director general of RTE resigns and RTE maybe privatised

irishchris · 26-07-2010 2:47pm #1

Irish national broadcaster RTE could be privatised

Published Monday 26 July 2010 at 10:54 by Anthony Garvey

RTE, the Irish national broadcaster, has been dealt a double blow by two unconnected events - director general Cathal Goan has announced he is stepping down and the station has been put on a list of state companies to be considered for privatisation.

The decision of 56-year-old Goan to quit his €320,000-a-year post after just one term has come as a surprise, as he had started his broadcasting career with the station and was considered “a lifer”. No reason was given for his refusal of a second term, nor has he spoken of his plans. He has agreed to stay on until a successor is chosen.

The appointment of Goan, a programme maker, to the top job had been widely welcomed and RTE chairman Tom Savage, in a tribute, described him as a man with ” a unique understanding of the special role that RTE has in Irish cultural life”. Communications minister Eamon Ryan said he had made “a genuine contribution to the arts in Ireland”.

During his seven-year term he had also presided over the financial restructuring of RTE, cutting costs and jobs to reduce the station’s €68 million budget deficit to less than €20 million. Internal candidates are being tipped to succeed him when the job is advertised in the coming weeks. The person chosen will have the immediate task of overseeing an ambitious redevelopment of the station’s Dublin campus, including the construction of a €350 million high-definition digital TV and radio studio.

Meanwhile, uncertainty surrounds the future status of the national broadcaster, currently funded through a combination of licence fee and advertising, as a result of its inclusion on the list of state companies to be considered for possible privatisation. The aim is to ease the national debt by selling them.

A special review group has been appointed to examine the companies listed and report back to government by the end of the year. What will alarm RTE is that the group is headed by economist Colm McCarthy, the man who recommended the arts council be emasculated and the arts ministry scrapped to reduce state spending.

KerranJast · 26-07-2010 2:49pm

They should split RTE into two arms. A News&Sport arm to remain publically funded and an Entertainment arm which will be privately funded and operated.

Sam Russell · 26-07-2010 3:19pm

Or sell off RTE2 and 2FM as a new broadcasting company. Keep the national broadcaster, they have served us well for the past 83 years. (Well, most of the time).

No more Ray Burkes, please!

Stinicker · 27-07-2010 6:45am

RTENL should be retained as it is vital national infrastructure and flog the rest but their must be conditions attached keeping RTE FTA and making RTE show FTA events of national importance. Then scrap the licence fee.

Mike 1972 · 27-07-2010 10:38pm

KerranJast wrote: »

They should split RTE into two arms. A News&Sport arm to remain publically funded and an Entertainment arm which will be privately funded and operated.

Why is one form "entertainment" more deserving of public funding than others ?

Stinicker wrote: »

keeping RTE FTA.

Since when have RTE been FTA ? (bar some terrestrial signals which only some people get)

icdg · 27-07-2010 11:01pm

Moved to Broadcasting.

RTÉ won't be privatised. There is an audit of all commercial state sponsored bodies going on at present to determine what is suitable for privatisation. RTÉ isn't. Very few countries have privatised their national broadcaster, France broke their's (ORTF) up but had to largely put the TV side back together again sans its biggest revenue earning asset, TF1 which was privatised. I don't think any other country has embarked on privatising their national broadcaster, certainly not in Europe. New Zealand headed in that direction but never quite got round to it, but TVNZ has suffered death by a thousand cuts. As did the ABC in Australia when it didn't toe the government line.

But it is important to have a national broadcaster. RTÉ and TG4 are the only place on the air where Irish culture is fully represented. TV3 makes the bare minimum Irish programming. BBC Northern Ireland does what it can but is limited in the timeslots available to it around network programming, and is based outside the State in any case.

In the event of a national emergency, it is also important for the State to have quick access to the airwaves. Hence RTÉ won't be privatised. 2FM is a prime candidate for privatisation but the cross-susbidy it provides to licence fee activity is important and the Government would be faced with making up the difference if it went. Its also important to note - if 2FM went fully commercial, it would be required to produce 20% news and current affairs just like every other commercial broadcaster and would (if not bought by an existing player) be faced with setting up a national news operation from scratch.

