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Broadcasting and Civil Society
The Restructuring of the Late 1980s
Main Developments of the 1990s
See also: related press release (includes pdf version of this paper)
1. This paper presents a stock-take of the broadcasting sector in 2003. It has been developed in order to ensure that discussions about the future of broadcasting are based on common understandings of the general history and the current state of play in broadcasting as well as of the principles that underpin future development of the sector.
2. Since 2000, the government has argued that the realistic broadcasting environment for this country is a mixed economy with both commercial and public aspects. While working to achieve an environment in which commercial operators can flourish, a new priority has been given to public broadcasting principles, objectives and institutions and to the needs of New Zealand's diverse population as they might be met in the broadcasting sector.
3. Now that an overall direction has been set, it is time to take a closer look at how best to navigate a way forward. Where is broadcasting in New Zealand now? And, in a fast changing world, what factors might need to be addressed to ensure that the broadcasting environment in New Zealand is capable of supporting the aspirations of our society?
4. In democracies, government is generally held to have a role in promoting and protecting the core values of civil society. Such values include citizenship, autonomy/liberty, democracy, rule of law, human rights, equality, pluralism, and cultural identity, and are captured in, for example, the Universal Declaration of Human Rights. Specific to New Zealand, the Treaty of Waitangi and the principles it embodies give these values a distinctive context and meaning.
5. New Zealand has ratified all core international human rights instruments and aims for a system of government that produces worthwhile outcomes for all its citizens. The values are also embodied in the government's stated goals:
6. Government's reasons for involvement in the broadcasting sector are, at a general level, the same as those that motivate and justify its involvement in other sectors. The power and pervasiveness of broadcasting as a form of communication and shared experience means that broadcast media play an especially significant role in the functioning of civil society, and can either promote or undermine its core values and goods. The government has previously expressed its broad, desired outcomes for broadcasting in New Zealand in terms of just such values – e.g. cultural identity and democratic citizenship, within a mixed economy.
7. Consideration of basic values may justify normative principles applying to practice in the broadcasting sector. Some of these principles may also apply to other sectors, such as health, education, employment, or fiscal policy. Some of these may be common, while others will be specific to public and/or private broadcasting.
8. Although there is some variation in their expression, there is broad consensus internationally, both at a governmental and academic level as well as more generally within the sector, on a core set of fundamental principles for public broadcasters. These can be summarised as:
9. Public broadcasting must be both technically receivable and socially/culturally accessible to all citizens. It addresses the entire population and seeks to be "used" by as many people as possible. This does not imply the maximisation of ratings on a commercial model, but popularity in the sense that it provides a public forum for everyone in reflecting and catering for the full range of social and cultural interests. Public broadcasting should have universal appeal, and should provide programming across a wide range of genres to meet a wide range of needs (e.g. to “educate, inform, entertain”).
10. Diversity and universality are complementary principles. In terms of the genres of programmes offered, the audiences targeted, and the subjects discussed, public broadcasting should reflect the diversity of public interests, and address the whole public through the range and diversity of programmes and of the subjects addressed.
11. Public broadcasting should provide a credible forum where ideas are expressed freely, and where information is available, where debate occurs, and where quality is valued and creativity fostered. This is most likely to be achieved where public broadcasters are not dominated by commercial pressures or subject to political influence, and where they are enabled to act in the public interest.
12. Public broadcasting strives for efficiency as demonstrated by provision of quality services in terms of individual programmes, channel schedules, and the total range of services offered by public broadcasters rather than efficiency understood simply in terms of commercial considerations. Delivery of quality services to an audience, as distinct from delivery of an audience to a broadcaster, may require the independence of public broadcasting institutions from commercial imperatives.
13. The argument for public broadcasting institutions is that they can best embody the principles of universality, diversity, quality, and independence and thereby protect and promote the capability for and functioning of core values, such as democracy and cultural identity, in ways which private/commercial broadcasters are unable or unlikely to provide.
14. As private enterprises, private broadcasters operate in the market in essentially the same way as other businesses, and are free to select and pursue their own commercial goals within the law. The principles governing practice in this sector of the market economy are largely generic with those in other commercial sectors, and include independence (liberty), property rights, profit, market efficiency/competition, and so on. Private broadcasting may promote, protect, and embody core values in civil society, in much the same general manner as may private/commercial activity. Private/commercial broadcasting may result in types of desired programming, efficiency benchmarks, and industry development that would otherwise not exist.
