13 April 2007

Government needs to scale back its money grab from TVNZ

If TVNZ is to retain any semblance of being a public service broadcaster, the Government has to stop pillaging TVNZ's accounts every year and allow it to invest in the staff and resources needed for it to become a genuine public service broadcaster, Green Party Broadcasting Spokesperson Sue Kedgley says.

Ms Kedgley was speaking in the wake of the first round of redundancies at the state broadcaster, which will see 59 staff in news and current affairs lose their jobs, amid some 160 jobs in all by the end of the process.

"In the latest TVNZ annual report, the board chairman warbled on about TVNZ's talented staff and the 'loyalty, professionalism and commitment' they had shown to the organisation. Well, that loyalty has now been repaid with their jobs being axed," Ms Kedgley says.

"Ultimately, the Government has to take some of the blame. It needs to stop treating TVNZ as a cash cow. In the 1990s alone it extracted over $250 million from TVNZ in dividends, which left TVNZ ill-prepared to compete with Sky in the digital realm.

"Last year, the Government again ignored the warning signs. Last June, it took out $70 million, and then came back to TVNZ as late as September 2006 for another $14.5 million. This, despite the fact that the TVNZ annual report says the outlook was 'uncertain, given the struggling economy and negative outlook for retail sales.' TVNZ staff are now paying with their jobs for the fallout.

"Reportedly, Treasury seeks from TVNZ a 9 percent return, and takes out all the operating cash flow in dividends. This may have been feasible in the balmy 90s. It is no longer viable in the current competitive broadcasting environment.

"Broadcasting Minister Steve Maharey should be telling us what level of dividends from TVNZ - if any - would be fair and justified now. He might also consider apologizing to the sacked TVNZ staff for the contribution the Government's raid on the books last year has made to their current plight.

"The only solution left now is to allow TVNZ to re-invest any earnings in shoring up its position, as a state broadcaster. The worry is that it may now have shed the senior staff able to make public service broadcasting anything more than a hollow slogan," Ms Kedgley says.

ENDS

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