalism. We are not going to generate our journalism by AI but it is already a useful tool which we use in some areas of news and current affairs.
Aidan Farrelly (Kildare North, Social Democrats)
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How many jobs has AI replaced in RTÉ?
Mr. Kevin Bakhurst:
It is very hard to say. It is probably a very insignificant number so far, but that is because we are taking a relatively measured approach to it.
We are using it in things like subtitling but some of that is done by outside companies. We are looking at where the technology is robust and delivers high quality but weighing that up against the need to maintain trust in what we do. Sometimes that means not using AI and using properly qualified people to make the judgment.
Aidan Farrelly (Kildare North, Social Democrats)
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Mr. Bakhurst said 70 people took up voluntary redundancy last year.
Aidan Farrelly (Kildare North, Social Democrats)
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Apologies. Up to yesterday, how many people had been recruited into the organisation?
Mr. Kevin Bakhurst:
We have recruited 11 people. Over the last nine to 12 months, there have been a number of different recruitments. I might bring in Ms Malone on this. We have recruited 11 new people in skill sets and, in fact, one of them, from risk and compliance, is sitting here. These were things we had to do because of the expert committee reports on areas we needed to improve. A number of those jobs are in technology.
Aidan Farrelly (Kildare North, Social Democrats)
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What about on-air personnel?
Aidan Farrelly (Kildare North, Social Democrats)
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Were there any internal attempts at recruitment before it went external?
Aidan Farrelly (Kildare North, Social Democrats)
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Was there an official process with interviews and expressions of interest?
Ms Annette Malone:
One of the recommendations, as Deputy Farrelly is probably aware, is that we run an expressions of interest process. We ran one for 2FM in 2024 and we got huge interest in it, with 650 applications, of whom 120 were invited in for a pilot and screening. Four individuals have come through that and are on our schedule at the moment, which is great. We have new blood, fresh faces and new voices on 2FM. We ran a second one last year for Radio One and news and current affairs. Again, we got in excess of 550 applications, primarily for "Liveline" when we were replacing the presenter, and for some vacancies in news and current affairs. We broadened that one out because we included other genres such as sports, arts and music. We have used that process for replacing-----
Aidan Farrelly (Kildare North, Social Democrats)
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So 550 people applied for "Liveline"?
Ms Annette Malone:
No, there was a combination of expressions of interest for Radio One and news and current affairs. Then we also included all of the other genres, such as sports, arts and music. Some people applied for everything and some people applied for specific genres. This has provided the shortlists being used to look for panels of presenters. On Radio One, unfortunately, we had to replace one of our presenters and that came through that process, as did "Liveline". We have also used it for podcasts. Recently, we ran a separate one internally to ensure we captured sports because it might have got lost in the Radio One and news and current affairs list.
Aidan Farrelly (Kildare North, Social Democrats)
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That went to an external candidate.
Aidan Farrelly (Kildare North, Social Democrats)
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The sports one.
Aidan Farrelly (Kildare North, Social Democrats)
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Ms Malone just said it was an internal process.
Aidan Farrelly (Kildare North, Social Democrats)
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But those applicants were not on a panel for future sports appointments.
Ms Annette Malone:
Those individuals who applied in that expression of interest, and I apologise if I was not clear on this, were included but to be 100% sure that we captured everybody internally who might have been interested in it, we ran a separate internal one to ensure everybody who wanted an opportunity in sports had it. It was the combined two together that were looked at for the sports podcast presenter role. They went through the same process using weighted criteria and everything else that has been used. Those panels will be in place for two years and we have committed to do a full review and take it back to the remuneration and management development committee in the first quarter of next year. It has been a very successful process for us.
Aidan Farrelly (Kildare North, Social Democrats)
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Have Mr. Bakhurst and the Minister met about the proposals for Montrose?
Aidan Farrelly (Kildare North, Social Democrats)
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Has Mr. Bakhurst put forward a business case to him and the Department of public expenditure on a cost-benefit analysis of what he proposes to do by way of cutting back on-----
Aidan Farrelly (Kildare North, Social Democrats)
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There is a business case?
Aidan Farrelly (Kildare North, Social Democrats)
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What is the benefit? I presume a serious amount of this will now be outsourced to renting independent production facilities. How much of that cost will be saved by selling a portion of Montrose?
Mr. Kevin Bakhurst:
When we put in a business case we looked at this. We do not need all of the buildings at Montrose any more. Many of them are underused, actually, because of outsourcing over previous years and flexible working. We do not need many of the buildings. As Deputy Farrelly will know, five of them are listed. Many of them are 60 years old or more.
Aidan Farrelly (Kildare North, Social Democrats)
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I mean the rental costs that RTÉ will now accrue by going to other locations for long-term production.
Mr. Kevin Bakhurst:
What we looked at was the cost of refurbishing the whole site. Cost avoidance is a big win because it would cost €350 million plus to refurbish buildings we do not actually need over a long period. The idea is not to go to rent but to move down to one end of the site. We still own the site. We need to refurbish the building but we would do so and still own it.
Aidan Farrelly (Kildare North, Social Democrats)
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Will Mr Bakhurst furnish the committee with this business case? It would be really useful for us.
Aidan Farrelly (Kildare North, Social Democrats)
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When does Mr. Bakhurst envisage that to be?
John Brady (Wicklow, Sinn Fein)
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We will now take a short break.
John Brady (Wicklow, Sinn Fein)
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Before I call our next speaker, Mr. Bakhurst wants to make a clarification and give some further information on non-procurement. I think he got some figures over the course of our suspension.
Mr. Kevin Bakhurst:
I thank the Chair for that. I was asked a question earlier about non-compliant and non-competitive procurement, which I have the numbers for here. In 2024, there were eight suppliers that were either non-compliant or non-competitive and in 2025, there were also eight suppliers in those categories. In both cases, that was around 0.5% of the cumulative purchases we made. It was a relatively small one, but obviously there were individual cases for some of those. I just wanted to give the committee those numbers.
John Brady (Wicklow, Sinn Fein)
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I thank Mr. Bakhurst for that. I call Deputy Dolan.
Albert Dolan (Galway East, Fianna Fail)
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I thank the team at RTÉ for being with us today. On that non-public procurement compliance, we as a committee would have absolutely anticipated there would be some level of non-compliant public procurement, as we have with all State entities, but we ask bodies and organisations to make sure they endeavour to reduce that to the lowest possible amount. It is about providing confidence to the State and to wider entities that if somebody procures something, it is done in a proper manner. It also provides confidence in public contracts. I just wanted to highlight that.
At the outset, I will say there are many people in the RTÉ organisation who work very hard to provide fantastic content, an incredible service and great journalism, and who endeavour to get that out there. Before we started this engagement today, I was thinking of some of the big names who have retired over the past few years and would have given a lifetime of service to RTÉ. When you think about the lifetime of service so many people who go into RTÉ give, their commitment to the role and how proud they would be to say they work for RTÉ, it has been an incredibly difficult time for the organisation since the 2023 debacle and the uncovering of a lot of very poor governance that was ongoing.
At the outset, I note a media report yesterday stated that TV licence sales declined by 200,000 in the past four years. Then you have 300 RTÉ staff applying for the redundancy. They are essentially looking for the exit door. What has Mr. Bakhurst done in the past three years to turn that around and rebuild morale in the organisation?
Mr. Kevin Bakhurst:
I thank the Deputy and I welcome this opportunity because this has been one of the core things I and the leadership team have been trying to do between us, which is to rebuild morale inside the organisation. It is obviously very challenging in the middle of very significant changes and very rapid transformation in the organisation.
We have done a number of things. First of all, at the heart of it is that staff felt they were not properly communicated with by the director general or by the leadership team. We have introduced very regular town halls, where I appear. We give a briefing to staff on the biggest things going on in the organisation. There is time, in every one of those town halls, for questions and answers at the end. We take questions and answers in advance as well. I know members of the leadership team have their own town halls with their own teams in radio, TV or the audience area.
We have introduced a significant amount of investment in learning across the organisation and that also-----
Albert Dolan (Galway East, Fianna Fail)
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On all of that, it is all welcome in respect of trying to improve communication to rebuild morale but I feel that does not connect. If I was working in RTÉ and saw how some of the recruitment processes have been done in recent years to bring in external talent to head up divisions, I would be sure there were people within Mr. Bakhurst's organisation who felt overlooked or really let down by how it was not felt that the talent was already within the organisation. Especially when RTÉ has such financial pressures, how does Mr. Bakhurst square that off with going out to the market and trying to pay top dollar for top talent?
Mr. Kevin Bakhurst:
All the competitions we have now are done internally and externally. For the key roles, particularly senior roles, we have to get the very best people to lead the organisation and we have been extremely lucky with the people we have managed to recruit and bring in who have got huge and, in some cases, international experience. They bring a skill set that we did not have inside the organisation. People want to have the opportunity to apply and have their chance to do the interview if they get to that stage. In every case for the people we have brought in, if you ask people, they would see now exactly why we brought those people in because they bring a new way of thinking. Frankly, the organisation needed that at the highest level. We needed a new way of thinking and a new approach.
Albert Dolan (Galway East, Fianna Fail)
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I am not suggesting that RTÉ cannot bring in new people from outside but is there not a value-for-money proposition in employing people internally who already have a working knowledge of how RTÉ functions? They have an understanding of the organisational structure and systems and they already represent the RTÉ brand while having prior service. It is something I thought I would highlight.
Mr. Kevin Bakhurst:
I will say that at least one of the members of the current leadership team came in at a particular time in their career but also at a significant discount to what they were earning in the commercial sector because they wanted to join in the turnaround of the organisation and they believe in public-service broadcasting. We do not always pay top dollar-----
Albert Dolan (Galway East, Fianna Fail)
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I am conscious of the time. I want to move on to another issue. This is in regard to the FIFA World Cup qualifier in Czechia. Some 41 staff travelled to Czechia for the World Cup qualifier. What was the total cost of that exercise?
Albert Dolan (Galway East, Fianna Fail)
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Okay, so that was €57,000 and 41 people travelled-----
Albert Dolan (Galway East, Fianna Fail)
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How many people did RTÉ have to send to the World Cup?
Albert Dolan (Galway East, Fianna Fail)
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Okay. I have to compliment RTÉ. The coverage has been fantastic, with 104 games. I see it coming up on my Instagram feed through RTÉ Sport. It is fantastic but how on earth can RTÉ send only six people and they manage to cover the entirety of the World Cup but it had to send 41 people to do one World Cup qualifier?
Mr. Kevin Bakhurst:
It is because the two things are very different. The teams out at the actual World Cup are purely commentary teams. We have not done our presenting or other programmes from out there.
On the Czech thing, we would really welcome a chance to talk about this. First of all, you can see the numbers of people consuming the coverage of the World Cup, which the sports and operations teams have done a fantastic job of delivering, has driven record numbers on RTÉ Player and on-----
Albert Dolan (Galway East, Fianna Fail)
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The question is, did RTÉ need to send 41 people to Czechia and how was the decision made to send that many people?
Albert Dolan (Galway East, Fianna Fail)
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Even at that, say RTÉ sent the same six people out to the World Cup qualifier and then it sent two teams of three people out on the streets meeting people. That is 12 people. Where is the extra 30 required?
Mr. Kevin Bakhurst:
To be crystal clear, this qualifier was the biggest game that Ireland had for probably a couple of decades. It was a major national event. It is part of our job to reflect that. When we took this decision, part of the decision about some of the teams we sent - particularly for some of the radio programmes - was because we were closely liaising with our commercial director, who said that this was a huge public service event and it needed to be covered properly but also that we could drive considerable commercial revenue by having bespoke teams out there for individual radio-----
Albert Dolan (Galway East, Fianna Fail)
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Does Mr. Bakhurst not understanding how sickening it would be for the public at home looking at this to think that 41 people were sent to the World Cup qualifier because Ireland was playing and it was a great day out for the RTÉ team-----
Albert Dolan (Galway East, Fianna Fail)
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-----but only six went to cover the entirety of the World Cup and they are doing a great job?
Albert Dolan (Galway East, Fianna Fail)
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Give me the justification for 41 heads having to go to Czechia.
Albert Dolan (Galway East, Fianna Fail)
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I have told Mr. Bakhurst how RTÉ could have done that with 12 people, so why did it need 41 people?
Albert Dolan (Galway East, Fianna Fail)
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They were not all presenting.
