RTÉ and TG4 need funding increases, says Minister

Minister for Communications Denis Naughten has said he agrees, in principle, with increasing funding for RTÉ, as recommended by independent consultants.

An annual review of the spending by RTÉ and TG4 found that both public broadcasters have made good overall use of their funding despite missing some key targets.

Consultants Oliver & Ohlbaum Associates looked at spending in 2014 and concluded that both broadcasters need slight increases in public money to maintain services appropriate to their remits.

In the case of RTÉ, the consultants recommended a once-off increase of €1.2 million in funding, as well as a sum of €200,000 for TG4.

The sums are relatively small in comparison with their overall budgets (combined income of over €330 million for RTÉ from commercial and licence fee; and a budget of €32.5 million for TG4).

Significantly, the consultants also concluded that both broadcasters should be allowed annual increases in funding, equal to the rate of inflation.

In a formal response to the report on September 1st, Mr Naughten wrote to the chairman of the Broadcasting Authority of Ireland (BAI), Pauric Travers, saying he agreed that, in principle, the increase in funding is warranted.

“I would not, however, be in favour of increasing the licence fee at this time,” he added.

‘Sceptical’

Mr Naughten wrote to the BAI ahead of his first meeting with RTÉ’s new director general,

Dee Forbes

, this week.

He said he would now focus on improving the operation of the TV licence system, which would allow for an “improved basis of funding” in the future.

The Oliver & Ohlbaum report stated that TG4 performed well, failing only two of its 17 targets. “However, the two failed commitments related to core public service broadcasting objectives and obligations; audience reach and access rules.

“We are sceptical about how much further progress can be made on current funding levels,” it added.

Increasingly competitive

It also found that RTÉ failed to meet 25 of its 113 commitments in 2014 – most of them in relation to audience reach or targets.

“We see a case for recommendation of a once-off funding adjustment to both broadcasters based on the 2014 performance review.”

The ability of RTÉ and TG4 to maintain a service appropriate to their objectives at current funding levels was in doubt for a number of reasons, the report continued.

It found that while the Irish TV and radio industry was healthier in 2014, compared with previous years, it was becoming increasingly competitive with the entry of UTV Ireland and the availability of a rising number of channels.

“This has raised concerns for both broadcasters on the impact of future audience and advertising levels,” it said.

Mr Naughten noted that additional money was provided to TG4 in 2015 and its exchequer grant was increased in 2016.

Separately, TG4 has announced that Scottish-born Alan Esslemont, who has worked with the BBC in Scotland, is to become director general. He is a fluent Irish speaker who raised his family in Connemara.