Reduced RTÉ licence fee under Revenue remit emerges as likely new funding model for broadcaster

A reduced RTÉ licence fee, collected by the Revenue Commissioners, is emerging as the likely outcome of discussions on the funding of the national broadcaster.

According to Government sources who are familiar with discussions, the likely “landing zone” for a new funding model is to retain the television licence fee, but at a lower level than the current €160 a year, and to transfer responsibility for collecting the fee to the Revenue Commissioners. This would be supplemented, at least in the short term, by exchequer funding.

There is no agreement yet within the Government on the extent of licence fee funding which would be available to broadcasters or media outlets apart from RTÉ.

This would mean a rejection of Minister for Media Catherine Martin’s preference, which is to have the broadcaster funded entirely by the exchequer and the abolition of the licence fee. There remains considerable opposition to this idea at the top of Government. However, senior sources stressed that no final decisions have been made. The question is expected to be settled by the time of the summer recess in mid-July.

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The discussions come amid planned reforms at RTÉ which will see greater oversight from Government, wider disclosure of expenditure including on hospitality and travel, better risk management and a stronger role for the board in monitoring the performance of leading executives.

Minister for Media Catherine Martin received the three reviews of governance and culture, contractors’ fees, and other practices and events at the broadcaster on April 26th and it is expected that she will recommend to Government colleagues that they accept all 90 recommendations. Most (76) apply to RTÉ, with a smaller number directed to the Government, including a recommendation that the legislation which underpins RTÉ should be reviewed.

It is expected that the broadcaster will be required to develop a plan to implement the recommendations within six weeks, which will be subject to oversight by the Department of Media.

The implementation plan will be required to set out actions and timelines that RTÉ will take and will be overseen by an external monitoring group which will in turn require a quarterly update on the implementation plan from the broadcaster.

The recommendations suggest significant changes to the way the broadcaster deals internally with risk, compliance and audit. As previously announced, the station will be brought under the Comptroller and Auditor General, the State auditor.

RTÉ will also be told to cease the use of confidentiality clauses in termination agreements and will be told to hire a chief risk officer and a compliance officer, draw up a risk management policy, disclose expenditure on hospitality, travel and subsistence and introduce measures to assure the department that it is complying with all the rules for State bodies.

There are also recommendations on improving the accountability of senior executives, including the director general, to the board of RTÉ, while others are concerned with improving the operations and capacities of the board itself. There are also recommendations on improving the broadcaster’s culture.

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It is expected that Ms Martin will announce her intention to introduce new legislation to give effect to some of the recommendations and to undertake a wider review of the legislation governing the broadcaster.

The report also says that the broadcaster requires a more sustainable funding model, though it is understood it does not recommend a specific approach.

It is expected that the legislative and administrative changes which would be required for the proposed new Revenue system would mean that it will not be up and running until next year at least, leaving RTÉ reliant on emergency funding from the Government in the meantime.

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