RTÉ is an independent national public service broadcaster whose remit and obligations are set out in Section 114 of the Broadcasting Act 2009.
Section 98 provides that the company shall be independent in the pursuance of these objects, subject to the requirements of the Act and as such, I, as Minister, have no function in the management of RTÉ’s day to day affairs including decisions it makes on its financial expenditure. These are purely matters for RTÉ management.
The borrowing referred to in the question, was integral to RTÉ’s funding the €70m capital cost of the new Digital Terrestrial Television (DTT) platform, with the remainder coming from its own resources. This investment will greatly improve the quality of TV reception whilst enabling more channels to be broadcast free-to-air. It will also release valuable spectrum to be auctioned to the benefit of the Exchequer thereby facilitating faster mobile broadband speeds especially in rural areas. RTÉ are to be commended on their investment in this regard. In regard to the mix of funding used, the manner in which RTÉ approached this reflects standard practice in the commercial world and demonstrates prudent financial management, in line with the company’s obligations under the legislation.
In this regard, RTÉ has a direct obligation under Section 105 of the Broadcasting Act 2009 to ensure that its revenue is at the earliest possible date at least sufficient to meet all sums properly chargeable to its current account and to make suitable provisions with respect to capital expenditure. I am satisfied that RTÉ management is fully cognisant of this obligation and are taking all the necessary steps to ensure that the company continues to be in compliance with the terms of the provision. In this regard, I can confirm that I have engaged with the Director-General of RTÉ on a number of occasions since my appointment as Minister and I have made my view clear that a continuing deficit position is not tenable. I believe that RTÉ management fully concur with this and are taking the remedial action necessary to address the situation and to deliver on the commitment to return to a breakeven position by the end of 2013.
In regard to the question of State Aid requirements, I would also like to assure the Deputy that the Broadcaster is fully compliant with State Aid rules and in this regard, I can confirm that the Directorate General for Competition in the E.U. are being kept fully informed of developments in Irish television broadcasting.
On the question of the future funding of broadcasting, the Deputy should be aware that Section 124(8) of the Broadcasting Act 2009 charges the Broadcasting Authority of Ireland with carrying out a review of the adequacy or otherwise of the public funding of the Public Service Broadcasters to meet their public service objects. In addition, Section 158(1) of the Act provides that the Authority shall review the operation, effectiveness and impact of the broadcasting funding scheme. I look forward to receiving these reviews before the end of the year and they will serve to inform my views on the need for any reform of the public funding of broadcasting.
