Parliament mounts probe into TVNZ

TVNZ will face further public scrutiny after a parliamentary committee resolved to inquire into recent events at the troubled state broadcaster.

News that the finance and expenditure committee had decided to hold an inquiry came on the same day TVNZ posted a reduced dividend to the Government of $10.5 million - down from $37.6 million last year.

The committee chairman, Labour MP Shane Jones, said the inquiry's terms of reference would be decided next week, but the committee's annual financial review of TVNZ would form part of it.

TVNZ has been shaken by a series of events including the resignation of chief executive Ian Fraser, declining news ratings and an employment dispute with Close-Up presenter Susan Wood.

It is understood these matters will be examined during the inquiry.

Opposition MPs have been calling for a parliamentary inquiry into the broadcaster, but shareholding ministers Steve Maharey and Michael Cullen said it was not necessary - a view that Prime Minister Helen Clark supported.

Act leader Rodney Hide, who wrote to the finance and expenditure committee requesting the inquiry, said the decision to hold the inquiry was significant.

"The Government of course didn't want it. But that committee is very independent now of the Executive and first week back it has gone against the Government and agreed to undertake my inquiry."

Mr Hide wants the inquiry to be completed by Christmas and said it would be held publicly.

National Party finance spokesman and committee member John Key said he expects the inquiry will seek evidence from a wide group of people.

"If those people refuse to appear, then I expect to seek the support of select committee members and the Speaker to subpoena them."

Mr Key said National would be asking questions about alleged political interference, Ian Fraser and head of news and current affairs Bill Ralston's contracts, the Susan Wood and Judy Bailey affairs and TVNZ's financial position.

New Zealand First MP Pita Paraone said TVNZ would now undergo the scrutiny it should have been under all along.

"New Zealand First would like to see an end to the TVNZ experiment which has seen it try to be all things to all people and fail miserably."

National broadcasting spokeswoman Georgina te Heuheu said she hoped the inquiry would be a robust and thorough review into the problems at TVNZ.