TVNZ welcomes $10m, wanted more

By LOUISA CLEAVE

The Government will give TVNZ a $10.5 million cash injection towards charter programming.

TVNZ has already earmarked how it will spend the money, including a portion towards a multi-million-dollar New Zealand history series.

The grant of $12 million (including GST) was announced yesterday by broadcasting minister Marian Hobbs.

An extra $6 million will go to New Zealand On Air, adding up to $18 million more for television programmes in the next financial year.

NZ On Air chief executive Jo Tyndall said the money came as a relief and would secure the current levels of local content.

TVNZ's hand-out comes up short of what the broadcaster has said it would need to implement the charter.

TVNZ board chairman Ross Armstrong has in the past hoped for an extra $50 million to pay for charter programming. The company had put the minimum figure at $20 million.

He had suggested directing the majority of NZ On Air's budget into funding the charter.

But TVNZ's new chief executive, Ian Fraser, said he was "delighted" with the extra money, while pointing out that the final amount would be minus GST of $1.5 million.

Mr Fraser said the money would be spent on children's programming, news and current affairs and documentaries.

He said the money would help TVNZ meet a financial commitment it has to the History of New Zealand series.

"We're obviously looking for a substantial commitment from NZ On Air and those negotiations are virtually complete. But TVNZ has pledged a major investment in that series ... and that is an important thing to be able to give the green light to."

Mr Fraser said a number of children's programming initiatives would also be "attacked with urgency".

He said TVNZ and the Government were still negotiating whether the broadcaster would keep all of its future profits or continue to pay a dividend.

The last dividend of $4.7 million, for the six months to December 31, was down on the previous year's $17.1 million.

Mr Fraser said he would be surprised if the Government would expect a dividend after yesterday's $12 million grant.

"I'd be really surprised if there was an expectation that TVNZ should continue to deliver any kind of substantial dividend."