The Minister for Arts wants an "objective and independent evaluation" of RTE's application for a licence fee increase. Ms de Valera said she had received a detailed submission on October 31st, following an outline application for a fee increase earlier in the month.

In the new highly competitive environment, the "television licence-payer ought not to be expected to subsidise out-of-date approaches and practices". Ms de Valera said she would review the application for a fee increase in that context.

During Arts questions, she told deputies that licence-holders "must be reassured that the licence fee is well spent" and that RTE met its obligations in the "most cost-effective manner". She said the broadcaster would receive £67 million in licence-fee revenues in this financial year.

It was vital that "RTE constantly reviews its own approaches and practices", which "may not be appropriate for the challenges of the present and future".

Fine Gael's arts spokeswoman, Ms Deirdre Clune, said there was not enough accountability and transparency about how the licence fee was spent, and she asked what the Minister meant about "out-of-date practices".

Ms de Valera replied that they had to look at the "workings of RTE" and every organisation that benefits from public funds "to ensure the utmost efficiency, which is obviously expected of them. "We are talking about public moneys which we must ensure are spent in the most efficient and effective manner."

She pointed to the "tremendous competition" in the broadcasting sector and "the tremendous level of high standards and high-quality work" which RTE produced.

"The organisation charged with delivering this service" should be "adequately funded as well as being properly organised", she added. Work was ongoing to make RTE more efficient.

It was engaged in a "cost-cutting exercise at present and I understand it hopes to reduce the numbers employed in the station by 330 by the year 2003".