RT╔ lost £11.23 million (€14.26 million) last year, according to the State-owned broadcaster's annual report published yesterday.

The loss, which had been predicted, will be dwarfed by the £20 million deficit the station is projecting for the current year.

The annual report, published more than 10 months after the semi-state company's year-end, also confirmed that the deficit at the station's broadcasting division was £18.37 million.

It was offset by contributions from its commercial operations such as the RT╔ Guide magazine.

Mr Paddy Wright, the chairman of the RT╔ Authority, said the response to such a deficit "demands that we reduce costs and increase revenues".

"At the same time, RT╔ must invest in high-quality programmes to win audiences by guaranteeing the excellences of our schedules," Mr Wright added.

RT╔'s director general, Mr Bob Collins, said the loss incurred in 2000 "gives the clearest signal that over-reliance on commercial revenue is not the way to sustain RT╔'s role as a public service broadcaster in the future".

Mr Collins was referring to the Government's decision to grant only £14.50 of an application for a £50 increase in the television licence fee.

"If we as a democratic, sovereign society, wish to debate our concerns and celebrate our cultural identity, we must make the necessary financial provision to support public broadcasting," Mr Collins said.

The company's management is currently embarked on a restructuring plan that will trim next year's budget by £24 million and involve the loss of at least 150 jobs.

Without the cuts, the station says it will lose £36 million in 2002.

Even with the savings, RT╔ expects to lose up to £12 million in 2002. Advertising revenue is expected to fall by £12 million this year, and £15.5 million next year.