The Government has decided to split the broadcasting and transmission arms of TVNZ, Finance Minister Michael Cullen said today.
That means it will have to change the TVNZ legislation which is going through Parliament.
Dr Cullen said the change would mean the broadcasting arm -- TV One, TV2 and Satellite Services --would be established as a crown company under its own legislation.
The transmission business -- Transmission Holdings and TVNZ Australia Ltd -- would be established as a state-owned enterprise.
Under the original proposal, two separate boards were to look after the twin arms and report to an over-arching parent board. Together, they were to have formed a crown-owned company.
Dr Cullen said that given the different natures and objectives of the two parts of TVNZ's business, it was more appropriate that they operated completely separately and not within the same company structure.
"The split will result in increased transparency and accountability and allow the two parts to each focus on their core business," he said.
The bill will be amended when it comes before Parliament again next year.
