Choudhary Ashraf: Questions for Oral Answer — Questions to Ministers Questions to Members 
Text is incorporated into the Bound Volume 
Choudhary Ashraf: Questions for Oral Answer — Questions to Ministers Questions to Members 
[Sitting date: 15 October 2003. Volume:612;Page:9174. Text is incorporated into the Bound Volume.] 
8.  
Dr ASHRAF CHOUDHARY (Labour) 
 to the  
Minister of Broadcasting 
: What progress is being made on implementing the planned separation of Transmission Holdings Limited (THL) from Television New Zealand Limited in accordance with the Television New Zealand Act 2003? 
Hon STEVE MAHAREY (Minister of Broadcasting) 
: 
 The legal separation will proceed as planned on 31 December 2003. The television and transmission businesses are already operating separately. Contrary to assertions made by Opposition members not one cent is payable in tax to effect the separation; nor will any stamp duty be paid. 
Dr Ashraf Choudhary 
: How are the television and transmission businesses performing? 
Hon STEVE MAHAREY 
: Both businesses are performing well. TVNZ has provided a greater range of programming in line with its charter obligations; has dominated ratings; and has generated record advertising revenue. On the transmission side Broadcast Communications Ltd is becoming a major player in the telecommunications industry through its broadband partnership with Telecom while TVNZ (Australia) is rolling out digital terrestrial television in Australia in order to maintain its strong financial position. 
Katherine Rich 
: What is the total cost of separating BCL Ltd from TVNZ to create Transmission Holdings Ltd? 
Hon STEVE MAHAREY 
: I cannot give the member that information as I did not bring the total costs with me. It has not been done yet in full because we are of course waiting until December. At the moment there are some costs that are incurred around this and in December I will be able to give the member that figure. 
Sue Kedgley 
: Given the loss of revenue to TVNZ that will occur when BCL Ltd splits off into a separate State-owned enterprise why is the Government seeking a dividend of $7.848 million from TVNZ instead of allowing the company to reinvest that money into programmes? 
Hon STEVE MAHAREY 
: There is of course no loss of revenue. These two companies are still answerable to the Government and Transmission Holdings Ltd as it will be called will be paying money back to the Government. TVNZ itself is in fact running extremely well—as members know—from record advertising revenue coming in. It has made the choice to reinvest some of that back into the company at this time and to pay the dividend announced to the Government. We have agreed with that. 
Katherine Rich 
: Was it the Minister or his officials who forgot about the potential capital gains tax implications of separating BCL Ltd from TVNZ in light of the fact that these potential costs were flagged by Arthur Andersen in a 2001 report? 
Hon STEVE MAHAREY 
: No one forgot. Officials raised this as we said in the House at the time. During the process of separation it seemed wise for us to take advice on this matter. I want to say to the member who was one of those who thought the figure would be as high as $20 million I think she said at one point that we are not paying one single cent.