RTÉ is expected to report an operating loss of €20 million for 2002 when it publishes its annual report in early April. When allowance is made for exceptional restructuring costs, the loss will rise to €55 million, a Joint Oireachtas Committee was told last night.
The figures, which do not take account of the recent licence fee, were disclosed by the Minister for Communications, Mr Ahern, who was appearing before the Committee on Communications, Marine and Natural Resources.
He said the recent €36 increase in the licence fee should "fairly dramatically"' change the picture in 2003. His spokesman explained after the meeting that the figures were current estimates and the annual report would confirm the official returns.
Mr Ahern was updating TDs and senators on events since the licence fee increase was agreed before Christmas. He said if the station had not received the increase it would not have "survived in its present form".
Mr Ahern said any further increases for RTÉ would be conditional on the station meeting commitments agreed with him before Christmas.
He said a new body, the Broadcasting Authority of Ireland, would in future decide whether RTÉ was meeting these commitments.
All of the TDs and senators were supportive of the station, but Fine Gael TD, Mr Simon Coveney, while in favour of public service broadcasting, raised several queries about RTÉ's policy in relation to advertisers and TV3.
He said his information was that RTÉ had "over-booked" advertisements in 2002 and had to refund agencies because they could not deliver on their promises.
"If RTÉ were over-booking, is there a question of fair trading there?" he asked Mr Ahern. Mr Coveney also said the station's advertising rates were among the lowest in Europe at the start of 2002, but by the end of the year they had gone up 18 per cent.
He also queried how much it cost TV3 to have its signal transmitted by RTÉ. He said TV3 appeared to be paying four times, and sometimes 10 times, as much as TG4.
However, Mr Ahern said any problems among advertisers should be raised with the Competition Authority. He said he had no role in such issues.
Regarding the transmission fees paid by TV3 to RTE, he said it was a "contractual situation"' that pre-dated his arrival into the Department.
In relation to digital television, he said his Department was studying Britain's Freeview system. This is a system where consumers can get over 24 channels via a set-top box, from terrestrial and satellite broadcasters for a relatively modest payment.
He said Britain's digital television experience had been bitter. Considerable monies were lost because of ITV Digital's collapse.
The Minister was also asked about the lack of regulation governing Sky television in Ireland.
He said regulating international broadcasters like Sky was difficult in an era of global communications, but the Department and ComReg were studying various EU directives to see if the position needed be changed.
