RTÉ’s new Director General Kevin Bakhurst has denied the broadcaster is “on the verge of bankruptcy”.
RTÉ bosses appeared before the Oireachtas Media Committee today to discuss the broadcaster’s expenditure of public funds and governance issues.
This is the first time RTÉ’s new Director General Kevin Bakhurst has appeared before the media committee since taking up the role.
You can watch the meeting live here.
The heads of RTÉ will face questioning regarding their finances, after requesting €34.5m in separate interim funding from the Government.
During the meeting, TD Imelda Munster claimed RTÉ is “on the verge of bankruptcy” and yet nothing is being done about “executives on scandalous salaries”.
But in response, Mr Bakhurst insisted: “We are not on the verge of bankruptcy, and I wouldn’t be able to run the organisation under my statutory responsibilities if I thought we were, and we’re not.”
However, the broadcaster’s new boss did accept they are in “an extremely challenging financial situation”.
During the hearing, Mr Bakhust also discussed the option of selling the broadcaster’s lands at Montrose, partially or in full.
He said they wouldn’t rule it out, and admitted they were currently having the property valued.
The meeting comes after 178 files requested by the committee regarding the broadcaster’s finances were published on Monday.
The documents included information about car allowances, revealing RTÉ employees do not need a driver’s license to receive a car allowance.
The documents also included a refusal to give the names of RTÉ’s top 100 earners, after they previously pledged to publish the salaries of their highest-earning employees.
On July 5, it released an anonymised list – which revealed each of these 100 employees are paid more than €100,000 per annum.
The top earning list includes 84 staff members and 16 contractors. 59 of these hold management positions, 10 are members of the executive board, and 31 are presenters or not in management.
At the top of the earnings list are presenters, and the top three earners make €515,000, followed by €343,083 and €342,000.
At the time, RTÉ didn’t name the top 100, citing data protection concerns.
The broadcaster has since made the decision not to publish their names amid criticism it’s trying to “hide” their identities.
The broadcaster said it would be “inappropriate” to ask staff their permission to published their name and salary, claiming several staff members complained to its Data Protection Officer.
In his opening statement to TDs and senators, Mr Bakhurst said any reforms at the state broadcaster will be undermined if the “question mark of funding is not resolved”.
He also told the committee that he has moved quickly and decisively over the past eight weeks to address “clear” oversight failings.
“I would caution, however, that all of these reforms will be undermined if the question mark over the funding of public service media in this country is not properly resolved,” he said.
“The TV Licence system, its supporting legislation, and the associated collection methods are no longer fit to support the provision of public service media to the people of Ireland.
“The current crisis has made the problem even more acute, and jeopardises the future of public media, and RTÉ, and the viability of Ireland’s audio-visual sector.”
Mr Bakhurst said finances within RTÉ are being managed carefully, in addition to cutting costs “in the face of declining revenue from the TV Licence”.
RTÉ board chair Siún Ní Raghallaigh also told the committee that the past few months have been “highly damaging” for the broadcaster.
She also said a secure future for RTÉ is “by no means guaranteed” adding that the erosion of trust has helped to create “immediate financial pressures” at the company.
“Hard decisions must be made in order to achieve a fit-for-purpose public service broadcaster. These decisions may not be popular with stakeholders and policymakers, including perhaps this committee,” Ms Ní Raghallaigh added.
Ahead of the Oireachtas Media Committee meeting today, Mr Bakhurst announced an immediate recruitment freeze in an email to RTE staff.
He also said he was stopping all discretionary spending “to preserve cash whilst we get clarity on our financial position going forward”.
The email read: “I also wanted to let you know that I will be confirming that we are introducing a recruitment freeze with immediate effect and stopping all discretionary spend to preserve cash whilst we get clarity on our financial position in going forward.”
“I regret having to do this as it will impact on our coverage and on our investment in equipment and our digital plans. However, given the steep fall in the licence fee and the uncertainty over interim funding, it is the only responsible thing that we can do.”
Mr Bakhurst told staff he hopes he will have more clarity over interim funding in the coming days and weeks, and said he will update them on the matter.
