Annual Report 2008

A VOICE THAT SPEAKS FOR ALL NEW ZEALANDERS RADIO NEW ZEALAND annUal report 2007-2008 Contents

Chairman’s Report•••••••••••••••••••••••••••••••••••• 2 Chief Executive REPORT••••••••••••••••••••••••••••• 10

Board of Governors•••••••••••••••••••••••••••••••••• 5 PERFORMANCE MANAGEMENT•••••••••••••••••••••••• 14

OUR CHARTER••••••••••••••••••••••••••••••••••••••••••• 6 financial performance•••••••••••••••••••••••••••• 34

OUR PERFORMANCE BASED ON public value and directory• ••••••••••••••••••••••••••••••••••••••••••• 72

OUR CHARTER OBJECTIVES•••••••••••••••••••••••••••••• 7 Good employer and equal employment opportunitIES REPORTING•••••••••••••••••••••••••••• 8 SOUNDS LIKE US.

1 “As an independent and commercial-free public service broadcaster, the purpose of Radio New Zealand is to serve the public interest.” Chairman’s Report Chairman’s

Brian Corban QSO – Chairman

Introduction However, rising costs are now threatening the gains made in recent As an independent and commercial-free public service broadcaster, years and we have been forced to shift our strategic focus towards Radio New Zealand’s purpose is to serve the public interest, and the ensuring the sustainability of both the range and quality of Radio ongoing protection of public service broadcasting values remains of New Zealand’s current services. critical importance to us all. During the course of the 2007-2008 financial year, independent New Zealand is justifiably proud of its unique national identity, consultants conducted a comprehensive Baseline Funding Review to particularly the shared sense of belonging and evolving cultural values determine the level of funding required to maintain Radio New Zealand that bring us together and contribute to our sense of self. services at their current levels. Awareness and preservation of that shared culture are critical factors The results of that review will inform future funding discussions with in sustaining a unique New Zealand identity and a strong, independent Shareholding Ministers. voice in an increasingly globalised, homogenised world. Looking to the Future As the country’s only wholly public service broadcaster, Radio Our primary strategic objective must be to guarantee adequate, New Zealand gives voice to our culture, promoting, reinforcing and long-term, direct funding which allows Radio New Zealand to meet its celebrating that which is uniquely ours. Charter obligations now and in the future. Radio New Zealand is proud to be a chartered public service Radio New Zealand is New Zealand’s only dedicated public service broadcaster and we are committed to the principles of the Radio broadcaster and we believe it is vital that our institutional form New Zealand Charter and therefore to capturing and broadcasting properly reflects that unique role. Discussions are underway with the many voices that speak to, or influence, New Zealanders. Government to restructure Radio New Zealand into an appropriate Freedom of thought and expression is an essential foundation of institutional form that clearly establishes its non-commercial status, democracy and Radio New Zealand’s mandate ensures the provision and one which guarantees and overtly demonstrates its editorial of universal access to information and services covering all aspects independence. of the nation’s life. Sound financial management and delivery of high-quality, cost-effective In recent years Radio New Zealand has continued to place emphasis on services has been a major feature of Radio New Zealand operations the central theme of rebuilding, integrating, consolidating and in recent years; however, these operations are vulnerable where we enhancing the institution of Radio New Zealand. do not control the means of delivery. In order to guarantee the future Significant progress has been made during this time including the sustainability of our broadcasting services, we must work towards development of our new online broadcasting services and award- a position where all key assets necessary for Charter delivery are winning website, enhancements to Radio New Zealand International’s owned and controlled by Radio New Zealand as an enduring national coverage of the Pacific and the first steps towards rebuilding Radio institution which has its origins in the beginnings of radio broadcasting New Zealand’s presence in regional areas of New Zealand. in the 1920s.

2 The Government has announced an increase in funding for Radio New Zealand over the next four years “to maintain its core services”. The additional funding for the 2008-2009 financial year will be $2.6 million.

Financial Performance Conclusion Prudent financial management was once again a feature of operations This report marks the end of my eight-year term as Chairman of during the year. Radio New Zealand represents an exceptional return Radio New Zealand. When I assumed the role in 2000, I found an on investment for New Zealanders but with enhanced services and organisation wrestling with some very difficult issues at both the improved delivery come heightened audience expectations and there governance and management levels. The organisation I now leave are many competing calls on our limited funding. is in a very different position. It has great strength of governance and management, a strong culture and profound unity of purpose In its 2008 Budget, the Government announced an increase in funding in advancing the best public service broadcasting values. For that for Radio New Zealand over the next four years “to maintain its core I thank all involved including particularly Deputy Chair Alison Timms, services”. The additional funding for the 2008-2009 financial year will my Board colleagues past and present, Chief Executive Peter be $2.6 million. Cavanagh, the Senior Management Team, all past and present staff Radio New Zealand is grateful for the extra funding received in this members and importantly the present government and our year’s Budget; however, we are disappointed that the amount allocated Shareholding Ministers over those eight years, who have been falls well below the recommendations of the recent Baseline Funding strongly committed to public service broadcasting. Review. We will continue the discussion on full implementation of On 1 July 2008, the Chairmanship passed to Christine Grice, who has those recommendations as soon as possible. been a member of the Radio New Zealand Board of Governors for the The additional funding we have received will help ease a number past two years. of financial pressure points across the organisation and allow Christine, as a senior colleague from the legal profession, has a strong current services to be maintained in the year ahead. Many potential constitutional understanding of the critical role of public service enhancements remain unfunded, however, and our emphasis in the broadcasting to our democracy and I am sure that I am leaving Radio meantime must remain on preserving and funding our established New Zealand in very good hands. core services. Over the past eight years, I have observed a number of trends in the Radio New Zealand was able to operate within budget for the year and media and broadcasting industries which highlight the fundamental return a modest surplus of $29,000 before tax. That was no mean feat importance to this country of maintaining a strong and independent and is the result of very tight financial management. Sound financial Radio New Zealand. management is reinforced through a robust risk management, policy development and compliance programme. During this time we have seen a continuing decline in the role and perceived importance of public service television broadcasting. No dividend will be paid for the year as Shareholding Ministers have again waived their right to receive a dividend.

3 As the only news organisation in New Zealand which is completely free of ownership or other commercial pressures, Radio New Zealand’s role as this country’s most trusted and reliable source of independent news and information has never been more important and should be protected at all costs.

We have also witnessed an increasing concentration of media Christine Grice, ownership into fewer and fewer hands. In more recent times, there Incoming Chair of the has been a marked convergence of newspaper, television and radio operations, resulting in less diversity of opinion and fewer independent Radio New Zealand Board sources of news and information.

