RTÉ's financial position has "improved considerably" but employment numbers at the station are continuing to grow, according to a report by consultants PricewaterhouseCoopers (PwC).

The report was used recently by the Minister for Communications, Mr Dempsey, when he decided to increase the licence fee by €3 to €155. PwC was asked to assess whether RTÉ had implemented "effective change management" processes.

The report congratulates RTÉ on its performance in the last two years and acknowledges that it has met its commitments in a range of areas. However, it draws attention to some areas that could be improved.

The authors say RTÉ's performance on organisational development and change has been mixed.

The consultants found it difficult to be certain about employment numbers for instance.

"It is difficult to comment meaningfully on the trend in headcount numbers over the past five years as a consequence of the recategorising and regularisation of manpower," it states.

"However, there has been an increase in staff in 2004 relative to 2003, and a further increase is anticipated in 2005," it adds.

The consultants acknowledge that RTÉ has suggested several radical initiatives for some of its business units, but it says many of them "could be classified more readily as routine actions associated with the day-to-day management of the business".

The consultants warn that RTÉ needs to produce an overall strategic plan, including a manpower programme which outlines the personnel needs in the years ahead. It says the broadcaster needs to quantify the full range of skills within each independent business division.

RTÉ expects to report strong results for 2004, with a potential surplus of between €3 million and €6 million. The station is likely to use any surpluses for the development of digital television in the years ahead.

RTÉ's financial position is heavily dependent on the collection of licence fee revenue.