Mr. Kevin Bakhurst:
No. I want to be fair to the people we sent there because they were all hard-working RTÉ staff. There was not a single person who went to Prague - even though one or two of us were invited - who went on a freebie, a nice-to-have, a jolly or whatever. All those people who went there worked extremely hard across a number of days. If you look at the total cost - €57,000 for 41 people, which includes flights, hotels, food, transport, taxis and everything - it was provided at good value. We have had zero criticism from the audience on this. One or two people have been a bit fixated about it. We have had zero criticism. In fact, we have had the opposite. Not just the numbers but the response from the audience about the coverage across all the platforms was extremely positive. In the end, as I said to the Deputy, RTÉ has, as he is well aware-----
Albert Dolan (Galway East, Fianna Fail)
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I am conscious of the time. I think the disconnect here is that RTÉ got a bailout from the Government. It got massive-----
Albert Dolan (Galway East, Fianna Fail)
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-----public funding. The issue is that the public believes that RTÉ should be as nimble and agile as possible. I agree with Mr. Bakhurst. I accept that €57,000 was not a crazy number to send 41 people abroad. It was fairly agile but I wonder if it required the 41 people. I want to move on to one last point before we finish-----
Albert Dolan (Galway East, Fianna Fail)
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Okay. I have a last point before I finish. We learned today that "Up for the Match", which has now been outsourced, is going to cost more than it was costing. How on earth is that decision consistent with prudent financial management? If there was any show that RTÉ presents that is successful, that people get excited about and want to watch and tune in for, it is "Up for the Match", and its format has been functioning. Does Mr. Bakhurst believe the format of "Up for the Match" was failing, or what justification can he give for RTÉ spending more money than it was previously spending on "Up for the Match"?
Mr. Kevin Bakhurst:
The Deputy is right. The format has been functioning for many years but you do need to look at how you refresh programmes. Presenting it from Croke Park, the heart of the GAA, on the night before is extremely attractive as an audience proposition and is much more ambitious creatively. In the end, it absolutely has to provide value for money but one thing we look at in terms of value for money is whether this is delivering something that is high-quality and will benefit the audience. It is a creative decision.
Albert Dolan (Galway East, Fianna Fail)
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Here is my last question. Why did RTÉ have to outsource that when it already has hundreds of highly talented people working for it who were successfully delivering the programme? If it is just a venue change, why did RTÉ have to outsource it? Why could it not do it itself?
Mr. Kevin Bakhurst:
First of all, whenever we use an outside broadcast, we have a contract. We do not do that ourselves. We have a contract that has been the same for years. All outside broadcasts are done through contractors. The second thing I would say is the Deputy almost answered the question himself. We have a World Cup going on. We have 104 games and we had the sports department flat out. It would be very similar people who would be working after the match, so there was also the availability of staff after that, and summer holidays and so on. We had huge GAA games as well, by the way, at the same time. Our sports department has steam coming out its ears. Part of it is about who is available to do it, but another part of it in the end is that we take creative decisions as to whether this will potentially be a better programme. I do not know until we see it. If it is great, we will do it again. If it is not great, we will not do it again.
Albert Dolan (Galway East, Fianna Fail)
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I thank Mr. Bakhurst for his engagement.
Paul McAuliffe (Dublin North-West, Fianna Fail)
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I welcome the witnesses back to the committee. The first thing to acknowledge is that RTÉ is certainly in a very different place from where it was two years ago when the representatives were last with us. We should acknowledge that. We always like at the beginning of hearings to acknowledge good work that is being done, even if we tend to focus on the areas where issues arise.
I want to clarify two items. Regarding the League of Ireland bidding, am I correct in stating that Virgin Media did not outbid RTÉ on it but that RTÉ would not commit to broadcasting one game every week? Will Mr. Bakhurst clarify that?
Mr. Kevin Bakhurst:
We are happy to provide details to the committee on this, but the process as I understood it at the time, and I have just conferred with Mr. Lynch about it, is that we bid, alongside Virgin, at a competitive level for the existing package, which was half and half. It was like a joint bid. The next thing we knew, we got a call from the FAI saying we had failed and that Virgin would be taking all the games.
Paul McAuliffe (Dublin North-West, Fianna Fail)
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So it was not put to RTÉ that it must enquire and it refused.
Paul McAuliffe (Dublin North-West, Fianna Fail)
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Will Mr. Bakhurst confirm the figure for the Champions League? Was it €3.5 million?
Paul McAuliffe (Dublin North-West, Fianna Fail)
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Will Mr. Bakhurst confirm or estimate the figure for the advertising revenue that accrues from the broadcasting of those matches, or has RTÉ segmented it that way?
Paul McAuliffe (Dublin North-West, Fianna Fail)
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Yes.
Mr. Kevin Bakhurst:
We can, but it would be a rough one because there are two things. There is the spot advertising and sponsorship around the games themselves and then there is the overall impact it has on RTÉ's share across the year, which is significant, and that would be harder to put a number on.
Paul McAuliffe (Dublin North-West, Fianna Fail)
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I echo the points Deputy Byrne made earlier in regard to the game. Part of the reason we have great attendances at league games is that they are not on TV, but that option should be available. I think-----
Paul McAuliffe (Dublin North-West, Fianna Fail)
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That may be an opportunity to return to. Can I just come back to our summer meetings two years ago? We issued a report. There were 21 recommendations dealing with the tripartite agreement, issues around the barter account and other issues. Have the witnesses examined those 21 recommendations? I imagine they did not go unread. Do they feel RTÉ is in compliance with a certain number of them? Will Mr. Bakhurst comment on that?
Mr. Kevin Bakhurst:
Clearly, we examined them at the time and tried to make sure we were addressing all of them. Honestly, we have not looked at them in the last 12 months, but I am happy to go back and look at them. Ms O'Shaughnessy here is our new compliance officer and we could ask her to do-----
Paul McAuliffe (Dublin North-West, Fianna Fail)
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Mr. Bakhurt might send us correspondence afterwards clarifying which ones he feels RTÉ is in compliance with-----
Paul McAuliffe (Dublin North-West, Fianna Fail)
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-----and we might review that. A number of them were of particular concern to me. There was a commitment to the publishing of the receipt of gifts by RTÉ and to publishing staff salaries above €150,000. Where are we on both of those?
Paul McAuliffe (Dublin North-West, Fianna Fail)
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Is that available to RTÉ's auditor?
Paul McAuliffe (Dublin North-West, Fianna Fail)
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What about the publication of salaries above €150,000 for all employees?
Mr. Kevin Bakhurst:
Yes, we looked at that. It was a voluntary thing that we published all the salaries of the leadership team. We do not have to do that. I do not think any other semi-State does that. We publish every year bands of salaries in our annual report. We did look into whether we could publish salaries over €150,000 and we ran into significant problems with the GDPR. We wanted to do it but the first few people we spoke to said no, that it was their private information and that we could not do it. The external legal advice was that we could not do it.
Paul McAuliffe (Dublin North-West, Fianna Fail)
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Was it a mistake for Mr. Bakhurst to make that commitment at the committee?
Paul McAuliffe (Dublin North-West, Fianna Fail)
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Okay.
Paul McAuliffe (Dublin North-West, Fianna Fail)
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Maybe we will move on. I think the committee was given financial documentation for the barter account up until, let us say, 2023. That account was closed.
Mr. Kevin Bakhurst:
No, the barter account is not closed but it is run entirely differently. If you run advertising, you have to have a barter account, which is about selling unused advertising. The thing that is completely changed is that it goes through the central accounts, it is all accounted for, and the money is moved every month from the barter account into the central accounts. It is only used for general funding of RTÉ. It is not used to buy anything else.
Paul McAuliffe (Dublin North-West, Fianna Fail)
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I cannot remember off the top of my head the scale of the transactions back and forth, in and out of the account, but if Mr. Bakhurst is suggesting it is being used in a very different way, it is likely that it is a much smaller account than it previously was.
Paul McAuliffe (Dublin North-West, Fianna Fail)
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So, the chief financial officer has full oversight. It is part of the annual accounts and so on.
Paul McAuliffe (Dublin North-West, Fianna Fail)
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I understand the nature of barter accounts is that you basically trade without money with other organisations. Am I right in saying that in some cases advertising such as cheap low-cost advertising, the JML-type ads, were also being fed into that barter account? Is that still happening?
Paul McAuliffe (Dublin North-West, Fianna Fail)
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That is my point. RTÉ has unsold advertising that is coming into the account. What is going out, Mr. Bakhurst feels, is fully compliant with-----
Paul McAuliffe (Dublin North-West, Fianna Fail)
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The next area was the area of agents. I think I am right in saying that Mr. Bakhurst said RTÉ would no longer deal with agents. Is that the case?
Paul McAuliffe (Dublin North-West, Fianna Fail)
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I recall the conversation differently in that RTÉ was going to no longer deal with talent agents and it was going to try to deal directly with people who were effectively its permanent presenters.
Paul McAuliffe (Dublin North-West, Fianna Fail)
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Is RTÉ engaged in any other commercial arrangements with presenters? I refer to RTÉ, a presenter and a commercial partner. Is it subject to, effectively, a tripartite agreement with any other presenters?
Paul McAuliffe (Dublin North-West, Fianna Fail)
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Am I right in saying there were proposals to have dual sign-off on contracts and so on? The non-sitting of RemCo was the biggest issue. Will Mr. Bakhurst confirm the number of times RemCo has sat since 2023?
Paul McAuliffe (Dublin North-West, Fianna Fail)
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That is a substantial culture change.
Paul McAuliffe (Dublin North-West, Fianna Fail)
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It is challenging to recruit board members in that environment sometimes as well.
Paul McAuliffe (Dublin North-West, Fianna Fail)
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Does Mr. Bakhurst have a final cost for the investigations RTÉ had to undertake as a result of the events that were subject to the PAC report? A number of external consultants were used. Does Mr. Bakhurst have a number for that?
Paul McAuliffe (Dublin North-West, Fianna Fail)
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It is a collective number that can easily be calculated.
Paul McAuliffe (Dublin North-West, Fianna Fail)
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It was a cost to RTÉ.
Paul McAuliffe (Dublin North-West, Fianna Fail)
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Since 2023, are there any outstanding legal cases with staff as a result of terminations? A number of staff stepped down over that period. Does RTÉ have any outstanding cases or are all of those resolved?
Paul McAuliffe (Dublin North-West, Fianna Fail)
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I mean cases that relate to that time period.
Paul McAuliffe (Dublin North-West, Fianna Fail)
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I turn to the former chief executive, Ms Forbes. Are there any outstanding cases relating to her?
Paul McAuliffe (Dublin North-West, Fianna Fail)
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My apologies.
Paul McAuliffe (Dublin North-West, Fianna Fail)
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There are no outstanding commercial arrangements with her and no outstanding relationship between RTÉ and Ms Forbes.
Joe Neville (Kildare North, Fine Gael)
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I thank the witnesses for coming. I know these meetings are never easy. My first question is a high-level one. What is the RTÉ budget for 2026?
Joe Neville (Kildare North, Fine Gael)
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How much of that will be licence fee?
Joe Neville (Kildare North, Fine Gael)
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Even on a high level, of the €405 million, how much of it-----
Joe Neville (Kildare North, Fine Gael)
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That is nearly half.
Joe Neville (Kildare North, Fine Gael)
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No. I am going to try to break it down. What is the overall budget? Mr. Lynch said it was €405 million. Then the licence fee is €180 million. Is that correct?
Joe Neville (Kildare North, Fine Gael)
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I am just thinking about licences.
Joe Neville (Kildare North, Fine Gael)
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What is the commercial revenue?
Joe Neville (Kildare North, Fine Gael)
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What is the remaining €60 million or €70 million? Where does that come from?
Joe Neville (Kildare North, Fine Gael)
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That is what I want to get to. I wanted to clarify the whole picture in my head. We have €55 million of a top-up. That has been arranged for 2025, 2026 and 2027. Is that correct?
Joe Neville (Kildare North, Fine Gael)
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Those amounts are set out. What do the witnesses believe will happen in 2028?
Joe Neville (Kildare North, Fine Gael)
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I am sure RTÉ does three- and four-year rolling plans.
Joe Neville (Kildare North, Fine Gael)
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Obviously, RTÉ will be modelling out. There is a delta between what it is able to raise and the licence fee. If the €55 million is brought in to fill the licence fee gap we discussed earlier, what will that figure be by 2028?
Joe Neville (Kildare North, Fine Gael)
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I know it is subject to negotiation with the Government but even based on RTÉ's own model-----
Joe Neville (Kildare North, Fine Gael)
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By the time we get to 2028, it may be €65 million.