As the only news organisation in New Zealand which is completely free As the incoming Chair of the Radio New Zealand of ownership or other commercial pressures, Radio New Zealand’s role Board of Governors I want to pay tribute to the as this country’s most trusted and reliable source of independent outgoing Chairman, Brian Corban. news and information has never been more important and should be Brian has been a passionate and dedicated advocate for the principles protected at all costs. of public service broadcasting for more than 20 years. It is a passion I would again take this opportunity to pay tribute to the various members that has been reflected in his unswerving commitment to rebuilding of the Radio New Zealand Board of Governors with whom I have worked and revitalising Radio New Zealand during his term as Chairman. during my time as Chairman. They have ably represented the diversity of He leaves Radio New Zealand as a robust and resurgent organisation in our society and without exception they have worked tirelessly to ensure very good heart, with strong support from the New Zealand public and that Radio New Zealand remains focused on being a true “public service” a growing relevance for rapidly expanding international audiences. broadcaster. It has been a privilege to serve with them. Brian made sure the transition to me as incoming Chair was smooth. And to the Chief Executive and Editor-in-Chief, Peter Cavanagh, the Senior The new Board embraces his vision of the importance Radio New Management Team and the staff of Radio New Zealand, I would like to Zealand as an independent and commercial-free public service express my sincere thanks and great admiration for the exceptional broadcaster and an enduring New Zealand institution. quality of the work they produce each and every day. No one else does what Radio New Zealand does and I have no doubt whatsoever that the christine grice – Chair country would be a very much poorer place without it.

The challenge now is to ensure that Radio New Zealand, with a proud heritage of 83 years, gains universal recognition and support as an essential and enduring cultural institution of our nation in all its diversity, as well as continuing to embrace our region, the Pacific, where the people of our many island neighbours, also depend on us. Brian Corban QSO – Chairman 1/12/2000-30/6/2008

4 Board of Governors Board of

Left to Right, Top Row: Brian Corban; Alison Timms; ALan Dick; Judy Finn Bottom Row: Christine Grice; Judith FyfE; Sifa Taumoepeau; Steve Murray

Brian Corban Alison is a director of Wellington Christine Grice Sifa Taumoepeau Chairman [QSO, MA (Hons), LLB, Waterfront Ltd, Chair of [CNZM, LLB (Hons)] Sifa Taumoepeau is the FIOD, FNZIM] the Insurance and Savings Christine Grice is a lawyer and Government Affairs Manager for Brian Corban is a professional Ombudsman Commission, and a company director. She is currently SKYCITY Entertainment Group company director, lawyer, and Board member of the Wellington Chair of the Perry Group Limited, Ltd. He is a member of the Heart business and community leader. Citizens Advice Bureau. a diversified group of companies of Auckland City Board and of the He has experience in successfully ALan Dick based in the Waikato. She also Gaming Machine Association of leading companies through [QSO, MBA, FNZIM] chairs Te Pou, the National Centre New Zealand He has previously restructuring and deregulatory Alan Dick has diverse business, of Mental Health Research and been a director of the National changes in the television, community and governance Workforce Development (Mental Pacific Radio Trust, which governs telecommunications, transport experience. A business and Health Programmes Limited), Niu FM. and electricity sectors. commercial property consultant, and the New Zealand Law Society Steve Murray He is currently Chairman of he has been a director of LATES, Continuing Education Board, and Chairman Audit Committee [MBA] Genesis Energy, Chairman of the a port company and numerous is a board member of the statutory Steve Murray is the former Melanesian Trust Board, Ngatarawa private companies. Alan has had Council of Legal Education. Managing Director of global IT Wines and a number of private a long and distinguished career She is immediate past president of services company EDS NZ. Prior to companies and is a trustee of in local government, serving for the New Zealand Law Society. joining EDS, Steve was with Tainui various community trusts. He is a 12 years as Mayor of Napier until Group Holdings in the capacity of Judith Fyfe [LLB] Fellow of the Institute of Directors standing down in 2001. Chief Executive from 2002 until Judith Fyfe is a practising barrister and a Fellow of the New Zealand 2006. His international business He is currently Transport with an active interest in oral Institute of Management. experience includes senior Chairman of the Hawke’s Bay history as a lecturer, author and management roles with Ernst & Alison Timms Regional Council, and serves producer. Prior to co-founding the Young and the airline industry in Deputy Chair [BA] several community organisations New Zealand Oral History Archive, New Zealand and Australia. He is Alison Timms has had more than in a governance role. she worked in broadcasting, currently a trustee of the Equal 20 years of management Judy Finn television and film. Judith was Employment Opportunities Trust experience at senior levels in Judy Finn is a co-owner and a member of the Arts Board of and a member of the Defence the public sector. She is now an director of Neudorf Vineyards and Creative New Zealand until May Industry Council of New Zealand. independent consultant. a director of the Bishop Suter Art 2007, and is a member of the Gallery in Nelson. Copyright Tribunal.

5 Our Charter

Every day, Radio New Zealand captures and reflects the thoughts, opinions and information we want to share as a nation, in programmes that contribute towards our broader collective understanding, help us follow what is going on in our own country and stay in touch with developments in the world around us.

Whilst it was enacted by Parliament, the Radio New Zealand Charter is more than just a piece of legislation. In effect, the Charter is a “living” guide to all that we do. It provides a vision along with parameters for how our unique range of services fits with our place in New Zealand public life.

Through the programmes it specifically encourages, and the standards that it sets, the Charter also ensures that Radio New Zealand promotes and protects, to the best of its abilities, the fullest possible sense of our national identity. Our Charter states:

The functions of the public radio company shall be to provide innovative, comprehensive, and independent broadcasting services of a high standard and 1 without limiting the generality of the foregoing, to provide:

(a) Programmes which contribute (c) Programmes which provide for (e) A nationwide service providing (g) Comprehensive, independent, towards intellectual, scientific, cultural, varied interests and a full range of programming of the highest quality to impartial, and balanced international spiritual and ethical development, age groups within the community, as many New Zealanders as possible, news services and current affairs; and promote informed debate, and including information, educational, thereby engendering a sense of (h) An international radio service to stimulate critical thought; and special interest, and entertainment citizenship and national identity; and the South Pacific (Radio New Zealand programmes; and (b) A range of New Zealand (f) Comprehensive, independent, International) which may include a programmes, including information, (d) Programmes which encourage impartial and balanced national news range of programmes in English and special interest, and entertainment and promote the musical, dramatic, services and current affairs, including Pacific Ianguages; and programmes, and programmes and other performing arts, including items with a regional perspective; and (i) Archiving of programmes which which reflect New Zealand’s cultural programmes featuring New Zealand are likely to be of historical interest in diversity, including Mäori language and international composers, New Zealand. and culture; and performers and artists; and

In providing broadcasting services, the public 2 radio company shall take account of:

(a) Recognised standards of (c) The broadcasting services (e) Surveys, commissioned from excellence; and provided by other broadcasters; and time to time, of persons who are not members of its current audiences. (b) Its responsibility as the (d) Surveys, commissioned annually, provider of an independent national of persons who are members of its broadcasting service to provide a current audiences to establish balance between programmes of whether those members consider wide appeal and programmes of that the quality and quantity of its interest to minority audiences; and services are being maintained in accordance with subsection (1); and

