‘Disaster’ warning on open broadcasting

Press, 2 August 1985, Page 4

‘Disaster’ warning on open broadcasting

PA Auckland Society would face “disaster and calamity” if broadcasting became open slather under private enterprise, said the Broadcasting Corporation’s chairman, Mr Hugh Rennie, yesterday. Mr Rennie made the comment on the first day of hearings by the Royal Commission on Broadcasting and Related Telecommunications in Auckland. Under cross-examination from Dr Brian Edwards, representing Southern Cross Television, Mr Rennie said that New Zealanders over the years had grouped together and provided a broadcasting system which had to meet severe tests. “It would be a disaster and a calamity for society if those achievements over many years were discarded in favour of some sort of open-slather private enterprise operation,” Mr Rennie said. “But there is a place, in

association with the corporation’s work, for private enterprise broadcasting, which provides additional services, diversity and some valuable competitive elements.” Mr Rennie rejected repeated assertions by Dr Edwards that the corporation sought an unfair advantage over its competitors in respect to regulation of its broadcasts, permanent warrants, local content obligations and finance from licence fees. Mr Rennie said the corporation was a statutory body which had certain obligations in relation to local content and catering for the needs of areas where it was not profitable. The corporation was not in the business of cornering the market in order to force others out of business. “If it did there are private radio stations in Auckland today that would not be broadcasting.”

In his written submission, Mr Rennie said the corporation believed its independence would be enhanced if the existing powers of Ministerial direction were reduced, while the requirement for the corporation to have regard to the policy of the Government continued. The corporation’s achievements were the result of many years of effort to make the most of the quality and diversity of services. Mr Rennie said the public’s expectation of its broadcasting services had always exceeded the country’s ability to provide them. The implications of a financial and competitive pressure on the corporation were serious, to the extent that if its advertising revenue came under greater pressure the corporation’s performance would fall short of what it regarded as its statutory responsibilities.