asked the Minister for Communications if he has received an application from RTE for capital allocation for the development of television studios at Donnybrook.

No such application has been received. RTE's capital allocation, which they finance internally or through commercial borrowing or leasing, is approved annually in the context of the public capital programme and on the basis of a general statement of proposed expenditure headings. It is a matter for RTE to determine their detailed expenditure priorities, including expenditure on studio development, within the limits of their allocation.

I put it to the Minister that he cannot but be dissatisfied with the fact that RTE have an excellent studio which is not fully equipped and therefore cannot be used. This studio could be used in a number of ways, for example, it could be used for Teilifís Scoile programmes which RTE cannot at present do because of lack of funds.

There is a lot in what the Deputy says but it is very important that RTE maintain their financial house in order. The studio was built at a time when, clearly, adequate consideration was not given to how the funds necessary for the construction of the studio would be raised and other funds found to equip the studio. The first priority must be to ensure reasonable order in the finances of RTE. The first step in that direction was taken with the appointment of the consultants. The RTE Authority are now actively implementing their own plan on the basis of the consultants' report with a view to correcting any imbalances in their finances. They are addressing a shortfall in the pension fund. They are required to at least break even in each financial year. I am sure RTE are anxious to use the studio and will do so as soon as they are in a position to equip it.

Has the Minister reduced by 50 per cent the proposed allocation of funds to RTE for capital development in 1986 from a sum of £7 million sought by RTE to a sum of £3.5 million?

I do not know where the Deputy gets his information but the provision approved for RTE this year was £4.5 million. They propose to spend only £4 million although they have approval for a higher level of spending.

Was there an application for £7 million for capital works from RTE? They submitted details to the Minister. Will the Minister outline those details both for capital development at Donnybrook and development of the studio?

This question is about the receipt of an application.

I cannot say categorically that there was an application for £7 million. I am not aware of it. The amount approved this year was £4½ million. That is a little more than was spent last year. I understand they will not spend all that money. The substance of the Deputy's question is: are RTE being held back as regards capital expenditure and the answer is "no".