Mike 1972 · 27-07-2010 11:05pm

There was a proposal floated back in the late 1980's to privatise RTE2 (possibly why it got that stupid "Network 2" rebrand) but the Government in its wisdom decided the market was big enough to support more channels........

icdg wrote: »

. New Zealand headed in that direction but never quite got round to it, but TVNZ has suffered death by a thousand cuts. .

Didnt some of TVNZ's channels/networks get privatised (or closed down and replaced by private operators)

icdg wrote: »

2FM is a prime candidate for privatisation but the cross-susbidy it provides to licence fee activity is important

These considerations apply to any privitisation involving a profitable semi-state really

Elmo · 28-07-2010 1:06pm

The title of this thread is very, very misleading. The DG of RTÉ did not resign he choose not to ask for an extension following the ending of his 7 year term. His "resignation" has nothing to do with the privatization of RTÉ or any other semi-state bodies that maybe privatized.

They should split RTE into two arms. A News&Sport arm to remain publically funded and an Entertainment arm which will be privately funded and operated.

The 3 principles of Public Service Broadcasters are: -

To Entertain
To Educate
To Inform

Or sell off RTE2 and 2FM as a new broadcasting company. Keep the national broadcaster, they have served us well for the past 83 years. (Well, most of the time).

As the digital platform begins it would be a terrible move to see RTÉ 2 privatized, it is also highly unlikely that a commercial operator would provided 13 hours of Children's TV each day. As for 2FM we should be trying to keep profitable companies rather than buying ones like Anglo Irish Bank.

Dividends should be paid to the state by all semi-state bodies, while some money should be kept for commercial use. RTÉ has always been the semi-state body prevented from expanding its commercial arm.

If anything they will conclude that RTÉ should sell off its studios and network and increase the number of productions from Independent Producers. But will the State get any money from RTÉ on such sales? I wouldn't have thought so.

Its also important to note - if 2FM went fully commercial, it would be required to produce 20% news and current affairs just like every other commercial broadcaster and would (if not bought by an existing player) be faced with setting up a national news operation from scratch.

That depends on what you call News and Current Affairs, Dave Fanning's show could be considered News and Current Affairs, as could the late Gerry Ryan's show. Why would the new owner have to set up an news operation from scratch they could always get from any of the current news out lets - UTV, Newstalk, TV3 or even RTÉ.

TouchingVirus · 28-07-2010 1:18pm

Elmo wrote: »

DG of RTÉ did not resign he choose not to ask for an extension following the ending of his 7 year term.

Resign: To give up one's job or office; quit, especially by formal notice

He gave up his office after 1 term. He resigned.

I also read the second part of the thread title as an entirely separate issue so I didn't get mislead

Anywho, privatising RTE probably won't happen. As pointed out before it isn't an ideal candidate for privatisation or at least RTE One most definitely isn't.

Sam Russell · 28-07-2010 2:29pm

They did try selling RTENL some years ago and got no takers. They also tried getting someone to run commercial DTT and failed. They sold off Telecom Eareann (Eircom) and it got bought over and resold, and indebted and resold, and further indebted resold, and resold again and now it has massive debts, and charges the highest line rental in the OECD, and twice the average. They sold off Aer Lingus, and Ryanair bought enough of it to prevent anyone else buying it up. (See Eircom ^)

Not a happy history.

Elmo · 28-07-2010 2:33pm

Sam Russell wrote: »

They did try selling RTENL some years ago and got no takers.

If they did do this who would get the money. Would it be given to RTÉ or would the state take it? The money on Cablelink's sale was not given to the State, most of it was given to some company that seem to been sold several times over. If only we had bought shares in Cablelink.

Freddie59 · 29-07-2010 10:54am

Elmo wrote: »

If they did do this who would get the money. Would it be given to RTÉ or would the state take it? The money on Cablelink's sale was not given to the State, most of it was given to some company that seem to been sold several times over. If only we had bought shares in Cablelink.