Joe Neville (Kildare North, Fine Gael)
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That is within reason. I am trying to estimate forward. The best guess would be €60 million or €65 million. Do the witnesses feel RTÉ will be going back to the Government for support?
Mr. Kevin Bakhurst:
We absolutely need to have discussions with the Government, which we have started, but not yet formally, about future public funding because it is a public intervention. As the Deputy says, €158 million is commercial and the rest is public funding. Whether that comes from licence fee or direct funding is a political decision.
Joe Neville (Kildare North, Fine Gael)
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There is a difference. People willingly paying the licence fee is one thing, but a separate State subvention is another. I asked the Taoiseach yesterday in the Dáil what his view was on the funding model. He said there have been different views in the Chamber. What is Mr. Bakhurst's view on what the funding model should look like?
Mr. Kevin Bakhurst:
It genuinely would not be for me to say that. All I would say is it would have to be a funding model that, ideally, can fund a quality public service media organisation that has the right amount of independence and complies with the new European legislation, the European Media Freedom Act. When we got the three-year deal I said to the Government that we would not come back during those three years and ask for any more money beyond what the Government had agreed in its headline numbers. Within that, there is a slight variance in direct funding depending on how the licence fee is performing. We do everything in our power to try to persuade people to pay and advertise to show them they are getting value for money. Our audience research shows-----
Joe Neville (Kildare North, Fine Gael)
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We are seeing a continuous slippage in that licence fee.
Joe Neville (Kildare North, Fine Gael)
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I was going to ask about that. If the BBC is saying it, it is obviously an issue, and that is fine too. I want to tie back in with something else that was said earlier in relation to the figure of 400 people. I want to clarify if that figure is between redundancies and people leaving organically, or is it a combination of both?
Joe Neville (Kildare North, Fine Gael)
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The 400 number is a combination of the two. Roughly, how many of those people will RTÉ be able to flex out organically? How many will be redundancies?
Mr. Kevin Bakhurst:
Because it is a voluntary exit scheme, it depends on how many people apply and how many people we can exit. We know we have 170-odd retiring over the next period of time. We will see how many we can get out of that because that is a much more cost-efficient way to reduce the size of the organisation.
Joe Neville (Kildare North, Fine Gael)
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Yes, absolutely. Does having an almost rolling redundancy plan mean that people are not leaving organically in between? A lot of people will not leave unless they get a redundancy. Can everyone apply? If I were leaving a job for a new job and I was an employee in RTÉ, could I leave in the morning and ask for a redundancy before I leave? How is that working?
Joe Neville (Kildare North, Fine Gael)
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What is the window?
Joe Neville (Kildare North, Fine Gael)
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They will know it is coming.
Joe Neville (Kildare North, Fine Gael)
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RTÉ will probably not have anybody leaving organically outside of those windows.
Joe Neville (Kildare North, Fine Gael)
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What about outside of retirements?
Joe Neville (Kildare North, Fine Gael)
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That is what I was wondering. That might impact. I think Mr. Bakhurst said that 97 people left last year and 11 joined.
Joe Neville (Kildare North, Fine Gael)
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There were some high-profile ones. How does RTÉ dictate the salary levels for some of the new high-profile presenters? What is the baseline for judging what they are entitled to? A new head of podcasting came in maybe two weeks ago. How does that work from a salary and HR perspective?
Joe Neville (Kildare North, Fine Gael)
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That is fine.
Mr. Kevin Bakhurst:
Generally, if we are looking to bring someone in from the outside, we ask how much value they have to the audience, what would we pay if we appointed someone internally and what more does the person bring. In some cases, we work closely with our commercial director, particularly in the area of podcasts, about what commercial revenue this could deliver. Those would all be factors in deciding the salary.
Joe Neville (Kildare North, Fine Gael)
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With a role like that, would the head of sport be aware or would the head of radio? Would the head of sport be aware when RTÉ is doing sports podcasting?
Joe Neville (Kildare North, Fine Gael)
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They would sit in on those interviews.
Joe Neville (Kildare North, Fine Gael)
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It is just when you are trying to let people go, then you have people internally who might like that position as well.
Joe Neville (Kildare North, Fine Gael)
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He was happy with that, was he?
Joe Neville (Kildare North, Fine Gael)
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There was no one in RTÉ Sport. It was felt that getting someone from the outside was preferable.
Joe Neville (Kildare North, Fine Gael)
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I also note, because it came out in the news yesterday, that RTÉ will have the same presenter for "The Late Late Show" next year. This is timely from a news perspective. Once again, with salaries-----
Joe Neville (Kildare North, Fine Gael)
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Yes, exactly. What would be the salary for someone in a position like that? What about transport costs, perks and associated costs? Are all those costs rolled up into the full contract? Do they have to go with them themselves, or is there a separate portion for them?
Mr. Kevin Bakhurst:
They would be rolled up into the contract. It depends on the individual and what we think is appropriate in terms of transport or wardrobe costs for presenters. In terms of the salary itself, I said in 2023 that no one would earn more than the director general and no one is employed directly on more than the director general earns.
Joe Neville (Kildare North, Fine Gael)
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I am not talking about barter accounts, but is there no separate element of there being a cost associated with this role that is treated separately to a direct cost?
Joe Neville (Kildare North, Fine Gael)
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I mean outside of wardrobe.
Joe Neville (Kildare North, Fine Gael)
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I want to touch on something else. I think the RTÉ Player has actually got very good. I have used it quite a lot recently. I always used it, especially for all the matches. On that model, could it be RTÉ is making it so good that people who might not be liable for a licence are availing of it? Is that possible?
Joe Neville (Kildare North, Fine Gael)
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Does that make strategic sense?
Mr. Kevin Bakhurst:
Strategically, there is no doubt that we have to do it because that is where the audience is going. We gave the figures for the Czech game. The player is now delivering equal numbers to RTÉ 1 and RTÉ 2 quite often on these big events. It is certainly where the young audience is going. I am pleased at what the Deputy said because we have actually invested a lot in it.
Joe Neville (Kildare North, Fine Gael)
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Even the ads. The whole platform is much stronger.
Mr. Kevin Bakhurst:
Yes. There is undoubtedly that dimension to it, so when the Department is thinking about future structure of funding and whether it is the licence fee or not, if it is a licence fee, in my view it has to be device neutral because increasingly the audience is using the player to access our material.
Joe Neville (Kildare North, Fine Gael)
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Mr. Bakhurst said some of those in the sports department had steam coming out of their ears because of the amount of work. Take “Up For the Match”, for example. Unfortunately, since I was young, Kildare has not been there. I think Daithí Ó Sé is doing it. He would not necessarily be on the sports team. What members of the sports teams would be there? It is an entertainment production as well. I was just curious about that. What elements would be involved?
Joe Neville (Kildare North, Fine Gael)
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Yes.
Joe Neville (Kildare North, Fine Gael)
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Okay. I thank Mr. Bakhurst.
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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The witnesses are all very welcome. They have said they have made certain reforms in RTÉ and the Comptroller and Auditor General has been helping with them. Is that correct?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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How does the Comptroller and Auditor General feel the reforms that were supposed to be undertaken are progressing?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Okay. How does Mr. Bakhurst feel himself? Does he feel RTÉ has got through the reforms? Has it made a lot of changes?
Mr. Kevin Bakhurst:
We have made a huge amount of changes. It is a very different organisation and it is very different for audiences, it is to be hoped, in terms of the player, the news app and so on. There will be more of that to come. It is a massively different organisation but there are more changes to make. There has certainly been an enormous amount of change on the governance side. Just look at the number of remuneration and management development committee meetings or the way the board operates with the leadership team and the communication with staff. It is work in progress and we are ambitious to make it a brilliant place to work but also a brilliant place for audiences.
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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On transparency, how did Mr. Bakhurst feel when the Minister, Patrick O’Donovan, approached him saying that he did not feel there was transparency about the protests that were aired on RTÉ? Was there a conversation with the Minister?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Who had the conversation?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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He said RTÉ had a conversation with him.
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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That would be quite common?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
Link to this: Individually | In context | Oireachtas source
So, party members from political parties come to RTÉ and ask them what to air and what not to air.
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Does this coincide with the reduction in funding and that RTÉ is not going to get funding after 2027?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Mr. Bakhurst does not feel hard done by or anything?
Mr. Kevin Bakhurst:
Future funding is going to be critically important to the future success of RTÉ and I would hope that people would consider that in the context of the importance of RTÉ and public service broadcasting to the country, whether that is news and current affairs or whether it is live events like the World Cup and so on which bring huge entertainment to people’s lives. We are dependent 60% on public funding.
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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If RTÉ is not going to get the public funding, I suppose it has a model. Has it some kind of business plan going forward? Mr. Lynch said there was a five-year plan that he was starting to work on. What is the plan in relation to selling property? Is there a plan?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Selling property, yes.
Mr. Kevin Bakhurst:
I can talk about that because I have probably been as much involved as Mr. Lynch. Mr. Lynch can talk about it if he wants. The plan on Donnybrook is that we will string down to one end. We will invest in what is called stage 7, which is near Nutley Lane. Once we have done that, we will sell the rest of the land. We need to find a way properly to finance that with a loan to do it. We looked at all different options. We could move off the land but then we would not own our property anymore. We would probably be renting and I do not think that is the right solution for the national broadcaster.
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Did RTÉ do a cost analysis of that?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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What does that say? Would renting or owning its own property be more beneficial?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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That is okay. Did RTÉ bring that cost analysis to the Minister’s attention?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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On the EU audiovisual media services directive in 2018, RTÉ was fined. How much was it fined for not implementing that?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Okay.
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Not by RTÉ. Who had to pay that? The Department?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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It had to pay €4.3 million.
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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What were we not doing right? Did it come from RTÉ?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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So in Ireland that was not done right.
Mr. Adam Larragy:
There was a delay in the legislation, and the legislation set up a new regulator, Coimisiún na Meán, and it had to make an online safety code and other series of regulatory codes such as the media service code. Therefore it was only really closed off after the legislation was passed, the new body was established and the new body put in place the regulatory framework.
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Is that a fine we will incur every year if this is not-----
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Where did the €4.3 million come out of? Whose Vote?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Another waste of taxpayer’s money. RTÉ changed auditors between 2023 and 2024. Why?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Why did they not apply?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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It was not a disagreement with RTÉ?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Okay. On all the staff who were made redundant from RTÉ, was there ever an apology or anything given to those staff for what happened? Why were they all made redundant?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Mr. Bakhurst mentioned earlier.
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Yes.
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Okay. I will continue on that. What are the plans for “Fair City”?
Mr. Kevin Bakhurst:
We have done a very extensive feasibility study of the future of “Fair City”. We will downsize the site and at some point we are going to have to move it off site if we want to carry on doing it. We have done an extensive piece of work on that which is nearly finished to look at the future of “Fair City” and what it would cost.
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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What is the future?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Okay.
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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How many people work on it?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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What is the cost yearly?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Deputy Boland mentioned earlier there is a voucher scheme and it cost €2.1 million. What are those vouchers for?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Why would every member of staff get €1,000.
Mr. Kevin Bakhurst:
It was part of the overall pay agreement with the unions.
By giving the staff a voucher, we got another six months to negotiate a pay deal for two years, which we did, successfully. It was part of the overall pay deal, so when we agreed the level of the pay deal, the voucher was taken into consideration. Also, I was quite in favour of it because it is a tax-efficient thing, which the State has enabled, but also, if we give €1,000 to each member of staff, it means the lower paid get proportionally more than the highly paid. There was only one member of staff who did not get it.
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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RTÉ has outlined the staff salaries in a chart. Is that chart correct? I felt there were a few discrepancies in the chart regarding the staff members. There was a discrepancy in relation to two people who were on the incorrect pay band. Is that correct?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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It was the on-air presenters and the leadership. Mr. Bakhurst had noted on the pay bands that G. Lee and D. Maloney were two who were on the incorrect band.
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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In relation to contractors and employees, there was a huge variance in the pay going to a contractor, which was €250,000, compared with any of the other salaries. Does that incentivise people to be on contracts in preference to working for RTÉ?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Did the witnesses have media training today before they came in? No. They are just natural.
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Was there a cost for that?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Does RTÉ spend a lot of money on consultants?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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How much did it spend on consultants in 2024?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Actually, I have it here on the sheet.
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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I think RTÉ spent €2.44 million.
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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It is a lot for anybody. I think it looks a lot.
