The TVNZ building in Auckland. Photo / Herald on Sunday
Prime Minister John Key says Television New Zealand's charter is being canned because it is not working.
It was not a step towards selling the state broadcaster, he said.
TVNZ operates under a charter, which encourages it to show programmes that reflect New Zealand's identity.
In return its gets $15
million to produce shows that would not be commercially viable.
"The charter hasn't worked," Mr Key told NewstalkZB.
"There's been a number of inquiries into it, there's been no discernable difference in the amount of local content that's been played because of the charter."
The $15m would be "fully contestable" through NZ on Air, he said.
TVNZ would probably get "the vast bulk of it back".
National indicated the change during its election campaign. At the time Labour said it was a trojan horse for privatisation.
TVNZ made headlines last week after it announced it was axing about 90 jobs and cutting its programme and operating budgets in an attempt to save $25 million, following lower than expected advertising revenue.
- NZPA
