Government to provide RTÉ with €56 million in funding

ireland
Government To Provide Rté With €56 Million In Funding
The move was confirmed as RTÉ director general Kevin Bakhurst was briefing unions on his planned cost-cutting measures for the crisis-hit broadcaster.
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By David Young, Grainne Ni Aodha and Jonathan McCambridge, PA

The Government has agreed to provide €56 million in additional funding to RTÉ after the organisation set out plans to reduce its workforce by 400 by 2028.

Ministers signed off on the interim funding package, which will be subject to certain conditions, at cabinet on Tuesday.

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The move was confirmed as RTÉ director general Kevin Bakhurst was briefing unions on his planned cost-cutting measures for the crisis-hit broadcaster.

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A key element of the strategic reform plan is a €40 million voluntary redundancy scheme that would reduce headcount by 400 – 20 per cent of the current staffing level.

The €56 million provided by Government will cover projected funding shortfalls within the organisation this year and next.

The hole in the outlet’s finances has deepened in recent months due to a sharp fall-off in TV licence revenue collected following a summer of controversies at the public service broadcaster.

Taoiseach Leo Varadkar confirmed an additional funding package had been agreed at a press conference in Dublin on Tuesday.

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But he made clear that the strategic plan drawn up by RTÉ did not require Government sign-off.

Prime Minister of France visit to Ireland
Leo Varadkar stressed that it was not the Government making the decisions, but RTE themselves (Norma Burke/PA)

“The strategic plan is an RTE plan, written by RTÉ management and their board, it is not one that requires Government approval,” he said.

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“It is a plan by RTÉ for RTÉ.

“In terms of the issue of interim funding, Government decided today that there will be interim funding for RTE this year and also next year, but it will be subject to certain conditions and achieving certain milestones and implementing certain reforms.”

The strategic reform plan, leaked details of which have been reported by RTÉ News, will also see a number of services reduced at the broadcaster, with some digital radio channels set to be axed.

The plan is due to be officially published later on Tuesday after Mr Bakhurst briefs staff on the proposals.

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It is set to prioritise upgraded technology, live and online content, and move more production outside of Dublin to Cork and other regions in the years ahead.

RTE staff cuts
Seamus Dooley, Irish Secretary at the National Union of Journalists, leads officials from the RTÉ Trade Union into a meeting with RTÉ director general Kevin Bakhurst at the RTE headquarters in Dublin (Liam McBurney/PA)

There will also be more reliance on the independent sector to produce output.

Mr Varadkar added: “I know the news that staff will be receiving from the director general today and tomorrow will be a shock to a lot of them.

“The actual number of redundancies is being proposed by RTÉ itself, not by the Government.

“Ultimately it will be up to RTÉ to decide how that is done.

“My understanding is they intend to phase it over a number of years and to avoid any compulsory redundancies.

“But it is a state-owned enterprise, semi-state, and they are autonomous in those kinds of decisions.”

RTE pay revelations
RTÉ director general Kevin Bakhurst. Photo: Brian Lawless/PA.

The Government had held off making a decision on interim funding pending the delivery of the strategic reform plan.

RTÉ is facing a loss of between €10-€12 million this year and, with a shortfall in TV licence revenue projected at €61 million euros across this year and next, Mr Bakhurst had warned that the organisation would run out of cash if further state funding was not made available.

RTÉ was plunged into crisis in June when the broadcaster revealed it had not correctly declared fees to its then-highest-paid earner, Ryan Tubridy.

RTE pay revelations
RTÉ revealed it had not correctly declared fees paid to presenter Ryan Tubridy. Photo: Niall Carson/PA. 

The scandal widened as a series of other financial and governance issues emerged.

Earlier this year, prior to the emergence of controversies, RTÉ submitted a request for 34.5 million euros (£30 million) in additional interim funding.

The Government has already allocated €16 million in extra funding for this year in line with recommendations from the state’s financial advice body, NewERA.

However, since the initial request for additional funding, RTÉ’s revenues have taken a further major hit, with the broadcaster experiencing multimillion-euro losses due to a fall in TV licence payments in the wake of the controversies.

 

NewERA had recommended an additional €40 million in relation to the shortfall of TV licences next year.

The Government has also asked RTE to make €21 million of efficiencies to make up the gap created by the shortfall of €61 million in licence fee revenue.

The €56 million agreed by Cabinet covers the €40 million shortfall for 2024 and the additional funding required by the broadcaster this year.

RTE staff cuts
Emma O’Kelly, RTÉ’s Education Correspondent and chair of the National Union of Journalists (NUJ) Dublin Broadcasting Branch, spoke of the fear and anxiety the news has caused (Liam McBurney/PA)

RTÉ education correspondent Emma O’Kelly, who is also chair of the chair of NUJ’s Dublin broadcasting branch, compared the proposed cuts for RTÉ to the shark in Jaws.

“Before this, we had kind of an eerie silence around RTE, but it was kind of like the silence in Jaws, where you know the shark is under the boat,” she said, speaking to media ahead of a union meeting with Mr Bakhurst at RTÉ’s campus in Dublin.

“Today, we have had a glimpse of the shark, or we’re getting a glimpse, and that’s kind of the feeling.

“There’s a lot of fear, a lot of anxiety.

 

“I spoke last week to people in one department who were really concerned, and saying, ‘is our department going to be privatised, is this the end of us?’.

“There’s huge concerns, people don’t know what the future holds for them.”

Ms O’Kelly said that staff were not surprised at how the detail was leaked.

“This is how we find out about our futures, it’s always been this way,” she said.

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