Latest news with #PatrickO'Donovan
Irish Times
6 days ago
- Business
- Irish Times
Might cuts reduce RTÉ to a newsdesk with a few commissioning editors attached?
When the Minister for Culture, Communications and Sport addressed Morning Ireland on RTÉ Radio 1 on Wednesday over a controversy at a State-funded body under his charge, for once it wasn't about RTÉ itself. This time it was An Post and the alleged leak of confidential material that the Minister, Patrick O'Donovan , had presented to Cabinet. Inevitably, however, talk soon turned to the national broadcaster and the programme of reforms that management had signed up to in the aftermath of the 2023 scandal over payments to top talent. RTÉ is on a 'journey of transformation', the Fine Gael TD said. Asked about the pace of change at the broadcaster, O'Donovan said many of his 'responsibilities' to put the reforms into motion are contained in the Broadcasting (Amendment) Bill, currently before the Dáil. Over a flurry of meetings in recent weeks, the Joint Oireachtas Committee on Media has been scrutinising the general scheme of the Bill. What is clear now on the eve of the summer Dáil recess is that the finalised legislation will have to feed a lot of mouths, and not everyone is going to be satiated. Members of the committee have heard evidence from an array of executives, from RTÉ, TG4 and Virgin Media Television to domestic streaming platforms such as LOITV and GAA+, each with their particular asks and additions. Represented by Screen Producers Ireland (SPI) , independent or commercial television production companies – which stand to gain a lot from the legislation – have also made contributions. READ MORE RTÉ and its funding are central to the Bill, but its reach extends far beyond Dublin 4. One of the most important and potentially transformative planks of the legislation is its transposition into law of the Future of Media Commission 's (FOMC's) recommendation that RTÉ should be legally required to spend 25 per cent of its public funding on programming commissioned from private production companies. [ Dozens of reforms recommended to RTÉ in wake of pay controversy have been delayed Opens in new window ] Naturally, the sector has been full-throated in its support for this 'most welcome' measure, as SPI chief Susan Kirby told the committee last month. RTÉ itself flagged the recommendation in its transformation strategy, dubbed A New Direction, published last summer. It said it wanted to be spending 27 per cent of its public funding, about €70 million, on commissioned programming by 2027, compared to something like €40 million this year. At best, this now appears to have been overly ambitious. In his opening submission to the committee, RTÉ director of video Steve Carson reiterated the organisation's commitment to the 25 per cent. However, he said that reaching that target is ultimately 'contingent' on completion of the broadcaster's transformation plan. David McWilliams on how 'big incentives' to build could save Dublin city Listen | 36:51 In particular, Carson said the 'ambitious voluntary exit' scheme currently under way at Montrose – through which RTÉ wants to shed 400 jobs – is 'central' to the turnaround programme. Against that backdrop, the final legislation should give RTÉ 'sufficient latitude' for a 'transition period' of five years, he said, something the FOMC recommended in its 2022 report. In other words, the broadcaster now says it will be 2030 before it can reach the 25 per cent target. What changed between the publication of A New Direction in the summer of 2024 and June 2025, when Carson appeared before the committee? In a statement this week, a spokesman for RTÉ said the proposed change in the timeline is due to the 'significant delay in the approval of RTÉ's voluntary exit programme'. Ministerial delays, described last year as frustrating by RTÉ director general Kevin Bakhurst , meant the scheme only received approval in March and then opened in April. [ Numbers prosecuted for not having TV licence down despite wave of evasion set off by RTÉ scandal Opens in new window ] Additionally, the spokesman said the level of 'agreed public funding' for the broadcaster is 'lower than funding sought by RTÉ to deliver its five-year strategy', which 'has an impact on the number of exits that RTÉ can afford to deliver each year'. RTÉ remains 'fully committed' to increasing spending on commissioned programming, he said, but the timing is contingent on the transformation strategy. Still, television production companies are deeply concerned about this surprising development. Asked for comment this week, Kirby of the SPI said the sector is 'very grateful' that the Minister put this FOMC recommendation into the legislation, but is aware that 'due to fixed costs and other challenges', RTÉ is seeking flexibility in the 'time frame' for adoption. She said: 'This is enormously challenging for the independent production sector to accept, given that RTÉ not reaching this 25 per cent would mean significantly reduced investment for a growing sector.' According to SPI's estimates, 'reduced investment' in the sector could amount to between €50 million and €60 million over five years, Kirby said, if implementation is pushed out to 2030. 