Programme Expenditure:

1976/77

1977/78

1978/79

1979/80

£000

£000

£000

£000

Schedule 1, Television

7,749

9,978

13,912

16,623

% increase—each year

22%

29%

39%

19%

Total Hours Transmitted

3,322

3,382

5,443

5,960

(Home Produced Content)

(1,371)

(1,494)

(1,809)

(1,900)

Average cost per hour of programmes transmitted

£2,332

£2,950

£2,556

£2,789

% increase on previous year

18%

27%

(13%)

9%

1976/77:

Previous year (1975/76) had a low cost base as cut-backs of £350,000, mainly in television programme areas, were made and, if adjusted for, the 1976/77 % increase is 16% compared with 22%. General inflation for the year: 12.1%.

1977/78:

TV Programme Costs included £1 million for pre-transmission costs for RTE 2. Excluding this sum gives a cost increase of 16% on total costs and an increase of 14% on a per hour basis. General inflation for the year: 8.1%

1978/79:

TV Programme Costs included 10 months of RTE 2 and is not comparable to the previous year on a total basis. If the hourly basis is taken, and adjusting for the pre-transmission costs in 1977/78—a reduction of 4% in programme costs occurred (without adjustment 1978/79)—a reduction of 13% per hour was achieved, notwithstanding the cost of the Papal Visit coverage and the additional cost of ‘Strumpet City’. General inflation: 14.8%.

1979/80:

On a total cost basis, 1979/80 includes 12 months for RTE 2 against 10 months the previous year. On an hourly basis, the figures are approximately comparable and show a cost increase of 9%. General inflation: 18.4%

Conclusion:

Taking total television programme expenditure, there is no evidence of lack of cost control. The 1976/77 adjusted figure (per hour) of 16% is 4% higher than inflation and this represents a very small increment of programme enhancement following the very difficult years of 1974 to 1976, when budgets were being cut-back in the face of mounting financial difficulties. A policy decision was taken in April 1976 to lift the quality of home produced programming, in order to compete more effectively in the multi-channel areas with foreign stations (£250,000 added to DPCs + £230,000 to facilities). This policy launched RTE in major drama productions as well as prestigious light entertainment shows e.g. Christmas/Summer Specials, major Irish artists and group specials etc.

1976/77

1977/78

1978/79

1979/80

£000

£000

£000

£000

DPCs (only)*

1,347

1,787

2,434

2,949

Home produced output

1,371 hours

1,494 hours

1,809 hours

1,900 hours

Cost per hour

£982

£1,196

£1,345

£1,552

Increase over previous year

34%

22%

12%

15%

Inflation

12%

8%

15%

18%

Conclusion:

DPCs have been in decline in real terms since 1977/78.

Note re. 1976/77:

The DPCs for this year were increased by £250,000 or £227 per hour, to re-instate cumulative cutbacks made in the 1974 to 1976 financial crisis. Furthermore, this was part of a policy of programme enhancement, as mentioned above, introduced mainly for competitive reasons.

Note:

The appended cost statistics for Raw Materials and Travel & Subsistence relating to home-originated television programmes illustrate the substantial cost increases that have occurred in recent years.**

March 1981