Coddington Deborah: Questions for Oral Answer — Questions to Ministers 
Coddington Deborah: Questions for Oral Answer — Questions to Ministers 
[Volume:619;Page:15145] 
1. DEBORAH CODDINGTON (ACT) 
 to the  
Minister of Broadcasting 
: Is he satisfied with New Zealand On Air lending $450000 to Television New Zealand Limited to produce  
NZ Idol 
 when the contract was not finalised until the last week of screening; if so why? 
Hon STEVE MAHAREY (Minister of Broadcasting) 
: 
 I am satisfied that New Zealand On Air behaved entirely appropriately in funding Television New Zealand with $450000 as a contribution to produce  
NZ Idol 
. I am informed that the contract was signed on 29 April this year but that the series with its add-on programmes following the competition did not end until 24 June. New Zealand On Air approved the funding before the series went into production but nothing was paid out until details were settled and the contract was signed. I think the member needs to understand that it has been an amazingly successful programme and she should simply applaud it. 
Deborah Coddington 
: Under what circumstances will that New Zealand On Air loan to TVNZ become a grant given TVNZ’s own statement that  
NZ Idol 
 got record ratings in prime time and does he think it acceptable for New Zealand On Air to provide unsecured loans to underwrite TV programmes in the future? 
Hon STEVE MAHAREY 
: TVNZ has not finalised its report on income generated by the series at this time. I am informed that the contract identifies New Zealand On Air’s funding as an equity investment in the programme which means in practice that if  
NZ Idol 
 generates more revenue than it has cost to produce then New Zealand On Air is entitled to repayments on a first-out basis against its investment. Once again I say that I think this is a good use of New Zealand On Air’s money appropriately applied to New Zealand programmes. 
Moana Mackey 
: What impact has  
NZ Idol 
 had on the New Zealand music industry? 
Hon STEVE MAHAREY 
:  
NZ Idol 
 made a major contribution to the New Zealand music scene and helped it reach an all-time high in terms of airplay and music sales. The inaugural winner Ben Lummis’s single “They Can’t Take That Away” went four times platinum to become the highest-selling New Zealand single of all time. Both he and the  
NZ Idol 
 runner-up Michael Murphy have now signed record contracts with the international music label BMG. In New Zealand New Zealand artists make up nearly 20 percent of all CD sales of music passing the 25 percent level of airplay on commercial radio. As a percentage of sales the amount of New Zealand music bought has now doubled since 1999. I say to the member “Don’t Dream It’s Over” just stay “Loyal” to New Zealand music. 
Katherine Rich 
: When New Zealand On Air is supposed to hand out funding for the production of television programmes why did it give TVNZ any money at all when according to media reports TVNZ did not produce  
NZ Idol 
—South Pacific Pictures did? 
Hon STEVE MAHAREY 
: It may be useful for the member to at some point ask New Zealand On Air to explain how contracting takes place. When a format is an overseas format New Zealand On Air is prohibited from going straight to a producer because the producer can be blocked by the overseas format owners from being allowed to do it. So Television New Zealand took on the format and gave it to South Pacific Pictures to produce which was a very good way of doing it. It was a fantastic programme and “Don’t Dream It’s Over”. 
Marc Alexander 
: Why should taxpayers fund a programme like  
NZ Idol 
—a programme that is so palpably commercially motivated that it should be expected at least to cover its own costs—and as New Zealand On Air funding criteria are meant to be targeted at programmes that would otherwise not make it to air what would be the great tragedy if this programme never tarnished our television screens? 
Hon STEVE MAHAREY 
: This programme does fit within the format for NZ On Air funding—that is why it was funded. The member may have something against hundreds of thousands of young New Zealanders being involved in one of the most successful programmes in the history of television but we do not. We think it is very wonderful that they did get involved in this programme and by the way without a kick-start the programme would never have been made. 
