-
Radio New Zealand - Source: ONE News -
Watch Video
-
Related
The radio station owned by taxpayers and listened to by hundreds
of thousands of New Zealanders is heading for a major showdown with
the government.
ONE News can reveal the chairwoman and board members of Radio New
Zealand could face the sack, if they continue to defy requests to
cut costs.
Radio New Zealand's programmes have made broadcasters like Sean Plunket and Kim Hill into household names.
RNZ costs taxpayers about $38 million a year, but its funding is frozen and may remain so for five years.
Broadcasting Minister Jonathan Coleman says he cannot see any increases in the funding in the foreseeable future.
"I have asked the chair of the board to come back to me with a plan for how Radio New Zealand is going to sustain its services," says Coleman.
ONE News understands RNZ has been asked to consider radical moves such as vacating its Auckland building and getting commercial sponsorship for its classical station Concert FM.
But official documents show the RNZ board is resisting change and they also show Coleman and his officials warning board members should comply or face the sack.
The briefing of the minister's meeting with RNZ reads: "Members of boards who are not able or prepared to meet these expectations might need to move on and be replaced by members who can."
Coleman says no one wishes the issue to get to that point.
"But I have made my expectation clear on behalf of the
government and the board now needs to come to the party."
ONE News understands cost cutting options RNZ has already
considered include going back to an AM frequency for most of the
country and retaining the FM frequency in Auckland alone.
That would save about $750,000 a year.
It's also looking at scrapping its entire $200,000 advertising budget.
RNZ board chair Christine Grice has told the government that cost cutting would be damaging.
"This would result in dumbing down our service and duplication of the commercial sector's populist model," - that was RNZ's response to Coleman.
The government clearly believes the board just is not getting the message.
"We're really looking for a change in mindset that acknowledges the reality of that fiscal environment," says Coleman.
What that really means for RNZ is find some more savings or find a new job.
Grice has not yet made a public statement but RNZ it has a case against the government's demands.
They say back in 2007, a major review found that the organisation was 20% under-funded and that they were operating efficiently despite that.
RNZ say they cannot make any more savings without hurting the credibility of the organisation.
They also say they have already made savings by cutting their travel budget back.
In fact, ONE News has been told that for the first time since 1960, no one from the RNZ team will be heading over to India to cover the Commonwealth Games this year being held in New Delhi.
But it seems the government does not want RNZ to slice bits and pieces here and there of their budget, rather they are seeking a radical revamp of the whole way RNZ operate.
On Thursday, RNZ board and management will be before a select committee at parliament - a tense session is expected.
