Ministers and senior officials are discussing a “hybrid” model of future funding for RTÉ which involves the retention of some form of licence fee in addition to a new commitment to multi-annual State funding administered through the new media regulator, Coimisiún na Meán.
Crucially, the new model would deliver an increase in funding for RTÉ – a central demand of Minister for Media Catherine Martin – but also maintains a licence fee income stream, thought to be a red line for Minister for Finance Jack Chambers and Minister for Public Expenditure Paschal Donohoe.
Increased funding will be contingent on the implementation of reforms at the national broadcaster but will not result in an annual budget negotiation between the Government and RTÉ, if the plan is approved.
No decisions on the issue have yet been taken but sources involved in the process confirmed that such a hybrid model was on the table.
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Taoiseach Simon Harris, Fianna Fáil leader Micheál Martin and Green Party leader Eamon Ryan held a meeting with Ms Martin on the issue on Monday.
The Taoiseach told the Dáil on Wednesday that a second meeting was likely to take place next Monday – after which a memo for Government, seeking approval for the new model, may be prepared by officials in Ms Martin’s department.
“We will reach a decision this month on what a sustainable model for public service broadcast funding looks like,” Mr Harris said.
Ms Martin has argued against a new broadcasting charge, citing the complexity of introducing a new charge and likely public resistance. She has said that an additional half a million households could be hit by any new charge and also argued that the Exchequer already pays for some 60 per cent of the costs of running RTÉ.
Some political sources noted that this excludes what they say is a “hidden subsidy” to RTÉ – the huge amount of State advertising that runs on the broadcaster.
Ms Martin has argued that Coimisiún na Meán is ready to regulate a new funding model, ensuring independence from Government.
Mr Donohoe, Minister for Finance Jack Chambers and the Tánaiste remain resolutely opposed to the abolition of the licence fee, and are likely to insist that reforms continue at the station. They are also concerned that a large Exchequer subvention to RTÉ, whether routed though Coimisiún na Meán or not, inevitably draws funds away from other public services.
Yesterday in a report published by its chair, Niamh Smyth, the Oireachtas Media Committee backed the idea of abolishing the licence fee and funding RTÉ directly from the Exchequer.
However, it is expected that any new model would not be implemented until next year, after the general election. In the meantime, RTÉ will need a further Government bailout, perhaps amounting to as much as €40-50 million, sources said.
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