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Financial outlook for 2021 is 'uncertain' - RTÉ

RTÉ will offer a voluntary exit package in January which will seek 60 to 70 people to leave
RTÉ will offer a voluntary exit package in January which will seek 60 to 70 people to leave

RTÉ has said that Covid-19 has caused a sharp drop in licence fee income, and a decline in advertising revenue, and that its financial outlook for 2021 is "uncertain".

Head of Audience, Channels and Marketing Adrian Lynch was speaking at a meeting of the Joint Oireachtas Committee on Media, Tourism, Arts, Culture, Sport and the Gaeltacht.

Mr Lynch said a broken licence fee system has added to financial pressures, with evasion costing around €50m per year.

He said Ireland's media, both local and national, played a critical role in keeping people informed and safe during the coronavirus pandemic and that RTÉ maintained full schedules across all services.

However, Mr Lynch said this came against the backdrop of extreme financial uncertainty, which include a decrease in licence fee income and commercial revenue.

He said that although the situation had stabilised, thanks to management of costs and an increase in commercial income, the commercial future is unknowable.

Mr Lynch said RTÉ will deliver on the plan and the cost savings it proposed a year ago, through cost management, changes in the schedule and big sporting events being moved to 2021.

He said there will be a reduction of 73 staff members when the National Symphony Orchestra moves to the National Concert Hall, and a voluntary exit package will be opened in January, which will seek 60 to 70 people to leave at that point.

Mr Lynch said RTÉ availed of the Temporary Wage Subsidy Scheme (TWSS), and that its commercial and licence revenue went down in the period from March, April and May, through to the end of August.

He said this was a significant problem, but that by managing costs and commercial income, and the reopening of society, it had stabilised.

However, he said the future is "dynamic" but "we don't know if the licence fee will renormalise", and the Olympic Games, if they go ahead, will be a significant cost, as will the European Championships.

When questioned by committee members, Mr Lynch said there are 121 managers at RTÉ, which represents around 8% of the workforce.


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The committee heard today from a number of players in the Irish media world about the impact of Covid-19 on their services.

John Purcell of the Independent Broadcasters of Ireland said the local radio business model had problems before the pandemic.

He said local news and current affairs is already done on scant resources and urgent action is needed.

Seamus Dooley of the National Union of Journalists said many cuts have been imposed in local media, and freelance staff have had difficulties accessing support.

He said people are leaving the industry because they cannot afford to be journalists.

Mr Dooley said he welcomed the fact that the Future of Media Commission has begun its work, but would have liked to see it look at issues, including access to the industry, gender imbalance and training.