Katherine Rich 
: When New Zealand On Air admits it is not the agency’s policy to fund overseas formats “due to their proven performance and relative commercial viability” why did it fund  
NZ Idol 
 which used one of the most successful commercial formats in television today? 
Hon STEVE MAHAREY 
: If the member wants to read the criteria for New Zealand On Air she will find that this fits within the brief to promote and foster expressions of New Zealand culture and identity when the cost of production requires public finding to top up that would not be available from other sources. This was a fantastic success for young New Zealanders. I cannot believe that anybody in this House is not proud of what was achieved by those young people. We are. 
Deborah Coddington 
: Does he believe it is wise policy for New Zealand On Air to lend money unsecured and convert it to a grant if the broadcaster simply says that it did not make any money on the programme and just how many loans has New Zealand On Air given? 
Hon STEVE MAHAREY 
: This is a very normal contract for New Zealand On Air. It funds programmes in this way frequently. I hope it carries on providing outstanding funding for outstanding programmes like this. I am looking forward to being in front of young New Zealanders during the election campaign saying that the two people who live together who are obviously cooperating today on this question would be opposing funding for young New Zealanders while we would not. 
Rodney Hide 
: Does he know the details of the agreement by which New Zealand On Air proposed to get a return on its $450000 “equity investment” in  
NZ Idol 
 and how could it have been a kick-start needed to get this show on the road when it was not signed off until the last week of screening? 
Hon STEVE MAHAREY 
: The details obviously are part of a commercial agreement but yes I understand as I set out before to the House that what is going on here is that this is an equity investment. They are the first-out investor. If the programme makes money they will get a return on their investment. A kick-start for a programme like this which is enormous in size was the only way to get it off the ground. I think the $450000 was spent well on hundreds of thousands of young New Zealanders and I hope New Zealand On Air continues to make that kind of investment in those young people. 
Rodney Hide 
: Is the House correct to conclude that this Minister will do absolutely nothing about two Crown entities for which he is responsible who have jacked up a deal to rip off the taxpayer to the tune of $450000 and does he even know where the money from the tens of thousands of texts that were sent ended up? 
Hon STEVE MAHAREY 
: Well that member would know about ripping off the taxpayer. 
Mr SPEAKER 
: I now want the Minister to answer the question. 
Rodney Hide 
: I raise a point of order Mr Speaker. We deserve a withdrawal and an apology. 
Mr SPEAKER 
: Yes I think that is right. The member will withdraw and apologise. 
Hon STEVE MAHAREY 
: I withdraw and apologise. I have checked as is appropriate today in preparation for this question yet again with New Zealand On Air and I say to the House that I am entirely comfortable that this is a normal approach to funding undertaken by NZ On Air. The member will no doubt take the opportunity at select committee time to swap committee and have a go at them and so on. He will find that it is an entirely appropriate way of funding. The texting is part of how they decide on revenue generation and that will be part of the wash-up to see whether theymake enough money to be able to pay some money back to NZ On Air. 
Hon Richard Prebble 
: Is the House to understand from the Minister’s answers that he thinks it is entirely appropriate that New Zealand On Air which receives taxpayers’ money on the understanding that it will fund local New Zealand programmes and will not fund local copies of overseas successful programmes can get round that rule by just declaring it a loan and then writing it off when the programme does not make a profit and if that is the case is he not aware that  
The Lord of the Rings 
 a film that has received the most money of any film ever made is still claiming that it has not made a profit; and surely this is just device to rip off the taxpayer? 
Hon STEVE MAHAREY 
: Once again I can only really offer the seminar. If the member reads the New Zealand On Air funding guidelines he will see that if the programme promotes and fosters New Zealand culture then it fits within the guidelines for funding even though it is in an overseas format. In this case  
NZ Idol 
 has allowed hundreds of thousands of young New Zealanders to get into the music industry with enormous successes at the end of it. We will carry on being proud of young Kiwis and backing them unlike the ACT party.