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RTÉ PUBLISHED its annual report yesterday. While it endured a tough 2010, the figures show it commands a big share of TV and radio audiences in the Republic despite the fact that many households now have access to hundreds of channels.
One of the concerns RTÉ highlighted in a statement accompanying the accounts yesterday was that it has had to dig into its own resources and borrow from the banks to fund the €70 million development of a digital broadcasting network.
The move allowed the State to meet EU rules requiring that all analogue TV be switched off by the end of next year. As that time approaches, one of the options the Government may consider is splitting RTÉ’s transmission and programme-making businesses into separate entities.
The broadcaster would presumably have to be compensated if it were to lose ownership of a network it built from its own resources, particularly given the fact that the EU obligation is on the State to ensure television signals transfer from analogue to digital. RTÉ simply did the State’s job for it.
If the Government is going to consider splitting RTÉ, it should go one step further and look at the ownership of the actual business itself. There is no reason why the State should own multiple TV and radio stations.
The McCarthy report on State assets, published last April, recommended the sale of RTÉ’s network, with some safeguards guaranteeing the State access to it should it be needed. It would hardly make sense to do this and retain ownership of the broadcasting business, which earns money by selling news, entertainment and advertising.
Privatisation would bring a welcome change for most households in the Republic – it would eliminate the need to charge them TV licence fees, which cost them more than €200 million a year, as private businesses could not be paid a subsidy of this nature.
Germanic approach central in Central Bank
WELCOME THEN to Stefan Gerlach, the new Central Bank deputy governor. The 54-year-old Swedish economist certainly comes with a good CV (it runs to 10 pages and can found on his website, stefangerlach.com).
His various stints at the Bank for International Settlements and the Hong Kong Monetary Authority should more than equip him for his new job, where he will be “responsible for Central Bank functions”.
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