Good Employer and Equal Employment Opportunities Reporting Radio NewZealand’sequalemploymentopportunitiespportthesevenelementsofGoodEmployereporting: 3 2 1 Safe andHealthyEnvironment Harassment andBullyingPrevention Remuneration, ecognitionandConditions Flexibility andWorkDesign Employee Development,Promotionandxit Recruitment, SelectionandIndction Leadership, AccountabilityandCultre Element Employee development,promotionandexit. Recruitment, selectionandinduction. Leadership, accountabilityandculture. Early identificationandimmediacyof actiononOSHissues. hazard identificationandmitigation. Strengthened roleoftrainedhealthandsafetycommitteemembersin Provision ofaconfidentialexternalEmployeeAssistanceProgrammeprovider. posters, newslettersandinductiontraining. Continued promotionoftheDignityatWorkpolicytoallstaffthrough industry, subjecttobaselinefunding. on equivalentlevelsofremunerationandbenefitsasapplyelsewhereinthe Ongoing developmentofaremunerationstrategydesignedtoputourstaff case-by-case basis. Continue toevaluateallrequestsforflexibleworkingconditionsona Increase inlevelofstaffparticipationmulti-skilledjobopportunities. been progressivelyaddedtojobdescriptions. EEO and diversity competencies included in performance assessments have Exit surveysroutinelydistributed,personalinterviewsheldonrequest. advertised andfilledinternally. Internal rotationandcareerdevelopmentopportunitiesidentified, Continued useoftraineeshipswherepossibletostrengthenethnicdiversity. diversity trends. Analysis ofrecruitmentandselectionprocessestoidentifyEEO has beencaptureofdatarelatingtosuccessfulapplicants. Ongoing collectionofinformationrelatingtoEEO.Focusduringtheyear cultural andethnicdiversitywhilesupportingbusinessneeds. supports andpromotestheinvolvementofallemployees.Itacknowledges Ongoing developmentofalearningandframeworkwhich Radio newzealandactivity 4 6 5 7 Safe andhealthyenvironment. Harassment andbullyingprevention. Remuneration, recognitionandconditions. Flexibility andworkdesign. 8 Radio New Zealand Workforce Profile as at 30 June 2008 MÄORI NZ EUROPEAN/PAKEHA PACIFIC Asian OTHER 30-40 YEARS 40-50 YEARS OVER 50 YEARS AGE PROFILE 4% 81% 3% 1% 11% 15% uNDER 30 YEARS 25% 26% 34% ETHNICITY (OF THOSE REcORdED) file Workforce pro FEMALE MALE 3 TO 10 YEARS OVER 10 YEARS GENDER 47% 53% 32% uNDER 3 YEARS 34% 34% LENGTH OF SERVICE TE 266 STAFF NUMBERS – Headcount 291, F 9 To do its job properly, Radio New Zealand must have the complete confidence of

Chief Report Executive all New Zealanders.

PETER CAVANAGH – Chief Executive and Editor-in-Chief

TRUST AND INDEPENDENCE In recent years, Radio New Zealand has developed rigorous and As New Zealand’s only independent and commercial-free public comprehensive editorial policies and guidelines to ensure that service broadcaster, Radio New Zealand plays a vital role in the our journalism is robust and that our reputation for fairness and democratic process and gives our culture a voice, both at home impartiality is protected. These policies are available for all to see and on the international stage. on our website and make it clear to our staff, our audience and our stakeholders that we take our editorial responsibilities very seriously. To do its job properly, Radio New Zealand must have the complete confidence of all New Zealanders. It is gratifying that the regular public surveys we conduct show that the vast majority of New Zealanders trust and value the services we provide. Our audiences must know that when we provide them with news and information, they can trust us to tell them the truth, without OUR AUDIENCES fear or favour. They need to know that any information we provide Radio New Zealand website is independent, fair and balanced – and that it is provided solely in the public interest. And they need to know that we will ask the tough In 2005, Radio New Zealand announced a major upgrade of its website questions on their behalf. www.radionz.co.nz. Our web services were relaunched and rebranded in 2007, and the expansion of our online broadcasting activities has It is not the role of a public service broadcaster to tell people what to continued to be a major focus of our attention during 2007-2008. think, nor to promote its own particular point of view on any issue. Our role is to accurately reflect the range of views held by members Radio New Zealand offers an attractive, accessible website with live of the public, providing a safe and trusted forum where people can streaming, a high-quality text-based news service, podcasting, audio- engage in informed debate on the key issues and where critical on-demand and an extensive programme archive, all on the one site. thinking can be developed. Public demand for these new services continues to exceed all To gain the public trust necessary to achieve this goal, we must maintain expectations and we are attracting significant new audiences both the highest standards of editorial independence and integrity. at home and overseas.

10 In recent months we have significantly expanded our online archive, giving our audience access to thousands of additional hours of programme content.

In the 12 months to 30 June 2008, more than four million About one in five New Zealanders over the age of 15 still listen to either Radio New Zealand programmes or programme segments were Radio New Zealand National or Radio New Zealand Concert each week. replayed “on-demand” through the website and we expect the But there is no doubt that we are witnessing the early stages of a popularity of this service to grow even further in the year ahead. seismic shift in listening patterns. In the longer term, as our listeners In recent months we have significantly expanded our online archive, continue to switch from “live” radio broadcasts to downloaded and giving our audience access to thousands of additional hours of “time-shifted” online listening, it is inevitable that our traditional live programme content. audience figures will start to decline.

Our flagship news and current affairs programmes Morning Report In future, therefore, to measure the full size of the Radio New Zealand and Nine to Noon now have a fully searchable archive dating back to audience, we will need to take into account a range of complex factors the beginning of 2008, unlocking past interviews, discussions and including both domestic and overseas-based audiences; real-time and programme content for downloading or listening on-demand. All 2008 delayed listening; and an ever-increasing array of different listening editions of Saturday Morning with Kim Hill are also now available online options including computers, laptops, mobile phones, televisions and and there are plans to extend the archives of many other programmes hand-held internet devices. in the year ahead. We are continuing to refine our audience measurement system to meet As well as proving immensely popular with listeners, this expanded the challenge of accurately measuring this diverse range of listening. library of quality programming is building into a very valuable However, from the information already available to us, it is clear that educational and research resource for all New Zealanders. Radio New Zealand is currently attracting its highest audience numbers in many years. Traditional “live” listening Remarkably – despite the huge volume of time-shifted listening of Radio New Zealand content which now takes place in the online world – audiences for our traditional live radio broadcasts are continuing to grow.

11 While the overall size of our audience is important to us, it is the quality of our programming that allows us to meet our Charter obligations and sets us apart from other broadcasters.

Over the past year, Radio New Zealand has received many awards for the excellence of its work from its professional peers both here and overseas.

RECOGNITION OF EXCELLENCE New Zealand Radio Awards While the overall size of our audience is important to us, it is the quality The 2008 New Zealand Radio Awards recognised the very best work of our programming that allows us to meet our Charter obligations and from commercial and public service broadcasters throughout the sets us apart from other broadcasters. country. Radio New Zealand achieved outstanding results winning Over the past year, Radio New Zealand has received many awards for the nine individual category awards and achieving a clean sweep of all excellence of its work from its professional peers both here and overseas. the Best News categories.

International Broadcaster of the Year Mäori Language Awards We are justifiably proud of the fact that Radio New Zealand Public recognition of Radio New Zealand’s commitment to reflecting International won the prestigious International Radio Station of the the cultural dimension of our Charter came in September when Radio Year Award at the Association for International Broadcasting ( AIB ) New Zealand received the Supreme Award at the 2007 Mäori Language Media Excellence Awards announced in London in November 2007. Week Awards.