Mr. Kevin Bakhurst:
Believe me, I do not want to spend that much, but that includes all legal advice and financial advice. We might bring in one of the big four companies to look at tax affairs or whatever. Each one of those pieces of work costs a not insignificant amount of money, but we go through procurement.
Séamus McGrath (Cork South-Central, Fianna Fail)
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I thank the witnesses for being here. I will start with the overall position. Mr. Bakhurst issued a statement yesterday that the overall package was €725 million, that RTÉ would be able to work within that, and that there would not be a need for any additional funding outside of that. Mr. Bakhurst stands over that position.
Séamus McGrath (Cork South-Central, Fianna Fail)
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Within that, it is also true to say that the funding the State has given, and will have to give this year and next year, over and above the licence fee collection, is going to have to increase.
Séamus McGrath (Cork South-Central, Fianna Fail)
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For example, in 2025, it was €41 million, or thereabouts. This year, it is going to be somewhere in the region of €56 million.
Séamus McGrath (Cork South-Central, Fianna Fail)
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That is about €15 million additional.
Séamus McGrath (Cork South-Central, Fianna Fail)
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Will Mr. Bakhurst tell us a little about that?
Séamus McGrath (Cork South-Central, Fianna Fail)
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That was a success.
Séamus McGrath (Cork South-Central, Fianna Fail)
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Projecting forward to 2027, that overall envelope earmarks €260 million to come from the State in a combination of licence fee collection and State funding. Realistically, even if the licence fee collection stood still, we would be looking at somewhere close to €75 million-plus in direct State funding in 2027.
Séamus McGrath (Cork South-Central, Fianna Fail)
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How realistic is the licence fee revenue projection? Mr. Bakhurst said it would be €185 million this year, and it was €183 million in 2025 - I am rounding off the figures. We know it is declining. How is RTÉ increasing it in its projections?
Séamus McGrath (Cork South-Central, Fianna Fail)
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By the Department of Social Protection.
Séamus McGrath (Cork South-Central, Fianna Fail)
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From 2022 to 2025, €38 million less was collected in licence fees, which is 17% down. We are continuing to see that downward trend. I am questioning how realistic the licence fee collection projection is for 2026 and 2027.
Séamus McGrath (Cork South-Central, Fianna Fail)
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I am sorry for interrupting. If it does not stand up in 2027, the State is going to have to step in to provide more of that additional funding to reach the €260 million. Is that correct?
Séamus McGrath (Cork South-Central, Fianna Fail)
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I understand that.
Mr. Kevin Bakhurst:
There has been zero increase. Obviously, evasion has gone up, and the number of no-TV homes has gone up, but that was always the point - the importance of multi-annual funding - so the organisation knows year to year what it is getting and we are not subject to the vagaries of the TV licence fee.
Séamus McGrath (Cork South-Central, Fianna Fail)
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I understand. However, in 2027, it is likely that if the licence fee reduction continues in terms of the overall collection, the amount the State has to step in with to bring it up to €260 million is going to have to increase.
Séamus McGrath (Cork South-Central, Fianna Fail)
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I think that was the point being made yesterday in some of the reporting.
Mr. Kevin Bakhurst:
No. I think a different point was being made. It was that we were going to go back and ask for more of a bailout, as it was called. First, it is not a bailout, and second, we are not asking for any more than what the Government has already agreed. That was really important to me. When we were lucky enough to get this multi-annual funding, which has been so important, the agreement between me, the then Minister and, for that matter, the Taoiseach was that if we got this funding, we would reform RTÉ, which we are doing, and we would not come back and ask for any more money on top of that public funding, which we are not doing.
Séamus McGrath (Cork South-Central, Fianna Fail)
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I need to move on because of the time. Deputy Neville asked earlier how much it costs to run RTÉ, and the answer was €405 million for this year. How does that compare with 2023, when issues started to arise? How much did it cost to run RTÉ in 2023?
Séamus McGrath (Cork South-Central, Fianna Fail)
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It has gone up by over €50 million.
Mr. Kevin Bakhurst:
I want to be crystal clear about this. There are a few elements to this. The cost of running RTÉ, staffing, overheads and so on is absolutely static and, in fact, it has gone down year on year. The extra money has gone into things like investment in the player and investment in independent productions and high-quality drama, which is what we said we would do.
Séamus McGrath (Cork South-Central, Fianna Fail)
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I understand that, but there has been more than €50 million of an increase in running costs for the organisation from last year to this year. At a time when RTÉ is introducing these significant reforms that Mr. Bakhurst referred to, it is costing €50 million more.
Mr. Adrian Lynch:
We had a three-year plan as part of the funding settlement, so we knew what our budget was coming into 2026 and we planned accordingly for that. The cost drivers are anything from investment in the player to cybersecurity. Things like the cost of computing have gone up significantly, and we know it is up by about 45%. The spend on the independent sector is going up by about €8 million. We have our pay deal of 2.5%.
Séamus McGrath (Cork South-Central, Fianna Fail)
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I do not have time to drill into it. I think it will come as a surprise that RTÉ is making a big argument around reforms, cost savings and so on, but the actual budget has gone up by €50 million.
Séamus McGrath (Cork South-Central, Fianna Fail)
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Is it not the case that the organisation should be trimming costs and reducing its overall outlays?
Séamus McGrath (Cork South-Central, Fianna Fail)
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But RTÉ is spending more.
Séamus McGrath (Cork South-Central, Fianna Fail)
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Mr. Bakhurst is saying that RTÉ is expanding its services.
Séamus McGrath (Cork South-Central, Fianna Fail)
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If we are expanding services, does that mean we are seeing a similar increase in commercial revenue?
Séamus McGrath (Cork South-Central, Fianna Fail)
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Will Mr. Bakhurst give me the figures for commercial revenue in 2025 versus the projected revenue for 2026? If we are spending €50 million-----
Séamus McGrath (Cork South-Central, Fianna Fail)
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Will Mr. Lynch repeat those figures?
Séamus McGrath (Cork South-Central, Fianna Fail)
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Despite all of the investments and the expansion of services the witnesses are speaking about, we are not seeing much of an increase in commercial revenue. It just does not seem to be adding up.
Séamus McGrath (Cork South-Central, Fianna Fail)
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The increase in actual revenue is very marginal despite the fact that €50 million more is being spent to run the organisation.
Séamus McGrath (Cork South-Central, Fianna Fail)
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I do not mean to be rude but I have to move on because I am caught for time. On staff numbers, what is the overall staff headcount now?
Séamus McGrath (Cork South-Central, Fianna Fail)
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It is 1,710. What was it in 2023?
Séamus McGrath (Cork South-Central, Fianna Fail)
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It is quite a marginal reduction.
Mr. Kevin Bakhurst:
To be crystal clear, it is worth saying that there are a significant number of people on temporary contracts for the World Cup. At this time of the year, the number also includes people like the 16 interns who will be in the organisation for a few months but who will then be going. The headcount now cannot be directly compared with a December headcount.
Séamus McGrath (Cork South-Central, Fianna Fail)
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What will be paid out in staff costs, such as salaries and allowances, this year and what was paid out in 2024?
Séamus McGrath (Cork South-Central, Fianna Fail)
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What is the cost of staff, including salaries, allowances and so on? I am trying to ask whether there has been a significant reduction in staff costs.
Mr. Adrian Lynch:
We never know the outturn at this point. We do not know what the outturn will be yet. Last year, our bill was approximately €176 million. With pay increases and so on, the budget this year was greater than that. At the moment, in the year to date, we have saved €5.5 million on our approximate bill. There are a couple of things involved. Coming into this year, in January, our headcount was 1,653. There were a number of open roles, which are not unusual for us to carry. That number coming into the year was about 100. It is important to say that.
Séamus McGrath (Cork South-Central, Fianna Fail)
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I am getting caught for time. I want to move on to one or two other bits. In recent months, when the presenter list was updated, it also came to light that two well-known presenters who have left the organisation, Claire Byrne and Ray D'Arcy, will continue to be paid for a couple of months despite no longer working for RTÉ. Will Mr. Bakhurst explain how that came about?
Séamus McGrath (Cork South-Central, Fianna Fail)
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She was paid close to €50,000.
Séamus McGrath (Cork South-Central, Fianna Fail)
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She made herself available to work.
Mr. Kevin Bakhurst:
If we had wanted her to work right up until she went to Newstalk, she would have, but we wanted to get David McCullagh on air. The second thing is that they had contractual relationships. There were different reasons why Ray D'Arcy did not carry on broadcasting but he had a contractual relationship so we thought it was the right thing to do to pay him according to his contract.
Séamus McGrath (Cork South-Central, Fianna Fail)
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Mr. Bakhurst can see why it does not sit well with the public for almost €100,000 to be paid-----
Séamus McGrath (Cork South-Central, Fianna Fail)
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I am not saying the presenters did anything wrong but RTÉ took the decision that they did not have to continue to work.
Séamus McGrath (Cork South-Central, Fianna Fail)
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At the time of the Derek Mooney issue, Mr. Bakhurst said that RTÉ was paying a price for transparency. Does he regret using that phrase?
Séamus McGrath (Cork South-Central, Fianna Fail)
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Transparency is what is expected, however.
Séamus McGrath (Cork South-Central, Fianna Fail)
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The consequences that come from it-----
Séamus McGrath (Cork South-Central, Fianna Fail)
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Mr. Bakhurst accepts there was a story there, however.
Séamus McGrath (Cork South-Central, Fianna Fail)
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Derek Mooney not having been on the presenter list and how that was handled annoys the public to this day.
Séamus McGrath (Cork South-Central, Fianna Fail)
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How is it paying a price for transparency when there was a story there?
Séamus McGrath (Cork South-Central, Fianna Fail)
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Yes, my final question-----
Séamus McGrath (Cork South-Central, Fianna Fail)
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I will move to my final question. Mr. Bakhurst mentioned the potential sale of part of the site at Donnybrook. Does RTÉ own any other properties that may be put for sale?
Séamus McGrath (Cork South-Central, Fianna Fail)
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Is it just Cork?
Séamus McGrath (Cork South-Central, Fianna Fail)
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If RTÉ were to sell its Cork property, does that mean there would not be a studio in Cork?
Mr. Kevin Bakhurst:
We are looking for a better premises in the centre of the city because we want to expand our operations in Cork. As the Deputy will know, our facility on Fr. Matthew Street is rather old and dilapidated. We looked at refurbishing the facility but it was prohibitively expensive. We have now been looking for a year and a half. There are not that many properties there. We are currently back on track.
Séamus McGrath (Cork South-Central, Fianna Fail)
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It is not a diminution of services in Cork.
Séamus McGrath (Cork South-Central, Fianna Fail)
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It is the opposite. That is good.
John Brady (Wicklow, Sinn Fein)
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I have a number of questions myself. It is important that any witness who comes before the committee is open, fully transparent and accurate in the information they provide to the committee and therefore put into the public domain. I will ask Mr. Bakhurst to reflect on some comments he made in response to Deputy Joanna Byrne's questions regarding the League of Ireland. I would like clarification on a number of comments. Mr. Bakhurst doubled down. He said it was a joint bid. Will he give us some information around that statement?
John Brady (Wicklow, Sinn Fein)
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Was it a joint bid?
John Brady (Wicklow, Sinn Fein)
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It was a joint bid. Collectively-----
John Brady (Wicklow, Sinn Fein)
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It was not a joint bid.
John Brady (Wicklow, Sinn Fein)
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Mr. Bakhurst said that RTÉ was financially outbid on a number of occasions.
John Brady (Wicklow, Sinn Fein)
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That deal was made on the basis that Virgin could provide 36 weeks' coverage.
John Brady (Wicklow, Sinn Fein)
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RTÉ would only cover 18 matches.
Mr. Adrian Lynch:
It is important to clarify that, in any of these competitive tenders, a number of factors are considered in deciding who will be successful. You do not necessarily know what any of the other parties are doing. In this instance, Virgin had a certain bidding strategy and we had another. Virgin was successful and secured the rights. As the director general has said, we were incredibly disappointed to lose the rights.
John Brady (Wicklow, Sinn Fein)
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"Joint bid" was the incorrect term to use.
John Brady (Wicklow, Sinn Fein)
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There were simultaneous bids. The term "outbid" is also highly questionable.
John Brady (Wicklow, Sinn Fein)
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RTÉ might provide us with more information regarding the bid.
John Brady (Wicklow, Sinn Fein)
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I will touch on the issue of Montrose. It was mentioned that there have been some discussions with the LDA. Will Mr. Bakhurst give us some information in that regard? What acreage remains within the campus in Montrose?
