RTÉ licence fee looks set to rise

RTÉ's television licence fee is likely to increase later this year once an external review of the broadcaster's performance has been completed.

Minister for Communications Noel Dempsey yesterday announced the appointment of consultants to conduct a review of the licence fee "adjustment" for this year.

Indecon consultants have been appointed to carry out the exercise for the second year in a row following a tendering process, Mr Dempsey announced.

Indecon will look at all aspects of the station's performance, including profitability, advertising revenue, its output vis-a-vis its statement of commitments and its ability to implement structural reform. Based on this assessment, it will then make a recommendation to the Minister for an increase to the licence fee, which will not exceed the rate of inflation.

Mr Dempsey said: "As part of the Government's programme of public-sector broadcasting reform, the Government decided that the RTÉ licence would be reviewed annually. This is the fourth such review undertaken by independent external advisors. Any changes to the licence fee in 2007 will depend on RTÉ's performance during 2006. Indecon's report is expected to be presented to the Minister by the middle of June 2007. Future reviews are to be conducted by the Broadcasting Authority of Ireland".

Last year, a similar review resulted in a €3 increase in the licence fee, to €158.