Maharey backs TVNZ's Charter progress

Broadcasting minister Steve Maharey fronted up to an inquiry into TVNZ at Parliament today but there was no sign of the man most in the inquiry wanted to see -- TV One's head of news Bill Ralston.

Mr Maharey faced a fresh grilling from the finance and expenditure select committee but declined the opportunity to make an extended statement, saying instead he was prepared to answer questions.

The timing of the committee, a day after a leaked memo from outgoing TVNZ chief executive Ian Fraser detailed his major concerns over TV One's commercial performance against the backdrop of the Government-imposed charter, meant Mr Maharey was always going to be forced to defend the broadcaster and the Government.

Committee member National MP John Key asked Mr Maharey if he believed there was nothing wrong with the charter model, which Mr Fraser had said in his memo was harming TVNZ ratings and leading to the likelihood of having to "can" charter programmes or play then when hardly anybody would watch them.

Mr Maharey stuck to his guns as he did yesterday when Green MP Sue Kedgley first produced the memo.

He said TVNZ was still only two years into the process of changing towards a charter model but was doing well in the transition.

"There are no apparent problems with the model."

That was despite Mr Fraser's belief that TVNZ had actually performed a "u-turn" on charter programming and that its programming schedule was "profoundly incompatible with any recognisable model of public broadcasting".

Mr Fraser sat in the gallery of the select committee this morning, and was expected to answer questions later in the hearing.

Mr Maharey also disagreed with Mr Fraser's concern that charter programming would mean a loss of viewers in the critical lead-up to the 6pm television news.

"I don't think that you will see a loss of ratings for (TV One) News under the charter," Mr Maharey said today.

But Mr Maharey said he did agree with Mr Fraser that the biggest threat to the State broadcaster was "fragmentation" of the audience, as more and more television channels and entertainment options became available.

The days of large audiences watching programmes for an extended period on one channel were going to go, he said.

He also said problems with the "no surprises" policy meant the Government was taken aback when the size of large salaries paid to presenters such as Judy Bailey and Paul Holmes became public.

He had been made aware that Close Up presenter Susan Wood's case over her salary was going to arbitration.

Mr Maharey conceded it was "a worry" that Mr Fraser believed the public would struggle to see TVNZ as public television, given the large amount of advertising -- 13-14 minutes an hour -- played during programming.

Rob Cameron, of Cameron Partners independent investment bankers, appeared before the committee after writing a report on TVNZ.

TVNZ in the future would have to face the reality of falling advertising revenue, as would the whole industry.

"Nothing that anyone here would like to do will change that," Mr Cameron said.

TVNZ and its shareholders would certainly "pay" for the decision to provide charter programming.

Winston Peters asked Mr Cameron for an opinion on the salaries negotiated by Judy Bailey and Paul Holmes.

"Where on earth was Judy Bailey going to go if she didn't get $800,000?"

Mr Cameron said boards should make their decisions on a commercial basis and recognise individuals' true market worth.

"Some people's skills end up being much more organisation specific, and Paul Holmes probably found that."

The select committee was expected to extend into the afternoon as it sought to wrap up hearings on the inquiry in its last meeting before Christmas.

- NZPA