'For RTÉ to be successful in achieving its own strategy, 25 per cent should be maintained as the legislative requirement for it to invest in the independent production sector,' she warned. While RTÉ management backs the move, there is a great deal of trepidation among journalists, technicians and creative workers at the broadcaster that it could be an attempt at backdoor privatisation. The committee's scrutiny of the Broadcasting Bill was book-ended by appearances from Bakhurst and other senior managers in May, and trade unions representing workers at the broadcaster last week. In a late-evening session, the organisation's trade union group (TUG) told TDs and Senators that morale is 'awful' and 'horrific' amid what they have characterised as swingeing cuts across several areas, from religious affairs programming to current affairs, that have resulted in the cancellation of Upfront with Katie Hannon and the farming out of The Late Late Show and Fair City to the private sector. Workers are 'blue in the face' asking for consultations with management, said Sorcha Vaughan, secretary of the TUG, which comprises the National Union of Journalists (NUJ), Siptu, Connect and Unite. Vaughan added that the 25 per cent mandate is being used as a battering ram of sorts for cuts at the broadcaster, with workers being told 'we need to become smaller, the shows will be going'. It's worth noting that RTÉ at least has secure and predictable funding until 2027, under the multiannual funding agreement reached with the Government last year - the first such arrangement of its type Trevor Keegan, co-chair of the union group, also raised questions about the broadcaster's plans for studio space in Montrose. Much of this appears to have hit home with committee members, one of whom said this week they were concerned that RTÉ will turn into a newsdesk, with a few commissioning editors attached to it. Overarching all of this is a much bigger question about whether the legislation creates the type of certainty around funding for RTÉ that the broadcaster, its workers and the independent production sector all want. The Broadcasting Bill is, among other things, the Government's effort to establish the European Media Freedom Act in Irish law. The European Act says that member states should make sure that all funding procedures for public service media platforms are based on 'transparent and objective criteria laid down in advance'. Public service media organisations should also have 'adequate, sustainable and predictable financial resources corresponding to the fulfilment of and the capacity to develop within their public service remit'. However, having baulked at the FOMC's recommendations around funding, the Coalition's Bill stops well short of scrapping the licence fee and funding RTÉ from the exchequer on a multiyear basis. Instead, it proposes to reform the Coimisiún na Meán -led review processes for public service media provision, which will now take place every three rather than every five years. There will also be half-yearly rather than annual reviews. Based on these processes, the regulator will make recommendations to the Minister about funding levels for RTÉ and TG4. RTÉ commended the strengthening of the regulator's role but told the committee that the general scheme of the Bill does not set out a timeline for the Government's response to the recommendations. This 'puts the viability of the contingent deliverables at risk', the broadcaster's director of video Steve Carson said in June. It's worth noting that RTÉ at least has secure and predictable funding until 2027, under the multiannual funding agreement reached with the Government last year – the first such arrangement of its type. Meanwhile, TG4 has no such certainty, an issue raised by the broadcaster's chief executive Deirdre Ní Choistín and others at the committee in recent weeks. [ Is RTÉ really in a worse position than any other media company? Opens in new window ] SPI put a finer point on the matter in its submission. The industry body queried whether this aspect of the Bill actually meets the requirements of the European Media Freedom Act around the predictability of funding. Simply, it said there is 'no obligation' on the Minister's part to accept Coimisiún na Meán's recommendations. In other words, funding for RTÉ and public service media more broadly will remain a political