I think over 8.64 acres was the previous sale to Cairn Homes for €107.5 million. How many acres remain in Montrose?
John Brady (Wicklow, Sinn Fein)
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How many acres would remain?
John Brady (Wicklow, Sinn Fein)
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Is there a value of the entire site at Montrose?
John Brady (Wicklow, Sinn Fein)
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What is the estimate from Savills?
John Brady (Wicklow, Sinn Fein)
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If the LDA buys it, what is the value?
John Brady (Wicklow, Sinn Fein)
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If it goes on the open market, Mr. Bakhurst does not have a value on it.
John Brady (Wicklow, Sinn Fein)
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There would be an estimate there.
John Brady (Wicklow, Sinn Fein)
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Are the discussions with the LDA at an advanced stage?
John Brady (Wicklow, Sinn Fein)
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I will move on to the Barron review that is being carried out. Did that go out to tender?
John Brady (Wicklow, Sinn Fein)
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I am certainly not questioning Mr. Barron's experience or knowledge. He has spent many years working within the BBC, so he comes with a wealth of experience. Is he still working within the BBC?
John Brady (Wicklow, Sinn Fein)
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He has finished there. Mr. Bakhurst spent some time in the BBC. How many years did he work there?
John Brady (Wicklow, Sinn Fein)
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During Mr. Bakhurst's there, I think Mr. Barron worked within news-----
John Brady (Wicklow, Sinn Fein)
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Mr. Bakhurst did not know Mr. Barron and had no engagement with him whatsoever. Mr. Lynch pointed out that he had never met Mr. Barron. Had Mr. Bakhurst met him prior to being appointed to-----
John Brady (Wicklow, Sinn Fein)
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Would Mr. Bakhurst have had engagement with him in the BBC?
John Brady (Wicklow, Sinn Fein)
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I want to move on to the issue of bogus self-employment, which I think had been rife within the organisation. It was a huge injustice to many people within the organisation over many decades. Will Mr. Bakhurst briefly give us the up-to-date position? I know that a comprehensive piece of work has been done retrospectively within the organisation. How many rectifications have there been?
Mr. Kevin Bakhurst:
I will give the Cathaoirleach the headline figures, and if Ms Malone needs to come in, she will. The Department of Social Protection identified 705 cases. A total of 90% of those have now been resolved, one way or the other. Ms Malone can give the numbers in terms of how they were resolved. We have paid the PRSI in respect of those whom it was found should have been employees. We have paid over €5 million in PRSI back payments for a number of years. Some of the remaining 10% of cases are sitting with the Department for it to make a decision on them. There is a small number that are going through a legal process because the people were employed through companies to do the work. We have not managed to reach agreement with the Department of Social Protection, so it has gone to the courts.
John Brady (Wicklow, Sinn Fein)
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How many employment cases arising from scope section or social welfare appeals office determinations are before the High Court?
Ms Annette Malone:
Four cases are before the High Court, two of which are limited companies and two of which are individuals. In relation to the numbers, 205 cases of the 705 came back as class A and 434 came back as class S. Sixty-six cases are outstanding, of which a number are limited companies. There is a small group of sports contributors within that group. As the Cathaoirleach knows, we have been on an extensive journey since our full engagement on this between Eversheds, the implementation of our employment first policy, scope and now with the recent Supreme Court judgment on Karshan. We have done quite a lot of work in this area. We had a lot of work to do. We are concluding that. We had always agreed that we would take a lens and look back as well to ensure that we had captured everything, particularly with the Karshan lens on it now. Under the employment first policy, we have classified a lot of roles that are now employment first, particularly around presenters. We have transitioned more than 30 presenters into employee roles where previously they would predominantly have been contractors. A huge body of work has been done in that space. We also did the retrospection agreement with the trade union group to try to resolve some of the issues there.
John Brady (Wicklow, Sinn Fein)
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Mr. Bakhurst gave a figure of €5 million for PRSI payments. Were any other payments made on foot of those reclassifications?
Ms Annette Malone:
That is the PRSI liability that we have paid out to date to the Department of Social Protection. We have had a number of challenges at the WRC and a few are still down there, as well as at the Labour Court. To date, those cases were found in favour of RTÉ. Some of those cases are being appealed to the Labour Court at the moment, so I will not speak to those. It would be inappropriate to do so while they are before the courts. With respect to our retrospection agreement that we agreed with the trade union group, that had been offered out. As my predecessor said previously, the vast majority of individuals under Eversheds had accepted that, but some of these cases before the WRC and Labour Court may be individuals who have taken their cases, which is their right, and we respect that.
John Brady (Wicklow, Sinn Fein)
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An amnesty was provided by Revenue last year. Did RTÉ avail of that amnesty for misclassification to rectify people's employment status?
John Brady (Wicklow, Sinn Fein)
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That would be fairly straightforward. If there was a process of engagement with Revenue regarding that amnesty, I would have thought that it would be information that the witnesses-----
John Brady (Wicklow, Sinn Fein)
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In terms of the retrospective recognition of employees' PRSI, Ms Malone made reference to agreements with unions, etc. Obviously, there is a big issue there. It was an injustice for many people. They have had their employee status rectified now, but that does not provide them any rights in terms of pension entitlements from their many years of employment or other employment rights, for example, holiday pay, maternity leave or whatever it is. How can Ms Malone say that there has been full restitution for workers without addressing those core issues for many employees, the figures of which have been furnished here?
Ms Annette Malone:
We engaged in an industrial relations process on what was a complex industrial relations matter. We brought in two independent experts to oversee that process and engage with our trade union group in relation to that whole process. In any industrial relations agreement, you are trying to find a satisfactory agreement that can resolve some of the matters, but it is not a legal agreement or framework. It is trying to achieve some of the results of that.
John Brady (Wicklow, Sinn Fein)
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In tandem with the regularisation of PRSI, for example, was there an evaluation of the cost to RTÉ of rectifying the core issues of pension entitlements and other employment rights that flow from the status of being an employee as opposed to a contractor?
Ms Annette Malone:
It is my understanding that what we have accepted the PRSI class A classification liability. That does not translate into giving people employment rights, including retrospective employment rights. Our industrial relations agreement was to try to resolve some of those matters.
John Brady (Wicklow, Sinn Fein)
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I am asking a specific question. Was an evaluation carried out on how much it would cost the organisation to rectify those issues in terms of pension entitlements retrospectively?
John Brady (Wicklow, Sinn Fein)
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What was that top-line consideration? Does Ms Malone know?
John Brady (Wicklow, Sinn Fein)
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Mr. Bakhurst said if that issue had been addressed, it would bankrupt the organisation. I am trying to arrive at how a statement like that could be made and where the evaluation process-----
John Brady (Wicklow, Sinn Fein)
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What is that significant figure?
John Brady (Wicklow, Sinn Fein)
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How can you make a public comment like that, that it would bankrupt the organisation, without actually knowing------
John Brady (Wicklow, Sinn Fein)
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How can Mr. Bakhurst make a very serious statement like that, that rectifying people's rights and entitlements in terms of holiday and maternity pay, pension entitlements and all of the other rights that stem from that would bankrupt the organisation? How can the head of the organisation make a statement like that without knowing the figure?
Mr. Kevin Bakhurst:
That was the advice I was given at a high level at the time when I asked about it. I did ask about it because a number of colleagues asked me about it who declined to be part of the Eversheds process. When I asked about it, they said we cannot do retrospection for everyone. First of all, we cannot break the collective agreement which was entered-----
John Brady (Wicklow, Sinn Fein)
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You took them for their word on that without seeing the actual figures, the costings-----
John Brady (Wicklow, Sinn Fein)
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But Mr. Bakhurst does not know that because he has not had sight of it.
John Brady (Wicklow, Sinn Fein)
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Nor before making a statement like that did he see it fit to get that.
John Brady (Wicklow, Sinn Fein)
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You might furnish us with those figures and what process was carried out to arrive at those headline figures you mentioned.
I have full consent to talk about the next issue I will raise. It is about a former colleague in RTÉ, Seán Rocks, who sadly passed away last year. I have been communicating with his widow, Catherine Bailey, who, along with her family, has been treated appallingly by the organisation given the huge contribution Seán gave not just to RTÉ but to public service over many years. Where are things at now in terms of the misclassification of Seán's employment within the organisation? What efforts has Mr. Bakhurst taken to address the real injustice served upon not just Seán and his legacy but the implications it has for Catherine and their family? What engagement has Mr. Bakhurst had to try to address this issue? It is reflective of the way RTÉ senior management deals with workers in RTÉ.
John Brady (Wicklow, Sinn Fein)
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Considerable engagement with whom?
John Brady (Wicklow, Sinn Fein)
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What does that considerable engagement with Catherine Bailey look like?
John Brady (Wicklow, Sinn Fein)
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I think Catherine has met Mr. Bakhurst on three occasions.
John Brady (Wicklow, Sinn Fein)
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There has been no conversation around the issue with Catherine-----
John Brady (Wicklow, Sinn Fein)
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-----on any of those three occasions. Considerable engagement would be an extension of the truth.
John Brady (Wicklow, Sinn Fein)
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I think those communications have been unsuccessful.
John Brady (Wicklow, Sinn Fein)
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There was an attempt to try to have the core issue addressed within the WRC. What approach did RTÉ take in relation to that attempt to try to address the issues?
John Brady (Wicklow, Sinn Fein)
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A solicitor's letter went out to say it was not going to engage in that process. Why was that?
Mr. Kevin Bakhurst:
It was an incredibly sad event and my heartfelt feelings go out to Catherine and the family. We have taken a lot of time to look at this. It has been considered at board level as well as by me and the leadership team. The issue is this: first of all, he was not misclassified; he was on a presenter contract for the last 15 years of his career so he was correctly classified. The second thing is I have asked the extent of the payout Mr. Rocks's widow would have received, which, in terms of RTÉ life assurance, is not insignificant and, in terms of the likely amount she could have got from the pension fund which would be typical on this occasion, it is a not-insignificant amount. The Chair has had permission. I have not got permission to talk about that any further but I did look into the quantum of the payout she would have received.
John Brady (Wicklow, Sinn Fein)
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The core issue here is employment and what-----
Mr. Kevin Bakhurst:
Sorry, the core issue is that we have a number of staff, unfortunately, who die every year who are on different types of contracts. Many of them have allowances, as did Seán Rocks. They know the terms, as do I. I have an allowance. I know it is not pensionable and it is not covered by life assurance. If we make an exception for one employee, we would, quite rightly - I want to be fair to all employees and to Catherine and Seán but I have to be fair to all employees and not give special treatment to individuals when we have looked into it.
John Brady (Wicklow, Sinn Fein)
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I know. I am saying this is probably reflective of the attitude and approach by RTÉ in relation to the staff-----
John Brady (Wicklow, Sinn Fein)
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I will make this point - it is broader than financial things. This is a misjustice. Despite repeated attempts over many years by Seán to regularise his status, the categorisation in which he was employed within RTÉ, it fell on deaf ears. We are now in this situation. I do not want to negotiate all of this here in public. I ask that there be meaningful engagement with the family. Perhaps an agreed mediator could be put in place to try to address this as opposed to in here in public. I refer to all other attempts to try to have this issue addressed and a resolution found. I take on board the other issues Mr. Bakhurst mentioned in terms of other or former employees and all of that. I ask that that process be agreed to. I am not asking Mr. Bakhurst to commit to that here but I ask if it could be looked at to put a mediation process in place with an agreed mediator to have a look at the issue and try to come to a resolution of some kind. Can that be looked at?
John Brady (Wicklow, Sinn Fein)
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RTÉ will consider it. Okay.
We will move on. If agreeable, we will open it up to a short round of supplementary questions. We will try to keep it to five minutes each, if that is agreeable to our witnesses. I call Deputy Boland.
Grace Boland (Dublin Fingal West, Fine Gael)
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I want to go back to my original questioning in terms of the operating model and financial costs. What has transpired throughout is that it will cost €50 million more to run RTÉ this year than did last year. At the end of last year, RTÉ had 1,653 employees with 100 open vacancies - that is approximately 1,750. Headcount is not being slimmed and neither are financial costs. Three years of reform and the organisation is not getting fiscally smaller; in fact, it is getting bigger. I just do not understand where we are going. I do not see a plan.
