RTÉ scandals make reform of TV licence fee harder – Taoiseach

Speaking during his trip to South Korea, Taoiseach Leo Varadkar said the RTÉ controversy would make it harder to switch from the TV licence fee to a household media charge. Picture: Shin hyun Kyung/PA

Taoiseach Leo Varadkar has said the RTÉ payments scandal has made it harder for the Government to consider introducing a household broadcast charge to replace the TV licence fee.

Mr Varadkar’s comments come as RTÉ Director General Kevin Bakhurst is due to deliver an outline of the station’s strategic reform plan, expected next week.

Government ministers are expecting Mr Bakhurst to detail how the national broadcaster will introduce cost-saving measures. However, there is speculation the plan will not be as detailed as some Cabinet ministers and members of the Oireachtas media committee expect.

Mr Varadkar said the aim would be to have a new funding system in place for 2025.

Government is likely to give RTÉ an extra €40m bailout once satisfied with Mr Bakhurst’s cost-cutting measures. It is expecting RTÉ to find €21m in the next year to make up for the drop in licence fee revenue.

The Taoiseach said he is not necessarily of the view that he wants to see an RTÉ that is much smaller than what we have now.

It is understood the Government is keen on a broadcasting charge, potentially collected from every household by the Revenue Commissioners.

Media Minister Catherine Martin has said there is a pause on examining the long-term funding model for RTÉ following the payments and governance controversy at the broadcaster but the issue would be dealt with in the lifetime of this Coalition.

Speaking in Seoul, South Korea, the Taoiseach said a household levy to replace the TV licence fee has now become more difficult as a result of the controversy.

Last year, the Government rejected the central recommendation of the Future of Media Commission, that the TV licence be scrapped and be replaced by direct exchequer funding. Mr Varadkar said: 

I think the recent controversy has made that option harder, of a household media charge, because I think there will still be a lot of people who would refuse to pay and resent paying it.

“We haven’t decided to bring in a media charge so what we’ll have to do initially is see what RTÉ’s plan is and what its reform plan is. They will need some funding for this year. I think that’s clear already.

“But we will need a long-term funding model for the future and we plan to legislate that — or at least a decision for it and legislate on it if necessary next year — and then have a new system [of] funding in place for 2025.

“But the decision as to whether we stick with a version of the TV licence, go for a version of the broadcasting charge, or go for exchequer funding — that’s not made yet,” Mr Varadkar added.

He said the concern with the exchequer model, which other Cabinet ministers are against, was around handing the Government power to decide on the level of funding. Mr Varadkar also appeared to be against ringfencing funding.

“I think if you were to say that this area of spending — RTÉ or public service broadcasting — gets ringfencing and special protection, why don’t we do that for mental health, or disability, or overseas [aid], or defence? Why would you provide such a special protection and privilege to RTÉ and public service broadcasting.”