RTE is facing an extremely challenging financial situation but is not on the verge of bankruptcy, its director general has insisted.
Kevin Bakhurst warned members of a parliamentary committee in Dublin that failure to implement a new longer term funding model for public service media in Ireland would jeopardise the future of the national broadcaster.
Mr Bakhurst has introduced an immediate recruitment freeze and a halt to discretionary spending as RTE continues to grapple with fall in licence fee revenue following a series of controversies over the summer.
The crisis at RTE erupted in June when the broadcaster revealed it had not correctly declared fees to its then highest-paid earner Ryan Tubridy between 2017-2022.
The furore subsequently widened as a series of other financial and governance issues emerged.
Prior to its difficulties over the summer months, RTE had asked the Irish government for 34.5 million euro (£29.6 million) in additional interim funding this year.
Since then, its revenues have taken a further major hit with the broadcaster currently projecting a loss of 21 million euro by year end due to a fall in TV licence payments in the wake of the controversies.
The Government has yet to decide how much extra funding it will release to the embattled organisation, but has made clear that any investment will have to be reciprocated with a significant programme of reform.
Mr Bakhurst, who was appointed in the midst of the crisis, told members of the media committee that he was determined to transform RTE.
He said he hoped to provide an outline framework for strategic reform in October, with a commitment to delivering a full strategic reform and transformation plan by the end of the year.
“I would caution, however, that all of these reforms will be undermined if the question mark over the funding of public service media in this country is not properly resolved,” he said.
“The TV licence system, its supporting legislation and the associated collection methods are no longer fit to support the provision of public service media to the people of Ireland.
“The current crisis has made the problem even more acute and jeopardises the future of public media, and RTE, and the viability of Ireland’s audio-visual sector.”
Taoiseach Leo Varadkar last week said it was important to deal with the public service broadcasting funding model in longer term and he vowed to legislate on the issue next year and have it implemented by 2025.
Mr Bakhurst told the committee that the halt on discretionary spending included limiting outside broadcasts and cutting investment in the RTE player.
“I’m pulling every lever I can to try and preserve cash because that is my duty, and that’s the duty of the board to make sure that we as an organisation do not run out of money,” he said.
Mr Bakhurst said a full or partial sale of RTE’s Montrose site in Dublin was being considered.
“All options are on table,” he said.
He said a professional valuation of the site was under way but he highlighted that a sale could potentially be complicated by the fact that several of the buildings were listed.
The director general insisted RTE was not on the verge of bankruptcy.
“We are having to manage our cash extremely carefully but we’re not on the verge of bankruptcy and I wouldn’t be able to run the organisation under my statutory responsibilities if I thought we were, and we’re not,” he told the media committee.
He acknowledged the organisation was facing an “extremely challenging financial situation”.
Mr Bakhurst said real and radical change was needed at RTE.
“RTE must reflect the whole of Ireland better, to all audiences, on the devices and platforms they choose to use,” he said.
“While we are working at speed, we need to get this right. We have a responsibility to audiences, to the Oireachtas and to the hard-working and talented staff at RTE to build a trusted public service media organisation that can sit at the heart of Irish life for years to come.
“We must rebuild an RTE that is trusted and enjoyed, one that’s relevant and loved, and one that brings the country together for important national moments and events.
“Public service content, value for money, and trust, will be at the heart of a transformed RTE. This is a critical moment for public service media in this country.”
He added: “From the original radio broadcast in 1926 to now, RTE has been working to give voice to Ireland, to share our nationhood, to bring the moments and the issues that matter to the country.
“We have a choice: we can work together to reform and reshape RTE for the next 100 years, or we can accept its failure and demise. The latter is something that I, and I believe you, cannot accept.”
In her opening statement to the Oireachtas media committee, RTE board chair Siun Ni Raghallaigh said RTE faced “hard decisions” to secure its future.
“A secure future for RTE is by no means guaranteed,” she said.
“This is currently an organisation under immense pressure across a number of fronts.
“Critically, the erosion of that trust has helped create immediate financial pressures.”
“This needs to be resolved as a matter of urgency and is a matter of immediate focus for the board and the interim leadership team.
“A secure future for RTE means having purpose and direction, and making choices and taking decisions.
“The director general and his team will soon complete a strategic review of the organisation.
“I expect that the review would then shape what will be a costed restructuring plan.
“As part of that, hard decisions must be made in order to achieve a fit-for-purpose public service broadcaster.
“These decisions may not be popular with stakeholders and policy makers, including perhaps this committee.”