15. It is important to recognise the differences and areas of tension between the principles underpinning public and private broadcasting, but equally that there are areas of intersection.. Both sets of principles have a place in promoting and protecting the core values of civil society. In setting policies for the broadcasting sector different prominence can be given to these principles. For example, prior to the restructuring of the late 1980s, the balance in New Zealand was very much in favour of public broadcasting principles, while it tended to be towards private broadcasting principles during the 1990s. The government recognises that the broadcasting sector as a whole can function most effectively for citizens if there is a balance of public and private principles within a mixed economy.
16. Prior to the restructuring of the broadcasting sector which commenced in the late 1980s, government ownership and regulation of broadcasters were predominant characteristics of the New Zealand broadcasting sector. In 1969, the New Zealand Broadcasting Authority was established, primarily to consider applications for private radio licences and monitor standards. In 1973 a Committee on Broadcasting made proposals for restructuring the sector, including a second publicly owned television channel. The two publicly owned channels operated as independent corporations supervised by the Broadcasting Council of New Zealand. The Broadcasting Act 1976 established the Broadcasting Corporation of New Zealand (BCNZ) as the state-owned broadcaster, incorporating both television and radio services, and pursuing a mix of commercial and non-commercial objectives. It also established the Broadcasting Tribunal which, among other functions, considered applications for private radio and television licences. In 1979 the two television channels were amalgamated as Television New Zealand. A Royal Commission of Inquiry reported in 1986 on a number of issues concerning broadcasting and related telecommunications. Prior to the restructuring of the late 1980s and 1990s, 34 of the 64 radio stations broadcasting separate programmes were owned by RNZ. In 1987, TV3 was warranted as a private broadcaster by the Broadcasting Tribunal and was required, among other things, to screen 27-30% locally produced programming.
17. In 1988, the government embarked upon a series of legislative, regulatory, and institutional changes intended to improve economic efficiency in the broadcasting sector. The BCNZ was restructured as two separate state-owned enterprises - TVNZ and RNZ - which were required to return a profit. Transmission assets intended to be transferred to TVNZ were passed to its transmission subsidiary, BCL (incorporated in 1989). Responsibility for broadcasting policy advice was transferred to the Department of Trade and Industry. Deregulatory measures to promote competition across the sector and reduce restrictions on foreign ownership were also adopted. A regime to maintain broadcasting standards was established, and a set of local content objectives adopted and supported by a contestable grants scheme.
18. Key legislative elements of the restructuring were:
19. The restructuring of the late 1980s formed the basis for the development of broadcasting in New Zealand throughout the 1990s. Key developments during the period included:
20.Operating in one of the world's most deregulated regimes and designed to concentrate on the promotion of market efficiency, the 1990s was a decade of rapid and dramatic transformation in the broadcasting sector. The nature of the legislative, regulatory, and institutional changes of the late 1980s, and the resulting changes in the shape of the broadcasting sector, have been unusual from an international perspective. One of the most significant shifts, and one of the areas of greatest contrasts with other countries, has been in the status of public broadcasting principles and institutions. Most other comparable countries, even in opening the sector to private commercial broadcasting services, have been concerned to promote public broadcasting principles and objectives through the maintenance of strong and independent public broadcasting institutions. By contrast, while RNZ is a stand alone non-commercial service with a public broadcasting mandate, government's role in the pursuit of social objectives in television broadcasting was restricted primarily to that of a programme purchasing agent which treated broadcasters and programme makers, whether "public" or private, equally, without significant differences in purpose or remit.
21. After a decade in which the direction and development of broadcasting has largely been driven by the commercial priorities introduced by the restructuring of the late 1980s, this government has re-claimed a significant role in broadcasting. In 2000, the government adopted an extensive work programme on broadcasting issues. The government has given a renewed priority to the role of broadcasting in national culture and identity, and in the promotion of a well informed participatory democracy, including encouragement of a diversity of sources of information. A number of significant changes have already been put in place, rebalancing the place within the mixed economy of public broadcasting principles, objectives, and institutions.
22. In July 2000, the government formulated a set of objectives to guide the development of the government's broadcasting policies to ensure that desired kinds of broadcast content are available to the New Zealand public. The objectives have guided subsequent decisions, such as the reorientation of the direction of TVNZ, and the allocation of non-commercial spectrum. These objectives are:
23. The government's Growth and Innovation Framework identifies information and communication technology and the creative industries as priority areas of government focus to encourage economic growth. The government's general economic development objectives for the broadcasting sector include:
24.There are currently five free-to-air terrestrial networks. Two are run by the publicly owned TVNZ, and three are owned by private interests, as are the pay channels of Sky television and the smaller, regional channels.
