RTE Making Cuts In Effort To Clear Operational Deficit

In an effort to reduce a €20 million operating deficit RTE is to make a series of major cutbacks including reductions in sports rights, regional costs and “star” salaries.

RTÉ director general Noel Curran told staff yesterday that a new voluntary redundancy scheme would be opened in a bid to further reduce employee numbers, saving €15 million, as part of attempts to cut costs by €25 million by the end of 2013.

The broadcasters London office will close, affecting five staff.

Mr Curran told staff that RTÉ’s deficit, set to reach €20 million by the end of 2012, was “not sustainable” and cutbacks were “vital” to secure its future.

As of this week, 170 people have left the organisation under RTÉ’s current redundancy scheme, leaving numbers at some 1,900. More employees are due to leave before the summer. It is hoped a further 200-300 will leave under the new scheme, which is understood to include a better offer for staff who belong to its defined contribution pension scheme.

No compulsory redundancies will be made.

Plans to cut sums paid to leading presenters were on track, with fees paid to its top 10 presenters set to fall by more than 30 per cent between 2008 and 2013. Contract negotiations are being extended to the next 10 highest paid presenters, where fee reductions “in excess of 30 per cent” are also under way.

There will be “substantial cuts” in the budget for all contractors and suppliers, while management will meet unions after Easter in relation to proposed new work practices.