Alastair Carruthers had been serving as both New Zealand Film Commission and TVNZ chair. Photo / Ted Baghurst
The Government is letting go another Labour Government appointee from a public board, with the New Zealand Film Commission chair to vacate the role. Will he stay on as TVNZ chair?
TVNZ chair Alastair Carruthers will step down as New Zealand Film Commission (NZFC) chair, amid speculation about his future as the head of the state broadcaster’s board.
The decision - mutually agreed, according to the Government - follows concerns within the screen sector over a conflict of interest in having the two roles filled by one person, especially as audiences converge and TVNZ shows become eligible for NZFC-administered grants.
Asked directly whether the conflict concerns had led to the decision, a spokesman for Media and Communications Minister Paul Goldsmith said today: “Not specifically”.
The spokesman, however, could not elaborate.
Carruthers became chair of the NZFC in October 2022, and of TVNZ in July 2023, to acclaim from then Labour Government ministers Carmel Sepuloni and Willie Jackson.
Carruthers is widely respected in the arts and screen sectors and there has been absolutely no suggestion of a personal conflict.
Concerns have been raised, however, of a conflict over him holding two major media industry roles, especially as discussions over funding and industry structural issues become more pointed.
An experienced producer told Media Insider recently that he couldn’t understand how two big screen industry roles could be held by one person. The New Zealand talent pool was big enough to have two different people, he said. “We’re not Huntly.”
Media Insider sent questions to Goldsmith’s office earlier on Monday, asking whether the minister supported Carruthers’ position as TVNZ chair and whether he had any concerns about the dual roles.
He sent a written response which did not directly answer the first question.
“I haven’t yet met with Mr Carruthers in his role in TVNZ, and will do so in the coming days,” Goldsmith said.
“In my role as Arts and Culture Minister, I have agreed with him that I will appoint a new chair of the New Zealand Film Commission. That process is under way.”
Carruthers said: “My understanding is it will be later this year. I am not going to say any more.”
Asked whether the decision was directly related to the conflict concerns, he said: “I am not making any comment.”
In an earlier phone call, he indicated he had no intention of stepping down as TVNZ chair.
Concerns about a conflict between the two roles have been simmering for the past year.
Experienced screen producer John Barnett told Media Insider last week that he couldn’t fathom how Carruthers could hold both roles.
He said he had no personal beef with Carruthers and there was, he said, absolutely no suggestion that he had any personal interest or received any personal gain from decisions made by either of the entities.
That’s a point that has been reinforced by TVNZ, the NZFC and Carruthers himself over the past year.
Barnett said issues arose in “conflict of roles”.
“The issue... is whether the interests of the two organisations conflict,” says Barnett.
He cited the Auditor-General’s code: “If you have a conflict of roles, you need to consider whether it is appropriate for you to participate in the decision-making process ‘on both sides of the table’. Are you able to fulfil your obligations to both entities at the same time?”
Whereas once the NZFC and TVNZ might have been swimming in their own lanes in the media industry, potential overlaps are starting to emerge.
Take, for example, Shortland Street, a show produced by South Pacific Pictures, the company that Barnett founded in 1988.
Right now, there is momentum building for TVNZ’s endangered flagship soap - it costs the state broadcaster more than $20 million a year to produce - to become eligible for the NZFC-administered domestic screen production rebate.
“Shortland Street might be affordable to TVNZ if it could access the screen production rebate,” said Barnett. “But that rebate is administered by the NZFC.
“So, the chair of both organisations cannot be involved in discussions with senior management at either entity as to an approach to resolve this, actually for the betterment of both entities.”
The NZFC had established a very specific conflict of interest management plan for Carruthers - a point that Barnett picked up on.
NZFC legal advisers devised the comprehensive plan, he said, which looked to ensure that the chair was not involved in any discussions or decisions that might create issues.
“But the number of exclusions in that plan raises questions as to whether anyone can fulfil the obligations of the simultaneous chair of the two roles. Because over 50 per cent of all NZFC funding decisions fall into this area, which means the chair can’t possibly fulfil his role.”
TVNZ said last week that, to date, there had been no issues that had triggered TVNZ’s own conflict protocols. This would be assessed and “managed as required” going forward, said a TVNZ spokeswoman.
“Interaction with NZFC is infrequent and doesn’t normally involve the TVNZ board or executive,” she said.
She said the Ministry of Culture and Heritage (MCH) and Treasury had overseen a “comprehensive conflict management plan” with the NZFC - “without Alastair’s involvement” - which was shared with TVNZ and noted.
“TVNZ’s audit and risk chair had separate discussions with MCH and The Treasury, along with the NZ Film Commission to discuss potential intersects and conflicts. Alastair’s role as chair of NZ Film Commission is documented on the TVNZ directors interest register, which is tabled at each monthly board meeting.”
She said any changes to the screen production rebate - which might see Shortland Street eligible for funding - were a policy matter for the Government “and not within the authority of NZFC”.
“MCH sets the criteria for the rebate. NZFC carries out a technical review of applications based on the settings, which is audited and cross-referenced by industry peers As part of NZFC’s conflict management protocols, Alastair does not attend any discussions or panels that assess eligibility for the rebate and that will continue.”
Spada president Irene Gardiner said last week that she believed the “general vibe” in the industry was that people had settled into the arrangement.
Carruthers was “a very professional person”. He was doing a good job and knew how to manage any conflicts.
“It was very unusual for the same person to be in both of those roles. And so we did express a couple of concerns at the time but some protocols were put in place at both ends of the equation. And I haven’t observed any issues since the protocols were put in place and we’ve gone on our way.”
While she was Media Minister, Melissa Lee said: “Potential or perceived conflicts of interest are for Mr Carruthers to manage alongside monitoring agencies and his fellow board members. I trust the appropriate processes are being followed.”
Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME.
Two current executive roles would be reduced to one under a new proposal.