KEY POINTS:
TVNZ's stoush with Deputy Prime Minister Michael Cullen yesterday is a sign that TVNZ is on a hiding to hell after the general election.
Cullen's swipe - in which he questioned the way TVNZ spends charter money - reflects exasperation with the increasingly brazen way the broadcaster uses grants for prime time commercial shows.
I hear that TVNZ's decision to take $2.77 million for the highly commercial current affairs and magazine show Sunday - reported in February - was the straw that broke the Government's back.
Let's not bag Sunday - as commercial current affairs it's fine - it's not cutting edge but at prime time on Sunday nobody's expecting Panorama.
But does a season of this stock-standard fare that you might expect on TV3's 60 Minutes really deserve a taxpayer grants?
Normally Sunday aims to have two local items and one imported.
In the last show, the programme included imported items about Britney Spears and British solders in Afghanistan.
There was one locally-made item made about Doug Howlett and the decision to leave him out of the ill-fated World Cup quarter final.
Is this a good way to spend public money?
At $16,000 each, $2.77 million would give relief to 170 people awaiting a hip transplant. An unfair comparison you say - any arts subsidy looks bad against a health grant.
But $2.77 million would also keep all of Radio New Zealand - including National Radio and Concert FM - on air 24 hours a day, seven days a week, for a month.
And it is not required to deliver advertising revenue. If there is not an increase we hear cuts to public radio are inevitable. At least we'll have Britney.
MONEY FOR NOTHING
Cullen suggested taxpayers aren't getting a bang for their buck from TVNZ's use of charter funding.
"It is not clear where the money goes," said Cullen, who is also the Minister of Finance and TVNZ shareholding minister.
He would be talking to fellow TVNZ shareholding minister Trevor Mallard to look at accountability issues.
This column reported on February 29 Mallard is already on that job.
In a very public - and some say deserved - slap to TVNZ Mallard said: "There are still some decisions that I am not satisfied are adequately explained and I think members of the public will also struggle to understand.
But as National broadcasting spokesman Jonathan Coleman points out, there are checks and balances on charter funding through the Ministry for Culture and Heritage.
But the terms are so loose that TVNZ really has an open cheque. And Government departments are rightly restricted from being involved in programming.
Coleman points out TVNZ has received $30 million in charter money and had nothing knocked back.
Cullen has a sour view on TVNZ and likes to take a swipe at media in general.
He was sceptical about the views of his former joint TVNZ shareholding Steve Maharey who made constant excuses for TVNZ needing more subsidies.
But Mallard is not caught up with Maharey's vision and is agnostic on the viability of the twin remit of commercial and non commercial functions.
TVNZ IN THE GUN
TVNZ looks likely to lose its unfettered control of the $15 million of charter money after the election no matter who wins.
The Government funding body New Zealand On Air has its problems.
But it is more competent than TVNZ to administer the cash.
Policies have not yet been set but there is a big overhaul at the moment over Government funding and regulation of both media and telecommunications.
One Labour insider said that such is the exasperation with TVNZ's approach to charter funds for commercial shows, TVNZ may lose control of charter cash. Labour is considering handing control of charter money to New Zealand On Air.
Under one scenario put to the Business Herald, TVNZ would apply to NZ On Air for funding which would be set aside for producers making shows for TVNZ exclusively, and based on its own strict criteria.
National is said to be sympathetic to TVNZ's quandary. It is an ailing commercial enterprise in the midst of a media revolution. It faces Treasury demands while it has access to a tempting cookie jar of taxpayer funding with nobody keeping guard. National may release it from its limited public service obligations. It is understood one option under National's consideration is to open up access to charter funding for shows on other channels, including Sky. There is a mood for change to temper a growing appetite of subsidies in TVNZ's board.
NO SHOW?
The host of TVNZ7 media programme Media 7 Russell Brown has reportedly said that the show will cover both TVNZ and competitors like TV3. TVNZ digital boss Eric Kearley says that is the case but it will be interesting if the show delves into some of the issues at TVNZ.
But I understand that it is far from certain that TV3 will be participating in the Freeview digital show which aims to get inside the media, and some key executives don't want any tie-ups.
NEW MAG FOR OLDS
APN News & Media is launching a new monthly giveaway publication aimed at people over 55 years old.
Called Spirit, the new title aims at an age group that includes baby boomers and which is expected to peak in 2051. Consultant Bruce Morris said that Spirit would be distributed free north of Taupo, based on the New Zealand Herald subscriptions. However it would not be delivered inside the Herald.
He was looking for ways to distribute within retail stores. "People aged from 55 to 68 have money in their pocket and they are spending it. The kids have left home and often the mortgage is paid off. They are interested in travel hobbies and finding stimulating things to do," he said. The first edition is due in the first week of May.
CARBON ONLINE
Forsyth Barr retail analyst Guy Hallwright says he doesn't expect to make his millions from his new venture into the media world. But as one of three investors in a new subscriber online service Carbon News, published by Horizon Publishing, he is optimistic there is a growing market.
Horizon says it will be using emailed news bulletins and its website www.carbonnews.co.nz. The service, which will cost $500 a year, will provide detailed coverage on not only the markets and key players but also the sectors facing major impacts and opportunities from the response to climate change.
These include the energy, forestry, agriculture, transport and technology. It would also include Government policy development both here and in other key markets.
Other partners in the venture include Graeme Colman and senior Wellington public relations adviser Iain Morrison. It is edited by Hugh de Lacy who was most recently a regular specialist contributor to the National Business Review and Energy magazine on carbon related issues. Colman says that de Lacy will write the website from his farm in North Canterbury, but has increased his own carbon footprint in flights to meet industry players in Auckland.
