Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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68. To ask the Minister for Culture, Heritage and the Gaeltacht whether, in the aftermath of the RTÉ controversy, she intends to introduce salary caps to rein in the excessive remuneration of a minority of staff and contractors at the top of the organisation; and if she will make a statement on the matter. [34685/23]

Catherine Martin (Dublin Rathdown, Green Party)
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I thank the Deputy for raising the matter in the Dáil today. A Private Members Bill setting out similar proposals was considered at Second Stage in the Seanad last Wednesday, and I had the opportunity to respond to the issue there.

As I said in the Seanad, I fully understand the rationale for calls for a cap on remuneration. The public rightly want accountability from senior executives in RTÉ over this scandal and assurance that pay, at all levels in RTÉ, is appropriate and reflects that the services provided by RTÉ should have, as required by the Broadcasting Act, ‘the character of a public service’.

The current statutory position is that RTÉ is free to determine the remuneration of its staff and contractors, with one exception. The appointment and varying of terms and conditions and remuneration of the Director General of RTÉ requires, under section 89 of the Broadcasting Act 2009, the consent of the Government. This has been the position since the foundation of RTÉ under the Broadcasting Authority Act 1960.

In this context, the introduction of a cap on remuneration would be a departure from long-standing policy. This does not mean that it would be wrong, but it does mean that it would require very careful consideration.

As part of the independent examination of RTÉ, a Review of Contractor Fees, Human Resources (HR) and other matters will be undertaken. The terms of reference of the Review include an examination of the oversight and mechanisms by which RTÉ engages presenters and contractors, including fees, the use of agents, the impact on costs borne by RTÉ and the governance of same. In this context, the Expert Advisory Group appointed to carry out the review may examine a cap on remuneration should they consider it appropriate.

However, I think it is important at this point that we do not pre-judge or seek to influence the work of the independent review. I will consider any and all recommendations that they make.

Paul Murphy (Dublin South West, RISE)
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69. To ask the Minister for Culture, Heritage and the Gaeltacht if she has plans to end the commercialisation of RTÉ and replace the licence fee; and if she will make a statement on the matter. [34708/23]

Catherine Martin (Dublin Rathdown, Green Party)
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As a public body established by statute, the role of RTÉ is set out in the relevant legislation, the Broadcasting Act 2009. Since its formal establishment through the Broadcasting Authority Act 1960, RTÉ has been dual-funded through the television licence fee and through commercial income, which has historically been pursued through the sale of advertising and sponsorship.

The report of the Future of Media Commission did consider the merit of the current dual-funding model when compared with a public-only funding model and a commercial-only funding model, such as that used for Channel 4.

It considered that moving to either would be unfeasible because neither model could deliver levels of income adequate to cover the costs of public service media provision on an annual basis. The Commission estimated, based on a 2019 reference year, that the licence fee would have to have been set at €260 per annum, rather than €160, to replace all displaced commercial revenues.

While recommending that the dual funding system be maintained, the Future of Media Commission also recommended that that the TV licence be abolished and replaced with Exchequer funding funded through general taxation. The Government decided not to accept that recommendation. Instead, Government decided that the current system should be reformed and enhanced to provide a more equitable and sustainable funding model.

The Government established a Technical Working Group to examine potential reforms, including how the licence fee might be reformed to reflect changes in technology and viewing habits. The Group paid particular attention to the need to provide secure and sustainable funding for public service media and content.

While the Group has submitted their report to me, a Government decision on the future funding model for public service broadcasting has been paused until the independent examination of RTÉ has been completed and its findings considered.

Public service broadcasting is of vital importance to our society and democracy. As difficult as it is given all that we have learned over recent weeks, I will be considering whether RTÉ needs short term Exchequer support in the coming period with the Minister for Public Expenditure, NDP and Reform, in the context of the 2024 Estimates.

Rose Conway-Walsh (Mayo, Sinn Fein)
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70. To ask the Minister for Culture, Heritage and the Gaeltacht if she can confirm if the 345,000 in additional payments were included in the aggregate pay bill reported in the financial statements as stipulated by the Code of Practice for the Governance of State Bodies; and if she will make a statement on the matter. [34770/23]

Catherine Martin (Dublin Rathdown, Green Party)
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Under section 110 of the Broadcasting Act 2009 RTÉ is required to present their Annual Report in respect of the preceding year to the Minister by the 30th of June. Under section 109 of the Broadcasting Act 2009 RTÉ is required to present a copy of its audited accounts to the Board of RTÉ and the Minister no later than 6 months after the end of the financial year, which is the 30th of June.

On the 30th of June RTÉ presented its Annual Report and its Group Financial Statements 2022 to my Department. As required by section 109 of the Broadcasting Act 2009, the 2022 Financial Statements have been audited by auditors appointed by the Board of RTÉ. At our meeting on 24 June, the Chair of the RTÉ Board clarified to me that previous annual audited Financial Statements submitted to Government were correct.

Officials from my Department and NewERA are currently examining the Report and Financial Statements, in advance of them being considered by Government and laid before the Houses of the Oireachtas in accordance with the Code of Practice for the Governance of State Bodies.

The Grant Thornton Report into the understatement of remuneration in the period 2020 to 2022 was published by RTÉ on 27 June. I note that referred to two payments made through the RTÉ barter account.

The Board of RTÉ have commissioned a further report from Grant Thornton Report into the understatement of remuneration totalling €120,000 between the years 2017 and 2019, which should also assist in clarifying these matters.

To deal with the underlying corporate governance issues which gave rise to the understatement of remuneration, on Tuesday last week the Government agreed to proposals I brought forward to initiate a root and branch examination of RTÉ comprising two elements:

• an independent review to examine the governance structures and organisational culture of RTÉ overseen by an Expert Governance Advisory Committee; and,
• an independent review to examine the mechanisms by which external contractors are engaged, the fees paid, the use of agents, and other HR matters in RTÉ, overseen by an Expert Advisory Committee on Contractor Fees and HR matters