Future governments will be able to alter the funding arrangements announced on Wednesday for RTÉ, Minister for Media Catherine Martin acknowledged, meaning that wrangling over the station’s budget is likely to continue in the future.
Ms Martin announced a public funding package of €725 million for RTÉ over the next three years, divided between licence fee revenue and exchequer contributions.
However, Ms Martin – who backed down on her position that the licence fee should be abolished and replaced by direct State funding – insisted that a future government would be unlikely to row back on the commitments. She “couldn’t imagine” a future government doing so, she said, but acknowledged that no legislation would be needed to do so.
But other senior Government sources said RTÉ funding would inevitably become part of annual budget wrangling.
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A crackdown on licence fee evasion is now planned, but under the terms of the funding package announced on Wednesday, that would not yield any additional revenues to RTÉ, as the exchequer funding will reduce if the licence fee income increases.
An Post, which collects the licence fee for RTÉ, is to be given €6 million to improve its collection procedures and crack down on evasion. There has been a significant fall-off in licence fee payment since the RTÉ scandals first emerged last year, resulting in an estimated drop in income for the broadcaster of €20 million last year.
RTÉ welcomed the decision, though staff representatives said they were “very disappointed”. The National Union of Journalists also criticised the decision to retain the licence system.
Ms Martin said funding for 2025 was now “outside the budgetary process” for this year but acknowledged that there would be another process next year.
This will mean it is in competition with other spending demands, both within the Department of Arts and Media and from the rest of Government.
Earlier, Tánaiste Micheál Martin appeared to place the question of future RTÉ funding squarely as part of the annual estimates process.
“Obviously, there are continuing challenges in terms of public expenditure and the decision [on RTÉ] will reflect that... even in better times there are always challenges and competing interests in terms of the spending of public funds, so the estimates will be challenging in that respect as Ministers prepare for their bilaterals over the coming weeks in respect of their estimates for 2025,” he said before the Cabinet meeting on Wednesday.
Ms Martin defended the compromise reached on Wednesday, saying that “we all have different opinions, it’s a Coalition Government”.
But it was noticeable that Ms Martin was not accompanied by any other member of Government.
The level of overall State funding is significantly below what RTÉ sought – €55 million below what the station had said it needed for the next three years. For next year, the broadcaster will get €225 million between the licence fee and the exchequer funding – but this is €30 million below what it sought.
Ms Martin said that the increase in direct exchequer funding from her department to RTÉ next year would be €2 million, up to €40 million. The rest of RTE’s funding will come from the licence fee and the State subvention for licences for pensioners.
The settlement means the process of downsizing and outsourcing will continue over the coming years. Ms Martin also said she had spoken to the director general of RTÉ and the chairman of the board, and they were now confident they could achieve the necessary reforms at the station.
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