RTE ANTICIPATE CUTBACKS

IRISH National Broadcaster RTE have reportedly warned staff that the organisation anticipates a deficit of £20 million in 2002 without major cost cutbacks
In the next two weeks RTE will devise cutbacks aimed at reducing this projected deficit by £9 million, to what they regards as a more acceptable level of about £11 million.
The broadcaster have not released financial results for 2000, but it is estimated that the deficit for that year was in the region of £11 million. The previous year, RTE had a deficit of £16.6 million.
No projections are available for 2001, although RTE has confirmed it is now expecting an ad revenue shortfall of at least £10 million.
RTE have initiated an internal review of all their departments, with a meeting between management and staff to discuss cost-cutting measures scheduled for the week after next.
RTE were already in financial turmoil after a failure to secure the substantial increase in the licence fee applied for earlier this year. The slowdown in the economy over the summer had compounded these problems.
The station had warned Arts Minister Sile de Valera of disastrous consequences following the government's decision to grant it only a £14.50 licence fee increase, £35 short of what the broadcaster requested.
RTE had been planning to invest heavily in new projects such as digital television and radio and internet services in the coming years, at a cost initially estimated at £119 million.
(GB)