RTÉ announces recruitment freeze and spending cutbacks as financial crisis grows

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Rté Announces Recruitment Freeze And Spending Cutbacks As Financial Crisis Grows
Director general Kevin Bakhurst told RTÉ staff that he was stopping all discretionary spending at the broadcaster. Photo: PA
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Vivienne Clarke

RTÉ has introduced a recruitment freeze with immediate effect as the public service broadcaster tries to stem a growing financial crisis.

In an email to staff, director general Kevin Bakhurst also said he was stopping all discretionary spending “to preserve cash whilst we get clarity on our financial position going forward”.

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The email read: “I also wanted to let you know that I will be confirming that we are introducing a recruitment freeze with immediate effect and stopping all discretionary spend to preserve cash whilst we get clarity on our financial position in going forward.

“I regret having to do this as it will impact on our coverage and on our investment in equipment and our digital plans.

“However, given the steep fall in the licence fee and the uncertainty over interim funding, it is the only responsible thing that we can do.”

Mr Bakhurst went on to say he hopes he will have more clarity over interim funding in the coming days and weeks and he will update staff on the matter.

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It comes as Mr Bakhurst will appear before the Oireachtas media committee later on Wednesday alongside RTÉ senior executives and the entire RTÉ Board.

A controversy engulfed the national broadcaster in June after revelations about the under-reporting of the salary paid to star presenter Ryan Tubridy.

The row has triggered a multi-million euro drop-off in the collection of TV licence revenue.

Executive pay rises

Earlier, Sinn Féin’s media spokesperson Imelda Munster expressed concern about details revealed in the documents sent to the Oireachtas committee this week prior to Wednesday’s meeting.

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One of the main concerns for her was the 10 per cent pay rise that members of the executive board awarded themselves last year.

She said: “We're talking about transparency and accountability. Firstly, the Minister wasn't made aware of that in the first instance and given all the committee meetings that we sat through with the RTÉ board, not once was it mentioned that that 10 per cent substantial pay raise had been reinstated for members of the executive board, given that they're now looking for a bailout and are constantly crying poverty. So from a transparency point of view, they failed the first test.

“The other issue was the top 100 earners. We had been told when we'd requested information that if those top 100 earners gave their permission, we would be furnished with those details. But in the response yesterday, they'd never even asked for permission.

“They didn't even ask. How do they know? If somebody gives permission for something, then that's okay. But they didn't even ask them.”

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A further issue of concern was the high number of staff on so-called bogus self-employment – upwards of 700 members of staff were classified as such, she said.

One thing that was crystal clear, she said, was that RTÉ had completely lost the trust and confidence of the public, “and it's all of their own making and they need to root out that insider thinking and insider acting and squandering of public money and other issues.”

Public trust had “gone down the chute”, she added. “The new director general, the new broom, needs to sweep that away and come forward with a strategic plan that both the public and the Oireachtas can have confidence and trust in. And at the moment, that's non-existent.”

No 'witch hunt'

The chair of the Oireachtas Media Committee, Niamh Smyth later told RTÉ’s Morning Ireland that Wednesday’s Oireachtas committee meeting will not be a witch hunt.

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“We're not looking for names, but we are looking for clarity on where the balance is on the top 100 earners. We know there's 1,800 staff working within RTÉ, and the vast majority of them are not the top 100 earners.”

RTÉ had already come before the Oireachtas committee and it was “always with cap in hand,” she said.

“There is a much bigger issue here and they cannot expect either the Minister or the Government of the day to plug a €50 million gap or hole without absolute clarity and transparency about how money has been spent.”

When asked if funds should be provided to RTÉ to plug the gap, Ms Smyth responded: “I don't think there should be one red cent handed over until we've got all of the questions.”

She said not one cent more should be given until the Oireachtas committee received the transparency they were seeking. This was a big day for RTÉ, she said, it will be the first time for Kevin Bakhurst to appear before the committee.

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“We do need to see a plan and a strategy and very tangible measures as to how RTÉ is going to straighten itself out.” There needed to be transparency about the working relationship with the board, otherwise they were there for no other reason than to sign on the dotted line.

As for a proposal by Minister of State Patrick O’Donovan that the site at Montrose should be sold and the funds used to fund the station, Ms Smyth said that all options had to be on the table.

“To be very frank and honest, this is not a new position, but it is a deepening and worsening financial position for RTÉ. And I think all options have to be on the table if they're to be realistic about the future.

“I think we're at a very important crossroads for RTÉ, and I think we have seen good cooperation, if you like, with the committee itself and that we have a huge amount of documentation that has been forwarded to us over the last weeks. And you will see more of that in the future. But I think it all helps in the rebuilding of public trust and confidence in RTÉ, and I'm afraid it's through no fault of anybody's outside RTÉ in terms of the situation it finds itself in.”

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