The Government has refused to grant an emergency increase in the television licence fee to RT╔ following its drastic proposal to cut 160 staff and £24 million from the station's 2004 budget.

In the Dβil, the Minister for Arts, Heritage, Gaeltacht and the Islands, Ms de Valera, said the licence fee should not be "regarded as a cushion against the real market realities in which RT╔ operates".

The troubled station received a £14.50 fee increase last July, but station management argued the rise did little to help it cope with mounting costs and falling advertising revenue.

However, the Minister offered little sympathy. RT╔ had been told, she said to Fine Gael TD Mr Dinny McGinley, that further licence fee increases would be considered once the station "got its act together".

"It is acknowledged that costs at RT╔ are too high. This is acknowledged within RT╔ and they have planned for a transformation agreement. RT╔ must arrange its financial affairs and that is what the RT╔ Authority is there to do," she said.

"If those issues are addressed before 2003, I and the Government will be delighted to hear from RT╔. However, all of us know that serious issues must be addressed for the conditions set down by the Government to be satisfied."

She added: "When we speak of possible licence fee increases, we are speaking about public money and not an anonymous pot of money that people can dip into from time to time."

RT╔ director general, Mr Bob Collins, will present final details of the cost-cutting plan today to the RT╔ Authority, following another round of talks with union representatives last night.

Management intends to abolish a number of departments in the company, cut £6 million from its television budget next year, eliminate the use of freelancers, and, perhaps, sell off much of the station's outside broadcasting equipment. Advertising revenue has fallen by £12 million this year, and will be £15.5 million below projections in 2002.