10. Hon GEORGINA TE HEUHEU (National) Link to this
to the Minister of Broadcasting
Is he satisfied that Television New Zealand is able to strike a successful balance between its charter responsibilities and commercial success; if so, why?
Hon Dr MICHAEL CULLEN (Leader of the House) Link to this
Yes, the report tabled yesterday showed solid achievement against both the charter and commercial objectives.
Hon Georgina te Heuheu Link to this
Does he consider it acceptable that Television New Zealand has reduced its dividend to the taxpayer by $27 million—a third of its previous dividend—prompting chairman Craig Boyce’s warning that TVNZ will be forced into a period of “cost control”, including cutting the number of locally made programmes; if so, is that the best the New Zealand taxpayer can expect—reduced dividends and reduced local programming, not to mention excessive salaries?
Hon Dr MICHAEL CULLEN Link to this
My understanding in terms of the financial outcome, and that affects the dividend of course, is that a substantial write-down was taken on the value of the existing broadcast programming stock. On the other matters, I am sure my colleague the Minister of Finance will be quite pleased to hear that cost-control mechanisms are being put in place. I note that yet again the National Party is calling for increased Government spending, while at the same time calling for tax cuts.
Lynne PillayHon Dr MICHAEL CULLEN Link to this
TVNZ has survived in an extraordinarily competitive environment. It has continued to produce a profit. As I said, this year it has taken a substantial one-off write-down on its profits. It continues to produce a large number of New Zealand programmes. It maintains by far the largest share of audience, with over 80 percent of all New Zealanders watching TVNZ in any one week.
Pita ParaoneGiven the Minister’s negative response to New Zealand First’s call for a full inquiry, during oral questions last Tuesday, and the subsequent decision by the Finance and Expenditure Committee to conduct such a review, will he now ensure that the terms of reference will not include consideration for the sale of TVNZ to private interests, plus ensuring the New Zealand public will not be subjected to more reality TV-type programmes; if not, why not?
Madam SPEAKERThe Minister has no responsibility for that particular matter. I will enable the member, if he wishes, until I get objection, to consider rephrasing his question to bring it within the scope.
Given the Minister’s negative response to New Zealand First’s call for an inquiry, during oral questions last Tuesday, would the Minister give consideration to supporting the notion of not including in the terms of reference the possible sale of TVNZ to private enterprise?
Hon Dr MICHAEL CULLEN Link to this
The terms of reference are a matter for the select committee. Whatever the committee recommends, the Government will not be selling TVNZ.
Hon Georgina te Heuheu Link to this
If the charter has been so successful, why did the number of hours of New Zealand – made drama screened by TVNZ almost halve in the last financial year, and does that not demonstrate that for TVNZ to be commercially successful it will inevitably have to cut corners on charter programming?
Hon Dr MICHAEL CULLEN Link to this
No. Drama is, of course, by far the most expensive form of television to produce. Therefore, TVNZ to a substantial extent is dependent upon external funding for the production of more drama programmes. The member is therefore, of course, calling for more Government funding for Television New Zealand.
Hon Georgina te Heuheu Link to this
How does the Minister explain why, in the last year, TVNZ has increased the number of people earning more than $100,000, from 124 to 132, and the number of staff earning over $500,000, from two to three, yet in the very same year has delivered a reduced dividend to the taxpayer?
Hon Dr MICHAEL CULLEN Link to this
It would not be unknown, certainly in the private sector, for there to be some salary increases without necessarily profits rising. But as I said to the member before, the dividend part is a result of the fact that the company took a large write-down of its existing broadcast stock.
Hon Georgina te Heuheu Link to this
What evidence is there to demonstrate that paying people like Ian Fraser more than $600,000 a year and Susan Wood $450,000 a year has done anything to improve either the commercial or charter outcomes of TVNZ; if there is no evidence, what does the Minister intend to do about the “culture of extravagance” that our public broadcaster appears to love to wallow in?
Hon Dr MICHAEL CULLEN Link to this
Those kinds of salaries are not, unfortunately, out of line with large media organisations in many countries. But those are employment matters for the board to deal with. I am sure that if the Government were to intervene directly and say that certain salaries should or should not be paid, then the Opposition members would be the first to cry foul.