Screen Producers Ireland (SPI), the representative group for independent production companies, has called on the Government to make reform of the television licence fee a “legislative priority” for this Dáil term amid concerns that ongoing financial strains at RTÉ will have a knock-on effect across the industry.
“The longer nothing happens, the more chance RTÉ will not rebound from the crisis of 2023. A decision must be agreed upon without delay so that any needed legislative changes can be passed before the end of the year,” said Susan Kirby, chief executive of SPI.
The intervention by SPI comes as RTÉ grapples with internal reforms and a €10 million cost-cutting plan in 2024, which will include both a string of cuts to content and about 40 staff departures under a voluntary redundancy plan expected to be launched later this month. Some 400 people will leave the public service broadcaster by the end of 2028 under a plan announced in November by director general Kevin Bakhurst.
The Government agreed to inject interim funds totalling €56 million into the broadcaster in late 2023, with €40 million contingent on Mr Bakhurst’s cutbacks, and has promised to make a decision on the future of public media funding later this year.
SPI said the independent sector “urgently requires” the introduction of a sustainable funding model to permanently replace the outdated licence fee, which doesn’t apply to the growing number of homes without traditional television sets and has long been subject to high evasion rates. Non-payment of the fee surged last year in the wake of RTÉ's hidden payments scandal, in which it admitted to repeatedly underdeclaring the fees it paid to presenter Ryan Tubridy.
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Figures from the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media show that total licence fee sales fell €19.8 million in 2023.
The independent producers’ group said the Government-appointed Future of Media Commission was “clear” in its July 2022 report that direct exchequer funding was “the only way to ensure a consistent income” for RTÉ.
Multi-annual funding agreements would allow RTÉ to implement critical reforms – including more programming from the independent production sector – and keep Irish audiences of all ages informed and entertained by its programming, SPI said.
“The time has come for the Oireachtas to properly debate how we as a nation value public service media and therefore fund RTÉ,” said Ms Kirby.
“SPI believe the sector needs sustainable multi-annual funding through direct exchequer funding. This is a way of funding public service media across the EU and in the UK. There are ways of ensuring the independence of the broadcaster as well as protecting the funding from inflation. At present, RTÉ is operating without a sustainable and solid financial underpinning, which puts potential reform plans at serious risk.”
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As the fallout from the undisclosed payments controversy continues, the broadcaster is expected to publish two reports shortly – one commissioned by the RTÉ board from accountants Grant Thornton on the failure of Toy Show the Musical, and a separate study commissioned by Mr Bakhurst from solicitors McCann FitzGerald into how its 2017 and 2021 voluntary exit programmes were handled.
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