‘Too many TV restraints’

Press, 18 February 1986, Page 36

‘Too many TV restraints’

PA Auckland Warrant-applicants for the third television channel face too many restraints, the Royal Commission on Broadcasting was told. Mr William Earl, chief executive of Southern Cross Television, one of the six applicants, said one restraint was a quota system for New Zealand programmes.

“A quota and points system proscribes how resources should be allocated.” Another restraint, he said, would be a levy on excess profit, for in the short term warrantholders would make no profit.

Mr Earl said a further restriction related to who

could invest in, or be the director of, a company applying for a warrant “We have no objections to these restraints on their own, but taken altogether, they are quite substantial.” He said the successful applicant would have little time to fulfil big obligations. Within three years of operation the third television channel is expected to broadcast over 90 per cent of the country and maintain a high percentage of New Zealand programming. “The first three years is a huge undertaking,” said Mr Earl. “No applicant can be expected to do everything right from the start”