RTÉ was quick off the blocks yesterday to stake its claim for a €45 increase in the annual television licence fee. Despite receiving an interim rise to €107 from €88.88 last year, the State broadcaster has reported an overall deficit of almost €71 million for 2001. It is an enormous sum, one which merits the immediate attention of Mr Bertie Ahern as he formulates his programme for Government in the coming days.
In common with other media, RTÉ's ongoing difficulties are rooted in an advertising slump which saw its commercial revenue decline by 9 per cent last year. Such pressures were most notable after the attacks on the US on September 11th. Eight months on, the squeeze continues. In addition, RTÉ's operating costs increased by 7 per cent last year. This it attributes to a higher wage bill and the increasing cost of programme acquisition. Combined, these pressures led to a loss of some €46 million on RTÉ's day-to-day activities. The balance in the overall deficit arose mainly from an emergency cost-cutting plan, which will lead to a reduction of 150 staff this year. That initiative follows a separate transformation agreement designed to modernise RTÉ's structures and work practices.
Such measures were adopted to reduce day-to-day losses this year to €20 million. RTÉ argues it can go no further without compromising the quality of its television and radio services. The organisation says it has delivered on a promise to the Government to put its house in order. Now it wants action from the other side. It also says any increase in the licence fee should be index-linked.
These are reasonable arguments. Public service broadcasting is expensive. In the words of the RTÉ Authority chairman, Mr Paddy Wright, the organisation's role is to enable Irish stories to be told. It is especially crucial when considering events of national importance such as the general election last weekend. The audience, correctly, demands high quality programming. This is an even greater concern given increasing competition from international broadcasters. Thus if RTÉ cannot deliver, it will lose its influence and its audience. It says it will cease to exist in its current form if the Government fails to support its financial regeneration.
According to RTÉ's submission to the Forum on Broadcasting, the public portion of its funding is the lowest among mid-sized states in the EU. There are additional statistics to attest to its comparatively low level of public support. These telling figures cast the financial crunch at RTÉ in perspective. Last year the Government told RTÉ it would review the situation in the middle of 2003. But the broadcaster wants action before the end of this year. A €45 increase would bring the annual fee to €152. That equates to about an 86 cent increase to €2.92 in the weekly rate. It seems a small price to pay to guarantee RTÉ's financial stability.