RTÉ expects to receive a record €195 million in licence fee revenue in 2007, giving the station an expected turnover well in excess of €400 million, the highest in its history.

This week's Estimates for public services show that RTÉ expects to receive the licence fee revenue via the Department of Communications, which is responsible for the allocation of the funds. According to department figures, An Post will receive a fee of €12 million for the collection of the money.

RTÉ licence fee revenue in most years makes up 45 per cent of its total revenue with the remainder coming from advertising and sponsorship. If that pattern continues in 2007, this would give RTÉ total revenues well in excess of €400 million. This compares with total revenues in 2005 of €369 million.

The size of the revenue base at RTÉ is in marked contrast to the broadcaster's position a few years ago when it warned services would have to be cut to balance the books. While the current financial position is healthy, this has caused resentment among commercial rivals like TV3 which wants reform of the licence fee.

A spokeswoman for RTÉ said yesterday that a key driver of higher licence fee revenues was the continued housing boom. Up to 100,000 homes are expected to be built this year.

The other key factor has been the €3 increase in the licence fee to €158 from last month, announced by Minister for Communications Noel Dempsey in July.

RTÉ also expects to reduce evasion of payment of the licence fee, which it has long maintained is widespread. An Post has expressed a desire to be released from the contract, but so far no replacement has been found.

In its 2005 annual report, RTÉ stated: "Licence evasion continues to be a problem. RTÉ estimates that circa 16 per cent of eligible households do not hold a valid television licence.

"The level of licence evasion appears to have deteriorated in recent years, despite the level of new licences acquired following the large increase in net new household formations. We understand that Ireland's level of licence evasion is more than double the level prevailing in the UK."

While licence fee revenue has remained buoyant, advertising has also been strong for the station over recent years, with some ad agencies complaining about inflation in airtime rates. The broadcaster in 2004 and 2005 saw an explosion in growth of advertising revenue. In 2004, advertising revenue was €176 million, but within a year it had grown to €199 million.