TVNZ cuts news to save $5m

TVNZ bosses are set to hack $5 million off the news and current affairs budget, affecting up to 75 jobs, as they try to return the state broadcaster to profitability.

The cuts would slice 12.5 per cent from the $40m news and current affairs budget as part of a push to boost overall profit by $40m.

Sources said staff had been told changes would include downgrading the Wellington and Christchurch bureaus and centralising control in Auckland.

Broadcasting Minister Jonathan Coleman said the measures were an operational matter, so it would be inappropriate for him to comment. He would not say whether he had been briefed.

Labour broadcasting spokesman Brendon Burns said the latest cuts pointed to the Government preparing the company for sale. "It raises questions about TVNZ's future viability if we see more job cuts."

Dr Coleman has said he favours establishing TVNZ 7 as a public broadcaster, leaving TV One and TV2 as commercial operations.

News and current affairs head Anthony Flannery told managers in February that "some jobs will be lost ... and many more will be impacted" as the company sought cost efficiencies and more multi-skilling of staff. Spokeswoman Megan Richards said in February that the exercise was different from early last year when the company shed 80 jobs to cut costs by $25m.

TVNZ made a profit before interest and tax of $10.1m last year. That shrank to $2.1m after tax, interest and restructuring costs.

- © Fairfax NZ News