RTÉ considers €400,000 exit payment for unnamed individual

The chairperson of RTÉ, Terence O’Rourke, leaves Leinster House after meeting with the media committee on Wednesday. Picture: Sam Boal/Collins

RTÉ is considering a €400,000 redundancy payment to an individual who cannot be named, the chair of the broadcaster’s board Terence O’Rourke has said.

On Wednesday, before the Oireachtas media committee, Mr O’Rourke would not be drawn on the identity of the person, but confirmed the board was in the process of being considered and Media Minister Catherine Martin was aware of it.

The financing of RTÉ was one of the biggest concerns raised by the broadcaster’s new board chairperson when first meeting the minister.

Mr O’Rourke said the current TV licence collection system was “archaic and out of date”.

Ms Martin has committed to making a decision on reforming the funding of RTÉ before the Dáil summer recess.

Some options reported to be under consideration are direct exchequer funding or a new broadcasting charge to be collected by Revenue, as opposed to An Post.

The broadcaster was plunged into crisis in June last year after it admitted understating the fees for its star presenter and previous top earner Ryan Tubridy.

A series of probing parliamentary committee hearings also uncovered other concerns about culture, governance, and financial management and there have been several high-profile resignations from the board and executive of the station.

A pre-existing steady decline in licence fee revenue was accelerated by the expanding controversy 

RTÉ operates on a dual-funding model that sees about 55% of its income brought in through the obligatory licence fee, which costs €160 a year.

About 85% of revenue from TV licence fees goes to RTÉ to carry out its public service broadcasting commitments, while it also earns money via commercial operations.

The Cabinet is due to sign off on a decision on reforming the funding model for public service broadcasting in the coming weeks.

On Wednesday, Mr O’Rourke said the board was seeking an “adequate, independent, predictable and reliable” source of funding.

“A licence fee system which is depending on TV sets is archaic and out of date,” he said.

“There are different models out there. I think the current system is not working properly — a household charge would be another example involving public-sector funding.

“There are different ways of doing it, but probably all of those would be better than the current system.” 

Mr O’Rourke took over as head of the board from Siún Ní Raghallaigh after she resigned following a public dispute with the minister.

Ms Ní Raghallaigh said she had been left with no option but to quit after being subjected to an “enforced dismissal”, after Ms Martin expressed disappointment in her during a live TV interview.

Mr O’Rourke, a former KPMG managing partner, was appointed in March.

Director general Kevin Bakhurst has announced a strategic plan for reforming RTÉ by 2028.

It includes cutting headcount by 400 (a reduction of up to 20%) and a significant increase in investment in the independent production sector.