Grace Boland (Dublin Fingal West, Fine Gael)
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Mr. Bakhurst will not give me a figure to what. The redundancies, retirements and outsourcing still mean RTÉ will have a 1,750 headcount this year. I just do not see it.
Grace Boland (Dublin Fingal West, Fine Gael)
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By what? By ones and twos?
Grace Boland (Dublin Fingal West, Fine Gael)
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What is the point in the redundancies, retirements and outsourcing if headcount is not brought down?
Mr. Kevin Bakhurst:
Can I just be clear about this? We exited 97 people from the organisation. As Ms Malone touched on, we had about 30 people under the scope process whom we had to make employees and were on contracts before. We took on 11 new people only since we exited those people. They are in areas like compliance and risk and technology, which we had to do for the strategy.
We are controlling costs extremely closely. When the annual accounts-----
Grace Boland (Dublin Fingal West, Fine Gael)
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They have gone up by €50 million.
Grace Boland (Dublin Fingal West, Fine Gael)
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Where is the plan to slim it?
Grace Boland (Dublin Fingal West, Fine Gael)
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The plan is that the State is going to fill the gap.
Grace Boland (Dublin Fingal West, Fine Gael)
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It is.
Grace Boland (Dublin Fingal West, Fine Gael)
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What about post 2028? RTÉ is not even trying to reduce it.
Grace Boland (Dublin Fingal West, Fine Gael)
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RTÉ is just expecting that the State will step in.
Grace Boland (Dublin Fingal West, Fine Gael)
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By how much has the headcount reduced in the last three years?
Grace Boland (Dublin Fingal West, Fine Gael)
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No, it has not.
Grace Boland (Dublin Fingal West, Fine Gael)
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It has not, effectively, based on the figures Mr. Lynch provided.
Mr. Kevin Bakhurst:
No. Mr. Lynch has given a figure for right now, which is in the middle of the year when we have people working on the World Cup temporarily, as well as interns and others who have been recruited. The number to look at will be the one at the end of the year. The number also to look at will be how much we have saved from those people exiting. We are saving over €6 million per year as an organisation because we have a smaller workforce. We are actually, month on month, making between €500,000 and €1 million savings on overheads of staffing because of the way we are controlling costs and staffing.
Grace Boland (Dublin Fingal West, Fine Gael)
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It is being spent elsewhere because the costs are going up and up.
Grace Boland (Dublin Fingal West, Fine Gael)
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I want to briefly ask about-----
Mr. Kevin Bakhurst:
Sorry, no, this is really important. Costs have gone up but we are spending in line with the strategy. As we said under the strategy, we will spend more money on the independent sector. We will spend more money on high-quality drama, live sport, which the audience loves and comes to us in huge numbers for, investigations and Irish-language and children's content.
Grace Boland (Dublin Fingal West, Fine Gael)
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Is that backed up by audience figures increasing or decreasing?
Grace Boland (Dublin Fingal West, Fine Gael)
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Is that over the last three years?
Grace Boland (Dublin Fingal West, Fine Gael)
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I mean generally.
Grace Boland (Dublin Fingal West, Fine Gael)
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RTÉ is spending more, however. The numbers are holding steady, but RTÉ is spending more.
Grace Boland (Dublin Fingal West, Fine Gael)
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I have 50 seconds left. Mr. Bakhurst said RTÉ is outsourcing the "Up for the Match" programme because it wants to make high-quality programmes with outside productions. What message does that send to the employees of RTÉ? Is it saying they do not make high-quality programmes?
Mr. Kevin Bakhurst:
No, that is completely misinterpreting what I said. I said that we take a view on whether the quality of individual programmes can be enhanced. With “Up for the Match”, we are trying something different. There is a whole range of programming that RTÉ staff produce day in, day out, whether it is news and current affairs, sport, radio or shows such as “The Late Late Show” and “Fair City”. They are either extremely cost efficient or extremely high quality and they do a brilliant job. We are not undermining them but what I am saying is that the independent sector also has new ideas about the way to do things. If we are going to be part of Ireland’s successful creator economy, this is what we should be doing.
Mr. Adrian Lynch:
If I could make one other point, “Up for the Match” is part of a programme of work looking at how we would facilitate exits from RTÉ in terms of what was available from an operational capacity point of view and how we would exit people as part of the voluntary exit programme, VEP, 2025. That is important to say.
Grace Boland (Dublin Fingal West, Fine Gael)
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I still have an issue around the headcount because last year, in 2025, I was told it was 1,744. At the end of last year, it was 1,653 with 100 open roles, which actually totals slightly more than that figure of 1,744. Today, Mr. Bakhurst is saying RTÉ has 1,710 staff, including those working on the World Cup. That means we have more. I do not understand.
Mr. Adrian Lynch:
If we had no VEP scheme, we would also be carrying those 97 employees because the open roles would be rolling anyway. When it comes to the figure of 1,653 with 100 open roles, a portion of those new roles is to support our risk assurance and EACs in terms of finance. We also have a structural challenge in that we have become a broadcaster and a streamer. We have to build out our technological infrastructure on our front end to have relevance in the next decade. We have those pressures to accommodate as well.
Grace Boland (Dublin Fingal West, Fine Gael)
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We are not really slimming.
Mr. Adrian Lynch:
No, but we have an agreed work plan as part of our three-year strategy. We knew our budget for 2026 would have increased public funding to €260 million. We are working to that to deliver all the changes we need to the back- and front-end technology, our audience proposition and the reform of the organisation.
Grace Boland (Dublin Fingal West, Fine Gael)
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In terms of modelling for 2028, I assume RTÉ is building models based on various assumptions as to how much the State might give RTÉ. If the State says that it is going to give RTÉ €10 million less in 2028, have the witnesses come up with ways to be able to run the operation and reduce costs by €10 million, €20 million, €30 million or €40 million?
Mr. Adrian Lynch:
Of course there are going to be sensitivities done in the modelling that we do. In all of these things, however, we must remember that RTÉ delivers a significant number of services to audiences. When it comes to a decision to cease a service or whatever, the people who are most unhappy about that are the audience. Even in the context of the World Cup, the committee has heard that six people have travelled for that. As a simple example, the direct cost of the World Cup is €1.4 million. Divided by 104 matches, that equates to a spend of €13,000 per match. We are very focused on value for money in terms of our delivery.
James Geoghegan (Dublin Bay South, Fine Gael)
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I thank the witnesses for staying on. I will start with Mr. Bakhurst on one point. Am I right in saying that the board recommended an increase of about €50,000 to his salary? Is that correct?
James Geoghegan (Dublin Bay South, Fine Gael)
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I would say Mr. Bakhurst knows more than that. That request went to the Minister for approval. Is that the process?
James Geoghegan (Dublin Bay South, Fine Gael)
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Turning to Department officials, has the Minister approved that request?
James Geoghegan (Dublin Bay South, Fine Gael)
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That underpins the request.
Mr. Stephen Ryan:
Yes. Within that, the board is required to make a business case setting out how that would be addressed. It came in with a proposal and the Minister reviewed it. He has agreed a level and recommended that to the Minister for public expenditure because both Ministers are required to sign off on it.
James Geoghegan (Dublin Bay South, Fine Gael)
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When did the Minister for communications make that decision to send it to the Minister for public expenditure?
James Geoghegan (Dublin Bay South, Fine Gael)
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The Minister for public expenditure has not made a decision on the pay increase. Is that correct?
James Geoghegan (Dublin Bay South, Fine Gael)
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He has to make one big decision on all of them.
James Geoghegan (Dublin Bay South, Fine Gael)
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There was some suggestion that the delay in the contractual negotiations with Patrick Kielty were somewhat related to a decision to increase Mr. Bakhurst's pay because he has made it clear that no broadcaster will get paid more than anyone in senior management. Can Mr. Bakhurst say anything about that?
Mr. Kevin Bakhurst:
That was not the main factor at all, actually. It was simply about having detailed negotiations with Patrick Kielty to fit in with his career outside RTÉ in the UK. We wanted him for a certain length of time with a certain number of shows per year and so on. It was really about working through the details. That was what caused it to go on for a little while.
James Geoghegan (Dublin Bay South, Fine Gael)
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To what extent, if any, does it impact Mr. Bakhurst that his line Minister made a decision in March approving the recommendation of the board, but we are now in July and Mr. Bakhurst has no outcome to that decision?
James Geoghegan (Dublin Bay South, Fine Gael)
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On the LDA piece and the lands, RTÉ sold a big chunk of land in 2017 for about €100 million. In size, how do they compare with that chunk of land?
James Geoghegan (Dublin Bay South, Fine Gael)
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I am talking about the size of the land.
James Geoghegan (Dublin Bay South, Fine Gael)
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It is 13 acres.
James Geoghegan (Dublin Bay South, Fine Gael)
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The other site that was sold was 9 acres.
James Geoghegan (Dublin Bay South, Fine Gael)
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Mr. Bakhurst mentioned a couple of hundred units.
James Geoghegan (Dublin Bay South, Fine Gael)
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As Mr. Bakhurst knows, there has been a lengthy delay in the development on those lands. It is something like 300 or 400 housing units. Does Mr. Bakhurst have a figure for how many housing units could be accommodated?
James Geoghegan (Dublin Bay South, Fine Gael)
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Mr. Bakhurst made the point that there would be a big difference between LDA sale versus open market sale.
That will make a huge difference to RTÉ. The decision was taken in 2017, I think, before the LDA had been established. From memory, Dublin City Council put in a bid at the time, but the site went to the private market. How is it foreseen that the discussion will go? I ask this because there is a big difference between the revenue RTÉ will receive from the disposal of the land versus the Exchequer demands the organisation may have, if those are going to keep increasing. I am referring to other than the global context where we need more homes and the LDA needs more homes from a governmental perspective. From RTÉ’s perspective, how is this issue viewed?
Mr. Kevin Bakhurst:
I think we have to deal with what is in place now. The big issue for us is that if we do try to progress this, it will be about how we most effectively borrow the money we need to invest in the building down the end before we can free up the rest of the land to sell it. That is a discussion we need to have about whether this would be a commercial loan or a Government loan that we can pay back from the sale of the land for housing or whatever. These are things we need to explore, but the first step was to talk to the LDA, as is correct, to see if it has an interest in the land.
James Geoghegan (Dublin Bay South, Fine Gael)
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Would the disposal of those lands impact RTÉ’s current funding demands? Mr. Bakhurst said RTÉ is going to look for another three-year round of funding. I think there was criticism of the fact that a lot of the €100 million that RTÉ gained from the last sale went towards current expenditure rather than capital investment. It just funded the day-to-day operations of RTÉ. How would Mr. Bakhurst split that discussion?
James Geoghegan (Dublin Bay South, Fine Gael)
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It would be a capital swap with no impact on the Exchequer-----
James Geoghegan (Dublin Bay South, Fine Gael)
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-----demand.
James Geoghegan (Dublin Bay South, Fine Gael)
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Obviously, the sale, whether this is via the LDA or the private market, will determine that.
James Geoghegan (Dublin Bay South, Fine Gael)
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With the indulgence of the Cathaoirleach, because other members did get an additional two minutes, what is the net headcount reduction figure out of the 400? I am talking about the net figure that RTÉ is currently at.
James Geoghegan (Dublin Bay South, Fine Gael)
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We have heard gross figures of there being 47, 67, or whatever the number was, of voluntary exits-----
James Geoghegan (Dublin Bay South, Fine Gael)
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Yes. RTÉ has to get to a headcount reduction of 400. That reduction is presumably a net reduction of its overall headcount.
Mr. Kevin Bakhurst:
We can give the Deputy a number now, but it is not really comparable at this time of the year. We need to compare year end with year end because, at the moment, to give an example, we may have probably 30 extra people on short-term contracts doing the World Cup. We got 16 interns in on short-term contracts.
James Geoghegan (Dublin Bay South, Fine Gael)
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To meet the metric of the 400, which is a key metric in terms of cost for the funding programme that RTÉ has been provided with by the Exchequer, RTÉ will have to demonstrate that it got to 400.
James Geoghegan (Dublin Bay South, Fine Gael)
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I thought Mr. Lynch was walking it back a little bit when he said it was up to 400. Right now, can Mr. Bakhurst not tell us where RTÉ is at with that 400? Where is RTÉ at currently in the lifetime of the plan in respect of the 400?
James Geoghegan (Dublin Bay South, Fine Gael)
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I will briefly ask the Department a question. Does it hold RTÉ to account in respect of this funding agreement? The Exchequer is providing moneys. As the licence fee revenue goes down, the Exchequer has to provide more moneys to meet the €750 million granted, but the Department has obviously demanded of RTÉ that it meet a headcount reduction of 400. How does the Department take a hold of this issue?
