Leo Varadkar: No additional funding for RTÉ without new strategic plan
Taoiseach Leo Varadkar arriving for the first meeting of the Cabinet since the summer break. Picture: Sasko Lazarov/RollingNews.ie
Taoiseach Leo Varadkar has said the Government will not be providing any additional funding to RTÉ until a new strategic plan is unveiled by the broadcaster.
It comes as Cabinet was told earlier on Wednesday that RTÉ is expected to lose up to €21m in TV licence fee revenue by the end of the year.
Media Minister Catherine Martin told her ministerial colleagues of the mounting financial crisis at the State broadcaster, which posted a deficit of €2.8m last year
Ms Martin brought two memos to Cabinet, which met in Avondale, Co. Wicklow.
They outlined the losses made both last year and the forecasted cuts in revenue for this year following the controversy around payments to Ryan Tubridy and the use of barter accounts.
It is understood ministers have been told that the level of loss from people deciding not to pay the TV licence will top €20m this year.
It is also understood that much of the €2.8m deficit outlined in RTÉ's latest annual accounts, that have also been brought to Cabinet, relate to Toy Show: The Musical.
Mr Varadkar told reporters later on Wednesday that he expected the new RTÉ Director General Kevin Bakhurst to outline the strategic plan to the Government in October.
“I think everyone understands that there will be additional funding required but it has to be conditional and we’re not going to be in a position as a government to allocate any additional funding to RTÉ until we’ve seen the Director General’s new strategy,” Mr Varadkar said.
“We believe that the public won't accept additional taxpayers money being provided to RTÉ without a reform programme and one that’s being implemented.”
The Taoiseach said that this would not just involve resolving past irregularities, like the barter account, but would need to be about reforming the broadcaster more broadly.
Mr Varadkar said that he would not prescribe what the reforms looked like and that additional funding did not need to be provided in the upcoming budget.
“This isn’t something that has to be sorted out on budget day. It is something that has to be sorted out this financial year, but it doesn’t have to be budget day.”
Earlier, Ms Martin said the Government needed to see "robust reform".
"We see elements of reform taking shape now and they are to be welcomed," she said.
She said the Government will want to see "absolute concrete reform" in considering a financial package to assist the broadcaster.
RTÉ has confirmed that it wrote to Ms Martin last week requesting interim funding.
RTÉ Director-General Kevin Bakhurst previously said that RTÉ submitted a request for interim funding of €34.5m to the Minister in May, prior to the payments scandal.
A spokesperson for the broadcaster said the request in May followed the recommendation by the Future of Media Commission in its report that RTÉ receive interim funding but also recognised the "considerable increase" in the rate of inflation since the publication of the FoMC Report.
"RTÉ remains focused on delivering a range of important changes to the operation and culture of the organisation as part of the essential work to restore trust in RTÉ," they said.
Meanwhile, Tánaiste Micheál Martin has said the TV licence fee must now be replaced with a universal media charge as the state broadcaster faces a drop of more than €20m in revenue by the end of the year.
Asked about the future funding of RTÉ, Mr Martin said a more sustainable and long-term solution is required.
"I think the Government is committed to public service content, broadcasting across all stations, national and local media and print media. I think we need a solution for that. I’ve always consistently said, in my view, we should replace the licence with a universal fee or charge that would be at the same if not reduced.
Speaking in East Jerusalem, Mr Martin said a move to a universal fee would mean "an automatic higher income" but would also guarantee independence for the media from Government funding.
"The alternative is you pay the entire [amount] by direct Exchequer. That would undermine the independence of Irish media," he said.
Mr Martin added: "To be dependent 100% on Government for your funding is a very serious issue. Because it risks undermining that crucial independence that means people in Government are held to account.
"I think that’s a serious issue. I disagreed with the media commission on that. I think an issue worthy of a deep consideration. In the interim. I know NewEra designated to go through their accounts now and they’ll bring forward recommendations to Government. But it’s not unprecedented that we’ve dealt with this in respect of RTÉ. "
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