RTÉ to slash stars’ pay further in €25m savings blitz

RTÉ is to cut programme budgets, look for further redundancies, and seek further top-level pay cuts in an attempt to slash costs by €25m by the end of next year.

The broadcaster will also close its London office and seek work practice changes from its staff.

RTÉ director general Noel Curran said difficult decisions and changes had to be made in the short and medium term “so that RTÉ can sustain services and make renewed investments in its future”.

Of the €25m, €15m will come from “personnel-related operating costs”.

The broadcaster has extended pay cuts in excess of 30% to its top 20 earners.

“We have made clear our plan for targeted reductions in top talent fees by the end of 2013,” said Mr Curran.

“I can confirm that we are on target for in excess of a 30% reduction relative to the 2008 figures. Most contract discussions will in fact be completed by the end of the current year. This approach was extended over the last six months to include those in the top 20 whose contracts are up for renewal. We are also on target for reductions in excess of 30% for this group.”

The voluntary redundancy scheme, which began last autumn and which has seen 190 departures, is to be extended.

After Easter, RTÉ will begin talks with staff on new work practices. Mr Curran said significant changes would be required to make those practices “simpler, more flexible, more effective”.

For the viewing public, it would appear the range of programming from abroad is under threat most. There will be a minimum of 10% reduction in the cost of overseas acquired programmes by 2013 and a 25% reduction in the budget for sports rights by 2014. Irish sport is to be the priority in future.

The broadcaster intends to maintain its level of regional programming. However, over the next three months, it will seek to reduce the cost of providing those programmes by reducing leases and rents and by reducing “duplication of effort and cost across regional activities and operations”.

Mary Curtin of RTÉ’s trade union group said staff were open to engaging with the broadcaster but would be looking to protect terms and conditions.

Mr Curran said RTÉ had “maintained stability in a difficult operating environment for over four years”. “But we must continue to reduce costs, restructure our operations and innovate in order to protect the future. Every area of our operations is being pressed for changes and cost reductions.”