Kiwi FM package helping CanWest say critics

Karyn Hay

The Government rescue package for the failed NZ music radio station Kiwi FM has come under heavy fire from rival broadcasters and local musicians.

John McElhinney, chief executive of The Radio Network - CanWest's chief radio competitor - said the move allowed CanWest to free up Kiwi FM frequencies and have another commercial radio station in those markets.

"This will effectively provide millions of dollars worth of support to a commercial operator in an uncontestable process."

Musician Neil Finn, having first lambasted the decision in a letter to the Herald, said he was not criticising the decision because of his earlier thwarted campaign for a national youth radio network.

"I just find it galling that with all the time and all the recommendations and all the reports and all the advisory groups and forums I took part in that all recommended they do a non-commercial network for young people now they're just doing little sweetheart deals. It really irks me that [CanWest's] Brent Impey is basically getting frequencies that he very strongly argued should never be given by the Government to anybody for free."

Mr Impey said Finn was entitled to his opinion but he did not want to comment.

Kiwi FM was launched on Waitangi Day last year and attracted just 0.7 per cent of the Auckland audience with a national listenership of about 43,000.

This week, with CanWest about to shut the station, the Government granted the company three FM frequencies to keep it going under the management of veteran broadcaster Karyn Hay for a year as it became a not-for-profit organisation.

Broadcasting Minister Steve Maharey denied that the Government was "propping up" a commercial broadcaster, as "there's no advantage to CanWest". He told National Radio the deal would not jeopardise the future of any public youth radio network.

"It's a one-year trial to see if people like [new general manager] Karyn Hay can make a go of it."

Hay hit out against critics, saying it provided a valuable public service at no cost to the Government and other musicians should support it.

She questioned the motives of some of the critics of the Government's awarding of FM frequencies to Kiwi FM, saying the 100 per cent NZ music station had to pay for itself and was a valuable public service.

"This station is providing a real public service for a wide range of musicians, not necessarily just the Neil Finns and Dave Dobbyns. Perhaps Neil doesn't need the airplay, but there are a whole lot of musicians out there who appreciate it."

- Additional reporting Rebecca Barry, Scott Kara and NZPA