Key, Sharples broker Cup broadcasting deal

Pita Sharples had been at loggerheads with John Key over TVNZ's bid for the Rugby World Cup broadcasting rights. Photos / Mark Mitchell

The Government has cut a deal to end the bitter row over Maori Television's bid to broadcast Rugby World Cup matches.

It has aborted a plan to beat the Maori Television Service (MTS) with a taxpayer-funded bid put up by TVNZ and the two state broadcasters tonight met with TV3 in Auckland to start negotiating a joint bid.

It will be led by MTS and ensure nationwide free-to-air cover of 16 World Cup matches.

A spokesman for Prime Minister John Key said TVNZ had withdrawn its separate bid and the MTS bid expired last night.

The spokesman said tonight's meeting had been constructive.

"We're not quite there yet but we're working on it," he told NZPA.

Mr Key and Maori Affairs Minister Pita Sharples brokered the deal and announced the breakthrough which has avoided what would have been a bizarre bidding war between MTS and TVNZ - both backed by taxpayer money.

In Parliament, the Labour Party said confidential information about the MTS bid had been used to prepare TVNZ's rival bid and iwi backing MTS had been ready to issue writs in the High Court.

Dr Sharples, also leader of the Maori Party, had backed a $3 million taxpayer-funded bid by MTS.

At the last minute, TVNZ put in a rival bid.

Broadcasting Minister Jonathan Coleman yesterday confirmed the Government was backing the TVNZ bid, saying the broadcaster had asked for a level playing field.

"You can do the sums - you can see it's going to be a reasonable amount of money," he said.

That caused a rift between the Maori Party and the Government. There were claims of prejudice and a lack of confidence in the Maori broadcaster's ability to manage the coverage.

Announcing the joint bid, Mr Key said it wasn't in New Zealand's interests to have a bidding war.

"We are very hopeful a successful outcome can be achieved and progress can be made," he told reporters.

Dr Sharples said the meeting between the networks in Auckland was to find a way to put together a joint bid led by MTS but guaranteeing TVNZ and TV3 the same entitlements they sought in their separate bids.

"Our expectation is that there will be only one bid on the table and it will be a Maori Television-led bid and it will be subbed (sub-contracted) out to other groups as well," he said.

Dr Sharples said it was a win for his party and Mr Key admitted his ministers' handling of what turned into a debacle wasn't the best.

There had been a lack of coherence and ministers should have got together to trash out a single approach.

The situation tonight was that there were no bids in front of the International Rugby Board for the local broadcast rights.

The Government and the Maori Party hope a joint bid will go in soon which will be a win for them and for fans.

- NZPA