Coalition to consider options for licence fee overhaul and RTÉ bailout

The Coalition has been given a series of options around the long-term future funding of RTÉ including allowing Revenue to collect the TV licence fee, funding it through the exchequer or imposing a new media licence or levy.

It comes as Minister for Finance Michael McGrath confirmed that “serious” discussions are on the cards around interim funding for the organisation.

Two senior sources with knowledge of a new and unpublished report on the future reform of the TV licence said it has examined ways in which the fee can be collected.

Minister for Media Catherine Martin was given a technical report into the future reform of the TV licence before the current RTÉ controversy erupted, but it has not yet been widely circulated in Government.

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However, well-placed sources have confirmed that officials have examined the possibility of the Revenue Commissioners collecting an expanded TV licence charge from all households in order to reduce evasion rates across the country, which could be costing the broadcaster up to €60 million every year.

Another option would be exchequer funding, or a media licence or charge for every household rather than just the homes that have a TV. The Government has already ruled out direct exchequer funding over concerns about media independence and the exposure of the public finances.

The Irish Times also understands that talks have begun between Government officials around interim funding for RTÉ, with a figure of about €20 million being mooted. However, some senior figures in Government are taking a harder line on providing an emergency lifeline to the broadcaster, with suggestions that an An Post-style bailout could be on the cards instead.

[ Ryan Tubridy had ‘no intention’ to cause difficulty for RTÉ with statement ]

[ Tubridy and Bakhurst: What caused the breakdown of trust in RTÉ talks? ]

Another example is the €19.2 million rescue package given to the Football Association of Ireland in 2020, which was comprised of higher grant levels and an interest-free loan.

In 2017, the Government provided a long-term low-interest loan of €30 million to An Post and last year a €30 million bailout was provided. Everything would be highly contingent on reform within the broadcaster including, potentially, cost-cutting. “Trust will also have to be rebuilt,” a source said.

TV licence revenue is down nearly €4.6 million since the broadcaster has been engulfed in controversy over payments to presenter Ryan Tubridy.

The station is also now under the formal oversight of the National Treasury Management Agency (NTMA)’s NewEra unit, and it is expected it will provide financial and commercial advice to the Government around RTÉ's finances.

Substantive measures on the shape of funding to the beleaguered broadcaster will not be agreed until about mid-September.

It comes after a deal to bring Tubridy back to RTÉ radio this week fell apart at the last minute after a bitter row between the national broadcaster and the presenter. Tubridy had been on the cusp of a new deal to return to his morning radio show on September 4th on a salary of €170,000, but relations between the parties were shattered by a statement issued by the former Late Late Show presenter on Wednesday. In that statement, Tubridy insisted his “actual income” from RTÉ in 2020 and 2021 matched what the broadcaster originally published in its top-earner tables. After ending negotiations, director general Kevin Bakhurst said that it was important Tubridy “took responsibility”.

[ What could happen to people who do not renew their TV licences? ]

[ TV licence income falls almost €900,000 last week compared to 2022 ]

Meanwhile the Minister for Finance said on Friday an overhaul of the licence fee was on the cards.

“The Government will give consideration to this over the months ahead. But the TV licence is the system that’s currently there, there is an obligation on households to pay the TV licence. And I think we have to reflect on what we get from it,” Mr McGrath said.

“And we do get very high-quality public service broadcasting – a lot of live support coverage, and I think people do appreciate the value of the output from RTÉ.

“But look, this was pretty much a self-inflicted own goal by RTÉ in recent months and they have put their hands up and acknowledged that, as an organisation, they have been the cause of these problems.”