Seanad debates

Tuesday, 12 November 2019

Nithe i dtosach suíonna - Commencement Matters

RTÉ Financial Restructuring

2:30 pm

Photo of Paul CoghlanPaul Coghlan (Fine Gael)
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I welcome the Minister, Deputy Bruton, to the House.

Photo of Maria ByrneMaria Byrne (Fine Gael)
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I thank the Minister for attending to discuss this important issue. It came as a shock a number of weeks ago when it was mentioned on "Prime Time" that Lyric FM in Limerick might be closing as part of RTÉ's cost-saving measures. I am concerned about the closure of the Limerick studio. I have had a number of meetings with Lyric FM, which plays an important role in the cultural life, not only of Limerick, but of Ireland. It has a large listenership from all over the country and there has been a ground swell of support for the staff and the station. While I am aware that the station is not closing but being dispersed to Cork and Dublin, our national broadcaster's proposed closure of the Limerick studio is going against the grain of what the Government is trying to deliver. Under Project Ireland 2040, the Government has spoken about everything happening in the regions. For example, six in every ten jobs that have been created in recent years have all been outside the M50 and in the regions. However, this move has literally drawn a circle around the mid-west and decided to get rid of it and move so many people to Cork and so many to Dublin. The Minister's other remit is climate action. Staff piling into cars to drive to Cork and Dublin will add to climate change issues.

This Thursday evening, a number of cultural institutions, including choirs and the Irish Chamber Orchestra, will hold an event in the chamber orchestra's performance space to support Lyric FM.

I am worried about losing this cultural heritage in Limerick and the wider region and about the job losses. Twenty-five jobs will be lost, which will have knock-on effects for their families. RTÉ has a cultural director, yet that person has never even visited the Lyric FM studio. The University of Limerick has offered space to RTÉ and other organisations are willing to offer space at knock-down rates to keep Lyric FM in Limerick.

Given my major concerns about this issue, I look forward to hearing from the Minister.

Photo of Kieran O'DonnellKieran O'Donnell (Fine Gael)
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I welcome the Minister, Deputy Bruton, and thank him for taking the time for this debate. He has a report that was delivered by the board, which is chaired by Ms Moya Doherty, and Ms Dee Forbes as RTÉ's director general about a restructuring model for RTÉ. Everyone accepts the need for a restructuring of RTÉ overall. Nevertheless, I seek clarification from the Minister regarding two aspects in the context of the mid-west and Limerick specifically. The first relates to RTÉ's regional broadcasting and general news remit in the mid-west. My understanding is that RTÉ will retain that, but we want to be certain that it will retain the ability to broadcast live from a studio there. The Minister is probably aware that Lyric FM and RTÉ's regional newsroom are based on the same floor in the same building on Cornmarket Square in the heart of Limerick city.They have been there since 1999. The studio is the best state-of-the-art facility outside of Donnybrook. It is in the heart of Limerick city and houses the RTÉ regional studio and Lyric FM. Lyric FM has the lowest cost per hour of any RTÉ station. I would make the counterbalancing case that there is a strong argument for the decentralisation of other arms of RTÉ, such as 2FM, to the Lyric FM studio in Limerick. A large amount of capacity is available and the livelihoods of 23 people are at stake. Lyric FM is a major cultural element of what we offer in the mid west. When the Minister is reviewing this proposal, I request that he ask RTÉ to give careful consideration to the model operating in Limerick. If some reorganisation is required, including a reduction of costs in Limerick, so be it. Staff are aware that there could be a slightly smaller studio. Lyric FM is key to the Limerick operation, however, and it is one of the successes of decentralisation. The worry is that RTÉ is going for the low-hanging fruit when wider restructuring could take place.

Photo of Richard BrutonRichard Bruton (Dublin Bay North, Fine Gael)
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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.

Photo of Maria ByrneMaria Byrne (Fine Gael)
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I thank the Minister for his reply. My biggest concern is that the University of Limerick wrote to RTÉ two months ago, as well as previously, but has not had the courtesy of a reply. The university authorities offered a space on the campus. There are many proposals out there. So many people want to see Lyric FM kept in Limerick. The cultural aspect is so important. Lyric FM has become the meat in the sandwich. There is to be a 100% staff cut. The workers are not sure whether they will be offered jobs in Cork or Dublin. This is supposed to be voluntary redundancy but the studio is being closed. My understanding is that a kiosk-type facility will be built for the regional correspondent. A studio will not be available if RTÉ, 2FM or anyone else comes to Limerick. That will be a huge disadvantage for Limerick and the region.

Photo of Kieran O'DonnellKieran O'Donnell (Fine Gael)
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I thank the Minister for his comments. I wish to make two quick points. When the Minister meets the RTÉ board, he should stress that it is critical that any decision should include a proper evaluation, particularly concerning the mid-west and Limerick. All options must be considered where Lyric FM is concerned, including the University of Limerick offer and an examination of the current studio. My worry is that this is not just about Lyric FM. It is about outside broadcasting and live broadcasting from the region. Any downgrading of the mid-west regional remit by RTÉ is unacceptable. The proposals that have been made by RTÉ are disproportionate. That is the key feature here. We will be trying to ensure they are not the final decision. The board appears to have chosen measures that are disproportionate for Limerick and the mid-west. When the Minister meets RTÉ, I ask him to request a proper evaluation of those decisions. They do not add up.

Photo of Richard BrutonRichard Bruton (Dublin Bay North, Fine Gael)
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I reiterate that this is ultimately a decision for the executive and the board. They must decide on the best site and rationalise their decision. They will doubtless listen to the unions and others who will make the case the Senators are making. The decision must be made in the context of a time of radical change in the broadcasting environment. That puts huge obligations on the management and board to find a new path to delivering public service broadcasting in a vibrant way. That is the challenge they face and I do not underestimate it. That is why there is an independent board to decide how to deliver the public service broadcasting remit. I will be working with the board to see how we can assist, but this repositioning of RTÉ is a really important element in meeting the challenge. While I understand the Senators' concerns, I am equally aware of the very difficult challenges with which the board is trying to cope.