EU report says RTÉ needs new financial watchdog

THE Government will have to set up an independent national authority to check how RTÉ spends its money, including the annual €70 million it nets from licence fees.

An investigation by the European Commission found there was too much blurring of the lines between what the station spends on its public broadcasting remit and in other areas such as imported programmes.

The report, issued in Brussels yesterday, says it should be clear from the accounts what portion of the station’s money comes from State accounts and where it is being spent.

It wants to ensure there is no cross subsidisation of general programming by the licence fee money since this would work against fair competition between RTÉ and independent stations such as TV3.

“Ireland needs to have an independent national authority checking compliance with the rules,” the report said.

However the report also said any programme and any amount of programming can be designated as the station’s public broadcasting remit by the Government.

The amount of the licence fee is an issue for the Government too and is not considered to be a State subsidy under EU competition rules.

The commission has asked the Government to ensure three principles are observed.

These are: a clear definition of the public service remit; separation of accounts distinguishing between public service and other activities; and adequate mechanisms to prevent overcompensation of public service activities.

Communications Minister Noel Dempsey said he and the Attorney General Rory Brady will consider the report and get back to the Commission.