TVNZ budget under pressure?

Press, 6 October 1988, Page 13

TVNZ budget under pressure?

PA Wellington Television New Zealand is facing a financial crisis, with advertising revenue this year likely to fall $l3 million short of projected figures, the “Evening Post” reports. Sources say the deficit has led to TVNZ directives to halt production of many local programmes as producers radically trim 1988 budgets and try to make them stretch until March next year. One reason for TVNZ’s drop in revenue is understood to be the October 1987 stockmarket crash and subsequent economic downturn. Cuts have also been

made necessary because of TVNZ’s advance purchases of overseas programmes in an attempt to head off the third channel, the Post said. Sixteen million dollars worth of these programmes are said to have been bought though few are likely to screen on TVNZ until TV3 goes to air late next year. TVNZ’s employees are concerned about job security with many staff fearing contracts will not be renewed and salaried staff now have little work to do until March. The Post said TVNZ had informed staff those who spoke out publicly about the cuts were likely to lose their jobs.

Events at TVNZ’s Avalon production centre during recent months had shown more drastic costcutting measures than indicated in statements made earlier this year by TVNZ director-general Mr Julian Mounter. TVNZ’s documentary unit has been absorbed into the features department, with former documentary head Michael Scott-Smith as executive producer. A number of documentary and feature projects have been canned including the “Explorers” series. The “Evening Post” said Avalon staff, already uncertain about their jobs following TVNZ decisions

to shift transmission and administrative staff to Auckland, were convinced Avalon's future as a production centre was threatened. TVNZ’s production facilities were becoming increasingly concentrated in Auckland. Competition there between television channels was expected to be intense once broadcasting was deregulated, the paper reported. However, TVNZ’s cuts in local production were considered to be ultimately very damaging for the channel. Overseas experience indicated locally produced programmes were where the main ratings victories were won, the report concluded.