Labour wants the new channel to use traditional "radio waves" technology to create the channel using frequencies owned by the Crown recently returned by Sky Television.
The global trend is to internet distribution of content and streaming of content rather than linear channels.
For all its low impact - public service TV is a small niche - the notion of a taxpayer-funded channel is radical in a sector ruled by market forces and commercial models for broadcasting.
If the next Government is led by National it will stick to that line and is unlikely to support new platforms.
National sees taxpayer support as a foundation for the viability of commercial networks and the production sector that services it.
Over the past six years National has strenuously avoided supporting distribution arms such as TVNZ 7, arguing that it will focus on content.
NZ On Air, which comes under intense pressure from networks to make commercial decisions, focuses on programming that has widespread appeal.
Should TVNZ 7 be revived, commercial broadcasters will be concerned this non-commercial channel does not take money away from NZ On Air.
Television New Zealand used direct government subsidies to run TVNZ 7 from July 2009 to 2012.
It claims to have subsidised the venture. But many in the industry insist the opposite was true, and the taxpayer-funded venture contributed to the considerable overheads of TVNZ.
TVNZ pulled the plug when it decided Seven was commercially non-viable and the Government was not going to subsidise a non-commercial venture.
MediaWorks, owners of TV3 and New Zealand's commercial radio stations, would also be likely to question Radio New Zealand having automatic rights to the channel given its lack of expertise in television.
The company has strenuously lobbied against state-owned broadcasting ventures having preferred access to funding,
National's broadcasting policy is aimed at boosting the production sector and opposes the growth of ventures that would bring ongoing costs.
Much of that support has been through giving generous incentives to the film and TV sector, for both local producers and Hollywood studios that produce content here.
Broadcasting Minister Craig Foss says a re-elected National Government will make more New Zealand content available online, while examining our regulatory environment to ensure it is appropriate for the digital age.
"We are focused on funding New Zealand content, culture, accents and stories via NZ On Air, rather than risking valuable taxpayer money on subsidising a particular distribution method or channel," he said.
Foss says National will maintain public ownership of Television New Zealand and Radio New Zealand, and is future-proofing the distribution of TV, radio and movie content through the digital switchover and roll-out of ultra-fast broadband.