football. Government officials, however, are confident the new system will represent a sea change in the funding of public service broadcasting. If there is a certain degree of scepticism about this aspect of the legislation, it has been at least somewhat influenced by O'Donovan's decision to effectively scrap the so-called Netflix levy. Recommended by Coimisiún na Meán and supported by the broadcasters and screen producers, the levy was supposed to raise funds for independent productions and Irish language programming. The levy is now in limbo after the Minister said in April that the Government would not introduce it without his approval, citing concerns around the additional cost burden on Irish subscribers. With the Trump administration heavily criticising foreign countries for putting up trade barriers to large US multinationals, some in Ireland believe the Coalition's change of tack on the levy is at least partially a case of not wanting to poke the bear. Still, not everyone is enamoured of the idea. Last week, representatives of the League of Ireland 's streaming platform LOITV and GAA+ expressed concern that the levy could massively heighten their operating costs. They asked that any levy be progressively tiered, taking in more from larger streamers than smaller ones. LOITV operates on a 'break-even basis', League of Ireland director Mark Scanlon told the committee last week, and all of the revenues from subscriptions are ploughed back into the participating clubs. 'So all the costs are being covered at this moment in time, production costs and then also costs [of hiring] commentators. Any levy would impact our ability to deliver the service.' Those concerns may be moot if the levy is the dead letter that many believe it to be. Asked for comment this week, a spokesman for the Minister said his position on the charge has 'not changed' in recent months. However, he said: 'The Minister recognises the detailed scrutiny of the general scheme is being undertaken by the committee and will review any recommendations made by the committee in the context of the pre-legislative scrutiny report that will be submitted to him.' Scrutiny of the Bill is set to continue when the Dáil sits again after the summer recess, after the committee requested additional time, and industry stakeholders will be closely following the remainder of the process and the committee's report. In the meantime, after an avalanche of headlines related to his brief in recent weeks, the break is coming at a good time for O'Donovan and his department.
RTÉ News
16-07-2025
- Business
- RTÉ News
An Post publishes results early over media 'misrepresentation'
An Post has released its annual results early due to what the company described as its finances and business strategy being "seriously misrepresented" in parts of the media. The company had planned to publish the results later this month. The postal service's annual results were released after the Minister for Communications said he was not responsible for a leak which claimed An Post is on the brink of financial collapse. Minister Patrick O'Donovan, who is responsible for An Post, said the leak did not come from him, adding that he is satisfied that An Post is in good financial standing. An Post's figures show that in 2024, its revenue exceeded €1 billion for the first time. The company said the revenue growth was driven by strong ecommerce parcel growth revenue of 12.6%, increased retail income growth of 3.8% and a 6% growth in financial services. "These moves offset a 7.6% decline in traditional letter volumes in 2024," An Post said. Profit for the year before exceptional costs was €10.1m - up 12% from €9m in 2023. "The company had net cash of €38m plus available facilities of €30m at the year end December 2024," according to the results. An Post Chairman Kieran Mulvey said that on behalf of the An Post Board, he is extremely concerned at the serious misrepresentation of the postal service's finances in parts of the media. "I wish to reiterate to An Post's customers, suppliers and employees that An Post is a thriving company, in robust financial health, providing world class services to its customers," Mr Mulvey said. "An Post has a clear business strategy for continued growth in its key ecommerce and financial service businesses while overcoming inevitable challenges and continuing to work for the common good while maintaining its exceptional public service to Irish business and communities everywhere," he added. Mr Mulvey said: "I appreciate the clear statement by our shareholder, Patrick O'Donovan, Minister for Culture, Communications and Sport this morning regarding the strong financial footing of An Post, his commitment to the company and its business growth strategy, and his support for the company's management and employees."
