RTE considers further options for cutting costs

The RTÉ Authority are to considering a report which indicates that their cost-cutting measures – which included axing around 460 jobs – has not been wholly successful, it has been revealed.
The report by KPMG and Logical, which goes before the RTÉ Authority on Thursday, will send alarm bells through the corporation as it attempts to turn around a €71 million deficit from last year. Sources say that the report will offer further advice such as the institution of management performance targets for the company to further reduce running costs – even after executives implemented their €21 million restructuring programme.
RTÉ's preferred route out of the crisis has been to call on the government to increase the licence fee from €107 to €152. However, it is understood that the government is not keen to grant such a large increase. However, anything less, according to Authority chairman Paddy Wright, would not be enough to see RTÉ correct its operating problems.
However, one method of raising funds could be for the corporation to sell off land at their 32-acre Donnybrook headquarters. According to the report, selling around a third of their Donnybrook property could net around €34 million for the broadcaster.
To help raise funds, RTÉ had also proposed that the collection of the licence fee from customers should be offered out to private contractors, as the broadcaster claims that there is a poor collection rate by An Post.
RTÉ, www.rte.ie
(GMcG)