No provision for licence fee rise

RTÉ: The Government made no additional provision for an increase in the RTÉ licence fee in yesterday's Estimates but said this…

RTÉ: The Government made no additional provision for an increase in the RTÉ licence fee in yesterday's Estimates but said this did not mean the State broadcaster would not receive an increase next year.

The Estimates show the Government has made a provision of €152 million for broadcasting in 2003, which maintains the existing provision made in 2002. Almost all this cash is collected via licence fees by An Post on behalf of the Government and subsequently redistributed by the Department of Communications, Marine and Natural Resources to RTÉ. The Minister for Communications, Dermot Ahern, said although no extra provision had been included in the Estimates for an increase in the licence fee, this did not mean the Government would not order an increase. His officials were currently examining financial management issues at RTÉ, he added.

"We'll have to wait and see what comes out of the final discussions and I can't give a timescale," he said. "There has been a recognition on RTÉ's part that financial controls are key going forward."

RTÉ currently faces a major funding crisis and is lobbying for a significant increase in its licence fee. The last Government sanctioned only a small licence fee increase which RTÉ argued was insufficient. Meanwhile, the Estimates forecast a 13 per cent reduction in net expenditure at the Department of Communications, Marine and Natural Resources next year, compared to this year.

READ MORE

Net expenditure is forecast to be €297.3 million in 2003 compared to €341.6 million this year, representing a reduction of €44.2 million. Funding in almost all divisions within the Department will be cut next year with just energy increasing its allocation.