RTÉ will have to satisfy a range of stringent conditions over the next two weeks if it is to qualify for a licence fee increase in 2004.
Consultant Pricewaterhouse Coopers (PwC) has begun examining the station's performance and is expected to make a recommendation to the Minister for Communications, Mr Ahern, in mid to late November.
Under arrangements agreed with the Government last December, RTÉ is entitled to an increase in line with the consumer price index, but this can be adjusted downwards based on performance. The consumer price index is at 2.9 per cent.
The following issues will be examined by PwC:
The performance of RTÉ's new independent business divisions;
The station's promised programming output;
The station's efforts to encourage "openess, transparency and accountability";
The station's success in fundamentally re-structuring itself.
The station is confident it has made major progress in these areas. If it can prove this to PwC, a positive recommendation is likely to be returned to Mr Ahern.
Mr Ahern has emphasised since last December that licence fee increases will not be granted automatically. RTÉ must implement its change programme, he has stated.
RTÉ, for its part, has briefed the Department of Communications over the past year on the internal changes it has made.
If the result is positive, an increase in excess of €4 may be granted. The television licence currently costs €150 a year.
A PwC team has begun working at the station and is liaising with the RTÉ board. The team is expected to request detailed documentation and financial data for its examination.
RTÉ, along with the media sector in general, has endured a difficult year, with advertising under pressure in several areas. A continuing dispute with Procter & Gamble has also deprived the station of about €6 million of revenue.
This dispute over advertising rates may be resolved in the weeks ahead, however. "The two sides are still talking and something may be agreed yet," said one source yesterday.
A few weeks ago, RTÉ director-general Mr Bob Collins said he was confident the station would produce a surplus of about €3 million for 2003. He has since retired and been replaced by Mr Cathal Goan.
The Joint Oireachtas Committee on Communications chairman Mr Noel O'Flynn TD, recently said RTÉ should face sanctions if it did not produce the promised surplus.
