Communications Minister Dermot Ahern has announced a fundamental reform of the TV licence and funding for public sector broadcasting generally.
Under the changes the TV licence is to rise by €43 to €150, 5% of which will be earmarked for a special fund for public sector broadcasting from which all free to air broadcasters, including RTE, can draw.
This fund is to be administered by the new Broadcasting Authority of Ireland which will oversee both public sector and commercial broadcasters.
RTE will also be allowed seek annual increases in line with the rise in the Consumer Price Index. RTE will become a commercial semi-state with a board of 12 directors.
The broadcaster has also agreed a range of improvements in programming including a special investigative unit and the expansion of Fair City to four nights weekly.
There will also be improved arrangements for the collection of the licence. A special unit within An Post will undertake the task with a baseline target of collecting 25,000 more licence fees.
RTE's director general Bob Collins welcomed the announcement, saying the Government's decision was a 'very positive outcome' from RTE's point of view.
But, speaking on RTE Radio's Five Seven Live, he added that the station would still have to shed 130 to 150 jobs.
The RTE Trade Union Group also welcomed the move, saying it was the minimum necessary to keep the station afloat.
The RTE Authority has welcomed the move, saying this was recognition by the Government that RTE had transformed over the recent past, losing 480 staff members, changing work practices and developing a strategic plan for the future.
