Broadcasting inquiry called by Cabinet

Press, 6 September 1983, Page 1

Broadcasting inquiry called by Cabinet

PA Wellington A commission of inquiry will be set up to investigate recent allegations of financial malpractice in the Broadcasting Corporation.

The Prime Minister, Mr Muldoon, said yesterday that the Cabinet had decided to set up the inquiry. The terms of reference and personnel would be decided next week. The decision follows allegations in Parliament last week by the Opposition’s broadcasting spokesman, Mr J. L. Hunt, of financial mismanagement, especially in relation to contractural agreements with performers on the “That’s Country” music show. Mr Muldoon said there was “enough public disquiet” to warrant the inquiry. The corporation’s chairman, Mr lan Cross, said yesterday that he would welcome an inquiry, however broad. “They can go into every corner, every nook and every cranny. They will find it well-dusted, well-adminis-tered, and well-controlled,” said Mr Cross. Mr Muldoon said he expected the inquiry, which was supported by the Minister of Broadcasting, Dr Shearer, to take several months.

“The general feeling in Cabinet was that sufficient questions have been raised to make this desirable, and indeed some of the people who have been named have approached the Minister and said that they wish to see some kind of inquiry, if only to clear their name. “It won’t be confined to television. It will be the B.C.N.Z. in its various ramifications, but particularly into this form of remuneration by way of a contract and the aspects that have been raised, he said. The reason for setting up a full commission of inquiry was to ensure the investigators had the power to subpoena anyone they wished to give evidence on oath, he said. Mr Cross said after a meeting with Dr Shearer that he did not think the move was necessary, • but “we would welcome an inquiry as a contribution to our own procedures and practices and clearly that would be one way of clearing the matter up in the public’s mind.” Mr Hunt says he is de-

lighted that the Government has agreed to his call for the inquiry into broadcasting, and he hopes he will be consulted about the terms of reference. “It is important those terms of reference are wide enough to get to the root of the problem,” said Mr Hunt last evening. “The inquiry I requested was to cover all aspects of the financial management of the corporation. That includes revenue and the sale of advertising. “The announcement by the Prime Minister seems to indicate that he has forgotten the range of the inquiry I proposed. “I shall, of course, be happy to provide all information in my possession to the inquiry. I have provided it already to the corporation,” he said. Mr Hunt said that he would be happy to appear before the inquiry if asked. “It should be a commission of three persons, one with a legal background, one with accounting knowledge, and one with experience in broadcasting,” said Mr Hunt.