A row between RTÉ and Minister for Media Patrick O’Donovan over a €20 million cut in funding for the State broadcaster is casting a long shadow over Budget 2027. But what exactly is going on? And does O’Donovan’s explanation for the cut add up?
What deal was in place?
Back in 2024 the then-government sought to draw a line under the scandal unleashed at Montrose triggered by secret payments to its former star presenter Ryan Tubridy. Damage to public confidence in the broadcaster led to a fall in licence fee payments, further damaging RTÉ’s finances.
The government agreed to guarantee a certain level of funding to RTÉ every year, coming to €725 million, saying the funding was conditional on delivery of reforms at the broadcaster.
How did this get bound up in budget talks?
While the money for RTÉ was supposedly guaranteed, talks between O’Donovan’s department and the Minister for Public Expenditure Jack Chambers were particularly fraught this year.
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What is the row between RTÉ and Minister Patrick O'Donovan really about?
What were O’Donovan’s asks?
O’Donovan initially asked for a package of €899 million to fund current spending (that is non-capital spending on things like building or renovation works).
His department is not high-spending, but it does have a lot of agencies under it. In addition to RTÉ, it has the likes of the Arts Council, Sport Ireland, TG4, and funding for sporting bodies like the FAI and GAA.
O’Donovan also wanted money for policy measures like a culture card: a pre-loaded €100 voucher for 16-year-olds to participate in cultural activities.
This was whittled down to an ask of €879 million – then €858 million – over the course of last week. But, as of late last week, Chambers was only willing to approve €827 million.
How did it escalate?
Last Friday, O’Donovan and the junior minister in his department Charlie McConalogue put pen to paper, sending Chambers a letter stuffed with stark warnings about the consequences of not increasing funding for the department.
The letter, seen by The Irish Times, warned that with €827 million on the table, there was an extensive list of things which O’Donovan said his department wouldn’t be able to do if it didn’t get more money. These included:
- No increase in funding for Sport Ireland;
- No increases for TG4, national museums, galleries or other arts or cultural organisations, and no possibility of contributing to the costs of the National Centre for Research and Remembrance for Magdalen Laundries;
- Cuts for Comhaltas Ceoltóirí Éireann, Creative Ireland, and festival grant schemes;
- Department would have to withdraw from discussions about hosting further NFL games in Croke Park and the Open golf championship in Ireland.
O’Donovan warned Chambers of “significant reputational damage to the wider Government” if these things came to pass.
What did O’Donovan say about RTÉ?
O’Donovan warned that based on the money on offer, the Government – not just the department – “will renege on the three-year funding deal agreed with RTÉ in July 2024”, going on to add that “in fact, we now envisage a cut to RTÉ funding next year in the order of €11 million”.
This suggests that RTÉ would have got €229 million for next year, down from the €240 million it received for 2026.
What happened next?
Amid tense budget negotiations over the weekend, another €21 million was found for O’Donovan’s department.
The extra money appears to have addressed the risk of an €11 million cut for RTÉ, with some presumably being spread over other agencies.
As for RTÉ, it was allocated just €240 million – not the €260 million that was agreed in 2024. RTÉ said it was only informed of this three hours in advance. O’Donovan suggested this was down to the slow pace of reform, which RTÉ director general Kevin Bakhurst rejected.
The Minister said it would be a “fair extrapolation” of his remarks at a long post-budget press conference that the funding situation played a role as well but, confusingly, added: “That’s not actually what I said at all.”
Where does it go from here?
The controversy throws up a number of questions.
First, there is the question of reneging on the agreement. O’Donovan denies the decision amounts to a “cut” in funding. But will RTÉ argue that failing to deliver the extra €20 million constitutes reneging – and what are the implications of this?
Also, the justification for the cut is still unclear. Is the decision down to a lack of funds, as suggested by the department’s letter, or a failure to speedily reform as claimed by O’Donovan?
After talks on Thursday, it seems all sides are eager for an off-ramp. But a clean settlement may be harder to achieve.
