RTE seek government help to solve cash crisis

RTÉ chairman Paddy Wright has made a impassioned plea to government for a €45 increase to the licence fee or, he claims, the state broadcaster will face "death by a thousand cuts".
Mr Wright made his call following a disastrous 2001 end-of-year report revealing that the RTÉ deficit rose to €70.9 million – up from €14.2 million on the previous year – and overall revenues fell by €10 million to €258 million due to the continued slump in the advertising market. The broadcaster's total expenditure for the year was €329 million.
"If we don't get an increase in the licence fee it will be the death-knell for RTÉ. We will die and it will be death by a thousand cuts," he said. "We will either close or change completely. I think RTÉ as we know it will die over the period of a couple of years. At this moment in time we have to get the backing of the government."
RTÉ have petitioned the government before for a rate rise and last July Arts Minister Sile de Valera upped the fee from €88.89 to €107 – somewhat less than the €63 asked for by the corporation. This latest move by RTÉ is an attempt to have that original demand applied in full.
In view of this year's stark results, the chairman has stated that for the broadcaster to survive the government must raise the licence fee to €152, and index-link the increase to inflation. He has said that this figure would be the minimum required to draw the company back from its precarious position.
Such an increase would generate an extra €45 million which would go far to rein in the burdgeoning debt pile that rose €40 million in two years.
RTE have already shed 650 jobs in an attempt to cut a huge wage bill which is stifling management's options for recovery. The current headcount for the corporation stands at 450, but despite rationalising resources throughout the television and radio divisions, RTÉ still lost €40 million on operating costs. The rationalising programme itself was expensive and resulted in an exceptional €21.5 million "emergency" charge.
However, what has most affected the company has been the depressed advertising market, which saw the corporation's advertising revenue dip 10% to €94 million.
Director-General Bob Collins said: "The performance last year became progressively worse than we were expecting because of the performance of advertising. It is clear that the position was becoming more and more difficult, and that there was an acceleration in the difficulty."
RTÉ have said that they will need to have a decision before the end of the year.
RTÉ, www.rte.ie
(GMcG)