25. The development by government of objectives for broadcast content have been key elements in the re-assertion of a "mixed economy" approach to broadcasting. One of the most significant items informed by these objectives was the development of a Charter for Television New Zealand and the transformation of Television New Zealand from a State-owned enterprise to a Crown company with public service objectives. The Television New Zealand Act 2003 requires TVNZ to keep a balance between giving effect to public broadcasting objectives and maintaining its commercial performance, and separates THL from TVNZ. At the same time, government and the public are in a new accountability relationship with TVNZ. Giving Television New Zealand a Charter explicitly embodying a public service mandate for TVNZ, and requiring public consultation, changes not only the nature of the publicly owned television company, but also more generally the broadcasting landscape as a whole. The government has acknowledged this change in recent funding decisions, by granting direct funding to TVNZ for Charter purposes, including in areas for which NZ On Air funding is not normally available, such as the purchase of overseas programmes, or expenditure unrelated to individual programmes.
26 The current radio broadcasting sector consists of the public radio service, RNZ; two major private owners of radio networks; other private stations; a publicly funded pilot Pacific radio service, Niu FM; a series of non-profit community stations; and a network of 25 iwi radio stations throughout the country.
27. The transition of National Radio to FM is now underway, using the additional FM spectrum which had been reserved for this purpose in the upper FM band. In 2000, National Radio and Concert FM also began to be carried by the Sky Digital satellite. RNZ gains the bulk of its revenue from Vote funding, via NZ On Air, and this amount has been increased significantly in order to maintain and enhance its services and to fund the migration of National Radio to FM. Funding for Radio New Zealand International has been transferred from the Ministry of Foreign Affairs and Trade to the Ministry for Culture and Heritage. In 2000, the Commerce Select Committee undertook the first 5-yearly review of the RNZ Charter, and following the recommendations of the Committee the government introduced the RNZ Amendment Bill proposing minor changes to enhance the Charter requirements, reporting and public consultation, and recognition of the importance of Radio New Zealand International as a component of RNZ.
28. In 2000, responsibility for Māori broadcasting policy advice, and agencies, was transferred from the Ministry of Economic Development to Te Puni Kōkiri. In June 2000 the Government confirmed that the following key issues in Māori broadcasting were priorities requiring further consideration:
A Māori Broadcasting Advisory Committee (MBAC) was established to consult with a range of interested parties, including Māori broadcasters and language experts, and report to the Minister on these issues.
29. In mid 2001, the government announced the establishment of a Māori Television Service. The Service will provide a dedicated channel to broadcast Māori programmes. The principal function of the Service is: “to promote Māori language and culture through the provision of a high quality, cost-effective Māori television service, in both Māori and English, that informs, educates, and entertains a broad viewing audience, and in doing so, enriches New Zealand's society, culture and heritage.” The Māori Television Service Act was passed in 2003.
30.In 2001, the government confirmed Māori radio as one of the four priority programmes for the promotion of Māori language and culture, reserving a network of frequencies capable of a coverage level of up to 92% of the population (with priority given to population centres with a high proportion of Māori). The government worked closely with Te Māngai Pāho and Te Whakaruruhau in the early part of 2002 to develop preliminary proposals for a Māori National Radio Network, in addition to the existing iwi radio stations.
31. In order to provide a framework for establishing priorities, the following drivers and objectives were developed:
Drivers
Objectives
32. The government has previously reserved radio and television spectrum throughout the country for use by local and regional non-commercial broadcasters. There has been significant uptake of licences for non-commercial and iwi radio, and there are a small number of non-commercial television services. The current availability of FM spectrum is limited, and demand for additional spectrum in the new upper FM band is not limited to services of this nature. In addition to the non-commercial television stations, there are a number of small regional stations broadcasting on commercially acquired spectrum. There is increasing demand from such services for funding and for spectrum.
33.In 2001 the government undertook a survey of Pacific People's broadcasting on radio and television in New Zealand. Following that survey, the government decided to fund a 4-year pilot Pacific radio network for New Zealand, Niu FM, and reserved a nationwide network of frequencies in the upper FM band capable of eventually providing coverage of approximately 85% of New Zealand's population. Pacific People's programming on the national television networks remains limited, with some additional programming broadcast by community broadcasters. Other radio services include Radio 531PI in Auckland, Capital Samoan Radio in Wellington, a number of regionally broadcast programmes, and Radio Samoa's Auckland-based commercial service.
