RNZ's building on The Terrace, Wellington. Photo / Mark Mitchell
RNZ's building on The Terrace, Wellington. Photo / Mark Mitchell
The Government is injecting more money into regional journalism but public funding for RNZ is being cut.
Taxpayer funding for RNZ is being slashed by almost $5 million a year - about 7% of its annual budget - and the Government has said it wants to see improved audience reach,trust and transparency.
RNZ says it is “naturally disappointed” about the funding cut and, without being specific, says it will now “carefully review our plans”.
At the same time as the Government is cutting RNZ’s budget, it has announced a financial boost for regional journalism initiatives.
As Media Insider revealed last month, RNZ’s funding has been under close scrutiny and today Finance Minister Nicola Willis and Media and Communications Minister Paul Goldsmith wielded the scalpel.
“RNZ has had funding increases in recent years, most notably a boost of $26 million a year in 2023, on top of a previous increase of $7.3 million per year in 2020,” said Goldsmith, in a Budget 2025 press statement.
RNZ Morning Report hosts Corin Dann and Ingrid Hipkiss.
He said RNZ’s funding would be cut by about $18 million over the next four years - this equated to $4.6 million a year, which was equivalent to about 7% per cent of its annual operating budget of $67m.
“This savings initiative recognises that government-funded media must deliver the same efficiency and value for money as the rest of the public sector,” said Goldsmith.
“I expect RNZ to improve audience reach, trust and transparency. I am confident the organisation can do so while operating in a period of tightened fiscal constraint.”
Ratings were released today for the commercial radio sector. RNZ says it won’t be releasing its latest radio numbers until next Tuesday.
The RNZ website has been performing well from a unique audience viewpoint but its traditional radio listenership has been languishing for some time.
RNZ recently topped AUT’s trust in news survey.
RNZ responds
“While we are naturally disappointed with a funding reduction, we acknowledge the Government’s fiscal challenges at present as well as the headwinds affecting the wider media sector,” said RNZ chairman Jim Mather.
“We will now carefully review our plans to ensure we continue to strengthen trust with audiences and provide outstanding public media that matters for New Zealanders.”
RNZ chairman Jim Mather (left) and chief executive Paul Thompson appear before a Parliamentary select committee.
In 2023-24, under the previous Labour Government, RNZ’s annual budget was boosted by almost $25 million, from $42m a year to $66.6m. That funding injection was maintained by the National-led coalition for 2024-25.
RNZ has previously said the new levels of funding – its first material increase since 2009 – have been critical for catch-up work and as it transforms into a digital-first media organisation.
The budget has also helped RNZ lift staff numbers from 309 to 347, while those earning more than $100,000 have increased from 107 to 145. The company’s overall salary budget increased from $32m in 2022-23 to $37m in 2023-24.
Regional journalism boost
Meanwhile, in happier news for the media industry, Goldsmith announced today new funding for regional journalism initiatives.
“Regional journalism helps keep communities informed and holds decision-makers to account.
“Budget 2025 will invest $6.4 million over four years in council, community and court reporting across New Zealand. The funding will be distributed through NZ on Air.
“Open Justice and Local Democracy Reporting have been successful programmes with an emphasis on reporting, rather than opinion. This funding expands them.
“It will get funding into regional newsrooms so that more local frontline journalists can report on the things that matter to their audiences.”
The Government’s moves come as it considers a raft of other media reforms, including the merger of NZ on Air and the NZ Film Commission and a new media regulator.
Global streamers such as Netflix, Apple, Disney and Amazon would be also required to invest in New Zealand productions and content under a range of media proposals unveiled by the Government in February.
Smart television manufacturers would be also required to ensure New Zealand apps, such as TVNZ+ and Freeview, are given prominence on their content menus. Right now, global streamers such as Apple+, Netflix and Amazon have pride of place in many of the smart TV line-ups.
“New Zealand media, like media around the world, continue to face significant challenges,” Goldsmith said today.
“We need modern legislation, so the media sector is financially sustainable in the years to come.
“I am considering submissions from the recent consultation on media reform. I will have more information on next steps for media modernisation in the coming months.”
Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME.
