Not a good look. I wonder did he go because this was going to come to light?
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We shall see and I'd expect a few questions on these car allowances this afternoon and in time.
It's a complex area but I'm not entirely convinced there isn't an element of 'tax efficiency' here. Nothing illegal of course but ..
As I mentioned much earlier in this thread, I see the Jack Whitehall radio ads by Aiken Promotions are still coming apace on RTE Radio 1.
At this stage, must be nearly one advert aired for each paying customer. It just doesn't add up to me business wise but clearly there's a whole murky world out there I don't understand and neither do most others, I suspect.
People don't understand this, but RTE is not part of the Public Service, and its employees are not subject to "public sector pay guidelines". RTE is a "statutory corporation", like the ESB, FSAI and An Bord Pleanála.
Employees of statutory corporations are not public servants. Statutory corporations are effectively commercial PLCs under State ownership, except they're not governed by the Companies' Acts, rather they're set up and governed by specific legislation particular to each statutory corporation.
It's not a complex area at all, it's incredibly straightforward and simple.
As has been made clear about 10 times on this thread, there is absolutely no tax impact here. You cannot use a car/living/whatever allowance to dodge tax or reduce your taxable income.
I didn't realise that they are not governed by companies act..... sure that answers the free for all. Governed by internal legislation and nobody will enforce even going to ministerial level.
No, it doesn't.
RTE was founded and is governed by the Broadcasting Authority Act (1960), and subject to subsequent Broadcasting Acts, not "internal legislation". The Broadcasting Authority Act contains very similar provisions to the Companies' Act, and is fully enforceable in court.
If you're aware of any breaches of the Broadcasting Authority Act, let us all know. RTE have not been accused of any that I'm aware of - nor have they actually been accused of anything that PLCs are not allowed to do under the Companies' Acts.
The mistake a lot of people are making is holding them up to the standards of behaviour of the Public Service - which they are categorically NOT a part of.
No Mattie McGrath today.
Hopefully we get a breakdown of how many weeks they can stay afloat under current trading conditions.
''
I accept that there appears to be no tax effects ands its just another form of pay which may even save the employer money on pensions later. However it would be interesting to know when they first decided to go this route, why some staff and not others get it.
I would suspect there was some element of keeping the headline salary low, or beneath certain limits? So not a million miles from the logic behind using the Renault route for Ryan (another form of "car allowance" 😉 ).
Well, there have to be reasons for paying employees such allowances rather than paying it as part of salary. The practice wouldn't exist if it were entirely tax and cost neutral.
Oireachtas on now. Siun out of the gate asking for money and the licence fee to be scrapped in favor of the broadcasting charge presumably. So they can properly address all RTE's shortfalls. You couldn't make it up. "We know we f*cked up, but if we could just get another cheeky 50 mil and enforce payments on the public more strictly it'll all sort itself out".
They've learned nothing.
I will never get over the derision on the board members' face when they are asked more than 3 questions in succession by a member of the committee.
Siún doesn't really come across as being able to kick ass. Little old lady pleading forbearance can only last so long.
Grandstander Imelda up now to fulminate indignation without asking anything probing.
Edit to add: she has asked about 'personal allowances', staff being paid and then being paid to be on air.
Bakhurst even saying that it may not be feasible to sell Montrose because landprices have gone DOWN!?
In which universe is that true?
A campus in literally THE most affluent area in the country not being worth selling.... What? At least he's said that they're entertaining the possibility.
I think their preference is for direct excequer funding but they'd settle for that.
Bakhurst talking about multiple allowances now inc car allowances for those who don't drive. He says the practice is out of hand and mis described in accounts.
So like the barter account it is "standard industry practice" but RTE did the dog on it.
RTE board & RTE Financial Controller, others can't help with queries.
Bakhurst seems to have been decided upon to be the chief conduit.
RTE mislead the committee...
The committee was "blatantly mislead" about RTÉ's membership of Soho House Club in London, Ms Munster said, having been told it was used for business meetings, as RTÉ had no offices in the city. "Your documents show us" that no meetings took place, she said. "It was used for accommodation purposes" and this is "quite shocking". No one contradicted that when the committee was mislead, she said. Mr Backhurst said it is "shocking" "that we had that membership". He cannot explain how it was used.
It was Geraldine O'Leary who claimed it was for meetings.
Bakhurst basically saying that quality content is now outsourced to the independent sector.
So what do the rest of the core RTE staff do? Organise the independents?
I think Bakhurst is living in La La Land in how long he thinks RTÉ can stay afloat.
Well I guess the requirement to keep full and proper accounts of income and expenditure is the most obvious breach.
Now you may argue that they fully satisfy this requirement but certainly when we got to a situation that it takes multiple government committees to get to the truth around payments to contractors, and with 3rd party private companies appearing to gain financially from rte payments for no obvious reason other than to facilitate a deal for an rte contractor, well I think as an opener this is most questionable.
Glad sumner is over so we can get back to these committees hearings.
Are the sick MIAs still “sick”?
Nervous laughter following Cannon's suggestion that RTE relocates out of Dublin en masse to Galway!!
Good grief.
Again, as has been explained at least 4 or 5 times in this thread, the reason that employers do this is they can increase salaries without having to pay increased pension contributions or bonuses.
It saves employers money.
The employee has no benefit whatsoever, in fact the opposite is true and the employee would be financially better off with a higher salary and no car allowance.
Leitrim would be cheaper and give the local economy a great boost
Ian Kehoe making sure he's in good standing with the new director!
There are questions, however, about how the car allowance might have been used by RTE to make salaries appear lower than they actually were. Where salary scales are fixed car allowance can be used to differentiate between colleagues who should otherwise have been on the same salary.
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