Irish Examiner
16-07-2025
- Business
- Irish Examiner
An Post not in crisis, says CEO, hitting out at 'reckless' report on company's finances
An Post CEO David McRedmond has condemned what he described as an 'irresponsible leak' by communications minister Patrick O'Donovan, following media reports that suggested An Post's financial health was more precarious than presented. The postal service's annual report was brought to Cabinet by communications minister Patrick O'Donovan yesterday. It showed that, while profits were up, there was an 'inexorable decline' in overall mail numbers. Profits after exceptional items stood at €5.6m, up from a €20m loss in 2023, on the back of first-ever revenues of €1bn. 'That was simply not true,' Mr McRedmond told RTÉ's Morning Ireland. 'Look, this is utterly irresponsible reporting. It was an irresponsible leak from a government minister, which is wholly unacceptable. "These are not the actions of a responsible shareholder. The company is doing really well." Expressing his anger, Mr McRedmond highlighted strong financial results presented to the Cabinet: 'I'm absolutely furious to read something like that. "They showed the highest revenue we've ever had, over a billion in revenue for the first time. "They showed that we grew our earnings from €38m to €55 million. They showed our net profit was at €10m. "The company is performing extremely well. We've got the highest level of parcel growth of any postal operator in Europe.' While acknowledging the positive impact of last year's elections on revenue, Mr McRedmond said if it had not been the elections, "it would be something else.' He emphasised that An Post is seeking more cash not because of financial trouble, but due to rapid growth. 'We're growing in commercial parcel markets," he said. "We get paid on 60 or 90 days' credit. We are constantly growing. So we need more working capital... but this is all coming from a position of strength." Dismissing claims that An Post's cash reserves had dipped below €1m, Mr McRedmond stated: 'That's untrue. At the end of the year, we have €38m in cash reserves. And this year, so far... we are performing well ahead of our budget.' He voiced concern for An Post's 10,000 employees and commercial customers. 'They've been so disrespected by this… It's so disrespectful. And the other is our customers... if they read this morning, that An Post is on the brink... It's reckless in the extreme.' Mr McRedmond also reiterated An Post's commitment to maintaining its post office network. 'We have no plan to close post offices. None. "We occasionally relocate or we do something. Very occasionally, post offices will close because somebody retires and we can't get somebody to replace them. But the post office network is doing well. "But quite rightly, postmasters are saying to the government, you want us to do more government services, pay us for them.' Mr McRedmond concluded by calling for long-overdue policy changes, including lifting An Post's borrowing cap and regulatory flexibility. 'These are normal conversations… coming from a position where the company has had one of its best years.' Read More An Post may cut delivery days as mail volumes fall and costs surge
RTÉ News
16-07-2025
- Business
- RTÉ News
McRedmond rejects 'reckless' report on An Post's finances
Claims that An Post is on the brink of financial collapse as "utter garbage", its CEO has said. The Irish Daily Mail reported An Post is facing a "dire financial situation", alleging that cash reserves have dropped below €1 million. It was also reported Minister for Communications Patrick O'Donovan told the Cabinet the postal service would have made a "substantial loss" last year had it not been for revenue generated by election-related post. However, David McRedmond said this is untrue, calling the report "utter garbage". "I'm absolutely furious to read something like that," he said. Speaking on RTÉ's Morning Ireland, he said: "The results were presented to Cabinet yesterday. "They showed the highest revenue we've ever had, over a billion in revenue for the first time. "They show that we grew our earnings from €38 million to €55 million. "They showed that our net profit was €10 million." The An Post CEO said the service "is performing extremely well", adding it has "got the highest level of parcel growth of any postal operation in Europe". Mr McRedmond admitted that while An Post did receive a financial boost from local, general and European elections last year, the service still would have avoided a loss. "We got a big boost from the elections last year, but if it wasn't the elections, it would be something else," he said, adding that elections also incur "huge costs" for the service. He said An Post wants "more cash because we're growing so fast". "We are constantly growing, so we need more working capital," he said. "We talked to Government about that, but this is all coming from a position of strength," he added. Mr McRedmond said the report was disrespectful to both staff and customers of An Post. "My only concerns are the 10,000 employees of An Post, reading a wholly garbage article this morning when the company that they work really hard for is doing really well," he said. The staff, he said, have been "so disrespected by this". "The other is our customers because we have big global commercial customers and if they read this morning that An Post is on the brink, then they're going to think, maybe we should go to someone else," he said. "It's reckless in the extreme," he added. Mr McRedmond said: "I'm talking to Government about it.
