Licence fee rise helps RTÉ into the black

RTÉ spent over €60 million on news and current affairs last year, it emerged yesterday, as the station posted a surplus for the first time in four years on the back of the €43 licence fee increase in late 2002.

But the station, which lost millions the previous year as its management absorbed €35m in restructuring costs, did not meet its overall surplus target and posted a shortfall in advertising revenue.

RTÉ Authority chairman Paddy Wright described 2003 as a year of major progress. He claimed the station was now an efficient and flexible organisation in a position to respond to the challenges posed by increased competition and new advertising codes, particularly in relation to children and alcohol.

The broadcaster’s annual report was published yesterday and for the first time it included a breakdown of where the €157m in licence fee revenue went.

RTÉ One received €68m, Network Two €34m, Radio One €13.3m, Lyric FM €6.2m, Raidio Na Gaeltachtae €9.6m TG4 €11.8m and performing groups, particularly the RTÉ Orchestra, €13.4m.

2fm is entirely self-financing, from advertising and sponsorship, and made a profit of €3.6m.

Director-General Cathal Goan, who replaced Bob Collins in October 2003, said an additional e16m has been spent on home grown productions and that has resulted in more people watching RTÉ television.

“This has happened against a background of increased competition and penetration of satellite and also with TV3 simulcasting more and more output with ITV in Britain,” he said.

The organisation made a commitment to be more transparency and produce more home programmes before the 2002 licence fee increase was granted. A further €2 increase came in to affect on January 1.

Mr Wright said the transparent accounts will “disprove myths” the licence fee revenue was spent on foreign acquisitions or suppressing advertising rates.

However, the RTÉ board remains unhappy at the way the fee is collected.

Mr Goan said RTÉ has long expressed concern that it is not being collected as efficiently as possible.

There is also concern over the broadcaster’s market radio share. A new “more assertive” marketing campaign is planned across the four stations and scheduling changes are planned.

After a number of years of staff upheaval and many reductions, the number of employees, either full time, part time or casual, increased to 2,025 as contract workers were regularised.

This has not added to staff costs though they did rise overall by €2.8m to €110.4m. However, the regularised staff are now entitled to benefits.

The company spent a total of €213m on Irish programmes and commissions and €23m on acquisitions from abroad, with RTÉ One spending more than €12m and Network Two more than €10m.