34. Digital television is currently broadcast in New Zealand by Sky on a satellite platform in the DVB standard, which also rebroadcasts some radio services. Apart from trial digital television broadcasts in Auckland on BCL's terrestrial platform, other television services, as well as digital audio broadcasting services, have yet to be established. The government has taken a series of decisions intended to foster the development of digital television services by assisting public broadcasters to plan, supporting industry efforts to develop viable economic models for digital television, and facilitating timely investment in digital technology by ensuring suitable spectrum and networks are available. These decisions include:
35. Currently, the only DAB services available to New Zealand listeners consist in the digital simulcast of radio programmes on the Sky's digital satellite platforms broadcast in DVB format (National Radio, Concert FM, Niu FM, George FM, Channel Z, Tahu FM and UP FM) which can be selected as part of a package of digital services or as an additional service. Reception requires a satellite dish and rental of a Sky television set-top box or access to other suitable generic reception equipment. There are currently no terrestrially broadcast DAB services, or services operating on mixed platforms, in New Zealand.[1] The Ministry of Economic Development established some preliminary spectrum related policies in 2001, planning the 1461.50 – 1490.00 MHz band (1.4 GHz) for DAB services in New Zealand. Presently a moratorium has been placed over allocation of this spectrum, limiting use of spectrum, while allowing testing of services to be undertaken in the interim.
36.Telecom NZ has recently announced plans to distribute television services in digital format over its broadband network, which can commence without alteration to current government policy. The Ministry of Education and the Ministry of Economic Development's project PROBE aims to extend broadband internet access to schools and regions, bringing with it new capacities for the use of convergent digital technologies.
37. Although compulsory quotas are widespread internationally, a range of factors, including New Zealand's international trade commitments, restrict the scope for such an approach. Voluntary targets have been formulated here and self-regulated by predominantly industry groups. The Radio Broadcasters Association's local music code adopted by radio broadcasters has resulted in broadcasters collectively exceeding their scheduled targets. The Television Local Content Group for television has only recently formed and has adopted its first set of targets.
38.Spectrum management, licence allocations, and the use of frequencies for broadcasting are regulated in terms of the Radiocommunications Act, and administered by the Ministry of Economic Development. The market-based allocation of commercial spectrum rights, without content-related licence conditions or consideration of the "best" candidates, limits the scope for governments to determine the "ideal" broadcasting mix. This contrasts with the "beauty contest" approach adopted in some other countries for the provision of commercial services, and with the approach taken in this country in respect of licences which have been reserved for the promotion of Māori language and culture, non-commercial and community access broadcasting, and other specific purposes. The use of licences for non-commercial community and access broadcasting, and Pacific People's broadcasting, is monitored by the Ministry for Culture and Heritage, and for Māori broadcasting by Te Puni Kōkiri. Recently, additional FM frequencies were reserved in the upper FM band for the use of National Radio, Concert FM, Māori radio, and Pacific People's radio networks. Now that Concert FM will not migrate to the upper FM band, frequencies previously reserved for that purpose have now been set aside for a possible Youth Radio service pending future decisions.
39. Responsibility for advice on the BSA and ASA was transferred from the Ministry of Economic Development to the Ministry for Culture and Heritage in 2000. Beyond the enforcement of licence conditions for non-commercial broadcasters and technical parameters for all broadcasters, governments since the late 1980s have shown a preference for industry self-regulation (though on the basis of statutory provisions in the case of standards). Broadcast programme and advertising content standards are regulated via industry codes by the Broadcasting Standards Authority and the non-statutory Advertising Standards Authority. Historically there has been an emphasis on the complaints and enforcement roles of the regulatory agencies. There is also provision for the BSA to fulfil an educational function in relation to standards.
40. Public funding for the delivery of broadcasting in the 2003 Budget appropriations amounts to $184,865,000, of which $152,303,000 is provided to NZ On Air and Te Māngai Pāho, with the bulk being distributed on a largely contestable basis. The remainder is a direct subsidy provided either via the Ministry for Culture and Heritage in the case of TVNZ, by NZ On Air in the case of RNZ, or Te Puni Kōkiri in the case of MTS. Private revenue for broadcasting primarily comes from advertising - or subscription in the case of pay television. Advertising provides the bulk of the income for New Zealand's commercial radio industry, and for the purchase or production of programmes by television broadcasters, including TVNZ. As of 30 June 2002 it provided approximately 74.5 percentof TVNZ's television business.
