Statement of General Direction:

To ensure there is an impartial, quality public owned broadcasting regime operating in a competitive market with private sector participants.

To ensure broadcasting maintains, promotes and protects the Maori language.

Key Initiatives of Policy:

1. Consider TV1 becoming only partly commercial with maximum advertising time of 10 minutes in any one hour with TV2 retained in public ownership but with commissioned management to the private sector. Revenue raised by TV2 to support TV1.
2. Government to monitor the financial performance of regional television with the ultimate goal of improving that performance.
3. Ensure that the TVNZ Board has adequate representation from industry and users.
4. Respect existing contractual arrangements but on expiration approach major sporting organisations to investigate possibility of "free to air" broadcast of certain major sporting fixtures.
5. Review of Te Mangai Paho and its functions.
6. Review the structure of Radio New Zealand and increase public radio funding by $3 million.

Fiscal Implications of this Policy Agreement:

$30 million loss of dividend revenue from TVNZ used to support TV1 (part commercial).

$3 million public radio funding.

(All funding proposals subject to being considered within the agreed spending policy parameters.)

Legislative Implications of this Policy Agreement:

None