The TV licence fee has been increased by €43 to €150 per year as part of a massive shake-up of broadcasting in Ireland. The increase takes effect from January 1st next.
In a statement this evening, the Minister for Communications, Marine and Natural Resources, Mr Dermot Ahern, also announced the abolition of the black-and-white licence.
Although a significant boost to the financially-troubled RTÉ, the minister also announced measures that will mean the national broadcaster will not receive the full benefit of the increase. Seven euro per licence will be set aside, creating an €8 million fund which independent broadcasters, making public service programmes, can draw on.
The disbursement of the fund and RTÉ's fulfillment of its role as a public service broadcaster will now be overseen by a new 'content regulator', which has been approved by Government.
The newly-created Broadcasting Authority of Ireland will take on the role of both the RTE Authority and the independent sector regulator the Broadcasting Commission of Ireland. Both will be abolished when the necessary legislation is passed next year.
The BAI will also deal with any future requests for licence fee increases but the minister said RTE would be entitled to annual increases up to a figure in line with inflation. A five-year review of the licence fee will also be implemented.
The station will be required to meet significant standards of reform in order to get further increases, the Minister said. Part of the reform will see the broadcaster become a commercial State company with its own board of 12 directors. "RTE is in the process of delivering significant change. It knows further change is on the way and it has to be more cost-effective and financially accountable in how it delivers its remit," Mr Ahern said.
"RTE is in a very competitive market place. In an era of increasing globalisation, not least in the message we get on our television screens, I believe the uniquely Irish voice of the station and its reflection and commentary on the life of the nation should be preserved and nurtured."
The increase comes on top of a £14.50 (€18.40) hike introduced by the former communications minister Ms Síle de Valera 18 months ago. RTE had sought an increase of £50 (€63.50).
Mr Ahern also announced An Post would retain the role of fee collector. His show of confidence comes amid complaints the company was not collecting sufficient funds for RTÉ.
Staff at RTÉ welcomed the increase but SIPTU warned that 170 jobs are still at risk. SIPTU Broadcasting Branch Secretary Mr Jimmy Jordan said: "This increase was badly needed but the funding of the commercial sector should have been addressed separately from the funding of public service broadcasting."
RTÉ director general, Mr Bob Collins, told RTE radio this evening that up to 150 jobs will be shed despite the increased funding.
Irish Secretary of the NUJ Mr Séamus Dooley said he was disappointed at the decision to divert part of the increase to independent programme-makers. "If the independent sector is to receive a state subvention the trade unions must insist that the beneficiaries will recognise the right of members to proper pay and conditions and trade union recognition," he said.
A new licence fee for commercial premises is still under consideration.