Government signals big changes for TVNZ

The Government is moving to set up TVNZ 7 as a public service broadcaster, leaving TV One and the other TVNZ channels to focus on making money.

Broadcasting Minister Jonathan Coleman has written to TVNZ chairman Sir John Anderson asking him to prepare a plan "demarcating" its commercial and public broadcasting roles and funding of public broadcasting.

Coleman yesterday confirmed his preference was to turn TVNZ 7 – and possibly TVNZ 6 – into public service-style channels.

"Everyone ... could be a lot happier if they had that clear view where you go in TVNZ to find public broadcasting content and where you can expect to find frankly nakedly commercial stuff," he said.

TVNZ's charter, which defined its public service obligations, will be scrapped soon and the Government is keen to make decisions on the future shape of public service broadcasting this year.

"My view was if we could get that demarcation ... once everyone has got access to digital television, which isn't too many years away, if you know that if you go to 7 or maybe 6 and 7 you can get what most people could describe as quality broadcasting content.

"Then if you flick to One and Two you get whatever they serve up ... it would bring some more honesty and clarity to the situation," Coleman said.

"The 7 schedule pretty much already fits that definition broadly."

He has asked the Culture and Heritage Ministry and Treasury's Crown Ownership Monitoring Unit to discuss the issue further with TVNZ.

He was yet to be given a "detailed formula" from TVNZ which is looking at ways to lift its profit by $30 million to $40m a year.

No more money would be available for state broadcasting, but there were options to fund public service broadcasting.

Ideally, the commercial arm would fund the public one, but that may not be realistic when commercial free-to-air channels were struggling to win advertising revenue.

"There are only so many ways you can squeeze the lemon."

It was important to set a realistic dividend level for TVNZ, he said. That could be used to fund public broadcasting, though that was a decision for Finance Minister Bill English.

Another option would be for TVNZ 7 to get a big slice of the $15m Platinum Fund, though that would remain open to competitive bids.

There were also possible synergies between Radio NZ, TVNZ 7's news and possibly Maori TV. Coleman was not planning a merger, but some news-gathering resources could be shared across a number of state broadcasters.

Australia's ABC public broadcaster had reporters gathering news for radio, television and its website.

The previous Government decided a full public broadcast channel was not viable.

"But it's a bit like asking an architect to design you a house," he said.

They can come back with anything from a three-bedroom, brick-and-tile state house through to an Italian villa and there's a lot in between," Coleman said.

Labour broadcasting spokesman Brendon Burns said the moves confirmed the Government was preparing to sell TVNZ "as we know it – One and Two".

A public-service channel could not be run on a slice of the $15m Platinum Fund, he said.

"This appears to be a face-saving measure."

The only reason TVNZ 7 and 6 could survive was because they were "connected to the mothership", Burns said.

- © Fairfax NZ News