RTÉ applies for €45 TV licence increase

TELEVISION licence holders face paying up to €150 a year if RTÉ’s application for a licence fee increase is accepted by the Government.

The company has also asked for a special commercial licence fee, which would means that pubs and hotels would have to pay extra.

Communications Minister Dermot Ahern is to consider the application and a Government decision is expected within weeks.

A spokesman for the minister said Mr Ahern recognised the need for a licence fee increase, but insisted it had to be contingent on addressing issues such as financial affairs within the station.

A licence fee currently costs €107 annually and RTÉ’s application represents a €45 increase.

The station has also sought that the licence fee be index-linked to inflation to ensure revenue from the fee is not eroded over time.

Former Communications Minister Síle de Valera last year turned down a request from the station for a fee increase of €63 a year.

She had already given the go-ahead for a €14.50 increase, which came into effect in September 2001.

The income to RTÉ from licence fees this year is expected to be in the region of €112m, while the requested fee increase would yield an estimated extra €50m.

As part of its submission, the national broadcaster outlined plans to improve the auditing of its financial affairs for next year which it says will lead to increased transparency across the company.

RTÉ’s director general admitted earlier this year that its annual accounts could be described as “opaque”.

It is understood that the submission includes detailed plans to

provide financial information regarding the radio, television and internet sections of the broadcaster which previously have not been available.

In a statement yesterday, RTÉ said its audience was not being well served as it was being forced to depend on commercial revenue to the detriment of its public service obligations.

It also said RTÉ had the lowest level of public funding among similar broadcasters in Europe.

Plans for a commercial licence are still an early stage and it could take at least a year or so before such a fee is put in place.

RTÉ is understood to be seeking an agreement in principle from the Government on the need for such a licence rather than expecting it to be put in place immediately.

Some other public service broadcasters in Europe charge commercial fees based on factors such as the number of televisions owned by a commercial group.

RTÉ’s application is seen by many as a more professional and dynamic attempt to seek a funding increase.

Consultants KPMG are understood to have helped put elements of the application together.

Last year’s application did not have input from outside consultants, while the department employed Price Waterhouse Cooper to review the bid.