The Government needs to appoint a new, single regulator for broadcasting to promote competition and oversee the distribution of the State subvention, a new report concludes.
The study, completed by DKM Economic Consultants, also finds that just 30 per cent of RTÉ broadcasting output is true "public service broadcasting".
The remainder, according to the authors, is dedicated to programming such as movies and sport that should not qualify for a subvention. Despite this, the report finds, all of RTÉ broadcasting output is "deemed" to fulfil its public service obligations.
In a report undertaken for the Independent Broadcasters of Ireland, a body representing local and national television, DKM argues that RTÉ's current funding structure - a mixture of a State subvention of about €170 million and advertising revenues - should be changed to reflect "competitive equality". "The dual funding system promotes an absence of transparency. It is very difficult to see what is actually happening to the State broadcasting subsidy," DKM notes.
The consultants say that the State should promote competition in public service broadcasting by making public funds available to all broadcasters that fulfil a defined public service remit. This process would be overseen by the new regulator.
At the same time, DKM argues, RTÉ should be relieved of its "mish-mash of non-commercial obligations". Radio na Gaeltachta and TG4 should instead be funded by Roinn na Gaeltachta, while RTÉ classical music orchestras should come under the Arts Council, the report concludes.
As part of this, DKM argues, TG4 should be prohibited from broadcasting in English.
RTÉ's 2FM, meanwhile, is slated for private ownership in the report to reflect its financial viability, while the consultants say RTÉ 2 could also be privatised if domestic television became more competitive.
The consultants say competitive conditions in broadcasting and radio are currently "arbitrary and anomalous". DKM acknowledges that it will be difficult to arrive at competitive equality as long as the "vagueness" surrounding RTÉ public service obligation remains in place.
Colm McCarthy, who compiled the report, yesterday drew analogies between the domestic newspaper industry and domestic broadcasting. He pointed out that three broadsheet national newspapers manage to be profitable without any State support, suggesting that broadcasters should be able to do the same.
In any case, he said, the European Commission was unlikely to permit the maintenance of current funding structures in Irish broadcasting for much longer.