The AIB represents more than 25,000 public and commercial This award recognised Radio New Zealand’s achievements in radio and television professionals worldwide and the annual awards seamlessly integrating Te Reo Mäori into our on-air presentation and recognise the very best in international broadcasting. throughout our website. As Radio New Zealand continues to expand its international audience base, Te Reo Mäori helps provide us with a This award is a great honour and a wonderful tribute to the hard work style of broadcasting that is unique to New Zealand. and dedication of the small team that makes up Radio New Zealand International. This has been a turbulent year for the Pacific and our SIGNIFICANT EVENTS media coverage has played a critical role in reporting events in Fiji, In a year of many significant achievements, two items are worthy of Tonga and Solomon Islands to wider international audiences. special mention. With the continuing political and social instability across the region – and increasing pressure on the editorial independence of local news Death of Sir Edmund Hillary media – Radio New Zealand International is now clearly regarded as People all around the world were saddened by the death of Sir Edmund the authoritative voice of the Pacific. Hillary in January this year. Radio New Zealand carried extensive coverage of the announcement of the death and the subsequent state funeral for this truly iconic international figure, as well as a range of commemorative programming.

12 One of the great benefits of modern forms of communication such as email and text messages is that it makes it so much easier for our audiences – both here and overseas – to stay in touch with us and to give us their feedback.

As the official radio broadcaster, Radio New Zealand was able to ensure The large volume of individual feedback we receive, together with that New Zealanders and other international audiences – including the the qualitative research we conduct each year, confirms the high Nepalese people – had an opportunity to be part of a very significant value New Zealanders place on Radio New Zealand and the public time of national reflection and commemoration. broadcasting services it provides.

Radio New Zealand’s coverage of the event, including its news and Against a backdrop of considerable financial restraint in the past documentary programming, has been short-listed for the 2008 AIB year, our programme makers and support staff have again risen Media Excellence Awards in London. magnificently to the challenge, producing a very broad range of programming of consistently high quality. Celebrating 50 Years of Sound Archives/Ngä Taonga Körero To achieve these results in such difficult circumstances requires In 2007,one of New Zealand’s greatest cultural treasures, Radio an incredible amount of hard work, dedication and creativity. It also New Zealand Sound Archives/Ngä Taonga Körero celebrated its demonstrates a very strong commitment to the Radio New Zealand 50th anniversary. Charter and to the principles and values of public service broadcasting. This unique collection of New Zealand’s history in sound has To all my staff, I offer my sincere thanks and congratulations on for many years been an invaluable resource for programme makers, another very successful year for our organisation. educational institutions and major national heritage projects. In My thanks too to members of the Radio New Zealand Board of Governors future years, as funding allows, we hope to fully digitise this amazing for their very valuable support and guidance during this period. treasure trove, making it freely accessible to all New Zealanders. I would also like to take this opportunity to acknowledge the CONCLUSION outstanding contribution to Radio New Zealand over the past eight One of the great benefits of modern forms of communication such years of our outgoing Chairman, Brian Corban. Brian has been a as email and text messages is that it makes it so much easier for our passionate and very effective advocate for Radio New Zealand audiences – both here and overseas – to stay in touch with us and to and for quality public service broadcasting in New Zealand. During give us their feedback. his Chairmanship, much has been done to rebuild and revitalise While raw audience numbers are an important performance Radio New Zealand and he leaves an organisation confident about measurement, it is the personal stories about how our programming the importance of its role in New Zealand society and well placed to affects people’s lives that are often the most gratifying. meet the challenges of the future.

PETER CAVANAGH – Chief Executive and Editor-in-Chief

13 Performance Management

Outcomes Result

NEW ZEALAND HAVING A HEALTHY SENSE OF CITIZENSHIP AND ITS OWN NATIONAL IDENTITY ACHieved Informing New Zealanders about New Zealand and its position in the world. Achieved 1 Being predominantly and distinctively of New Zealand. Achieved Fostering critical thought and informed and wide-ranging debate, thereby contributing to greater Achieved tolerance and understanding.

Reflecting and promoting ethnic, cultural and artistic diversity and expression. Achieved

Reflecting New Zealand’s cultural identity, including Mäori language and culture. Achieved

Stimulating, supporting and reflecting the diversity of cultural expression including drama, comedy, Achieved literature and the performing arts.

Stimulating, supporting and reflecting a wide range of music, including New Zealand composition Achieved and performance.

NEW ZEALAND SOCIETY INFORMED, EDUCATED, ENTERTAINED AND ENLIGHTENED, AND NEW ZEALAND & HAVING A STRONG INTELLECTUAL, CULTURAL AND ARTISTIC IDENTITY, EXPRESSION AND LIFE ACHieved Stimulating, supporting and reflecting a wide range of music, including New Zealand composition Achieved 2 3 and performance. Contributing towards intellectual and spiritual development, and fostering critical thought and informed Achieved and wide-ranging debate, and providing challenging, innovative and engaging programming.

Providing reliable, independent and freely accessible news and information, and awareness of the Achieved world and of New Zealand’s place in it.

Stimulating, supporting and reflecting the diversity of cultural expression including drama, comedy, Achieved literature and performing arts.

NEW ZEALANDERS HAVING UNIVERSAL ACCESS TO PUBLIC SERVICE BROADCASTING ACHieved

Balancing programmes of special interest with those of wide appeal, recognising the interests Achieved 4 of all age groups. Taking advantage of the most effective means of delivery. Achieved

Ensuring diversity in participation, subject matter and listenership. Achieved

Providing a strong regional presence and coverage. Achieved

Taking account of services provided by other broadcasters. Achieved

ACCESS FOR PACIFIC PEOPLES TO A TRUSTED SOURCE OF INFORMATION FOR, AND ABOUT, THE REGION ACHieved Providing Radio New Zealand International, an international service to the South Pacific in both English Achieved 5 and Pacific languages.

14 Performance Management

objectives Result

MAINTAIN Radio New Zealand’S POSITION AS NEW ZEALAND’S PRE-EMINENT PUBLIC SERVICE BROADCASTER ACHieved

Providing services of the highest quality. Achieved 1 Providing public service broadcasting of value to New Zealand society. Achieved Providing services of relevance to the public. Achieved

Recruiting and retaining talented, capable staff. Achieved

PRESERVE NEW ZEALAND’S HISTORY AND MAKE IT ACCESSIBLE ACHieved

Acquiring and preserving broadcasting material of historical interest. Part Achieved 2 Making recordings available to all New Zealanders on request. Achieved

CONTINUED HIGH PUBLIC TRUST AND CONFIDENCE IN Radio New Zealand ACHieved

Providing services of the highest quality. Achieved 3 Appropriately exercising freedom of thought and expression. Achieved Having a known, trusted and coherent Radio New Zealand brand. Achieved

15 1 Outcome: New Zealand Having a Healthy Sense of Citizenship and its Own National Identity.

Impact 1: Informing New Zealanders about New Zealand and its position in the world.

Outputs Indicators

Use of a range of distribution methods to enable New Zealanders Access to Radio New Zealand services through the internet, such as living overseas to retain a sense of connection with New Zealand live streaming, audio-on-demand and podcasting1.

In-depth New Zealand news and current affairs including coverage of Listener perceptions of the quality, breadth and depth of regional and national issues by authoritative journalists Radio New Zealand news coverage, derived from responses to annual surveys. Report on Radio New Zealand’s coverage of significant events during the review period.

