RTÉ to seek further Government funding as licence fee revenue to continue decline

RTÉ is going to seek at least another €780 million once its current funding arrangement with the Government ends after next year.

The broadcaster’s director general Kevin Bakhurst confirmed at the Oireachtas media committee on Wednesday that it would seek the same annual figure in guaranteed funding struck under a three-year agreement in 2024 to safeguard the broadcaster’s future – about €260 million a year for the period 2028-2030.

That would be adjusted upwards to account for inflation, the committee heard. The figure is inclusive of licence fee income, which the committee was told was projected to decline by €11 million next year. Officials from the Department of Communications said that reduction was likely to continue.

In such circumstances, the exchequer would have to meet an ever-increasing gap between the licence fee income and requested funding.

RTÉ appeared at the committee to discuss funding, reform and transformation at the broadcaster.

Bakhurst and deputy director general Adrian Lynch also said a €20 million budget day funding cut for RTÉ was never discussed with the broadcaster in advance.

The broadcaster was embroiled in a big post-budget controversy after it was left €20 million short of an agreed €260 million package by the Government, with just three hours’ notice of the decision.

Senior RTÉ executives said the matter was never raised and there was “never a connection” between the funding increase and reforms, which was offered by Minister for Culture Patrick O’Donovan as a reason the funding was withheld after the budget.

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Department of Culture secretary general Feargal Ó Coigligh told the committee that the decision was taken after the total allocation for the department fell short of what O’Donovan had sought.

Ó Coigligh said his department was now working with RTÉ so they can go back to Government and make the case for additional funding of €20 million to fill the gap, a position mirrored by the RTÉ executives and chair, Terence O’Rourke, during the committee exchanges.

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Bakhurst said there was “shock, disappointment [and] anger” following the news, which was conveyed on the morning of the budget.

Ó Coigligh told the committee that before an additional €21 million being found after O’Donovan petitioned Government leaders for extra funding on the eve of the budget, RTÉ had been facing a shortfall of €31 million.

In a letter sent to Coalition leaders and Minister for Public Expenditure Jack Chambers, O’Donovan warned that the Government would renege on its funding agreement with RTÉ, saying a cut of €11 million was on the cards at that stage.

Committee chair Alan Kelly said the pre-budget “Lanigan’s Ball” around allocation was “laughable”. He described the letter and the withholding of funding as “tactics”, arguing there was “no way on this wild earthly world” that the Taoiseach and Tánaiste would leave RTÉ short relative to the commitments made to fund the station.

He suggested the money would be found, but said how events unfolded was “very unfair” on RTÉ.