TVNZ wants to keep its millions

By NZPA, CLAIRE TREVETT AND ALAN PERROTT


TVNZ wants to keep the millions of dollars it pays to the Government and spend the money instead on programmes required by its charter.

The broadcaster's dividend to the Government last year was $37.6 million, more than its net surplus and more than the $28.3 million it got from various forms of state funding.

Chief executive Ian Fraser said no other state broadcaster in the world paid such high dividends. The money would be better reinvested into programming to meet the charter, he said.

The Government's TVNZ charter requires the broadcaster to balance commercial performance against social responsibility and make a more significant contribution to the country's cultural and national identity through programming.

Issuing the Crown company's annual report yesterday, Mr Fraser said TVNZ was on a money-go-round, paying the Government more in dividends than it was getting for charter obligations.

But the suggestion TVNZ might keep the money met varying degrees of stonewalling by shareholding ministers.

Treasurer Michael Cullen said Mr Fraser's suggestion "does not represent the Government's view".

Broadcasting Minister Steve Maharey said the Government was reviewing the dividend but was not going to waive it altogether.

"The Government has made it clear to TVNZ that it wants a dividend, but how that dividend is handled and dispersed is being discussed."

TVNZ's annual report for the year to June showed it got $335 million in advertising revenue - up 10 per cent on last year - and increased total revenue to $420 million.

Mr Fraser was blunt about the flak TVNZ had taken over the charter's implementation, but said TVNZ had been changed to reshape it "as a true public broadcaster".

"Being a good public broadcaster, a good charter broadcaster ... is a long and challenging road, and every now and then it's not a bad thing to have a kick in the bum. So we will take it as a kick in the bum."

Mr Fraser said that despite debate over the rapid changes in the news and current affairs services under Bill Ralston, ratings for One News had risen 2.4 per cent nationally within the target 25- to 55-year-old age group, and 10.4 per cent within Auckland for the same group.

Locally produced shows were 38 per cent of the programming broadcast on TVOne and TV2, the report showed.

This included reality shows such as Hot Auctions, the Rugby World Cup and the Olympic Games.

TVNZ chairman Craig Boyce said the network had a "stretch" target of 50 per cent local programming across both channels.

The report also revealed TVNZ had received 546 formal complaints from viewers - 209 on grounds of taste and decency - of which 64 were upheld.

The head of the Christchurch Polytechnic broadcasting school, Paul Norris, said that if TVNZ wanted to stop paying dividends, it had to prove it was worth it.

He said the broadcaster had done well at striking a balance between the charter and maintaining commercial viability.


Mr Fraser said if TVNZ did keep its dividend, the priority would be to increase local content and not reduce levels of advertising.

TVNZ has high advertising levels compared with other state-owned broadcasters.

Mr Fraser said he did not expect a quick decision, but it was "testing the minds" of ministers.

* The annual results for the CanWest-owned free-to-air channels TV3 and C4 are expected next week.