Dáil debates

Thursday, 14 November 2019

Financial Challenges Facing RTÉ and its Revised Strategy 2020-2024: Statements (Resumed)

 

2:20 pm

Photo of Maureen O'SullivanMaureen O'Sullivan (Dublin Central, Independent) | Oireachtas source

I am sharing time with Deputy Connolly.

In looking at recent headlines such as, "RTÉ - a broken broadcaster?", "...financial crisis", and ""Transformational change" needed ...", my initial reaction was to ask what was new because the signs had been there for quite some time.

Yesterday I attended a presentation in Buswells Hotel by the Nevin Economic Research Institute in which it discussed the concept of a just transition. While it was related to the interventions needed because of issues to do with climate change, sustainability and biodiversity, it is relevant to this debate because it is obvious that there is a need for a just transition in RTÉ to adjust to the changes occurring in digital media, in particular. A just transition is about preparing and being ready for change and having a plan in place. RTÉ did not suddenly face financial problems, while the digital transformation involving other media outlets did not happen overnight. I have to ask where was the drive in RTÉ in those years when it was obvious that there were problems. We recently witnessed the selling of land and the shedding of jobs which were followed by the call on the Government to invest more money, but there is a need for a more radical, innovative and progressive vision within RTÉ. My question is if the strategy will be enough? I certainly hope it will. The Government has a role to play, but it cannot only be the proverbial cash cow or an ATM dispensing funding to cover losses incurred by RTÉ in recent years.

There is a high licence fee evasion rate in Ireland. The figures range from 12% to 14%.

It is much higher here than in other European countries. In Germany it is 2%. In addition, the collection costs here are double what they are in some other countries.

The transformation in media must also be taken into account. Many people are watching RTÉ on devices such as iPads, tablets and laptops and they are not paying a licence fee. It is estimated that over 10% of Irish homes are accessing content on these devices. When one adds that to the 12% to 14% who are evading the licence fee, it means approximately 25% of households are watching RTÉ and not paying a licence fee. That is a significant loss of revenue. Again, it is back to restructuring and not slapping an increase on the traditional television licence fee of €160. That would punish those who pay because of those who do not pay. There must be a level playing field before any increases are considered.

The plan is to have a device-independent broadcasting charge. The Minister said the new system must be robust and not vulnerable to the evasion the traditional licence has suffered. The BBC has similar issues but it appears to be more ambitious. Its director general has a plan, which is difficult, for its BBC iPlayer catch-up service to be capable of rivalling Netflix. That brings me to the competition from Netflix. It costs approximately €144 per year. I have spoken to younger people and they prefer to watch programmes in their own time, which Netflix allows. They get their news and current affairs from social media at their choice of time, not from the news at 5.30 p.m., 6 p.m. or 9 p.m. It is not just Netflix. Apple has launched its streaming service and Disney intends to do the same. We are at a crisis point. Action is urgently required now, not in five to seven years' time.

The top salaries of certain broadcasters are an issue that was allowed to develop and continue during the financial difficulties. I have done the sums. If one takes 15% off €495,000, €450,000 or even €300,000, one is still left with quite a good salary. Even with the 15% cut, the salary is higher than the salaries of President Higgins and the Governor of the Central Bank, considerably more than the US Chairman of the Federal Reserve gets and more than the salaries of the President of the ECB and the President of Deutsche Bundesbank in Germany. It will not solve all the problems, but it will be a signal that this is being taken seriously, especially when one considers that the lower-paid people in RTÉ will have to suffer an indefinite pay freeze.

Tá rudaí dearfacha i gceist anseo, mar shampla, aitheantas do TG4. Tá caighdeán an-ard ag TG4, go háirithe nuair a smaoiním ar an easpa maoiniú. The other positives are sports, when RTÉ gets the coverage, and the commentators, drama, news, current affairs and entertainment. The coverage of Brexit was excellent also. There is also "RTÉ Investigates". The investigation closest to my heart was "Greyhounds Running for Their Lives". Without RTÉ, the scandal of what was happening to greyhounds would have remained unexposed. There are excellent viewing times for the main programmes. An interesting online survey found that the majority of respondents do not want live coverage of political party conferences. Perhaps there is a saving there. There is also the role of Irish independent production companies. They produce popular programmes with original Irish content. They provide employment and skills development.

The main point is that there must be radical, innovative restructuring and financial reform, and urgently.

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