Government gets its dividend after TVNZ cuts staff and posts a loss
Posted by: Brendon Burns, in Media ReleaseTVNZ’s latest financial results are constructed around ensuring the Government gets a dividend at any cost, says Labour’s broadcasting spokesman Brendon Burns.
Brendon Burns says TVNZ has focused its own reporting of results in the year to June 30 on the Government’s dividend of $4.87m, up from $1.47m on the previous year.
“While delivering any improved results in a tough recession has to be acknowledged, TVNZ did so after cutting more than 80 staff last year which carried into the latest results and contribute to it reporting an after-tax loss of $26m.
“Yes, the losses reflected non-cash adjustments to reflect progamme stock expenses and new tax depreciation rules, but they are still have to be carried by TVNZ. Meantime, revenue was down $14.1m,” Brendon Burns said.
“Given those losses and the fact that more staff are being shed this financial year, when will the Government recognise that this is not a sustainable strategy?
“TVNZ is answering its master’s call for dividends but Broadcasting Minister Jonathan Coleman is becoming an emperor with no clothes,” Brendon Burns said.
“He refuses to consider a review of broadcasting competition rules which compound the recession’s impact on TVNZ and other free-to-air broadcasters. Meantime, the pay broadcaster Sky, which benefits from the ’no rules’ environment, reported an after-tax profit last week of $103m.”
Brendon Burns says the Government’s agenda is to strip staffing and costs from TVNZ and make it more attractive for sale as soon as possible if it managed to gain a second term in government.


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