RTÉ may sell Donnybrook land due to €61m licence fee shortfall

Then CFO Richard Collins at the Oireachtas media committee in July. Mr Collins resigned on Wednesday, but other RTÉ executives including Kevin Bakhurst will appear at the PAC on Thursday. Picture: Oireachtas TV

RTÉ will have to take drastic cost-cutting measures as it faces a shortfall of more than €61m in TV licence fee revenue.

Media Minister Catherine Martin has revealed the Government is only willing to pay €40m of this shortfall, meaning the State broadcaster will have to find €21m in cost-saving measures itself. It comes as the station’s chief financial officer Richard Collins resigned from his position on Wednesday.

Six RTÉ representatives, including director general Kevin Bakhurst, are set to face questioning again at the Dáil Public Accounts Committee (PAC) today.

Ms Martin has also confirmed that the Government would be providing the national broadcaster with €16m in interim funding in early December.

She said the State’s New Economy and Recovery Authority (NewERA) has found a €21m drop in licence fee revenue for this year, but that another €40m loss is expected in 2024.

The minister indicated the Government will likely give RTÉ an extra bailout worth €40m, but said the Government wants to see Mr Bakhurst’s cost-cutting plan first before handing over the money.

The Government is expecting RTÉ to find €21m in the next year to make up for the drop-off in licence fee revenue, but the minister added: “It could be a case that the TV license will recover.”

Catherine Martin told reporters she did not want to see compulsory redundancies at RTÉ. The minister said she wanted to see “genuine” cost-saving measures from Mr Bakhurst, and expects his plan to be presented to her by early November.

Kevin Bakhurst hinted at a “slimmed-down organisation” and funding for voluntary redundancies at a meeting with staff yesterday.

On the possible sale of the Donnybrook site, he said he does not believe it makes financial sense to move “wholesale from Donnybrook”, but all options will be looked at.

He said the most likely scenario is to shrink its footprint on the land.

When asked if she is concerned that there will be further information coming as a result of Mr Collins’ resignation, Ms Martin said she expects “light will be shed on that” when PAC meets today.

Media Minister Catherine Martin at the Budget 2024 briefing on Wednesday. Ms Martin said the Government would provide RTÉ with €16m in interim funding in December. Picture: Sasko Lazarov/Photocall Ireland

She also wants to see former director general Dee Forbes come before Oireachtas committees and is seeking legal advice about compelling people to appear.

When asked about the possibility of privatising RTÉ, she said this was an “operational matter” for Mr Bakhurst, but she did not expect there to be full privatisation of the station.

Ms Martin said she was aware earlier this week that Mr Collins was resigning, having been informed that he was “likely to be leaving”, but said she did not have any details on what prompted the resignation.

When asked by the Irish Examiner, RTÉ declined to clarify the status of any potential exit package.

“Richard will work on a handover and RTÉ is in the process of identifying a replacement CFO,” said a spokesperson for RTÉ. “Richard will assist in any ongoing processes to the extent that this may be required.”

Then RTÉ CFO Richard Collins and executive board director of commercial Geraldine O'Leary arriving at Leinster House for an Oireachtas committee hearing in July. Picture: Sam Boal/Rolling News

Mr Collins was present during Oireachtas committee hearings earlier this summer after details of hidden payments to former RTÉ broadcaster Ryan Tubridy came to light.

At one of those meetings, Mr Collins was asked what his salary was, and replied that he did not know. He then confirmed that he believed he was paid in the region of €200,000, together with a €25,000 car allowance.

Mr Collins was also questioned about what he knew about Ryan Tubridy’s salary and allowance arrangements. It was initially claimed that he had no knowledge of the deal, having not been briefed by his predecessor Breda O’Keeffe in 2020 when he took over the role of CFO.

Ms O’Keeffe subsequently claimed that Mr Collins had been fully briefed regarding the arrangement.