RTÉ's funding situation  'unsustainable' as report warns more public money needed

'There is next to no possibility of funding RTÉ solely via public sources and therefore no chance of obviating RTÉ’s need to pursue a hybrid public-commercial revenue model.' Picture: Mark Stedman/RollingNews.ie

The country's broadcasting watchdog has been warned the funding situation at RTÉ is "unsustainable" and a major public funding boost will be required.

The stark warning is contained in the Annual Review of Performance and Public Funding of Public Service Broadcasters, carried out for the Broadcasting Authority of Ireland by London-based company Mediatique.

It is the latest report by the company for the BAI in relation to the public service broadcast remit of RTÉ and TG4, and while it is broadly positive about the Irish language channel, it expresses concern about RTÉ's ability to continue operating at the required level without a major boost in funding.

"For RTÉ, the issue of sustainability is far more pressing," it said. 

"Following years of under-delivery on the recommended increases in public funding, and with persistent pressures on the commercial front owing to structural factors beyond RTÉ’s direct control, the funding gap continues to fuel deficits that are by definition unsustainable. 

"There is next to no possibility of funding RTÉ solely via public sources and therefore no chance of obviating RTÉ’s need to pursue a hybrid public-commercial revenue model."

The report, which has been laid before the Oireachtas, examines the impact of the Covid-19 pandemic, adding that RTÉ and TG4 performed well against its sustainability targets.

It met 20 of 32 targets set for the year and broadly achieved eight others, but of the four it failed to meet, one was "Public perception that RTÉ is relevant to people in Ireland today".

Others were "Public perception that RTÉ reflects current society"; "Public perception that RTÉ has a range of new faces and voices on air"; and "Level of investment in the independent production sector (in line with statutory spending requirements)".

However, the report noted: "In 2020, trust in RTÉ in fact increased from previous years, due to the important role played by RTÉ News and RTÉ’s other services during the pandemic."

2020 a unique year

It noted the loss of live events, including sport, and said 2020 was a unique year "and both PSBs responded efficiently in order to divert funding and employees to account for the new kinds of content requirements that arose during the year, specifically to news and current affairs programming and to educational programming for children and young people, via RTÉ’s Home School Hub and TG4’s Cúla4 ar Scoil."

The report also mentions the ongoing work of the Future of Media Commission and the submissions made to it by RTÉ. Just this week, the Government’s delay in publishing the report of the commission was strongly criticised, with the chair of the joint committee on tourism, culture, arts, sport and media Niamh Smyth arguing that the BAI and others were left "in a vacuum" over funding requirements.

The reports refers to cost-cutting measures employed by RTÉ, including "reductions in top talent salaries", and says the Future of Media Commission "may well conclude that a fundamental reform of the licence fee and perhaps of other mechanisms for the delivery of PSM [Public Service Media] will be necessary".

"It is, however, our conclusion that the funding of RTÉ continues to be inadequate to permit the broadcaster to achieve its objectives and to execute either the five-year strategy seen and evaluated by the BAI or the revised strategy [not evaluated by the BAI]."