An independent strategic review of RTÉ has warned that its relocation from Donnybrook to a less valuable site on the outskirts of Dublin would not solve the financial crisis at the State broadcaster.
The report, complied by consultants KPMG and Logical Strategy, and presented to the RTÉ Authority yesterday, identifies the need to increase current revenue streams as the priority for the company.
It sets out cost-cutting options, the most radical of which is the scrapping of internal production in all areas except current affairs and news.
This would mean the loss of hundreds of jobs, and a dramatic increase in the outsourcing of production to independent companies.
Another option considered by the consultants is the sale of RTÉ's Montrose headquarters, which covers 32 acres, valued at about €88 million.
A senior management source said however: "Relocation seems to be quite costly, and would involve cancelling out most of the benefit from the sale of the land. It's far more likely a partial sale of land will occur."
The report, which has not been released by RTÉ, is understood to highlight that any such sale would not succeed in balancing the company's books.
For this to occur, it says, the shortfall in revenue at RTÉ needs to be made up by a licence fee increase or some other means.
It is expected that RTÉ will use the report to boost its claims for an increase in the television licence fee. The chairman of the RTÉ Authority, Mr Patrick Wright, said yesterday the review would provide "valuable input" for the Forum on Broadcasting, established last week by the Minister for Arts, Heritage, Gaeltacht and the Islands, Ms de Valera.
Mr Wright continued: "The authority's overriding objective is to ensure that RTÉ has a secure and financially-sustainable future, which provides the audience with the depth and breadth of public broadcasting which it requires and deserves, and the staff with an excellent working environment."
RTÉ is already in the process of making cuts of €30 million and shedding 150 jobs as part of a plan announced in November aimed at limiting the company's losses this year to €20 million. Some 330 jobs were lost two years ago under an earlier rescue plan.
The RTÉ Authority has identified several issues requiring further examination and has asked for submissions from relevant parties. "These submissions are to be received by the authority before the end of April," said RTÉ in a statement. It stressed the consultants' report was in the interim being treated as a "work in progress".
RTÉ Authority member and SIPTU president Mr Des Geraghty described the report as "a good analysis" of the options available to the company.
"The bottom line is that even in the best case scenario in terms of costs, the figures show there has to be some increase in revenue. If you are going to provide the range of services currently being provided, you can't do it on the current revenue basis."
Yesterday's meeting coincided with an announcement by RTÉ's group of unions that it planned to stage a major campaign for an increase in the licence fee in the run up to the general election. The campaign is to be launched next week.
The issue has already attracted heated debate between the Government and opposition, with the Labour Party committing itself to a review of the licence fee within three months of an election if put into government.
The Minister has set a date of April 2003 for such a review. Her decision to create the Broadcasting Forum within weeks of the election was seen in certain circles as a means of deflecting criticism over the issue.