Status: Achieved The Radio New Zealand website was accessed approximately eight and a half million times during the period. Live streaming for Radio New Zealand National was requested over half a million times and Radio New Zealand Concert was requested just over 200,000 times. There were over two million single items requested through the audio-on-demand service and close to two million podcast downloads. The news content on the website proved popular with approximately 20% of site traffic accessing the service. Results from the 2007-2008 Radio New Zealand Listener Survey conducted by The Nielsen Company among Radio New Zealand listeners aged 15+ show that 94% of Radio New Zealand National listeners agree that Radio New Zealand provides in-depth news and current affairs about New Zealand. Radio New Zealand prides itself on the ability to cover significant news and current affairs events that affect New Zealanders. During the period this included the following in-depth news and current affairs coverage: • funeral coverage, and celebrations and tributes for the late Sir Edmund Hillary; • the Mangatepopo canyoning tragedy; • outside broadcasts of news programmes at significant events, e.g. agriculture Fieldays at Mystery Creek; • the events and effects of the unexpected eruption on Mt Ruapehu; • regional reporters on the scene providing coverage of the Patea freezing works fire in South Taranaki and Tamahere cool store blaze in Hamilton; and • Rugby World Cup.

Impact 2: Being predominantly and distinctively of New Zealand.

Outputs Indicators

Programming that is identifiably New Zealand in origin, Local programme hours broadcast: content or interest Radio New Zealand National: 7,900 hours Radio New Zealand Concert: 8,200 hours Listener perceptions that Radio New Zealand promotes and supports a sense of national identity, derived from responses to annual surveys. Report on New Zealand programming of significance during the period.

1 Live streams and audio-on-demand figures are based on server logs and show the number of times a single item is requested. They may be subject to variability due to known issues with server logs.

16 Status: Achieved Programming that was predominantly and distinctively of New Zealand made up 8,037 hours of Radio New Zealand National and 8,687 of Radio New Zealand Concert’s total broadcast hours against targets of 7,900 hours and 8,200 hours, respectively. Results from the 2007-2008 Radio New Zealand Listener Survey conducted by The Nielsen Company among Radio New Zealand listeners aged 15+ show that 82% of Radio New Zealand listeners agree that Radio New Zealand promotes and supports a sense of national identity. Programming of significance during the period included: • Saturday Morning with Kim Hill; • Country Life; • book readings, original drama, short stories and children’s stories of New Zealand origin; • Sounds Historical; • Afternoons with Jim Mora, coverage from heartland New Zealand; • 15 concerts from the New Zealand International Arts Festival; • recording sessions with New Zealand Symphony Orchestra and SOUNZ; • Summer Report; • music programmes reflecting New Zealand music, e.g. Waiata, New Zealand Live and Made in New Zealand; • extensive coverage of Sir Edmund Hillary’s life and achievements in a major five-hour documentary series; • New Zealand-focused presentation including greetings and sign-offs in te reo Mäori; • rural news bulletins; and • New Zealand bird calls.

Fostering critical thought and informed and wide-ranging debate, thereby contributing to greater Impact 3: tolerance and understanding.

Outputs Indicators

Informative, stimulating pre-recorded features and documentaries Listener perceptions that Radio New Zealand promotes critical on a wide range of subjects and issues of public interest thought and informed debate as derived from responses to annual surveys. Informative, stimulating live programmes covering a wide range of Radio New Zealand will schedule an appropriate mix of quality live issues of public interest and pre-recorded programming and will report on programming of significance during the period. Lectures, debates and public events including programmes commissioned by Radio New Zealand

Status: Achieved Results from the 2007-2008 Radio New Zealand Listener Survey conducted by The Nielsen Company among Radio New Zealand listeners aged 15+ show that 88% of Radio New Zealand listeners agree that Radio New Zealand promotes informed debate. Programming of significance during the period included: • Morning Report and Checkpoint playing a role in defining and reflecting matters of public interest and debate; • extensive in-depth coverage of politics, e.g. Focus on Politics; • Nine to Noon; • Upbeat; • Afternoons with Jim Mora, including The Panel and Asian Report; • This Way Up; • The Arts on Sunday; • Saturday Morning with Kim Hill; • Sunday Morning with Chris Laidlaw including Insight, Mediawatch, Sunday Group and Ideas; • Sunday 4 ’til 8 programme profiling public events, debates and lectures; and • programming on spiritual and philosophical themes, including Spiritual Outlook, Hymns on Sunday, and church services. Radio New Zealand broadcast for 8,784 hours during the period; 40% of those hours comprised live current affairs and magazine format programming.

17 Impact 4: Reflecting and promoting ethnic, cultural and artistic diversity and expression.

Outputs Indicators

Programmes of special interest for broad appeal Listener perceptions that Radio New Zealand broadcasts programmes of wide appeal while also broadcasting programmes of interest to minority audiences, derived from responses to annual surveys. Report on programming of significance during the period.

Status: Achieved Results from the 2007-2008 Radio New Zealand Listener Survey conducted by The Nielsen Company among Radio New Zealand listeners aged 15+ show that 76% of Radio New Zealand listeners agree that Radio New Zealand provides programmes of wide appeal while also broadcasting programmes of interest to minority audiences. Programming of significance included: • The Arts on Sunday; • Asian Report; • book readings, original drama, short stories and children’s stories of New Zealand origin; • Sounds Historical; • Global Sounds; • WOMAD; • Radio New Zealand Concert programming including world music; • Waatea News, Te Ahi Kaa, Pacific news bulletins on Morning Report, Dateline Pacific; and • Storytime Treasure Chest on the Radio New Zealand website.

Impact 5: Reflecting New Zealand’s cultural identity, including Mäori language and culture.

Outputs Indicators

Programmes of Mäori issues, stories and ideas including programmes Hours broadcast on Radio New Zealand National: produced by people with specialist background and knowledge Scheduled Mäori Programming: 170 hours Scheduled Pacific Programmes: 85 hours Programming in te reo Mäori Report on programming of significance during the period. Listener perceptions that Radio New Zealand promotes a range of Programmes reflecting the cultural and ethnic diversity of programmes which reflect New Zealand’s cultural diversity, as New Zealand society including pre-recorded programmes produced derived from responses to annual surveys. by people with specialist background and knowledge

Status: Achieved Radio New Zealand National broadcast 349 hours that were specific to Mäori language and culture, against a target of 170 hours, and 132 hours of Pacific programming, against a target of 85 hours. Programming of significance during the period included: • Mäori Language Week 2007; • Te Ahi Kaa; • He Rourou; • Ma Tatou; • book readings, original drama, short stories and children’s stories of New Zealand origin; • Our Changing World; • One in Five; • Spectrum; • Auckland Story; • Asian Report; • Waatea News; and • New Zealand-focused presentation including greetings and sign-offs in te reo Mäori. Results from the 2007-2008 Radio New Zealand Listener Survey conducted by The Nielsen Company among Radio New Zealand listeners aged 15+ show that 83% of Radio New Zealand listeners agree that Radio New Zealand provides a range of programmes which reflect New Zealand’s cultural diversity.

18 Stimulating, supporting and reflecting the diversity of cultural expression including drama, comedy, Impact 6: literature and the performing arts.

Outputs Indicators

Entertainment and arts programmes including New Zealand drama, Actual scheduled hours broadcast on Radio New Zealand National of comedy and fiction locally sourced drama, fiction and comedy: 250 hours Report on programming of significance during the period.

