The cost of a colour television licence will increase by £14.50 to £84.50 the Government said today. The increase will come into effect from September 1st.
The Minister for Arts, Heritage, Gaeltacht and the Islands, Ms de Valera said the increase is an interim one, designed to enable RTÉ to maintain its current level of services without eliminating its cash reserves.
The Government also agreed to the Minister’s proposal to consider a further increase from April 1st, 2003 subject to the implementation of a rationalisation plan at the State broadcaster.
RTÉ which currently receives £67 million from licence fees had been looking for an increase of £50 to maintain services and fund the introduction of digital television.
Today’s increase will add an estimated £6.1 million to RTÉ this and is equivalent to almost £15 million in a full year.
A Government statement said the Minister believes that RTÉ’s current level of radio and television services, its commitment to TG4 and its other cultural commitment should be properly funded.
According to the statement "Not unreasonably, licence holders must be reassured that the licence fee revenue is well spent and that the Authority meets its statutory obligations in the most cost-effective manner."