James Geoghegan (Dublin Bay South, Fine Gael)
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A figure on the funding has not been given.
Mr. Stephen Ryan:
No headline figure has been set by the Government and by the Department. We must also remember that while RTÉ is a public body, the staff are not public servants. The key to this was that within the strategy itself, RTÉ made its commitment to reduce the size of the organisation and to transition more programming into the independent production sector to deliver on that. When RTÉ comes in with a business case, it has to set out the numbers. The terms and conditions of the VEP are agreed, the numbers it hopes to achieve, what the savings would be and how long it would take to realise them. When RTÉ comes in with those figures, they are still voluntary. We can only move with what they get delivered.
James Geoghegan (Dublin Bay South, Fine Gael)
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If I ask another question, I will be killed, so I will shut up. I thank the witnesses.
John Brady (Wicklow, Sinn Fein)
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Deputy Geoghegan asked for two minutes, and I gave him three and a half minutes.
Mr. Kevin Bakhurst:
Hopefully, I will not take the Deputy's time, but I think it is important to add that we regularly report to NewERA on the progress of the strategy, and this includes the headcount. It is very focused not just on the headcount but also on overall cost reductions. Headcount is only one part of that. It is also focused on the areas we need to invest in under the expert committee report. We are regularly tested by NewERA. It is almost every six weeks.
James Geoghegan (Dublin Bay South, Fine Gael)
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Is NewERA under the Department of Culture, Communications and Sport?
James Geoghegan (Dublin Bay South, Fine Gael)
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It is the Department of Finance that is the parent entity.
John Brady (Wicklow, Sinn Fein)
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Mr. Lynch wants to come in briefly.
Mr. Adrian Lynch:
I will just add to what the director general said. To answer the Deputy’s question, in terms of net headcount and everything like that, it is important to say that in terms of the last three-year modelling we have been doing, we have had lots of different models. Why are we reducing the FTE figure in RTÉ? It is because we want to deliver savings. What will be the expected savings over this time? Out to 2029, I think it is about €89 million.
On how we are getting there, it is going to be a combination of factors. It is going to involve cost reduction. There will also be a reduction in terms of our overall prox bill. We had different numbers about what it means at 330 or 340. This is why, most importantly, we said that the number would be up to 400 in the strategy document we published. As we do our five-year model now, we will be looking at what will happen if this moves, and then what happens to that. We are going to have ranges. The most important thing, and what we are held to and made accountable for in terms of our engagements with the Department and NewERA, is constantly around our profit and loss account, but also our cash and how the overall package is being managed within the agreed framework for the three years.
It is very important to make this clear. Otherwise, everybody gets obsessed with the FTE figures. It is about the delivery of the overall number and ensuring we are not coming back looking for more public money.
John Brady (Wicklow, Sinn Fein)
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I thank Mr. Lynch. On a point of clarification on the subject of the previous land sale at Montrose, I think Mr. Bakhurst said the figure was considerably higher than the 8.64 acres. Annual reports from the time say it was 8.64 acres that were sold. Was additional land sold? I ask for a brief comment.
John Brady (Wicklow, Sinn Fein)
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A size of 8.64 acres is what is reported.
John Brady (Wicklow, Sinn Fein)
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It was considerably higher than that, as Mr. Bakhurst said, although I know it predates his time.
John Brady (Wicklow, Sinn Fein)
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It was just to get clarification.
John Brady (Wicklow, Sinn Fein)
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It is just to clarify that there was not additional land above-----
John Brady (Wicklow, Sinn Fein)
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I thank Mr. Bakhurst for that information.
Joe Neville (Kildare North, Fine Gael)
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What was the highest single salary paid to a presenter in the history of RTÉ and in what year was it paid?
Joe Neville (Kildare North, Fine Gael)
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Okay. Even up to later years, we had salaries of €400,000, €500,000 and €600,000, I assume. It is now being said that the benchmark is set at €250,000. Is that correct?
Joe Neville (Kildare North, Fine Gael)
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I am sorry, it is the ceiling. The limit is €250,000.
Joe Neville (Kildare North, Fine Gael)
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That includes Mr. Bakhurst's own salary. I was not aware, and Mr. Bakhurst said he was not aware - he was aware, obviously - of his own salary increase. With that, does this mean that the limit increased for presenters as well?
Joe Neville (Kildare North, Fine Gael)
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Mr. Bakhurst's increase lifts the limit for everyone.
Joe Neville (Kildare North, Fine Gael)
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I am just asking-----
Joe Neville (Kildare North, Fine Gael)
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With the announcement about the presenter yesterday, will his salary of €250,000 be confirmed or will it be increased?
Joe Neville (Kildare North, Fine Gael)
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Out of curiosity, the salary has been agreed. Is that correct?
Joe Neville (Kildare North, Fine Gael)
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Will it be backdated to when it was requested?
Joe Neville (Kildare North, Fine Gael)
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The date of the final approval.
Joe Neville (Kildare North, Fine Gael)
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So then other amounts can be increased.
I want to change topics to something that has not come up at all. I know we talked a lot about the World Cup and the League of Ireland. RTÉ covers many GAA matches really well. There has been a lot of national conversation about GAA+. I fully understand that GAA+ is fully owned by the GAA. Would RTÉ have shown more games if it could have done so and the GAA had given it more? Is RTÉ willing to show more GAA matches on a free-to-air, taxpayer-paid-for entity?
Joe Neville (Kildare North, Fine Gael)
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I know it has increased. It was three games a year when I was a kid.
Mr. Kevin Bakhurst:
We are always ambitious but also respectful of the fact that the GAA is trying to run its own commercial enterprise. We have rights at the moment and there is an agreed framework about them. They will come up for renegotiation quite soon, so we will see where we are on that. As the Deputy knows, we sold our stake in GAA+.
Joe Neville (Kildare North, Fine Gael)
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How much did RTÉ sell that for?
Joe Neville (Kildare North, Fine Gael)
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I thought that might have been what Mr. Bakhurst referred to earlier with Deputy McGrath, but that was-----
Mr. Kevin Bakhurst:
We sold that for €3 million. That money has been earmarked for regional investment. It will help us with Cork if we do that. The rationale was that it was a good offer. The GAA wanted us to get out of it. From my point of view, I did not want that conflict of interest. I wanted to do public service, free-to-air broadcasting, and not have to ride both those horses at the same time.
Joe Neville (Kildare North, Fine Gael)
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It was conflict.
Joe Neville (Kildare North, Fine Gael)
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It was slightly compromised, to an extent. A conflict of interest, almost.
My opening question to RTÉ last time was about the budget, which is €405 million for 2026 and €350 million for last year, which is an increase of €55 million. I know RTÉ's subventions have increased, which Mr. Bakhurst referred to in response to Deputy McGrath too. He said RTÉ was doing an element of investment for that €55 million. How much of that would we call capital expenditure, on the player or facilities? Will Mr. Bakhurst break down that €55 million, within reason, and then say how much of it is potentially for salaries or any other uplift? When I say salaries, I mean running costs.
Mr. Kevin Bakhurst:
I can give some headlines on that. We spend around €10 million a year on capital. That is buildings and general capital expenditure. There are individual projects, such as the HR project, which was a couple of million euro, which we are in the middle of introducing. Those come and go each year. Very little of the uplift will go on salaries.
Joe Neville (Kildare North, Fine Gael)
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I would say current expenditure more so than salaries.
Mr. Kevin Bakhurst:
We will be spending more on things like expensive drama. The idea is that most of this will appear on air or on screens for the audience to enjoy the content. That might mean we can afford a little more live sports rights, which the audience would love us to do. Do not forget that every time sports rights come up, there is quite significant inflation. If we want to get the next Rugby World Cup or whatever, the cost of sports rights go up every cycle. They do not stay the same. Very little of it will go on running costs and staff apart from the agreed increments that people get and the agreed increase that we have already done for a couple of years.
Séamus McGrath (Cork South-Central, Fianna Fail)
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I thank the witnesses for staying for so long. I want to clarify the overall figures which Deputy Neville touched on. The budget for this year is €405 million. Outturn for last year was €353.2 million. What was it for 2024?
Séamus McGrath (Cork South-Central, Fianna Fail)
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It went slightly down from 2024 to 2025, by about €9 million, but it shot up from 2025 to 2026.
Séamus McGrath (Cork South-Central, Fianna Fail)
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Many will find the €52 million increase this year over and above last year, at a time when the organisation is coming before us saying it is reducing headcount and trimming costs, yet having a 15% or 16% increase in running costs, just does not add up. I ask the witnesses to clarify the commercial revenue again. I think they said €156 million earlier.
Séamus McGrath (Cork South-Central, Fianna Fail)
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Both, if the witnesses do not mind.
Séamus McGrath (Cork South-Central, Fianna Fail)
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It is quite static.
Séamus McGrath (Cork South-Central, Fianna Fail)
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If RTÉ's commercial revenue is only marginally increasing and its actual running costs are significantly increasing, the financial-----
Séamus McGrath (Cork South-Central, Fianna Fail)
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Just let me finish, please. The financial hole is getting bigger. That is the bottom line here.
Mr. Kevin Bakhurst:
No, because when we got the multi-year funding, it enabled us to do a number of things. One is to significantly increase the spend on independent content. The audience is seeing more drama and more documentaries. "Traitors" was in 2025. We did not have that previously. These are multi-million pound projects.
Séamus McGrath (Cork South-Central, Fianna Fail)
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I understand that.
Séamus McGrath (Cork South-Central, Fianna Fail)
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To what end? It is not resulting in extra revenue. That is not my point.
Séamus McGrath (Cork South-Central, Fianna Fail)
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From a cost-benefit analysis, RTÉ is investing this additional money but it is not bringing in extra revenue. How can that-----
Séamus McGrath (Cork South-Central, Fianna Fail)
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It is a very significant jump in 12 months.
Mr. Kevin Bakhurst:
Yes, but it is showing on-screen for the audiences. It is not all about commercial decisions. We would never do any Irish language content and we would shut down Raidió na Gaeltachta if it was about commercial decisions, but it is not. It is about providing public service. Raidió na Gaeltachta costs many millions of euro a year and it is hugely valued. It does not make much money. It makes some, but not much at all. There are some things which are commercially very attractive, including "Traitors", the World Cup and so on.
Séamus McGrath (Cork South-Central, Fianna Fail)
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The financial hole is getting bigger, with what is coming in commercially compared with what is going out.
Séamus McGrath (Cork South-Central, Fianna Fail)
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Mr. Bakhurst does not like the phrase "financial hole", I respect that, but the need for public funding is increasing.
Mr. Kevin Bakhurst:
It is not increasing beyond what the Government has already agreed for three years. It has increased - agreed - and that was critical to delivering for audiences and being ambitious as an organisation, and to drive through change. Things like the voluntary exit scheme in itself cost in excess of €6 million to exit those people. It will take us a year to recoup that money.
Séamus McGrath (Cork South-Central, Fianna Fail)
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On staff costs, Mr. Bakhurst said there are more than 1,700 at present. I know they vary, some are temporary and so on. How many staff are earning over €100,000?
Séamus McGrath (Cork South-Central, Fianna Fail)
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Do we have an estimate? As senior managers in the organisation, can the witnesses give us an estimate?
Séamus McGrath (Cork South-Central, Fianna Fail)
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It has been reported in one newspaper that there has been a 36% increase in staff earning over €100,000 in the last five years.
Séamus McGrath (Cork South-Central, Fianna Fail)
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Do we have the figures?
Séamus McGrath (Cork South-Central, Fianna Fail)
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Fair enough, but the information is there.
Séamus McGrath (Cork South-Central, Fianna Fail)
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On the World Cup qualifier matches, as mentioned by Deputy Dolan, the €56,000 outlay and the 41 members of staff or individuals who were involved in RTÉ's broadcast, on reflection, does Mr. Bakhurst think that could have been less?
Séamus McGrath (Cork South-Central, Fianna Fail)
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The fact that the entire World Cup is being covered by six people travelling.
Séamus McGrath (Cork South-Central, Fianna Fail)
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One match versus 140 matches.
Séamus McGrath (Cork South-Central, Fianna Fail)
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On reflection, does Mr. Bakhurst think there was any scope to reduce the number of people who went without compromising the quality of the broadcasting?
Séamus McGrath (Cork South-Central, Fianna Fail)
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Mr. Bakhurst stands over that.
