Pat Rabbitte (Dublin South West, Labour) | Oireachtas source

RTE is an independent national public service broadcaster whose remit and obligations are set out in section 114 of the Broadcasting Act 2009. RTE has a direct obligation under section 105 of the Broadcasting Act 2009 to ensure that its revenue is, at the earliest possible date, at least sufficient to meet all sums properly chargeable to its current account and to make suitable provisions with respect to capital expenditure. I am satisfied that RTE management is fully cognisant of this obligation and is taking all the necessary steps to ensure that the company continues to be in compliance with the terms of the provision.

I have had cause to meet with senior management in RTE on several occasions during the last 18 months and I have made it clear that a continuing deficit position in the corporation is unacceptable. RTE is in agreement with this and has assured me that as a result of the restructuring programmes the organisation has undertaken and continues to undertake, a break-even position is targeted for the end of this year.

One of RTE's key challenges is managing its commercial revenue, which is declining as a result of increased levels of competition in a challenging and fragmented economic environment. RTE's commercial income totalled €156.3 million in 2012, compared to €167.3 million in 2011. This represents a decrease of 7%. The organisation's commercial income has fallen by 35% since 2008. In the first quarter of 2013, I understand that RTE's advertising revenues were weaker than expected for this year.

With regard to reform of the current licence fee system, the Deputy will be aware that the programme for Government commits to examining the role and collection of the TV licence fee in light of existing and projected technologies and to transforming the TV licence into a household-based public broadcasting charge to be applied to all eligible households and applicable businesses, regardless of the device used to access content or services. I recently received the completed report of the value-for-money review group on the proposal to introduce such a charge. The independently chaired review group, which was established under the auspices of my Department, examined a range of issues relating to the proposal, including the efficiency and effectiveness of the current licensing system. I am currently considering the contents of that report. I expect to be in a position, subject to Government approval, to initiate work in the autumn on the legislative and other work necessary to implement the household-based public broadcasting charge.

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