Tuesday 14 November 2023

RTÉ: 'No one at RTÉ to earn more than DG' under new strategic plan

Story from RTÉ:

No one in RTÉ will be paid a salary exceeding that of the Director-General under a maximum pay cap that is being set as part a new strategic vision for the broadcaster, a staff meeting has heard.

The organisation's new strategic vision says this pay cut will be delivered "as contracts expire... and by reviewing and reducing allowances".

The plan, announced by Director General Kevin Bakhurst, also says the broadcaster is to continue to reduce the pay of RTÉ's highest paid presenters.

Mr Bakhurst said the plan will see RTÉ become a smaller organisation over the next five years, but the role it will play in Irish life will not be diminished.

The organisation’s new strategic vision, published this afternoon, outlines how the workforce at the station will be cut by 20% - or 400 people - over the period.

Forty positions will be cut soon, funded by the proceeds of sale of land on the Donnybrook campus in 2017.

Staff reductions will take place through a process of normal attrition and retirements, as well as a Voluntary Exit Scheme, which will particularly aim to reduce the number of staff paid over €100,000.

Targeted recruitment at the company will continue however, the strategy states.

The plan will also see a minimum of €10m in spending cuts implemented next year to help close the public funding cap caused by the fall-off in licence fee payments.

As a result, Mr Bakhurst says 2024 will be a challenging year and one in which the cost base will have to be managed carefully.

"Hard choices will be made," he says.

The cutbacks will take place across the organisation and will include a range of cuts to content.

A review will take place of the system of staff allowances and expenses, with changes to be introduced from next year.

Significantly more content will be produced for RTÉ by independent production companies, with an increase in overall investment of 50% above current levels by 2028.

The station will have two production centres, with operations in Cork expanding and Dublin reducing Dublin and a renewed commitment to Limerick and Galway.

As a result, the Dublin footprint will be smaller and so the organisation will explore options for the vacated areas or a land sale.

The document says consideration has been given to relocating off of the current site, but at this stage it does not appear to be economically viable.

It says estate agents Savills have begun a high-level assessment of the site, which will take time to conclude, but their preliminary estimate is that it has a value of approximately €100m, well below the price per acre achieved in an earlier land sale six years ago.

"They [Savills] note the commercial real estate market faces several challenges at this time, and that the Donnybrook site is complex with a number of protected buildings," the report states.

The plan will also see future investment in RTÉ platforms, such as the RTÉ Player, while an updated News app and a separate new audio app will be delivered in 2025.

The delivery of live and on-demand content will also be prioritised, in order to reduce the cost of traditional broadcast distribution.

This will lead to the closure of the RTE One +1 and RTÉ Two +1 TV channels.

The RTÉ Radio 1 Extra, RTÉ 2XM, RTÉ Pulse and RTÉjr digital radio stations will also close next year.

Instead, on-demand playlists and podcasts will be offered via the new audio app.

In the document, Mr Bakhurst also says RTÉ recognises the urgent need to restore trust and needs to provide better value for money.

As a result, the plan includes a new corporate governance framework which will be implemented to improve standards of transparency and accountability, while deficits will be eliminated.

The blueprint also provides commitment to broadcasting Irish sport, drama and scripted comedy.

RTÉ News is to enhance its coverage with a broader distribution across social media, while RTÉ Investigates is to continue and a new Disinformation Correspondent is to be appointed.

The number of hours of Cláracha Gaeilge is to be expanded and there will be new entertainment and music formats.

The plan also contains measures specifically aimed at young people and also commits to boosting RTÉ’s sustainability credentials.

Answering questions from staff this afternoon when announcing the plan, Mr Bakhurst said that there were no plans to close entire departments as part of reducing headcount.

He also said that Lyric FM and Raidió na Gaeltachta were very valued and were not on the list of things considered being cut, adding that the organisation was also committed to 2FM.

Mr Bakhurst also told staff that nobody would be forced to go to regions such as Cork, Limerick or Galway, adding that it could also suit some people to move.

Asked about the future of Fair City, Mr Bakhurst said no programme would be singled out, adding that it was not fair to say whether certain programmes were or were not safe in the future.