RTE should introduce pay bands for its on-air presenters, reports say

Irish national broadcaster RTE should introduce and publish pay bands for its on-air presenters, according to long-awaited expert reports.

The recommendation is one of more than 100 contained in two reports which had been ordered by the Irish Government and were published on Tuesday, alongside an examination on the organisation’s use of off-balance sheet.

Minister for Media Catherine Martin published the Government-commissioned reviews and examinations of practices at RTE.

The first review of RTE’s governance and culture was prepared by Professor Niamh Brennan – and a separate review of contractor fees, human resources and other matters was chaired by Brendan McGinty.

Both reviews have led to a total of 116 recommendations.

These include assigning the Comptroller and Auditor General as auditor of RTE; modernise the legislation governing the role of the RTE Board; improve and resource the risk and compliance functions within RTE.

It also recommended requiring RTE to include a financial or formula cap in any future exit scheme; reforming the approach to engaging and paying presenters; improve the functioning of the RTE Board and its committees; and ensure greater transparency for higher executive pay.

It further recommended to improve the accountability of the director general to the RTE Board; strengthen the implementation of gender, equality, diversity and inclusion policies in the broadcaster; and ensure the review of roles and grades and forthcoming review of allowances in RTE are effective, transparent and include consultation with employees.

The cost of three reports has amounted to around 570,000 euro to date, however the cost is expected to reach as much as one million euro as the department awaits confirmation of further invoices.

The review of governance and culture includes 90 recommendations to reform RTE’s corporate governance framework, its organisational culture and its way of doing business.

The review of its HR practices made 26 detailed recommendations, including improving the oversight and mechanisms by which it engages contractors and presenters and the use of short-term employment contracts and employment terms and conditions in RTE.

The Government said it has accepted in principle all 116 recommendations made by the expert advisory committees.

RTE will now be required to prepare an implementation plan within six weeks, setting out the actions and associated timelines that it will take to implement the recommendations.

The implementation plan will be overseen by a monitoring group, composed of the Minister’s department and senior representatives and NewERA (New Economy and Recovery Authority).

RTE was plunged into crisis in June last year after it admitted understating the fees for its star presenter and previous top-earner Ryan Tubridy.

A series of probing parliamentary committee hearings also uncovered other concerns about culture, governance and financial management at RTE and there have been several high-profile resignations from the board and executive of the station.

Disclosures during the scandal revealed the use of barter accounts by the broadcaster’s commercial wing.

Barter accounts are commonplace in the media industry to allow organisations to exchange advertising airtime that would otherwise go unsold in return for goods and services from companies.

However, RTE’s use of the accounts came under intense scrutiny and a previous report found that there were significant gaps in controls and record keeping.

The organisation commissioned external auditors to produce reports on the Tubridy payments, the use of barter accounts and voluntary exit schemes as well as an ill-fated musical which accrued millions of euros in losses.

However, Ms Martin has said the two independent expert reports which were ordered by her Department will form the main basis for the Government’s decision on reforming the funding of public-service broadcasting in Ireland, including RTE.

A pre-existing steady decline in licence fee revenue was accelerated by the expanding controversy.

RTE operates on a dual-funding model that sees around 55% of its income brought in through the obligatory licence fee, which costs 160 euro a year for Irish households with a television.

Approximately 85% of revenue from TV licence fees goes to RTE to carry out its public service broadcasting commitments, while it also earns money through commercial operations.

RTE’s director-general Kevin Bakhurst, who assumed the role in the early weeks of the crisis, has also announced a strategic plan for reforming the institution by 2028.

It includes cutting headcount by 400 – a reduction of up to 20% – and a significant increase in investment in the independent production  sector.

RTE said it has welcomed the publication of the reports.

In a statement, RTE said that it accepts “in principle” the recommendations made in the two expert advisory committee reports.

The broadcaster said its board and the RTE’s interim leadership team will take time to fully review all three reports, including the recommendations.

RTE has begun a programme of works to deliver on the recommendations, it said.

RTE chairman Terence O’Rourke said: “RTE has supported both Expert Advisory Committees and Mazars in their work and we welcome the publication of their reports by Government today.

“Their analyses and their recommendations, all of which we accept in principle, will make a significant contribution to the task of rebuilding trust in RTE. RTE is tasked with providing a vital public service.

“The organisation’s corporate governance, transparency and operations must be of a standard commensurate with that mandate. The board is focused on returning RTE to levels of corporate governance and transparency that should define it. We look forward to working with Government, staff in RTE and all our stakeholders, in delivering the process of transformation that commenced last year.”