RTÉ tunes into surplus with €165m of licence fees

RTÉ pulled in more than €165 million from licence fees last year, it emerged yesterday as the Government prepares a response to European Union charges of a lack of financial transparency surrounding the public service broadcaster.

The amount of money generated from the licence fee has increased by more than €50m since 2002, a time of crisis when the organisation posted a deficit of more than €55m. RTÉ’s 2004 figures reveal the broadcaster now has a surplus of nearly €7m.

The organisation has rejected criticism that its finances are not transparent.

Director General Cathal Goan said the annual report addresses many of the transparency issues raised by the EU. The Government is formulating a response to the EU Competition Commissioner Neelie Kroes, who argued that an independent monitoring body should be established to assess RTÉ’s funding.

The response has to be delivered before the end of the month.

The EU is worried there is no definition of public service broadcasting and therefore no way of knowing whether the amount generated by the licence fee is more than necessary.

A new body combining the Broadcasting Commission of Ireland and the RTÉ Authority set up to oversee content in both the private and public sectors has been promised.

The Department of Communications says a bill establishing the body will be published later this year.

The annual report revealed a surplus of nearly €7m on income of €342m. The amount of money generated by the TV Licence fee was €166m, while advertising income climbed to €144m - an increase of €21.5m. Television income amounted to €203m, including €117m in commercial revenue.

Radio was allocated €21m in licence fee cash and raised a further €36m from its commercial activities, mainly advertising.

The organisation spent an additional €16.5m on home-produced programmes.

RTÉ Authority chairman Patrick Wright said it had been a good year and that the broadcaster has benefited from difficult decisions taken in recent years.

The organisation was overhauled and there were hundreds of job losses between 2001 and 2002, though the large licence fee increases helped considerably. The numbers of employees began to creep up again last year.

The surplus of €6.8m, an increase on €4.5m on the previous year, may be used to help roll out of the long awaited terrestrial digital programme, though there are no plans for any new channels in 2005, Mr Goan said yesterday.

Programme spend:

Total - €232m

Factual - €23.m

Drama - €34m

Entertainment - €24m

Music - €23m

News, current affairs - €59m

Sport - €34m

Young people - €10m

Overseas buy ins - €22m