The Government decision of December 2002, which provided for a very substantial increase in the television licence fee, also introduced a new mechanism for determining the future level of the licence fee. The Government decision provided for an annual adjustment of the television licence fee using a consumer price index minus X formula to take account of rising costs but also to reflect RTE's performance on execution of change management and programme commitments.
My decision to grant RTE an increase of €2 in the licence fee was informed by the report of an independent evaluation of RTE's performance in 2003, that was undertaken by PricewaterhouseCoopers. When announcing the decision to increase the television licence fee, I recognised that RTE had achieved a significant amount in 2003, particularly with respect to delivery of programme output; near achievement of its budget target; and delivery of accountability and transparency measures. I also highlighted that RTE had less success in terms of the implementation of its change programme.
The chairman of RTE welcomed the increase in the licence fee, while saying that RTE would have preferred a higher figure. He also expressed some concern at the language used in my press release. I do not consider it particularly helpful to engage in a lengthy public debate on this matter. I have spoken to the chairman about his concerns and the chairman understands the position taken by me on the issue. I had a duty to explain to the public the circumstances in which they would be asked to pay an increased licence fee. As a result, my statement reflected the positive achievements of RTE in 2003 and also referred to where there could have been a better result.