41. The subsidy of broadcast content is now delivered through a combination of direct and arm's length mechanisms. The bulk of subsidised programmes on the main free-to-air channels continues to be funded on a contestable basis by NZ On Air and Te Māngai Pāho, but TVNZ now also receives funding directly via the Ministry for Culture and Heritage for a portion of its Charter-related expenditure. RNZ is bulk-funded for its two domestic networks through a contract with NZ On Air, in accordance with a ministerial directive. Culture and Heritage provides commentary on the levels of this funding, and also directly funds Radio New Zealand International. Niu FM, the pilot Pacific radio network, is also directly funded by Culture and Heritage. Te Māngai Pāho (TMP) was established under a 1993 amendment to the Broadcasting Act to promote Māori language and Māori culture by making funds available, on such terms and conditions as TMP think fit, for broadcasting and the production of programmes to be broadcast. Where as programming funding for Māori television is disbursed through TMP, Te Puni Kōkiri directly funds the operations of MTS.
| Vote Arts, Culture & Heritage | $ |
| NZ On Air (From Vote. Also has other funding sources) | 101,855,000 |
| Budgeted expenditure (SOI 2003/4): | |
|
Television funding $67,837,500 |
|
Radio funding (incl 28,059,750 for RNZ) $31,095,000 |
|
NZ Music $4,387,500 |
|
Archiving $1,237,500 |
|
Transmission(incl 1,293,750 to be transferred to TVNZ) $1,395,000 |
|
Operating expenditure $2,756,250 |
|
|
Total $108,708,750 |
|
| TVNZ (Charter) | 15,000,000 |
| Radio New Zealand International | 1,716,000 |
| NiuFM | 2,086,000 |
| Broadcasting Standards Authority | 685,000 |
|
Total from Vote |
121,342,000 |
| Vote Māori Affairs | |
| Te Māngai Pāho: | |
|
37,983,000 |
|
10,575,000 |
|
1,890,000 |
| Māori Television Service (operational funding) | 12,980,000 |
| Te Putahi Paoho (Māori Television Electoral College) | 95,000 |
Total from Vote |
63,523,000 |
| Total Appropriations For Delivery Of Broadcasting | 184,865,000 |
All figures are inclusive of GST.
42. At the government level, the funding and regulation of broadcasting, and the development of broadcasting policy, are divided among several Ministerial portfolios, departments and agencies. Advice on the non-commercial allocation of spectrum and on other non-commercial broadcasting matters falls to Culture and Heritage. The latter Ministry also monitors and funds NZ On Air, and the Broadcasting Standards Authority. Te Puni Kōkiri is responsible for monitoring Te Māngai Pāho and the Māori Television Service, and provides policy advice on the reservation of radio spectrum to promote Māori language and culture, the allocation of spectrum reserved for that purpose, and monitoring of compliance regarding the use of that spectrum. Other broadcasting policy issues, and the allocation and management of spectrum, are the responsibility of the Ministry of Economic Development. The Crown Company Monitoring Advisory Unit and the Treasury advise the shareholding ministers on the performance of the public broadcasters in maintaining and enhancing their delivery of goods and services, whereas Charter performance is monitored by the Ministry for Culture and Heritage in the case of TVNZ, and by NZ On Air in the case of Radio New Zealand (RNZ).
43. Globalisation and technological advances mean that the development of broadcasting in many countries is being shaped by broadly similar factors. Although some jurisdictions may historically have given public broadcasting principles, objectives and institutions a stronger and more central place within the sector than has New Zealand over recent decades, internationally the basic questions being asked are nevertheless the same: What are the current expectations for public and private broadcasting? How well are these expectations being met now? How might these expectations change, and how might they be met, in the future?
44. Beginning the process of thinking about how best to adapt to the developing environment requires to be informed by an understanding of the factors in our own current situation that may influence future change. These factors include:
45. Over the last three years there has been a re-balancing within the broadcasting sector to reflect a more even mix of public and private broadcasting principles, objectives, and interest. It is important to the government that the development of this balance be maintained in what can be expected to be an ever changing environment in the years to come. Given the current context, and what we know of the foreseeable future, it is timely to take stock and assess the factors which may need to be addressed to ensure that the broadcasting environment is capable of supporting an effective and sustainable mixed broadcasting sector.
[1] Digital Audio services are also available via the Internet, although it is questionable how many, if any, of these services qualify as broadcasts under the terms of the Broadcasting Act.
