8 March 2007

TVNZ inquiry shows charter sacrificed on commercial altar

The Green Party says the report on the Inquiry into Television New Zealand Limited, released today, shows that it is ludicrous to expect a supposedly public service broadcaster, to return a 9 percent return on shareholder funds, and to disperse all its cash flow by way of dividend.

Former TVNZ Chairman Craig Boyce told the inquiry that the result of this was that unless TVNZ was given further funding from government, it was going to have to sacrifice the Charter to give priority to commercial imperatives.

"Its time for government to waive this requirement and instead allow the broadcaster to invest the dividend instead back into innovative New Zealand programming," Broadcasting Spokesperson Sue Kedgley says.

"Mr Boyce's comments demonstrated that the inherent conflict between the commercial and public service objectives of TVNZ has become untenable, and that any public service aspirations TVNZ had are being sacrificed on the altar of commercialism.

"It's time to acknowledge that the dual and conflicting mandate the government gave TVNZ has failed," Ms Kedgley says.

"This conflict was highlighted recently when TVNZ paid a $73 million dividend to government and then, a few months later, announced plans to make up to 160 staff redundant because they hadn't met their income targets.

"Shedding 160 staff at the very time that TVNZ is about to launch a new digital channel is ludicrous. Setting up additional new channels will mean TVNZ will have to significantly increase the content it provides - with 160 less staff.

"Clearly TVNZ is so cash-strapped that the new digital channels it is about to launch will primarily be repeat programmes, and there will be very little, if any new content on them."

ENDS

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