RTE has described as absolutely untrue an accusation by TV3 that last September's licence fee increase was used to depress advertising rates.
TV3's Chief Executive Rick Hetherington was quoted in newspapers as saying that RTE's €18.35 licence fee increase last September has had a "devastating effect" on the private sector as RTE used the increase to negate private sector investment.
In a statement, RTE said that throughout last year there was a downward trend in the demand for advertising, which was exacerbated by the events of 11 September.
In Ireland the drop in demand over the last quarter averaged almost 20% with a resultant drop in the cost of advertising.
RTE says that the decrease in the price of TV adverts last year was solely due to the drop in demand for advertising and was not connected with the licence fee increase.
Earlier RTÉ's Director-General said the company's deficit would exceed €20m next year if there were no licence fee increase. Bob Collins said that this would be unsustainable.
On Today with Vincent Browne, Mr Collins said he had already had two preliminary meetings with the Minister for Communications, Marine and Natural Resources, Dermot Ahern.
He said he hoped the Government's earlier decision to review the licence fee increase next April would be brought forward to this year.