Status: Achieved Radio New Zealand National broadcast 257 hours of locally sourced drama, fiction and comedy, against a target of 250 hours. Programming of significance included: • The Arts on Sunday; • Saturday Morning with Kim Hill; • book readings, original drama, short stories and children’s stories of New Zealand origin; • Sounds Historical; • Upbeat; • coverage of the New Zealand International Arts Festival; • Summer Report including New Zealand comedy; and • extensive and authoritative book reviews.

Stimulating, supporting and reflecting a wide range of music, including New Zealand composition Impact 7: and performance.

Outputs Indicators

New Zealand music and programmes about New Zealand music and New Zealand music percentages: musicians Radio New Zealand National: 35% on rotate Radio New Zealand Concert: 3.5% New Zealand composed music Recording programmes of various live studio and public New Zealand Radio New Zealand Concert: 14% New Zealand performed music music and performance Radio New Zealand National and Radio New Zealand Concert will broadcast New Zealand music programming including both live and recorded New Zealand performance and will report on programming of significance during the period.

Status: Achieved Of the music broadcast on rotate by Radio New Zealand National, 39.5% was of New Zealand origin, against a target of 35%. Radio New Zealand Concert broadcast 4.5% of New Zealand composed music and 15.3% of New Zealand performed music, against targets of 3.5% and 14% respectively. Programming of significance included: • Sound Lounge; • New Zealand Live; • Sounds Historical; • Music Alive, including 240 broadcasts of concerts recorded in New Zealand; • Saturday Concert; • Upbeat; • Music 101 including Musical Chairs; • The Music Mix; • increased New Zealand music availability online via Radio New Zealand podcasts; • Wayne’s Music; • Saturday Night with Peter Fry; • Hidden Treasures; • Appointment; and • Enzology documentary made available in full on the Radio New Zealand website.

19 Outcomes: New Zealand Society Informed, Educated, Entertained and Enlightened, and 2&3 New Zealand Having a Strong Intellectual, Cultural and Artistic Identity, Expression and Life.

Stimulating, supporting and reflecting a wide range of music, including New Zealand composition Impact 1: and performance.

Outputs Indicators

Music, and programmes about music and musicians Radio New Zealand National and Radio New Zealand Concert will broadcast a mix of music programming including both live and Recording and broadcast of various live studio and public recorded New Zealand performance and will report on programming musical performances of significance during the period.

Status: Achieved Over 11% of Radio New Zealand National’s broadcast hours were music features with a mix of live and pre-recorded programmes. Radio New Zealand Concert broadcast 97% of musical programming. Programming of significance during the period included: • Music 101; • Waiata; • Musical Chairs; • a wide range of live music events were recorded for both networks • Access All Areas; including New Zealand Symphony Orchestra Exploring Antarctica, • The Music Mix; Auckland Philharmonia Orchestra, WOMAD and the Gold Guitar Awards; • Charlie Gillett’s World of Music; • Sounds Historical; • Jazz Footprints; • New Zealand Live; • Beale Street Caravan; • Hidden Treasures; • Wayne’s Music; • Upbeat; and • The Sampler; • Nine to Noon including Marty Duda and Manu Taylor. • Saturday Night With Peter Fry;

Contributing towards intellectual and spiritual development, and fostering critical thought, informed Impact 2: and wide-ranging debate, and providing challenging, innovative and engaging programming.

Outputs Indicators

Informative, stimulating pre-recorded features and documentaries on a Radio New Zealand will schedule an appropriate mix of quality live wide range of subjects and issues of public interest and pre-recorded programming and will report on programming of significance during the period. Informative, stimulating live programmes covering a wide range of issues of public interest

Lectures, debates and public events including programmes commissioned by Radio New Zealand

Status: Achieved During the period, Radio New Zealand National broadcast for 8,784 hours. 40% of broadcast hours comprised live current affairs and magazine format programming. Programming of significance during the period included: • Sunday Morning with Chris Laidlaw including Insight, Mediawatch, • Our Changing World; Sunday Group and Ideas; • Sunday 4 ’til 8 programme profiling public events, debates and lectures; • Saturday Morning with Kim Hill; • Focus on Politics; • Asian Report; • Morning Report; and • programming on spiritual and philosophical themes, including Spiritual • Checkpoint. Outlook, Hymns on Sunday, and church services;

20 Providing reliable, independent and freely accessible news and information, and awareness of the world Impact 3: and of new zealand’s place in it.

Outputs Indicators

Comprehensive, independent, accurate, impartial and balanced Percentage of news and current affairs hours broadcast on: regional, national and international news and current affairs Radio New Zealand National: 26% Radio New Zealand Concert: 3.5% Report on coverage of significant events during the period.

Status: Achieved Programming that provided reliable, independent and freely accessible news and information, and awareness of the world and New Zealand made up 55% of Radio New Zealand National’s total broadcast hours and 3% of Radio New Zealand Concert’s total broadcast hours, against targets of 26%, and 3.5%, respectively. Programming of significance included:

• the Political Correspondent accompanying the Foreign Affairs Minister • funeral coverage, and celebrations and tributes for the late on his visit to North Korea and reporting on Six Party Talks covering Sir Edmund Hillary; denuclearisation of North Korea; • the Mangatepopo canyoning tragedy; • the Political Correspondent visiting Australia and reporting on the 2007 • the events and effects of the unexpected eruption on Mt Ruapehu; general election; • regional reporters on the scene providing coverage of the Patea • the Political Correspondent reporting on the Melbourne 2007 APEC talks; freezing works fire in South Taranaki and the Tamahere cool store blaze • sporting coverage including Netball World Championships in Auckland, in Hamilton, and extensive coverage of the controversial nationwide New Zealand Open golf tournament in Queenstown and the Rugby raids on environmental and Mäori groups; and World Cup; • Radio New Zealand International – Pacific Forum coverage.

Stimulating, supporting and reflecting the diversity of cultural expression including drama, comedy, Impact 4: literature and the performing arts.

Outputs Indicators

Live programmes and pre-recorded documentaries and features Actual hours broadcast on Radio New Zealand National of: that address cultural and artistic endeavours Scheduled drama, fiction and comedy: 350 hours Entertainment and arts programmes including drama, comedy Listener perceptions that Radio New Zealand supports New Zealand and fiction performing arts and artists, as derived from responses to Performances of art, drama, comedy, non-fiction and fiction including annual surveys. works commissioned by Radio New Zealand Report on programming of significance during the period.

Status: Achieved Radio New Zealand National broadcast 341 hours of drama, fiction and comedy, against a target of 350 hours. 75% of Radio New Zealand’s drama programmes were of New Zealand origin. Results from the 2007-2008 Radio New Zealand Listener Survey conducted by The Nielsen Company among Radio New Zealand listeners aged 15+ show that 81% of Radio New Zealand listeners agree that Radio New Zealand provides programming which supports New Zealand music, and other performing arts and artists. Programming of significance included: • New Horizons; • School Journal Project; • Appointment; • The Arts on Sunday; • The Poet; • book readings, original drama, short stories and children’s stories • Landscapes; of New Zealand origin; and • Sounds Historical; • Summer Report including New Zealand comedy. • One in Five;

21 4 Outcome: New Zealanders Having Universal Access to Public Service Broadcasting.

Balancing programmes of special interest with those of wide appeal, recognising the interests Impact 1: of all age groups.

