RTE to cut budget by €30.5m, axe 150 jobs

RT╔ has said that its budget for 2002 will have to be cut by £24 million (€30.5 million), involving the loss of at least 150 jobs.

The national broadcaster met trade union and management representatives yesterday to outline plans for dealing with its financial problems. RT╔ is seeking cuts across its divisions to address a sharp fall in advertising revenues estimated at £12 million this year and £15.5 million next year, rising payroll costs and the impact of the smaller-than-expected licence fee increase granted earlier this year.

The largest cut, of £6.75 million, is planned for its Central Services division, while its television budget for 2002 will be cut by £6 million, while £3 million less than planned will be spent on facilities. The station's freelance budget will be cut by £2 million, news will get £1.3 million less than in the original budget and radio £1 million less.

The cuts are designed to reduce RT╔'s projected deficit from £36 million to £12 million next year. Despite the proposed cuts, the broadcaster said its core services of two television channels and four radio channels would continue.

Its planned investment in digital media is set to suffer, however, as plans for the launch of four new digital TV channels will have to be deferred. Assets will not be sold off to meet the company's deficits, but RT╔ plans a radical reduction in planned capital expenditure.

Staff reductions to achieve the cost-cutting targets would be agreed through the firm's internal corporate partnership mechanism, it said. But it warned that job losses were unlikely to be less than the 150 already indicated. RT╔ is also proposing to defer December's 5.5 per cent pay rise due under the Programme for Prosperity and Fairness (PPF).

The news was greeted with "shock and considerable anger" at a mass meeting of RT╔ staff yesterday, union leaders said.

They said job cuts in the region of 150 or more would not be possible on a voluntary basis. They also criticised RT╔ management for failing to fully implement productivity measures already conceded, such as laptop editing.

The unions warned that they would oppose compulsory redundancies and would launch a political campaign if necessary to secure more funding for the State broadcaster. They are also likely to oppose proposals for a pay freeze.

NUJ assistant general secretary Mr Eoin Ronayne welcomed the decision by the company not to close any of its stations or sell its land bank at Montrose. He said the briefing had been "scant on details" and further discussions would take place at divisional level before next week's meeting of the RT╔ Authority.

He warned that the suggested deferral of December's pay rise would also be resisted. A major complication is that it could affect pensions for people who had already agreed to leave under the last restructuring plan.

Mr Ronayne accused management of failing to capitalise on the productivity conceded in the last restructuring agreement, which saw a cut of 330 jobs. He also said senior RT╔ management had "seriously mismanaged" the licence issue with the Government. "They failed to convince them that the introduction of serious competition from the private sector means RT╔ will never earn the kind of revenue from advertising it achieved in the past."

SIPTU said it would be seeking a meeting with the Minister for the Arts and Culture, Ms de Valera.