Sky Television today assured viewers that free-to-air coverage will be available if the company takes over as rights holder from TVNZ.

Sky TV spokesman Tony O'Brien said he could not discuss a proposal from TVNZ who have sought to transfer their rights to the Commonwealth Games in India to Sky.

"If Sky is the successful bidder, as with the 2010 and 2012 Olympic Games, New Zealand viewers will be guaranteed comprehensive free-to-air coverage," he said in a statement.

Mr O'Brien said it is still just a proposal but given that Sky has guaranteed 12 hours a day of free coverage for the Vancouver Winter Olympics and 22 hours a day for 2012 Summer Games, there will be extensive coverage on their free-to-air channel Prime.

"We are currently carrying out a process of due diligence on the [Commonwealth Games] proposal," Mr O'Brien said.

TVNZ spokeswoman Megan Richards told NZPA it had been looking to offload broadcast rights after it was estimated the state broadcaster faced a loss of $5 million on the Games.

She said in previous years it was possible to absorb this loss in the interest of keeping such international events on free-to-air channels.

"In this economic climate that's not something that's manageable for us. We have no reserves and no buffer any more.

"So the plan B was to put that proposal to Sky."

Any deal would require the approval of the Commonwealth Games Committee in India which was expected to be sought in the next few weeks.

Ms Richards said the move did not signal an end to TVNZ bidding on international events and it would still be pursuing the rights to the Rugby World Cup in 2011 - although its bid would reflect "our financial position".

She said it was likely TVNZ would look to shared coverage deals in the future to lower costs.

Progressive Party leader Jim Anderton said today New Zealand was one of the only countries in the world not to have legislation protecting free-to-air viewing of popular sporting events.

Britain, Canada, Australia and other European countries ensured free-to air-viewing, but New Zealand had "left the stable door open and the horse has well and truly bolted".

Governments past and present had put the issue in the "too hard basket" and elderly and low-income people were missing out, he said.

Many sportspeople were mentors and idols for young children, he said.