Joe McHugh (Donegal North East, Fine Gael) | Oireachtas source

First, it should be noted that RTE is not the sole recipient of licence fee revenue. Licence fee revenues are distributed in accordance with section 123 of the Broadcasting Act 2009 in the following prescribed manner. From the gross TV licence fee receipts, the Department first deducts commission payable to An Post in respect of its role as the Minister's issuing agent for TV licences. TG4 also currently receives €9.245 million from the gross receipts. Following these deductions, 7% of the net revenue is paid to the broadcasting funding scheme. The scheme, which is operated by the Broadcasting Authority of Ireland, BAI, was established to provide funding in support of the production of high quality programmes by independent producers and broadcasters on Irish culture, heritage and experience, and programmes to improve adult literacy. The scheme also supports certain archiving projects being undertaken by broadcasters. Any revenues remaining following these payments are provided to RTE. The purpose of the TV licence revenues paid to RTE and TG4 is to facilitate the pursuit of each broadcaster's public service objectives, which are set out in the 2009 Act.

Statutorily mandated annual and five yearly reviews are conducted by the BAI which must consider whether each broadcaster has fulfilled the commitments set out in its annual statement and make a recommendation as to whether there should be an adjustment to the level of public funding. The first five-year review was undertaken in 2013 and this work included a wide-ranging process of stakeholder engagement with market players and other interested parties, involving both face-to-face interviews and written submissions.

The results of that review, and the Government response to it, acknowledge the very significant programme of cost savings implemented by RTE since 2008, whereby it has reduced its operating costs by 30% and reduced its staff by more than 500 people. Members will be aware that a service which was provided in the UK has been taken off the air. It is also worth noting that these efficiencies were achieved in a period where RTE's annual revenues fell by 26% and where, despite the impact of this period of restructuring on the broadcaster, RTE continued to deliver its full range of services and achieved a break-even position in 2013.

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As the Deputy will be aware, the Government response to the five-year review tasked NewERA with conducting an independent assessment of the scope for further efficiencies within RTE, including an examination of achievable efficiencies in its performing groups service model and the manner in which it delivers Irish language radio services. As part of this review, NewERA has also reviewed the scope for optimising the use of independent productions as part of RTE’s programme output. The Minister is currently considering the findings of the NewERA report prior to bringing it to Government and intends publishing it shortly thereafter.

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