Outputs Indicators

A diverse schedule providing a wide range of programmes of interest Listener perceptions that Radio New Zealand provides a wide range to New Zealanders of programmes of interest to New Zealanders, as derived from responses to annual surveys. Report on the diversity of programming.

Status: Achieved Results from the 2007-2008 Radio New Zealand Listener Survey conducted by The Nielsen Company among Radio New Zealand listeners aged 15+ show that: • 84% of Radio New Zealand listeners agree that Radio New Zealand broadcasts programmes of interest to a wide cross-section of New Zealanders; and • 76% of Radio New Zealand listeners agree that Radio New Zealand broadcasts programmes of wide appeal while also broadcasting programmes of interest to minority audiences. Only 4% of listeners disagreed and the remainder were neutral (17%) or didn’t know (3%). Programming of diversity and significance included: • This Way Up; • Afternoons with Jim Mora including Reeling in the Years and Tune Your Engine; • Ideas; • Our Changing World; • Spectrum; • Country Life; • One in Five; • jazz programmes including The Art of Jazz; • Saturday Night with Peter Fry; • Vintage Years; • Sounds Historical; • Young New Zealand, including 52 broadcasts of young musicians recorded around the country; • Insight and Focus on Politics; • Storytime; and • Music 101.

22 Impact 2: Taking advantage of the most effective means of delivery.

Transmission coverage is measured in terms of the percentage of the total New Zealand population able to receive the network signal.

Outputs Indicators

Maintenance of the current FM transmission networks Radio New Zealand National: 90% coverage Radio New Zealand Concert: 92% coverage

Maintenance of the current AM transmission network Radio New Zealand National: 96% coverage

Availability of Radio New Zealand networks via digital satellite Radio New Zealand National: 100% coverage Radio New Zealand Concert: 100% coverage

Website services including audio-on-demand, live streaming Achieved if site unavailability time, other than for programmed and podcasting maintenance, does not exceed: 1%.

Maintenance of AM/FM transmission services Achieved if transmission time lost, other than for programmed maintenance, does not exceed: Radio New Zealand National: 0.1% Radio New Zealand Concert: 0.1%

Status: Achieved

This impact was achieved through the following:

Outputs ACHIEVEMENTS

Radio New Zealand National FM coverage 90% Radio New Zealand Concert FM coverage 92%

Radio New Zealand National AM coverage 96%

Radio New Zealand digital satellite coverage 100%

Website unavailability 0.06%

Outage of AM/FM transmission services Average across AM/FM networks 0.04%

Impact 3: Ensuring diversity in participation, subject matter, and listenership.

Outputs Indicators

Geographic, social and cultural diversity of programme content and Report on programming of significance during the period. participants

Status: Achieved Radio New Zealand National broadcast 100% of programming hours that were diverse in audience participation, content and listenership. The programming schedule included: • News – Regular hourly and at peak times twice hourly bulletins, Morning Report, Checkpoint, Mediawatch, Worldwatch, Focus on Politics, Rural News, Sports News, Waatea News and Tagata o te Moana; • Culture – Asian Report, Country Life, He Rourou, Storytime, Sunday Drama, Sounds Historical and Global Sounds; • Debate – The Panel, Saturday Morning, Sunday Group, Afternoons, Ideas, and Insight; • Special interest – One in Five, Spectrum, Spiritual Outlook, Our Changing World, Brainstorm and Sunday 4 ’til 8; and • Music – The Art of Jazz, Hymns on Sunday, Waiata, Music Alive and Music 101.

23 Programming of significance from Radio New Zealand National and Radio New Zealand Concert included: • In Touch With New Zealand broadcast from regional locations including Riverton and Hokianga; • Your Place broadcast a weekly afternoon programme from places including: Tuakau, Opotiki, Featherston, Duntroon, Glenorchy, Governors Bay, Tirau, Takaka and Rakaia; • Spectrum (52 regional programmes); • Country Life (144 regional segments); and • book readings, original drama, short stories and children’s stories of New Zealand origin.

Impact 4: Providing a strong regional presence and coverage.

Outputs Indicators

A network of regional correspondents Maintenance of at least seven district and regional offices.

Diverse geographic programme content and participation Regular broadcasting from regional locations. Report on programming of significance during the period.

Status: Achieved Radio New Zealand operated 12 district and regional news offices based in Whangarei, Hamilton, Tauranga, Napier, New Plymouth, Palmerston North, Nelson, Dunedin, Queenstown, Christchurch, Auckland and Wellington. Radio New Zealand broadcast news bulletins daily, every hour, also twice hourly during peak listening times; the news service covered mainstream news as well as specialist news, which included: • Morning Report; • Midday Report; • Checkpoint; • Business News; • Focus on Politics; • Insight; • Mäori news; • Pacific news; • rural and agricultural news; and • sports news. Radio New Zealand National and Radio New Zealand Concert contributed to the achievement of this outcome through the recording and/or broadcasting of programmes from regional locations. Programming of significance during the period included: • The Arts on Sunday broadcast from Dunedin, Auckland and Christchurch; • Afternoons with Jim Mora produced over 160 heartland New Zealand stories ranging from developing news, current affairs, music, sports, food, cultural and regional issues; • Spectrum (52 regional programmes); • live news bulletins from regional locations; • Country Life (144 regional segments); • Our Changing World; and • Mediawatch.

24 Impact 5: Taking account of services provided by other broadcasters.

Outputs Indicators

Programmes for New Zealanders whose interests are not served by Radio New Zealand will deliver programming that is demonstrably other broadcasters different from other broadcasters. Report on programming of significance during the period. Programmes which offer an alternative to other broadcasters Listener perceptions that Radio New Zealand broadcasts programmes not generally found on other radio stations, as derived from responses to annual surveys.

Status: Achieved Radio New Zealand delivered programming covering the diverse cultures that make up New Zealand’s unique identity. This was discernibly different from other broadcasters who delivered programmes in particular formats to meet the needs of a more narrow audience. Other attractions for the audience were detailed, uninterrupted and commercial free news and programming, with high editorial principles and a strong tradition of editorial independence. Radio New Zealand News provided a service to listeners that could not be compared with other broadcasters. News bulletins were provided hourly and twice hourly 365 days of the year. In addition, particular programmes such as Focus on Politics were unique to Radio New Zealand. No other stations provided a service as comprehensive as the one Radio New Zealand provides. Radio New Zealand Concert’s music format was demonstrably different, being the only New Zealand broadcaster offering a classical music service. A further accent on the esoteric end of jazz and ethnic world music satisfied other minority audiences. Programming of significance for Radio New Zealand during the period included: • Wellington International Jazz Festival; • Auckland Philharmonia’s Splendour of the Baroque and Beethoven series; • Gisborne Music Competition; • New Zealand Symphony Orchestra with Salmonella Dub; • Auckland Piano Festival; • New Zealand International Arts Festival events; • The Arts on Sunday; and • One in Five. Results from the 2007-2008 Radio New Zealand Listener Survey conducted by The Nielsen Company among Radio New Zealand listeners aged 15+ show that 85% of Radio New Zealand listeners agree that Radio New Zealand broadcasts programmes not generally found on other radio stations.

25 Outcome: Access for Pacific Peoples to a Trusted Source of Information for, 5 and About, the Region.

Providing Radio New Zealand International, an international service to the South Pacific Impact 1: in both English and Pacific languages.

