RTÉ to implement cuts of €25m

RTÉ is facing another €25 million in cuts which will see a further round of voluntary redundancies and reduced spending on sports rights, outside acquisitions and the regions.

The organisation is hoping to cut staff costs by €15 million over the next two years. That would be the equivalent of more than 200 redundancies though the numbers could be mitigated by savings in allowances, shift payments and overtime.

RTÉ has already lost 190 staff in a first round of redundancies which was completed last year. Another round could reduce the numbers working at RTÉ to 1,750 from a peak of 2,900 during the boom period.

The scale and detail of the cuts which were contained in a letter to staff from director-general Noel Curran took employees by surprise though they had been warned that RTÉ was still facing continuing financial difficulties.

Both the NUJ and the Trade Union Group expressed dismay at the decision to close the London offices and RTÉ's Millbank studio. The five people employed in London will be offered relocation.

TUG spokeswoman Mary Curtin said the decision to close the London offices was taken without consultation and was anti the spirit of RTÉ's public service remit. The National Union of Journalists (NUJ) Irish secretary Seamus Dooley said coverage of UK affairs should be regarded as a "core part of RTÉ's coverage".

In a statement to staff the TUG said that it welcomed the fact that there would be no compulsory redundancies and that any changes will be made through a process of consultation.

Cuts of a minimum of 30 per cent in the salaries paid to top 10 presenters are being extended to those in the top 20.

Mr Curran said RTÉ was facing a deficit of €20 million by the end of the year that was “not sustainable”, adding urgent measures had to be taken to deal with it.

He announced to staff that RTÉ was bringing forward plans to make the savings. He said the changes were necessary to eliminate the deficit by the end of 2013 and to provide funds for modernisation.

In addition the broadcaster will be looking at cutting the number of outside contractors and suppliers it uses and will be demanding more flexible work practices from its staff.

RTÉ is also looking at reducing the money it spends on sports rights by 25 per cent which means it will not show events if it cannot negotiate a lower price to show them. It has no specific sporting events in mind at present.

Money spent on outside acquisitions will be reduced by 10 per cent.

There will also be a reduction in the money that RTÉ spends the regions. Mr Curran said there would be no loss in output and the reductions will be targeted at fixed costs such as leases and rents.

He maintained RTÉ still retains a strong audience base, but the economy “remains flat and commercial trading for all media is weak”.

Management and the Trade Union Group are due to open new work practice negotiations, beginning after Easter.

It is the latest round of cost-cutting measures in RTÉ that started in 2008 when the full affects of the recession first became apparent.

RTÉ has taken €80 million out of its budgets since then. It was on target for a €5 million loss by the end of 2010 but was forced to cut again when changes were made in the 2011 budget which took an estimated €20 million out of the budget.

Management sources say they are projecting a deficit of between €17 million and €22 million this year, and the aim is to eliminate that deficit next year and have a surplus of €3 million for reinvestment.