THE QUESTION OF how RTÉ will continue to be funded has been in the spotlight for the last year due to the ongoing controversy surrounding the public broadcaster’s finances.
Yesterday, Media Minister Catherine Martin published two Expert Advisory Committee reports on RTÉ’s governance and culture, and on contractor fees, HR and other matters, which are set to lead the way for the reform of the organisation.
However, while the report recommended that the issue needs to be addressed “so that RTÉ has a more sustainable funding model”, it remains unclear exactly how the Government intends to replace the current €160 licence fee.
So what are the options for how RTÉ might be funded?
Direct Exchequer funding is one of the options on the table and is thought to be the option favoured by the Minister.
This model was recommended by the Future of Media Commission in a report published in 2022, before the controversy surrounding the national broadcaster emerged. At the time, the Government chose to retain the licence fee system.
The model would mean the licence fee was scrapped and the public broadcaster was funded exclusively by the State.
Speaking yesterday, Catherine Martin said: “I’ve stated before that I see risks with every model, but I do believe what the Future of Media Commission recommended originally has great merit, moreso now in light of what emerged in RTE, and I do believe safeguards can be put in place.”
However, some politicians have expressed reservations about this idea, including Tánaiste Micheál Martin, who said in March that it would be a “dangerous development” and could harm the editorial independence of the broadcaster.
“In a tight situation, if politicians of the day don’t like what RTÉ is doing or are annoyed about certain programmes or whatever like that, they can say, well, let’s slash €10 million off that, that can happen in the real world,” he said.
“I think we need to guard against that. Some people think the easiest thing to do is just give 100% Exchequer. I think that’s a dangerous development.”
Another idea that has been floated is a hybrid model which would see a reduced charge for households coupled with direct Exchequer funding on an annual basis.
However, Catherine Martin told reporters yesterday that this was not something that had been recommended to her.
“I think what really needs to be done in relation to the future funding model, it needs to be credible, it needs to be sustainable, and it needs to have public acceptance,” the Media Minister said.
I think we have to be careful you don’t end up with the worst of both worlds.
Martin said she believes there are two credible options on the table: the direct Exchequer funding model, or a remodelled TV licence fee that would be collected by Revenue.
This would replace the current licence fee, which is paid directly by people online or in a Post Office.
Public Exchequer Minister Paschal Donohoe previously expressed reservations about this model.
“I would indeed have some reservations about it, but I am willing to look at it,” he said in November.
“[The reason it was rejected before] is because the Revenue Commissioners only collects taxes. And there’s a really important difference between tax, and the law behind tax, and something that is a charge.
Taoiseach Simon Harris said last month that direct Exchequer funding or “a better collected TV licence system” were the two options on the table.
“Quite frankly, all of its paid by taxpayers, all of its paid by the people we represent in Dáil Éireann, so I have an open mind in relation to that,” he said.
“I have heard people express views of concern in relation to direct Exchequer funding but I certainly wouldn’t like to see a situation where the TV licence fee would increase and I do think with better collection mechanisms, it is possible for that not to happen.”
A monthly levy on broadband bills that would replace the current licence fee had been considered as a possible option for the future funding of the broadcaster.
However, it’s been reported that this charge is not one that is still considered a serious option by Government.
It’s understood that this is due to the fact that a broadband levy hasn’t been used for public service broadcasting in any other country so there is no model to examine.
It would also be administratively difficult, since there are around 100 broadband firms in existence, it would not take account of the varying speeds and qualities of broadband around the country, and there would have to be a way to have exemptions for pensioners and low-income families.
Catherine Martin said yesterday that all options were still very much up for discussion and that there were differences of opinion around the Cabinet table on which funding model would be the most suitable.
She said the decision on the new funding model would be made before the summer.
However, the legislation required to change the funding model – and implement other changes recommended in the reports – will likely not be ready until autumn at the earliest.
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