It was quoted in the past few years that the nearest to RTE in terms of size if BBC Wales, which employed at the time 800 people. RTE were employing over 3,000.:eek:

Yet there is no mention of trimming this bloated organisation, while at the same thing cutting back on everything else. Only in Ireland........

Elmo · 29-07-2010 11:28am

Freddie59 wrote: »

It was quoted in the past few years that the nearest to RTE in terms of size if BBC Wales, which employed at the time 800 people. RTE were employing over 3,000.:eek:

Yet there is no mention of trimming this bloated organisation, while at the same thing cutting back on everything else. Only in Ireland........

In terms of population Wales is the same size as Ireland. RTÉ possibly produce far more daily programming than BBC Wales, including national drama, News and Current Affair etc etc, unlike BBC wales RTÉ is expected to be the Irish version of the UK's BBC network. BBC Wales has Economies of Scale in relationship to their National UK Network. Again you cannot relate RTÉ to local variations of the BBC or the whole of the BBC.

In terms of land mass is ROI is 70k km squared while Wales is 20K km squared in terms of networks Ireland requires a far bigger one than Wales I would have assumed.

I never heard of RTÉ having anymore than 2000 employees in the 2000s.

Minstrel27 · 29-07-2010 1:51pm

Freddie59 wrote: »

It was quoted in the past few years that the nearest to RTE in terms of size if BBC Wales, which employed at the time 800 people. RTE were employing over 3,000.:eek:

Yet there is no mention of trimming this bloated organisation, while at the same thing cutting back on everything else. Only in Ireland........

It is easy for BBC Wales to do that as most of what they show comes from London.

The Cush · 30-07-2010 10:22pm

Sam Russell wrote: »

They did try selling RTENL some years ago and got no takers.

Elmo wrote: »

If they did do this who would get the money. Would it be given to RTÉ or would the state take it?

There were 3 final bidders for a 68% stake in the network in Apr 2002 but when the sale was eventually cancelled in Oct 2002 the potential price which would be paid for the transmission network has slipped significantly from over €100 million to €20-30 million. Two of the bidders were venture capital group Apax Capital Partners and France Telecom subsidiary TDF.

This was the time of the bursting dot-com bubble when the bottom fell out of the technology market - the reason for the low bids. The low bids together the failure of "ItsTV" to secure the DTT licence resulted in the network sale being cancelled.

Around that time finances in RTÉ were not so good the government planned to sell RTÉ's network division. The proceeds from the sale were to be used to finance the upgrade of the network for DTT. The government planned to sell a 72% (5% to staff ESOP) stake in RTÉ's network division with RTÉ retaining 28%, between May 2001 and Oct 2002 to be called DTTN/Netco (previously Digico). The value placed on the network during the sale process ranged between €60 and €127 million but by the end of the process the value had dropped to €20-30 million.

After the failed sale, the network division was spun off in 2003 as a seperate wholly owned subsidiary of RTÉ - RTÉ Transmission Network Limited.

Elmo · 01-08-2010 11:55am

Thanks The Cush but it still does not answer how selling RTÉ NL will either gain or save the government money. The government haven't given anything to RTÉ for DTT. It might help RTÉ retain money for programming but they will first have to spend the money that they might get for the sale before sellling the network, hence losing money. The BAI would be better off letting RTÉ roll out IocView. (Would it be any better than a sale?).

Mike 1972 · 01-08-2010 6:03pm

Elmo wrote: »

it would be a terrible move to see RTÉ 2 privatized, it is also highly unlikely that a commercial operator would provided 13 hours of Children's TV each day..

Youre assuming that prior to privatisation there wouldnt be a revamp whereby the more "public service" elements of RTE's programming got moved to RTE1 with the more "Commercial" programming went to RTE2

Elmo · 01-08-2010 6:08pm

Mike 1972 wrote: »

Youre assuming that prior to privatisation there wouldnt be a revamp whereby the more "public service" elements of RTE's programming got moved to RTE1 with the more "Commercial" programming went to RTE2

So RTÉ One's daytime schuedule is moved over to RTÉ Two. Even still this doesn't account for the fact that the audience now expect more than 2 channels from the one service provided (an unfortunate situation) but in terms of brand RTÉ 2 is important.

