RELEASE OF ORD MINNETT SCOPING REPORT OF TVNZ

As indicated last week, the Government released today, under the Official Information Act, the Ord Minnett scoping report of TVNZ.

"The tenor of the Ord Minnett report is the risk of ongoing public ownership of TVNZ in the face of increasing competition, rapid technological change, and the paucity of links with global media firms to buy programming rights," said State Owned Enterprises Minister Tony Ryall.

"As I made clear last week, we will continue to monitor these developments in the television industry, but the Government has no plans to sell TVNZ.

"The Ord Minnett report identifies a number of outstanding public policy issues we believe need resolution before a sale could be considered. These include Maori broadcasting and demands for some public television, advertising levels, cross-media ownership, foreign ownership, competition issues with regards to BCL and industry dominance issues.

"The report also identifies the potential to add value to TVNZ from new business opportunities available through digital transmission.

"The report canvasses a number of options the Government might have been able to use to sell TVNZ, including:

contracting out the operation of TV One and selling TV2 and BCL;
selling TV2 and BCL and retaining ownership of TV One; or
selling TVNZ in its entirety though trade sale or public float.
"Ord Minnett was appointed in February to undertake a review of the Government's ownership interests in TVNZ. The report is being released in its entirety, save for commercially sensitive information that could affect TVNZ's market position if it were known to competitors."