Seanad debates

Tuesday, 12 November 2019

Nithe i dtosach suíonna - Commencement Matters

RTÉ Financial Restructuring

2:30 pm

Photo of Richard BrutonRichard Bruton (Dublin Bay North, Fine Gael) | Oireachtas source

I thank the Senators for raising this issue. We all acknowledge that this is a difficult time for traditional media, whether national or local. RTÉ has not been immune from the impact of people migrating their viewing and listening habits to different platforms. Senators also agree that broadcasting is a vital part of our public service, locally and nationally. It is important to have that vibrant, locally relevant information and entertainment service. Nonetheless, RTÉ has to adapt to the dramatically changed environment in which public service broadcasting has to be delivered in a vibrant way.

I welcome the work the RTÉ board and management have put in to devising a strategy. That strategy is about cutting back but it is also about developing new platforms and ways of addressing the audience. RTÉ has sought assistance and additional support from the Government. We are committed to providing support and in last year's budget we provided €10 million. The difficulty for RTÉ in recent years is that while its costs base has increased by some €28 million, its income, other than from the licence fee, has been static. The organisation has not been able to grow that revenue, so even the €10 million extra provided by the State, via the licence fee and effectively adapting the social welfare contribution, has not been enough.

To date, the Government's decisions have been to tender out the collection of the licence fee so as to cut the very high evasion rate and also, over time, to move to a device independent charging system. RTÉ is asking the Government to review that option and suggesting that it is not enough. We are evaluating the proposed plan. RTÉ has done its own work with PwC and there has also been a contribution from NewERA.

Turning to the details outlined, I am not across the detailed evaluation done on the individual changes put forward. I understand the point that Lyric FM and the studio in Limerick has been a very valuable element of broadcasting in the mid west and that any change is going to be a problem. RTÉ is committed to discussing the impact of these changes with those directly affected, via their unions. I am sure RTÉ remains open to proposals that would deliver equal value. The organisation recognises, however, that it must be financially viable while also developing a strategy that repositions RTÉ to take up opportunities in a rapidly changing media world.

Our work of examining what RTÉ management has proposed is ongoing. I will meet representatives of the organisation to discuss this strategy and how that can be developed over time. I will return to the House to discuss the matter in greater detail. The only matters that come to me for ministerial consent, as opposed to the board and the executive making decisions on them, are those relating to, for example, changes of channels or whatever. This type of decision is within their remit. The board will have to evaluate the case put forward by the Senator and others, including unions. Its members will have to decide whether they need to modify their plan in light of what has been submitted. That is a matter for the executive and the board in the first instance. I will certainly convey the Senator's concerns to those involved.

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