No second bailout for RTÉ as minister rules out renewed State funding after 2027

Media minister Patrick O’Donovan says RTÉ must grow commercial revenue and modernise as ring-fenced funding ends in 2027

In July 2024, the Government, under former minister Catherine Martin, agreed to provide ring-fenced annual funding for RTÉ worth €725m over three years. Picture: Denis Minihane

The Government will not provide a “second bailout” to RTÉ or renew its ring-fenced annual funding arrangement when it runs out in 2027, media minister Patrick O’Donovan has said.

In an interview with the Irish Examiner, the Fine Gael TD said under “no circumstances” would he ask the Irish taxpayer to fund the national broadcaster, warning it would have to continue to grow its commercial revenues.

“That support is not infinite,” Mr O’Donovan said.

In July 2024, the Government, under former minister Catherine Martin, agreed to provide ring-fenced annual funding for RTÉ worth €725m over three years.

Annual allocations were announced, with the Government committing to topping up RTÉ’s income to that level, dependent on how much revenue was collected from the TV licence.

This year marks the second year of this arrangement, but Mr O’Donovan has now warned RTÉ the same funding model would not be put in place again once it runs out.

The Limerick TD said RTÉ accepted it was “not a sustainable model” in the long run, and he had “no intention” of repeating it.

“They’ve grown their own commercial revenues,” he said. “The more that they innovate, the more that they use the private sector to produce programming for them, it reduces their cost base."

“They've outlined their intentions with regard to that. Their core, of course, is current affairs and sport. They've also identified that, and they have really invested heavily in their core.

“You can see the changes that they have made in terms of their scheduling, which I think has worked pretty well. I think the Traitors played no small part in bringing back their audiences.

"The more they bring back their audiences, the more they can grow their advertising revenue and the less they become a burden on the taxpayer."

Mr O’Donovan said RTÉ needed to “reduce its headcount substantially”, saying this was required for there to be “closure” between it and the Government following an agreement that “kept the organisation from disappearing”.

He said RTÉ was close to “essentially being insolvent” and this was only prevented due to the “decision that the Government made”.

When asked if he was satisfied with RTÉ’s progress to date, Mr O’Donovan said he “is today, but that satisfaction is not finite”.

He said there was a “lot of work” still to be done by the national broadcaster, adding RTÉ must “modernise”.

He praised RTÉ’s director general Kevin Bakhurst, noting he had inherited an organisation that “collapsed in a heap around him” in his first week in the job.

Amid reports Mr Bakhurst could be in line for a move to the BBC following the resignation of its director general, Tim Davie, in November, Mr O’Donovan said he had not asked Mr Bakhurst about his intentions, saying it would be “completely inappropriate” to do so.