What moves over to RTÉ One? Sports? Children's? This leaves little for a privatised "Network 2".

Sam Russell · 01-08-2010 6:15pm

Elmo wrote: »

What moves over to RTÉ One? Sports? Children's? This leaves little for a privatised "Network 2".

If Network 2 was sold off, it would have to start its own profile with whatever staff moved over, and become a competitor to TV3 (and 3E).

RTE could start a new RTE2 all over again, and build a new channel from some of RTE1 that moved over to the new channel.

Elmo · 01-08-2010 6:55pm

Sam Russell wrote: »

If Network 2 was sold off, it would have to start its own profile with whatever staff moved over, and become a competitor to TV3 (and 3E).

RTE could start a new RTE2 all over again, and build a new channel from some of RTE1 that moved over to the new channel.

Why not let a new operator come in? The Value or RTÉ 2 would be diminished with a revamp unless it was able to hold on to viewers for a number of months after the revamp.

Lets face it, it's now unlikely that Anglo Irish Bank is going give 50% of an over the top price for RTÉ 2 now as they did with TV3 in 2006.

Sam Russell · 01-08-2010 8:10pm

Elmo wrote: »

Why not let a new operator come in? The Value or RTÉ 2 would be diminished with a revamp unless it was able to hold on to viewers for a number of months after the revamp.

Lets face it, it's now unlikely that Anglo Irish Bank is going give 50% of an over the top price for RTÉ 2 now as they did with TV3 in 2006.

If RTE 2 was sold as Network 2, the new operator would aquire some RTE staff and equipment and programmes. After a time (years), RTE could start a new channel and build again. Starting a new channel for a new entrant from scatch would take money and time, and would look like a poor TV3.:(

Elmo · 01-08-2010 8:33pm

Sam Russell wrote: »

If RTE 2 was sold as Network 2, the new operator would aquire some RTE staff and equipment and programmes. After a time (years), RTE could start a new channel and build again. Starting a new channel for a new entrant from scatch would take money and time, and would look like a poor TV3.:(

If RTÉ did sell RTÉ 2 the new owners are unlikely to keep the staff numbers. It would need a full revamp. As pointed out RTÉ moving Children's to RTÉ 1. What equipment would be sold, would offices in the RTÉ campus be sold?

Okay RTÉ could do an entire revamp of RTÉ 2 back to Network 2 which could involve the following:-

1. Moving RTÉ 2's management to Cork. (They don't have any so they would need a few more people in management :rolleyes: )
2. Moving Children's and most sports to RTÉ 1.
3. Retaining RTÉ 2 as Network 2 until the new schedule attracts a bigger audience and can compete on its own.

In a number of years sell the channel and their Cork headquarters. But who is going to buy the channel when all a new channel really needs to do is to buy EastEnders, get a number of US programmes, a few live sports games and some in-studio programming, indeed poor TV3. (Do you think a commercial operator would hold on to Irish produced shows?).

RTÉ 2 privatized after a few years would be no more than TV3.

The Cush · 02-08-2010 12:23am

Elmo wrote: »

Thanks The Cush but it still does not answer how selling RTÉ NL will either gain or save the government money. The government haven't given anything to RTÉ for DTT. It might help RTÉ retain money for programming but they will first have to spend the money that they might get for the sale before sellling the network, hence losing money. The BAI would be better off letting RTÉ roll out IocView. (Would it be any better than a sale?).

My post was in direct reply to Sam Russell's post regarding the last attempt to sell the network division.

I have always believed that the sale of state infrastructure assets is a bad idea (RTÉNL, Eirgrid, Teleco Éireann :mad:) and posted that previously.

