RTÉ awaits review results before go-ahead on licence fees
Consultants brought in to carry out the annual review of the RTÉ's licence fee will report their findings to the Minister of Communications next week. When Minister Dermot Ahern granted the national broadcaster a 43 increase in the licence fee last year, he agreed the annual increase would be allowed to be linked to the Consumer Price Index (CPI).
However, the increase would be reduced if RTÉ did not succeed in reaching its targets in financial performance, increased programming outputs and changed management structures.
With inflation running at a little under 3%, RTÉ could expect to get in the order of a 4 increase in the licence fee, which currently stands at 150. But with an election year coming up, and RTÉ set to fall short of some of its targets, managers in the station expect that the increase due to come into effect from January 1 next will fall somewhat short of that.
In late October, consultants Pricewaterhouse Coopers (PwC) began an independent assessment of RTÉ's performance over the past year.
In correspondence observed by the Irish Examiner, PwC say they would review the financial results of each of the six independent business divisions established in RTÉ under its changed management structures.
In addition, RTÉ's programming output is being examined to see if the planned new drama, current affairs, sports and news programmes were transmitted. Another key area is financial performance. RTÉ told an Oireachtas committee last summer it was confident it could produce a 3 million surplus for 2003, after a period when the broadcaster ran large annual deficits.
Sources within RTÉ said that while advertising revenues had fallen short of projections, the broadcaster has kept a tight rein on operational costs and still expects to come in on target. Mr Ahern has made it clear he will be unwilling to accede to any further increases in licence fees if RTÉ can not show its financial situation is on an even keel, and that it has met its commitments on programming and structure changes.
He is expected to make his decision on the fee in December.
