RADIO producers in RTE have warned that the station will not be able to compete with the new, independent national station within its existing budget.
Budgets generally at RTE are being cut or only slightly increased. This is due to the station's extra financial commitment to Teilifis na Gaeilge and a lower than expected increase in the licence fee.
Sources in RTE are predicting serious cuts in programme making, both in radio and television, next year.
Radio producers have been informed that the budget for radio will be increased by only £200,000. Producers say this is not enough to ensure the service can match competition from Radio Ireland, due to begin broadcasting in March.
In a letter to the RTE authority which members will receive before its January meeting, 40 radio producers are claiming that the level of funding for radio will force standards down. They also say it does not take account of the new 24 hour service and new programmes which rely on contributors, such as Fandango and Tonight With Vincent Browne.
They also fear that in order to save money RTE might not renew the contracts of some producers.
Several factors have been blamed, including the lower than expected rise in the licence fee, up by £8 to £70, rather than the £13 the organisation was seeking.
They say that management is also pointing to RTE's commitment to TnaG (over £5 million a year) as being a drain. Another factor listed is the rising cost of funding programme making by the independent sector. That sum is set to rise every year until it reaches 20 per cent of the programme making budget by 1999.
Having to host the Eurovision Song Contest will also hit programme budgets. RTE's accountants also fear that growing television competition will fragment the audience and reduce, RTE's advertising income.
RTE is also facing huge inflation in the cost of acquiring both programmes and sports rights.
Its current surplus, over £14 million, is accounted for by the sale of some of RTE's holding in Cablelink and by commercial activities, while the core business of broadcasting is losing money.
Meanwhile the authority is expected to decide on the next director general at its meeting on January 6th. The new director general will take over in April from Mr Joe Barry, who is retiring.