The difference this time around is that if RTÉNL is sold the money probably goes directly to the exchequer as well the proceeds of any other state assets that Colm McCarthy and his team recommends to flog off. In 2002 the sale was cancelled because of the bad state of the technology economy, this time around the world economy is in a much worse condition and we're going to do it all over again but on a much bigger scale.

RTÉ's Conor Hayes said at the Joint Committee discussion that they will have to borrow €30-35 million to complete the network. If RTÉNL is sold that debt would presumably go with RTÉNL to the new owner with the state coffers benefitting directly from the sale without any debt to clear.

RTÉ transmission network may be sold, says Ryan

OLIVIA KELLY
Fri, Jul 30, 2010

RTÉ’S TRANSMISSION network could be sold off following the investment of €70 million of public money in the development of digital technology, Minister for Communications Eamon Ryan has indicated.

Mr Ryan has said he would be opposed to the privatisation of the ESB, Bord Gáis and An Post, if recommended by the State assets review group appointed by Minister for Finance Brian Lenihan last week. However, he said the review group would be “absolutely right” to look at the future ownership of RTÉ’s transmission network, whether it was with a view to selling it or separating it fully from RTÉ’s broadcasting division.

Mr Ryan said he was “looking forward” to debating the matter with the review group, the Commission for Communications Regulation (ComReg) and RTÉ.

He was speaking yesterday after outlining plans for the switch-over from analogue to digital television by the end of 2012. Viewers who do not have a digital-enabled television will have to buy a new set or a conversion device.

The construction of a network of 51 digital masts across the country is being fully funded by RTÉ at a cost of €70 million.

Mr Ryan said he was “very confident” RTÉ had the capital resources to meet the cost. However, he said he was disappointed there was no commercial investment in digital television.

http://www.irishtimes.com/newspaper/ireland/2010/0730/1224275808936.html

Mr. Conor Hayes: Yes. We have spent €40 million already and will spend a further €30 million. We committed €40 million up to the end of June, paid €32 million, €3 million has been invoiced and a further €3 million is in invoices not yet received. In cash terms, we have another €37 million to pay. We are negotiating a loan of €30 million to €35 million with our lenders. Previously, our difficulty with the commercial operators was that they never seemed to grasp the concept that we needed to borrow the €40 million or €45 million we were spending, seeing as how we do not print money. If we must borrow money for them, they must pay commercial terms for it. This is not rocket science.

Manach · 02-08-2010 12:36am

As some who has always supported the sell of of state assets, the model we could look to is the US. There is a thriving private TV sector and their PBS, which is admitedly underfunded, still produces excellent children's programs.

amacachi · 02-08-2010 12:53am

Manach wrote: »

As some who has always supported the sell of of state assets, the model we could look to is the US. There is a thriving private TV sector and their PBS, which is admitedly underfunded, still produces excellent children's programs.

The US isn't a model to follow for a number of reasons, mainly being scale. We couldn't support that many channels of such varying programming, and because the networks are bankrolled by massive parent companies and still often lose large sums.

Elmo · 02-08-2010 8:35am

Manach wrote: »

As some who has always supported the sell of of state assets, the model we could look to is the US. There is a thriving private TV sector and their PBS, which is admitedly underfunded, still produces excellent children's programs.

Children's has been the only area where PBS has been able to push into some kind of commercial populist TV. They have a big brand in Sesame Street which they have been able to licence. Children's TV transcends beyond the Upper Middle Classes in America, do to something populist on PBS for adults with a true PSB ethos would upset their main core supporting audience, the political classes and the right wing (who do not support PSB).

The difference this time around is that if RTÉNL is sold the money probably goes directly to the exchequer as well the proceeds of any other state assets that Colm McCarthy and his team recommends to flog off. In 2002 the sale was cancelled because of the bad state of the technology economy, this time around the world economy is in a much worse condition and we're going to do it all over again but on a much bigger scale.

So the government want to sell semi-state body assets for a quick buck to fill the whole they have created by bailing out the banks, rather than holding on to strong companies which earn profits and could/should provide dividends to the State each year. How much of a dividend will Anglo Irish pay out this year or next? (BTW as a not for profit organisation RTÉ would be exempt from such dividends I am speaking about EBS, Bord Gais etc). Also the value of their assets aren't worth it.

