TVNZ jobs likely to be victim of dividend payment - unions, Greens

Unions say the Government's decision to take a divident from TVNZ will needlessly cost some of the broadcaster's workers their jobs. Photo / Herald on Sunday

The Government's decision to take a dividend from Television New Zealand (TVNZ) "needlessly risks the livelihoods" of the state broadcaster's workers, unions say.

TVNZ yesterday said it would have a detailed proposal of how it would cut $25 million off its budget by mid-month having last month revealed advertising revenues were 10 per cent below budget, which represented an annualised shortfall of income of $30 million.

Staff cuts have not been ruled out.

Broadcasting Minister Jonathan Coleman has reiterated Prime Minister John Key's position that TVNZ was still expected to pay a dividend.

"We do expect to get a dividend back from TVNZ and we've got confidence (in) the senior business people there that they are going to take the steps appropriate in this environment to make sure the taxpayer gets a return on a taxpayer investment," he told reporters.

Public Service Association national secretary Richard Wagstaff said TVNZ jobs were "definitely on the line" and the government was showing "no sympathy".

"John Key talks about bailing out the private sector to save jobs but won't lift a finger to save jobs at TVNZ.

"It appears that workers in the public sector are expendable."

Engineering, Printing and Manufacturing Union national secretary Andrew Little agreed.

"The minister needs to explain why the government's efforts to keep Kiwis in work don't extend to the Kiwis that work for TVNZ."

He said the government's actions "don't make business sense".

Green Party broadcasting spokeswoman Sue Kedgley said the dividend requirement should be suspended to save jobs during the recession.

"We call on the government to practice what it is preaching about helping to save jobs.

"The question must be asked, why is the government so ready to bail out banks and dodgy finance companies, with virtually no strings attached, yet it is not prepared to lend a hand to its own publicly owned broadcaster."

Ms Kedgley said it would be technical staff, skilled reporters and camera people losing their jobs.

"It won't be (high profile frontman) Paul Henry signing on at Winz."

In the year to June 30, 2008, the broadcaster paid the Crown a dividend of $10.3m after reporting an after-tax profit of $19.4m.

TVNZ will decide this year's dividend after the annual accounts are audited around August. The company has a policy of paying a dividend of 70 per cent of profit after tax.

- NZPA