Minister acknowledges disappointment but lack of surprise in decline of TV licence purchases

According to Michael McGrath, RTE faces a daunting task of rebuilding trust in the organization after causing significant damage to its reputation through financial issues. McGrath acknowledged that restoring trust will not be an easy job.

The fallout started on June 22 when RTE admitted to misreporting fees paid to its top earner, Ryan Tubridy, from 2017-2022. However, it has since expanded to encompass other financial and governance issues.

As a result, there has been a significant decline in the purchase of TV licenses compared to last year. Thousands of citizens are choosing not to renew or apply for licenses.

Catherine Martin, the Media Minister, is closely monitoring the situation to determine if it is a long-term trend. The decline in TV licenses is causing concern among the broadcaster’s board and management, as highlighted by chairwoman Siun Ni Raghallaigh.

Regarding interim funding for RTE, McGrath revealed that Catherine Martin and Public Expenditure Minister Paschal Donohoe will engage in a serious discussion as part of Budget 2024.

While expressing disappointment at the drop in TV license payments, McGrath emphasized the importance of continuing to support public service broadcasting through license fees.

McGrath further highlighted the significance of not solely relying on Exchequer funding for RTE in the long term. He emphasized the need for a diverse funding model to avoid placing the entire burden on taxpayers through general taxation.

Acknowledging that RTE is responsible for its recent problems, McGrath recognized the negative impact on public confidence and trust in the organization.

RTE’s director general, Kevin Bakhurst, understands why some individuals are hesitant to pay the 160-euro TV license fee, especially during the current cost-of-living crisis. However, he aims to convince them of the value provided by RTE and rebuild trust over time.

Bakhurst also highlighted the increased funding gap at RTE and proposed solutions such as a household-based fee and a device-neutral fee to ensure a secure source of public funding.

To address financial challenges, Bakhurst plans to reduce the pay of the highest-paid presenters as their contracts come up for renewal. Additionally, he is considering the implementation of a register of interests, but further consultation is required.

Reference

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