RTE's proposal for a £120 (#152) licence fee has been backed by the Audiovisual Federation, which comes under the umbrella of IBEC. Its chairman Mr John Cummins said last night that a vibrant properly funded RTE was "a crucial component in the economic development of the Irish audiovisual sector."

The federation also welcomed RTE's commitment to increase the proportion of home produced content in prime time on RTE1 and Network Two from 40 per cent to 50 per cent, amounting to an additional 400 hours a year.

But TV3 responded last night, accusing the federation of erring by supporting RTE's bid for an increase and saying in doing so it had acted in the narrow interests of one company "which dominates the industry, at the expense of the broader interests of IBEC's membership and the public at large." (RTE and TV3 are members of IBEC).

TV3 chief executive Mr Rick Hetherington said a comprehensive independent analysis of how RTE uses the existing licence fee must be conducted before considering any rise.