THE high cost of advertising on RTE is neither acceptable nor sustainable, the president of the Association of Advertisers in Ireland, Mr Terry Leonard, said yesterday, writes Michael Foley, Media Correspondent.

He said there was growing concern about the level of television cost inflation. Last autumn saw the return of year-on-year increases of 20 to 30 per cent, against a Consumer Price Index of less than 2 per cent. "While we recognise this is partially caused by demand, it is compounded in no small way by the drop in audience, particularly on RTE One."

The association had already expressed its disappointment at the failure of TV3 to materialise.

"In a rapidly growing economy there is a need to increase access to television, otherwise there is a danger that demand will continue to outstrip supply and that is not in the interests of either the domestic broadcaster or advertising industries," said Mr Leonard.