Pat Rabbitte (Dublin South West, Labour)

I appreciate the contributions of Deputies McHugh and Tuffy and thank them for raising this important issue. I stress, however, that RTE is an independent national public service broadcaster whose remit and obligations are set out in law. Section 114 of the Broadcasting Act 2009 states the principal objects and associated powers of RTE, while section 98 provides that the organisation shall be independent in the pursuance of these objects, subject to the requirements of the Act. As such, I, as Minister, have no function in general day-to-day matters, including decisions on closure or otherwise of any of the corporation's overseas news bureaux.

There is no doubt that RTE's news bureau in London has, as both Deputies noted, played an important role in the organisation's news broadcasting over the years. It has, in the best traditions of good public service broadcasting, delivered high quality news reporting on some events of major importance that have taken place in the United Kingdom and in British-Irish relations, particularly the peace process. I agree the London bureau has played not only a constructive role but has had a formative influence on the evolution of relations between our two countries in the relevant period. That said, as we enter the era of digital media, the necessity for on location overseas news bureaux is not nearly as acute as it once was.

I am assured that the regrettable decision to close the news bureau in London was not taken lightly by RTE but in the context of a restructuring and cost reduction programme across the entire organisation. RTE has a serious financial problem, having incurred a net deficit of €17 million in 2011. Its commercial revenue has fallen sharply from €240 million in 2008 to €168 million in 2011, a reduction of 30%. It is crucial that the key elements of its restructuring programme are completed before the end of 2012 in order that the corporation can return to a break even or small net surplus position from 2013 onwards at the latest.

RTE has informed my officials - it is important to recognise this - that the measure will not mean an end to RTE's long relationship with Britain or the Irish in Britain. The organisation has assured my Department that, as part of its public service remit, it remains committed to covering British news, Anglo-Irish politics, the important economic, trade and business ties between Britain and Ireland and stories from the Irish emigrant community. I am advised by RTE that staff and resources from its news bureaux in Dublin, Brussels or Belfast will be deployed, as appropriate, to cover major news stories in London. This does not require the maintenance of a costly fixed facility or permanent staff in London. When all costs are taken into account, RTE has advised my Department that the cost of the news bureau and sales presence in London was in the region of €800,000 per annum.

This difficult decision is one of many to be undertaken by RTE and its workforce to secure the future of public service broadcasting. I am satisfied the organisation continues to review all its operations and costs to achieve the best balance of efficiency and service within the resources available to it.

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