Media minister says three-year funding plan for RTE ‘will serve all of society’

Media Minister Catherine Martin has hailed a decision to provide 725 million euro in funding for RTE over the next three years as an “unprecedented” move to “serve all”.

The decision to provide a mix between direct Exchequer funding and the existing TV licence fee was approved by Cabinet on Wednesday, after months of wrangling between ministers on how the broadcaster should be funded.

An Post, which is in charge of collecting the 160 euro annual fee per household, also received six million euro to improve its collection service.

There have been varying views within Government on whether the TV licence fee should be abolished, with Taoiseach Simon Harris stating that he felt increasing the fee would have been unpalatable to the public.

Speaking on his way into Cabinet on Wednesday, Mr Harris denied that Ms Martin was overruled on the funding decision.

Ms Martin had previously said that a hybrid funding model for RTE could be “the worst of both worlds” and expressed a preference for direct Exchequer funding.

She said that the decision made by government provided certainty for RTE.

“While there has been much debate around how a stable future for RTE would be provided, a priority for me as Minister for Media has always been guaranteeing the future funding and restructuring of RTE, and that it is sustainable and acceptable to the public,” she said.

“What has been agreed today provides financial stability for RTE for future years, coupled with reformed fee collection methods. This is unprecedented.

“Guaranteeing that funding, that future, is an accomplishment that will serve viewers, listeners and audiences – that will serve all of our society.”

Under the plan, RTE will get 225 million euro in funding next year from TV licence fee revenue and direct Exchequer funding combined.

This will rise to 240 million euro in 2026 and 260 million euro in 2027.

A further 22.2 million euro will be provided for other public service projects in 2025, including 10 million euro from the Exchequer for the Media Fund schemes – an increase of four million euro on 2024.

The Department of Media said that net TV licence sales receipts were worth 123 million euro in 2023, with 93% going to RTE and 7% to the broadcasting fund as is required under statute.

Ministers had committed to making a decision on a future funding model for RTE during this government term after revenues from the TV licence fee fell following a financial and governance crisis at Ireland’s public service broadcaster.

In the wake of the scandal, RTE director general Kevin Bakhurst committed to reduce the highest earners’ fees, invest in digital and technology, and cut spending this year by 10 million euro.

Mr Bakhurst said the three-year commitment will help them plan ahead after a “very difficult time for the organisation”.

He said: “It also means we can continue the necessary transformation of RTE and the restoration of trust while also delivering important and engaging public service programming and content across our television, radio and online services, in English and in Irish.”

Mr Bakhurst added: “Our five-year strategy, which was necessary even before the issues of the past year or more emerged, is about creating a trusted organisation that delivers for Irish audiences.

“It is about backing creative ambition and digital innovation, supporting Irish culture, and bringing people together. It is about reflecting Ireland and supporting the creative industry across the island.

“It is a plan based on the core values of public service. We are determined to build a strong, modern RTE that will play a defining role in Irish life; an RTE that Ireland will be proud of.

“We will not take the opportunity that today’s announcement presents for granted.”

But unions representing staff at RTE said there was “dismay and disappointment” that the “outdated and inequitable” TV licence system was being retained.

Co-chairwoman of the Trade Union Group and RTE Education Correspondent Emma O Kelly said: “By deciding to give An Post an additional six million euro over three years to reform the collection system, the government is admitting the licence system is already broken.

“To add insult to injury, having ignored a series of expert reports, the government has appointed yet another technical group to examine the licencing system. It would have been more effective for the government to admit that the system is broken and to replace it completely.”

Mr Harris said the decision made by Government provides “a significant uplift” in the level of public funding, and provides “multi-annual certainty”.

He added: “I felt that we couldn’t ask the taxpayer to put their hand in their pocket and pay any more in terms of an increased licence fee. I don’t think that would have been palatable for people.

“I felt that the level of funding had to be sustainable and I think we’ve got that right too. And I did also feel that we had to have something for other public service broadcasters as well and I’m satisfied those have been met.”

He said that amid misinformation it was important to properly fund public service broadcasting.

He said: “Catherine Martin has worked extraordinarily hard on this situation for a very long period of time.

“Catherine Martin has delivered for public service broadcasting because she becomes the minister that settles the question, that has overseen reforms, but also now has crucially secured multi-annual funding and I guarantee you, you could bring any minister out today and if you told them you could offer them multi-annual certainty for the next three years they’d take your right arm off.”

Tanaiste Micheal Martin said the “retention and strengthening” of the licence fee collection system would provide RTE with an important independent revenue stream.

He added: “It is important in terms of the independence of media (rather than) total dependency on Government and also in terms of the broader issues around democracy and freedom of the media.”

Mr Martin also said there would now be a better system of direct Exchequer funding, but added that reforms in RTE “need to continue”.

The Fianna Fail leader further warned that retaining the licence-fee system was important because “one never knows when pressure would come on the Exchequer” for future direct allocations to RTE.