Séamus McGrath (Cork South-Central, Fianna Fail)
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On the expert advisory committee, Mr. Bakhurst said they are 80% in terms of implementation. What are the key elements of the remaining 20%?
Séamus McGrath (Cork South-Central, Fianna Fail)
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I am sure Ms O'Shaughnessy is delighted that I asked the question.
Ms Eleanor O'Shaughnessy:
There are two reports: one on governance and culture and one on HR. In respect of governance, there are about seven or eight left outstanding, which relate to risk and compliance activities. To expand on that, in effect that relates to bringing on additional capability to deliver some of that. It is to do with building out risk assurance, risk reporting and, similar on the compliance side, to further extend the compliance activities around compliance governance and compliance reporting. That is primarily where the open items are from a governance and culture perspective.
Séamus McGrath (Cork South-Central, Fianna Fail)
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Thank you.
John Brady (Wicklow, Sinn Fein)
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I have a few concluding questions. On the Ireland game in Czechia and the coverage, without doubt it was one of the biggest matches we have been involved in, but the fact is the biggest team there was not the Irish soccer team but the team from RTÉ. It is the visual impact that has on perceptions for people who have seen an organisation that has been through the mill over the last number of years between barter accounts, tickets for UEFA Cup matches and all sorts of things for people. The level of expenditure throughout and what people are seeing is feeding into that sense of not trusting the organisation and not having confidence in the organisation, and I think that is feeding into the continuing drop-off in people voting with their feet and not renewing their TV licence. I would argue, and many people would argue, in my view correctly, that whatever commercial benefits were to come from RTÉ’s coverage of that game was going to come anyway given the sense of public interest in that game.
John Brady (Wicklow, Sinn Fein)
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How can you say that?
John Brady (Wicklow, Sinn Fein)
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Okay. You might give us a breakdown.
Mr. Kevin Bakhurst:
I do not want to name the sponsors. It would be unfair to them. I can get you a breakdown from our commercial department. I spoke to our commercial director about this and he said, across the piece, if we had not done the amount of coverage we did, it would probably have cost us multiples of tens of thousands of euro in commercial revenue we would not have got as a result of that.
John Brady (Wicklow, Sinn Fein)
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Okay, but it is the visual thing. Forty-one people is overkill.
Mr. Kevin Bakhurst:
Can I just appeal one thing? It is very easy. Broadcasting is quite labour intensive. You will see from the list of people who went that there were no freebies. There was no one on some sort of fun trip. Everyone who went there worked extremely hard and it is dispiriting for them to hear the criticism. They know they worked hard. They know they delivered.
John Brady (Wicklow, Sinn Fein)
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I am not criticising any individual or anything like that.
John Brady (Wicklow, Sinn Fein)
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The same objective, in my view, could have been achieved with less.
Mr. Kevin Bakhurst:
I would appeal to serious commentators to take a look at the overall picture, which is the level of audiences, the level of public interest, our commitment to big national sporting events and the commercial revenue as a whole, before you start getting into whether it is 41 people or 35 people. I appeal to people to look at the whole picture.
John Brady (Wicklow, Sinn Fein)
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Okay. You might furnish us with some more. I know we did get some facts there.
John Brady (Wicklow, Sinn Fein)
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I want to touch on the decision to write down €3.6 million for the failing IT system within RTÉ, something we have not had an opportunity to discuss at this committee. While it came as a surprise to many, I think it is correct to say it came as a surprise to yourself as well as director general of the organisation. IT projects, failed projects and overspends are something that we have given a lot of time and focus to within this organisation. We will be bringing forward a report following a comprehensive piece of work we have done. Where is the system now at this point? I think it was for the HR unit.
John Brady (Wicklow, Sinn Fein)
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What is the cost of the project?
Mr. Kevin Bakhurst:
I think I might have it here, actually. I actually brought a list of all our capital projects here. With the exception of one capital project, and we review this every month at the leadership team and it then goes to the audit and risk committee, every single one of them is financially on target or coming in under.
John Brady (Wicklow, Sinn Fein)
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You might furnish us with that.
John Brady (Wicklow, Sinn Fein)
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It is €6 million, it is on budget and it is it due to be delivered-----
John Brady (Wicklow, Sinn Fein)
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What learnings were taken from the failed system? How did that go so wrong? Was it the scope? What went wrong?
Mr. Kevin Bakhurst:
It is slightly at the back of my mind because it is a while since we have spoken about it. I think it was the scope. We went for an overcomplicated bespoke system which dealt with both finance and HR. In the end, one of the lessons is to buy something off the shelf and do not try to adapt it too much, if possible. I think there were problems with the internal staffing around it. We did not have enough people working on the project, if you like. I also think that when it started to go wrong, the organisation took the decision a couple of times to put in more money and effort rather than stop it.
John Brady (Wicklow, Sinn Fein)
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Not enough people or not enough people with the necessary qualifications?
Mr. Kevin Bakhurst:
Both. I think the people who were on it had the qualifications. We were just understaffed internally. Then there was another problem with the actual installer, which has been a big issue for this. With the current one, we went out twice to tender for procurement because we went through one process and we lost confidence in who was going to install it, so we went out again a second time and we got a different company installing it. That company is great, but an incredible amount of work was done on references, who they had worked for, which systems they had installed, had they done it successfully, had they done similar systems in the public sector and so on. There was a lot of time taken before the project to make sure we had the right product and the right installers, which is critical.
John Brady (Wicklow, Sinn Fein)
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I am sure a review was carried out following the failed system-----
John Brady (Wicklow, Sinn Fein)
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-----and write-down of €3.6 million. You might furnish the committee with that, if that is agreeable. It would be very useful for our focus on the issue.
John Brady (Wicklow, Sinn Fein)
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Okay. That would be extremely useful.
Mr. Kevin Bakhurst:
Sorry, just to say, on this list of projects here, the one that is above budget is we installed regional fibre circuits in all our premises to update them. The reason the project is above budget is because we found that Raidió na Gaeltachta needed more business reliability after the storms, so we put in an extra circuit. That explains the overspend on that because we decided to spend the extra money.
John Brady (Wicklow, Sinn Fein)
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Okay. Just some quick concluding questions. We have the figures for the amount spent on travel and subsistence in 2023 and 2024.
What was the total amount spent on travel and subsistence in 2025? Do we have that figure?
John Brady (Wicklow, Sinn Fein)
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Could you come back to us and provide a breakdown between international and domestic expenditure for 2024 and 2025?
I wanted to touch on the issue of limousines, or whatever term you used for cars-----
John Brady (Wicklow, Sinn Fein)
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For 2025.
John Brady (Wicklow, Sinn Fein)
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You might furnish that to us.
On the usage of limousines or whatever term you used, do any presenters have contracts that require that particular service? Is it written into any contracts?
John Brady (Wicklow, Sinn Fein)
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Did Mr. Lynch mention this?
John Brady (Wicklow, Sinn Fein)
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Patrick Kielty. It is written into his contract that he has a limousine.
John Brady (Wicklow, Sinn Fein)
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A car with a person to pick him up at the airport, I would imagine, and bring him to-----
John Brady (Wicklow, Sinn Fein)
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So a driver picks him up at the airport and brings him to Belfast.
John Brady (Wicklow, Sinn Fein)
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Do we have a cost for that?
John Brady (Wicklow, Sinn Fein)
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Is that part of the overall contract?
John Brady (Wicklow, Sinn Fein)
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You might give us some details on that. Is he the only presenter?
John Brady (Wicklow, Sinn Fein)
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You might come back to us.
John Brady (Wicklow, Sinn Fein)
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That is interesting. The information we got refers to the new contract that is in place and the salary cap that is tied to the director general’s own salary. Would I be correct in saying there is an add-on or a build-around?
John Brady (Wicklow, Sinn Fein)
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It is a benefit.
John Brady (Wicklow, Sinn Fein)
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Okay. It would be good to see the value.
You mentioned a very high cost for the provision of taxis. You outlined the rationale for that, which I understand in some circumstances. Apart from for their daily business, do staff utilise taxis?
John Brady (Wicklow, Sinn Fein)
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Coming to work or-----
John Brady (Wicklow, Sinn Fein)
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Okay.
You mentioned earlier that you use Uber. Would your usage be covered by the figures?
John Brady (Wicklow, Sinn Fein)
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I believe you get an allowance of €25,000 on top of your salary.
John Brady (Wicklow, Sinn Fein)
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What is the purpose of it?
John Brady (Wicklow, Sinn Fein)
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You get a car allowance and have unlimited usage of taxis, which is separate.
John Brady (Wicklow, Sinn Fein)
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Do you think that is right?
John Brady (Wicklow, Sinn Fein)
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The €25,000 is called a car allowance?
John Brady (Wicklow, Sinn Fein)
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Yet you have unlimited use of taxis.
Mr. Kevin Bakhurst:
Can I just be clear about car allowances? We are reducing their number. They are called car allowances. They are not necessarily for cars. I do not know why they are called car allowances. They are allowances that people get in the organisation. We have reduced the number significantly. No one-----
John Brady (Wicklow, Sinn Fein)
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Do you think it is right that someone in receipt of a car allowance should have unrestricted use of taxis and Ubers-----
John Brady (Wicklow, Sinn Fein)
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-----which is an additional cost to the organisation?
John Brady (Wicklow, Sinn Fein)
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And you get paid well enough too.
John Brady (Wicklow, Sinn Fein)
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Okay. That concludes the questions. Obviously, there is an important piece of work starting now in terms of the involvement of the Comptroller and Auditor General and the extension to ensure there is proper oversight. I am sure this will be an ongoing process before the Committee of Public Accounts. At the outset of the meeting, I said this was an opportunity to be open, honest and frank because, inevitably, the forensic work that the Comptroller and Auditor General’s office carries out when auditing Departments or agencies means that, if there are issues, they will come out in the wash. This was an opportunity to front-load any of those issues. Once the Comptroller and Auditor General embarks on that work, hopefully sooner rather than later, hopefully everything will be above board and proper.
There are bigger issues in terms of the future funding of RTÉ, and those issues are outside the remit of this committee, but inevitably the expenditure of that money will come under our focus. There are huge issues in this regard.
I have a concluding question. I know that 89% of staff within the organisation voted no confidence in its direction. I would say that is an extension of a vote of no confidence in Mr. Bakhurst’s leadership within the organisation.
Public confidence is at rock bottom. We see that with the fall-off in the number of television licences. A big piece of work is needed within RTÉ to recalibrate to regain the confidence of staff within the organisation and of the public.
John Brady (Wicklow, Sinn Fein)
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Absolutely. You may make the concluding comments on that. Where do you think confidence is, both in terms of the public, given all the issues we have discussed here and the concerns around expenditure, as well as the concerns expressed within the workforce of RTÉ?
Mr. Kevin Bakhurst:
First, the figure of 89% was 89% of SIPTU members, not of the overall staff, and the unions do not represent anywhere near all the staff. However, we take concerns on board. We have a good relationship with the unions and we will discuss that. I know there are concerns among some of the members, and we need to deal with that. There is a lot of change going on. I think that is a reflection of the amount of change.
In overall terms, the Cathaoirleach said public confidence is low. That is not necessarily true. We measure public confidence with a rolling audience measurement tool from RED C. Trust in the organisation has risen quite significantly in the past year or so after reaching rock bottom in 2023. It is on its way back, but be under no illusion: we know there is much more work to do. It is about me and the leadership team showing that RTÉ is delivering brilliantly for audiences, delivering value for money and being transparent.
I was at a European Broadcasting Union conference in Prague last week or the week before and was talking to colleagues from other organisations there. RTÉ is in a really good position in terms of European public service media. We are lucky to some extent because there is a consensus in this country that public service media matters and, hopefully, the country is prepared to invest in it. We will drive commercial revenues as hard as we can. We all do the job because we believe in the role of public service media. We want RTÉ to be recognised by everyone in this room and outside for the organisation that it is becoming, which is a very good, modern public service media organisation.
John Brady (Wicklow, Sinn Fein)
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I thank Mr. Bakhurst. That concludes our engagement for today.
I thank the director general and other representatives of RTÉ for attending today. I also thank the officials from the Department of Culture, Communications and Sport, along with the Comptroller and Auditor General, for their attendance once again.
Is it agreed that the clerk will seek any follow-up information required and carry out any agreed actions arising from the meeting? Agreed.
The committee will meet again on Thursday, 16 July 2026, to hear from witnesses from the National Transport Authority and Iarnród Éireann.