Extra.ie
16-07-2025
- Business
- Extra.ie
An Post on the brink -- but cabinet sources warn there will be NO bailout
An Post is facing a 'dire financial situation' with its cash reserves dropping below €1 million for the first time ever, can reveal. Communications Minister Patrick O'Donovan has briefed the Cabinet on the bleak financial realities facing the State's postal service. The Cabinet was told that without the significant once-off revenue generated from election-related posts last year, when general, local and European elections were held, the organisation would have made a 'substantial loss'. Communications Minister Patrick O'Donovan has briefed the Cabinet on the bleak financial realities facing the State's postal service. Pic: Leah Farrell/ Political sources insisted last night that there would be 'no bailout' for An Post despite its deteriorating long-term financial wellbeing. A Coalition row could be brewing, however, with Minister of State and Independent TD, Michael Healy-Rae, who is also a postmaster, advocating for more funding for the network. Postage revenue has collapsed in line with mail services in other countries. A recent analysis by consultancy firm Grant Thornton found that, between 2019 and 2023, the level of mail processed by An Post dropped by 25%. Political sources insisted last night that there would be 'no bailout' for An Post despite its deteriorating long-term financial wellbeing. Pic: Dirk Hudson/Shutterstock Latest company accounts for the company show that cash balances decreased from €45.7million in 2022 to €11.3million in 2023. The boost from the elections masked this with a spokesman for An Post saying their final position was €38million in cash balances. An Post's Annual Report for 2024 will be laid before the Oireachtas tomorrow, having been presented to Cabinet yesterday. One Cabinet minister told that the organisation was facing a 'dire financial situation', which was highlighted by cash reserves dropping below €1million last year. An Post's Annual Report for 2024 will be laid before the Oireachtas tomorrow, having been presented to Cabinet yesterday. Pic: File A separate Government source said last night that 'a decision will have to be made on whether we are willing to fund it or not and what it looks like in a digital age'. New Economy and Recovery Authority (NewERA), who provide financial and commercial advice to Government ministers and departments, have been actively involved with An Post in assessing its financial future. 'They still have a mail infrastructure for an old-style postal service, so that will be subject to review,' one Cabinet source said. An options paper has yet to be provided to Mr O'Donovan, but one is expected 'imminently'. A spokesman for An Post told that their balance sheet is 'strong with little debt', and that small loans from the European Investment Bank and Bank of Ireland are both 'being fully serviced'. Pic: RollingNews A spokesman for An Post told that their balance sheet is 'strong with little debt', and that small loans from the European Investment Bank and Bank of Ireland are both 'being fully serviced'. They added: 'The company has reduced its debt significantly in the past two years – by €48million – including the repayment of a Government loan of €30million from its own resources. 'At December 2024 year end the company had spare cash resources of €38million and undrawn bank facilities of €30million, ensuring it had working capital facilities for its trading operations.' An Post operates as a commercial entity and does not receive State funding. However, the post office network, most of which are privately owned and run by postmasters under contract to An Post, receives a €10million annual subvention from Government. An Post is currently in negotiations with the post office network, with the existing contract between the pair, which sees post office providers paid per transaction, expiring this month. In May, the Irish Postmasters' Union, representing the post office network, made a submission to Government in which it insisted the current €10million in annual funding 'is no longer sufficient'. The submission by Grant Thornton described the postal network as being 'at tipping point' as they sought a €5million increase in their annual funding. 'The current annual Government investment of €10million, while welcome, is no longer sufficient to secure the network,' the report said. Speaking to last night, Seán Martin, president of the Irish Postmasters' Union, said that 'up to 400 post offices' would face closure without the increase in funding. 'Speaking at the Oireachtas Committee on Communications, Minister of State at the Department Charlie McConalogue said that 'we're very committed to continue to support the post office network' through the budgetary process. However, he said this was being done through the €10million allocation. The row has the potential to place the two main Coalition parties on a collision course with the junior coalition partners of Independent TDs. Minister of State at the Department of Agriculture and Independent TD for Kerry, Mr Healy-Rae, told last night that 'the constant delivery, excellent service, outreach, [customers] entitled to a service every day – from a social point of view… we'll be advocating for €15million'. Mr Healy-Rae said that the retention of the existing model of service delivery, which sees post delivered five days a week in addition to other services provided, has support across the political divide. Asked if the Government should support An Post if it was no longer economically viable, Mr Healy-Rae said that he hoped that it could be 'made to be viable by directing more business through it'.
