RTÉ not seeking fee hike to offset revenue shortfall

YOUR front page report headlined ‘RTÉ planning hike in licence fee’ (July 4) suggested the station was “planning” a TV licence fee increase as a significant contribution towards offsetting its projected €68m revenue shortfall in 2009.

Those assertions are untrue and to describe the revenue shortfall as “losses” is incorrect.

In a briefing to journalists to launch its 2008 annual report, RTÉ’s director-general, Cathal Goan, said RTÉ was not factoring a licence fee increase into its financial and operations planning to cope with the revenue shortfall.

RTÉ has made it clear that it will carry out its own cost-cutting across all operations in order to balance to the maximum extent the sharp downturn in commercial revenues arising from national and global recession.

That programme is now in train. Salary reductions across the RTÉ workforce are now being implemented following strongly positive votes by unionised staff and managers in support of cuts ranging up to 12.5%.

This follows a pay freeze in 2008 and the cancellation of any performance-related awards to management grade personnel.

The Department of Communications, Energy and Natural Resources has two applications from RTÉ for review of the level of the TV licence fee.

These applications were made in respect of RTÉ’s performance and delivery in 2007 and 2008 and were submitted in line with the agreed process whereby the station makes a detailed statement on delivery of service and value for money as a basis for a government review.

These licence fee applications are framed to take account of general rises in the cost of the range of broadcast and other services provided by RTÉ. The chief financial officer, Conor Hayes, reiterated last week, in presenting the 2008 annual report, that the current projected shortfall in sales should not be confused with a trading loss or end-of-year deficit.

He stated that given the current economic uncertainty it would be premature to predict exactly what RTÉ’s 2009 end-of-year position would be.

RTÉ achieved a break-even position in 2008 in spite of a sharp downturn in revenue from the third quarter.

The strategy is to offset the current projected shortfall with cost reductions with a view to minimising any end-of-year deficit.

Kevin Dawson

Head of Corporate Communications

RTÉ

Donnybrook

Dublin 4