RTE needs to do significant additional work to "flesh out" its proposals for new digital channels, according to the Price waterhouseCoopers reports pub lished last night by the Minister for Arts, Heritage, Gaeltacht and the Islands, Ms de Valera.
The reports also state that funding agreed for additional programming costs should be withheld until such time as RTE completes its "transformation programme". This programme of cost-cutting measures included changes in work practices and cutting 330 jobs.
Ms de Valera placed the two reports dealing with RTE's application for a £50 increase in its licence fee in the Dail library. Earlier this week, the Government decided on a £14.50 increase, bringing the fee for a colour licence to £84.50.
Publication of the reports follows a row in the Dail earlier yesterday over the increase.
The consultants' reports outlined the elements of RTE's £50 fee increase application. It sought £8.59 to fund existing programmes; £22.17 for new programming; £6.25 for its digital channels and £13 to maintain its cash balances.
The consultants recommended that an appropriate level of cash was £45 million.
PricewaterhouseCoopers said RTE needed to research and validate the market for its digital channels as the projected advertising implied only a relatively small viewing audience.
The director-general of RTE, Mr Bob Collins, said he would not be drawn into a "debate by proxy" with the Minister. Speaking on RTE Radio, he maintained that the licence fee increase would not do what the Government believed and RTE's position would be a great deal worse in two years' time.