RTÉ funding by hybrid model may be ‘worst of both worlds’, Catherine Martin says

Minister for Media Catherine Martin has raised doubts about a so-called “hybrid model” for the future funding of RTÉ, warning it could represent “the worst of both worlds”.

Ms Martin was speaking as the Government published three reports into the culture, governance and human resources practices at the national broadcaster which laid bare a litany of shortcomings.

With focus now set to shift to the Coalition’s decision on the future funding of public service broadcasting, Ms Martin downplayed a mooted solution favoured by some in Government which would see a reduced charge for households supplemented by exchequer funding on an annual basis. Her comments indicate an ongoing and unresolved conflict within Government over the issue.

The Dublin Rathdown TD, who is said to favour full exchequer funding for RTÉ despite strong opposition elsewhere in the Coalition, said such a hybrid model had not been recommended to her, cautioning: “We have to be careful you don’t end up with the worst of both worlds.”

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Ms Martin also signalled that, with a hybrid model, up to another 500,000 households could become eligible for the reduced fee, understood to be composed of those who don’t have to pay a TV licence or evade their obligation to pay.

She said: “We’re down to, in my opinion, two models – either revenue-collected or the exchequer-funded model.”

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

She said there are “differences of opinion but we are absolutely united at Cabinet that the decision [on funding] will be taken before the summer”.

The publication of the reports represents a new phase in the ongoing controversy at RTÉ, although the legacy of past practices still hangs over the broadcaster – and the exchequer – with fears in Government that many millions more will have to be found to account for so-called bogus self-employment practices in Montrose.

The review of Governance and Culture published on Tuesday, chaired by Prof Niamh Brennan, argued that given its impact on governance, RTÉ's funding model needs to be made more sustainable. It suggested the failure to fill vacancies on RTÉ's board and to ensure it had the right range of skill sets were among the factors that led to last year’s crisis at the national broadcaster.

The review, which identified “important weaknesses in RTÉ's governance and culture”, makes 90 recommendations, among which is a call for greater clarity about whether RTÉ is a commercial or non-commercial State entity.

“We consider that the ambiguity inherent in classifying RTÉ as a commercial/non-commercial body led to contrary expectations, which was unhelpful to those charged with RTÉ's governance,” the review concluded. It found, “The lack of a stable and predictable funding model, and resulting intense financial challenges, put extreme pressure on RTÉ to cut costs.”

[ RTÉ reports make for sorry reading … but can the national broadcaster find redemption? ]

A report by consultancy firm Mazars outlined there was “no valid basis” for several high-profile transactions being paid through the now-infamous barter account, including €150,000 paid to Ryan Tubridy. The report also outlines how RTÉ lost financial records relating to three years’ purchases on the account during an office move, saying there was a “substantial deficit” in record keeping about the account.

The Independent Review of Contractor Fees, Human Resources (HR) and Other Matters in RTÉ, led by employment relations consultant Brendan McGinty, made 26 recommendations.

Among the recommendations are how any future proposed exit, severance or early-retirement programmes at RTÉ will be approved by the board and how they should include financial or formula caps in how they are calculated.

[ RTÉ controversies: Broadcaster ‘lost’ records relating to three years’ transactions in barter account, says report ]

The report also said that RTÉ should review its policy on presenter pay and introduce pay bands for its on-air presenters.

It also recommended that RTÉ publish details of the expenses and total remuneration, including salaries, gifts and hospitality, along with a declaration of personal interests for “all senior leaders” paid €200,000 or more per year.

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