Enraged Ivan Yates has called for RTE's Director General Dee Forbes to be sacked.
The former Minister slammed the station's management and insisted 2FM should be sold as it provides "no public service whatsoever".
The 60-year-old also criticised the national broadcaster's chief for "bitching" about the TV license system.
He said: "Dee Forbes should be fired as Director General of RTE.
"She simply has not got to grips with the extent of the crisis.
"She has spent the last few years bitching and whining and complaining to politicians that they should up the (TV) license fee.
"What a Pavlovian, Luddite response.
"Do they not know the reality is there is huge voter resistance to simply throwing more money at the problem."
The outburst came on his Newstalk show The Hard Shoulder following the news RTE is planning up to 200 redundancies and slashing top presenters' salaries by 15%.
The organisation revealed on Wednesday night Lyric FM will be moving to Cork or Dublin, as as part of plans to downsize its' southwest studio.
Mr Yates added: "I would pose some serious questions. They're faffing around Lyric FM leaving Limerick.
"Why do we have 2FM at all?
"Sorry, we need money for housing, for health, for education, for real public services.
"We don't need 2FM. 2FM could be sold in the morning.
"There'd be a clatter of commercial music stations that would buy it.
"It provides no public service whatsover.
"So, the fact of the matter is, they are selling assets, they're not dealing with the people who need to be taken out of the organisation - the people who are costing a fortune."
The now radio host, who represented Fine Gael in the Dail for 21 years, believes more funding for RTE won't fix the crisis.
He said: "My own background is in the private sector, and I worked for 20 years in the public sector in Government.
"Simply asking politicians for more money is no substitute for proper management.
"And what we're getting is more and more mismanagement."