The Cush · 03-09-2010 4:35pm

From today's Irish Times. The process to replace Cathal Goan as RTÉ DG begins next week. The Director General's salary in 2009 was €326,000.

RTÉ to cast net far and wide in search of DG

RTÉ WILL next week crank up its search for a new director general to replace Cathal Goan (inset) at Montrose.

The position will be advertised nationally on September 10th. I’m told that the State broadcaster has hired executive search group MERC Partners to trawl for potential external candidates.

It seems MERC will be casting its net overseas and a few names are already doing the rounds in media circles.

These include Anne Bulford the chief operating officer of Britain’s Channel 4, who stood in as interim chief executive lately.

An accountant by trade, Bulford formerly worked for the BBC.

Ken McQuarrie, director of BBC Scotland is also mentioned. He joined the ‘Beeb’ in 1975 and is a (Scots) Gaelic speaker.

Another possible target is Peter Fincham of ITV, who is believed to have gone for the top job at Channel 4.

He was controller of BBC 1 for two years until late 2007, having previously spent his career with independent production companies.

The suggestion is that RTÉ might want someone with more of a commercial experience on their CV.

Goan earned €326,000 as DG last year. Whether that would be enough to tempt someone to relocate here remains to be seen.

The appointment of an outsider would certainly create an interesting dynamic at RTÉ.

The smart money is still on an internal appointment.

Radio boss Clare Duignan is the hot favourite with many RTÉ staffers while finance chief Conor Hayes, who spent 25 years in the commercial sector before joining in 2001, also has his supporters.

http://www.irishtimes.com/newspaper/finance/2010/0903/1224278115168.html

The Cush · 09-09-2010 5:01pm

The vacancy for the position of RTÉ Director General is now being advertised on the RTÉ website.

Director General
___________________________________________________________________________

The position combines the roles of chief executive, editor-in-chief and board member of RTÉ. Following
strategy, policy and other goals set by the board, the executive responsibility is to serve the public by
directing the organisation’s talents, facilities and other resources to best effect. Preservation of RTÉ’s
editorial independence and integrity is primary.

RTÉ competes with the world’s best resourced and most influential media services. Its six business
divisions face complex challenges, from the editorial and technological to the financial and regulatory.
Licence fee funding entails exacting accountability. And commercial income is essential to fulfil the
public service remit.

Highly visible in public life, the Director General must harness creative talent, technology, and business
acumen to give Ireland the best public media services. To manage the risks and meet RTÉ’s objectives, the
Director General must be an outstanding leader - culturally attuned, energetic, decisive, and enterprising.

This is an immensely challenging and stimulating position for a chief executive with the creativity,
initiative, and commercial expertise to lead the evolution of media services essential to daily life in Ireland.
__________________________________________________________________________

Please write or email, enclosing curriculum vitae and quoting reference number 68824,
explaining how you meet the responsibilities of the role as outlined above to:
Barry O’Connor at MERC Partners, 11/12 Richview Office Park, Clonskeagh, Dublin 14.
Telephone: 01 2066700 Email: info@merc.ie

http://www.rte.ie/about/jobs/listing.html

watty · 09-09-2010 6:58pm

You applying "The Cush"?

icdg · 09-09-2010 8:06pm

I'd put money on it being an insider (possibly though not necessarily Duginan). Goan and Collins before him were both RTÉ-lifers. I doubt it will go to an outsider as RTÉ tends to recruit from within.

Elmo · 09-09-2010 9:02pm

icdg wrote: »

I'd put money on it being an insider (possibly though not necessarily Duginan). Goan and Collins before him were both RTÉ-lifers. I doubt it will go to an outsider as RTÉ tends to recruit from within.

Goan did go to TG4 for a number of years and was a surprise selection for Director of TV as was Stephen Carson last year, whos only connection to RTÉ is his wife!!! *

*waits

director general of RTE resigns and RTE maybe privatised

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