Outputs Indicators

Range of programmes including Pacific news Radio New Zealand International will broadcast primarily original programming to the Pacific and also rebroadcast selected programming from Radio New Zealand National. Achieved if Radio New Zealand International is widely rebroadcast in the Pacific throughout the year. Report on programming of significance during the period.

Transmission of Radio New Zealand International to the Coverage is measured by geographic location and grade of South Pacific transmission. Transmission grades at each site are measured by the average hours of good quality reception available per day and are Primary, 18 hours; Secondary, 12 hours; and General, 6 hours. Coverage goals are: Primary coverage – French Polynesia, Cook Islands, Tokelau, American Samoa, Samoa, Niue, Tonga, Wallis and Futuna, Fiji, Tuvalu, New Caledonia, Vanuatu and Solomon Islands. Secondary coverage – Papua New Guinea, Nauru, Kiribati, Federated States of Micronesia, Marshall Islands and Palau. General coverage – Asia/Pacific and Pacific Rim. Note: Asian coverage is achieved through Radio Australia’s rebroadcast of selected material.

Maintenance of transmission services Achieved if transmission time lost, other than for programmed maintenance, does not exceed: Radio New Zealand International: 1%.

26 Status: Achieved Radio New Zealand International broadcast a range of news and programmes for, and about, the Pacific. These included: • Dateline Pacific; • Tagata o te Moana; • Trade Winds; • Pacific Correspondent; • news and current affairs about the Pacific; • business and sports news; • world news; and • New Zealand news and bulletins in Pacific languages. Radio New Zealand International rebroadcast a range of Radio New Zealand National programmes including: • Checkpoint; • Midday Report; • Late Edition; • parts of Morning Report; • weekend Radio New Zealand National programming; • Insight; • Spectrum; • Mäori programming; and • Radio New Zealand news bulletins. Eighteen Pacific radio stations relayed Radio New Zealand International during the period. Programme highlights this year included coverage of: • Fiji’s interim government and relations with New Zealand and the Pacific; • elections in Niue, Tonga, Kiribati, Papua New Guinea, French Polynesia, Solomon Islands and Nauru; • South Pacific Games in Samoa; • Pacific Forum meeting in Tonga; • referendum in Tokelau; • media freedom restrictions and concern in Fiji and Tonga; • seasonal workers from Pacific scheme in New Zealand; • deaths of Bougainville President Joseph Kabui and former Cook Islands Prime Minister Sir Tom Davis; • political upheaval in French Polynesia; and • Melanesian Spearhead Group meeting in Vanuatu. Transmission coverage was achieved and details of the geographical coverage are provided under the section Statement of Service Performance. Additional coverage in Asia was achieved through Radio Australia’s rebroadcast of selected Radio New Zealand International material on their satellite services across Asia and also through relays by the BBC World Service. Transmission outage – Radio New Zealand International lost an average of 0.6% of broadcasting time over its transmitters (other than for scheduled maintenance) against a target average of 1.0%.

27 OBJECTIVE: Maintain Radio New Zealand’s Position as New Zealand’s Pre-Eminent 1 Public Service Broadcaster.

Impact 1: Providing services of the highest quality.

Outputs Indicators

Programmes which are authoritative, informative and challenging Listener perceptions that Radio New Zealand contributes to the development of an informed society, as derived from responses to annual surveys. Programmes based on in-depth research, knowledge and expertise Report on significant achievements, external awards and peer recognition during the period.

Programmes which achieve the highest technical, craft and Report on significant technological developments and initiatives broadcasting standards undertaken during the period.

Technology upgrades status: Achieved Results from the 2007-2008 Radio New Zealand Listener Survey conducted by The Nielsen Company among Radio New Zealand listeners aged 15+ show that 91% of Radio New Zealand listeners agree that Radio New Zealand contributes to the development of an informed society. Significant achievements during the period included: • Radio New Zealand won the following nine categories at the 2008 New Zealand Radio Awards: – Best Newsreader: Hewitt Humphrey; – Best Coverage of a News Story: Radio New Zealand News (Police Raids); – Individual Radio Journalist of the Year: Matthew Farrell; – Best New Broadcaster: Nadine Chalmers-Ross; – Best Daily/Weekly Series under 1 Hour: Composer of the Week, Radio New Zealand Concert; and – Best Daily/Weekly Series 1 Hour or more: Morning Report, Radio New Zealand National; – Best Dramatic Production: King and Country, Radio New Zealand National; – Best Recorded Live Music Event: New Zealand Symphony Orchestra 60th Anniversary Concert, and Radio New Zealand Concert; and – Best Studio or Outside Broadcast Recording: Dudley Benson Live; and Radio New Zealand National. • The drama 25th April: a True Fiction was awarded the Premier Media Peace Award at the annual New Zealand Peace Foundation Peace Awards. • Radio New Zealand was the Supreme Award winner of the 2007 Mäori Language Week Awards. • Radio New Zealand International was the winner of the International Radio Station of the Year Award at the Association for International Broadcasting (AIB) Media Excellence Awards. • Radio New Zealand International was the winner of the Most Innovative Partnership category at the Association for International Broadcasting (AIB) Media Excellence Awards. • Radio New Zealand International was the winner of a special award for significant achievement at the New Zealand Peace Foundation Media Awards. • Radio New Zealand Concert recordings were featured internationally by other public service broadcasters. New Zealand music recorded by Radio New Zealand Concert was broadcast in Australia and Europe through programme exchange with the ABC and the EBU (European Broadcasting Union), including the New Zealand Symphony Orchestra, Auckland Philharmonia Orchestra, New Zealand String Quartet, New Zealand Symphony Orchestra National Youth Orchestra and Christchurch Symphony. Technology upgrades: • Freeview Terrestrial transmission (Freeview HD) commenced on 2 April and was officially launched on 14 April. Radio New Zealand National and Concert are both available in stereo on that platform.

28 Impact 2: Providing public service broadcasting of value to New Zealand society

Outputs Indicators

Charter-compliant provision of all Radio New Zealand services Public perceptions of the value of Radio New Zealand’s public service broadcasting role as derived from responses to annual surveys.

Impact 3: Providing services of relevance to the public.

Outputs Indicators

Radio New Zealand will undertake research of radio listening to As Radio New Zealand has embraced a multiplicity of delivery monitor audience trends platforms including both live and on-demand services, it is no longer possible to fully report on audience based on snap-shot radio surveys. Radio New Zealand will report annually on its audience across various platforms. Report on significant trends and indicators in internet-based service use.

Status: Achieved Radio New Zealand has undertaken several audience surveys during 2007-2008:

The 2007-2008 All New Zealand Radio Survey Conducted by The Nielsen Company, the All New Zealand Radio Survey is fully representative, nationwide, and conducted among all people aged 15+. It is designed to monitor audience listening trends and has survey diaries in the field continuously for 40 weeks of the year. Continuous surveying is a move away from the traditional six to eight week ‘snapshot’ survey undertaken by Radio New Zealand prior to 2007-2008. Over the 40 week surveying period the sample size for 2007-2008 was over 4,000 respondents.

The 2007-2008 Radio New Zealand Listener Survey The Radio New Zealand Listener Survey is undertaken by The Nielsen Company as an extension of the All New Zealand Radio Survey and is conducted among listeners to Radio New Zealand National and Radio New Zealand Concert. Respondents are asked about their listening and how well they think Radio New Zealand performs against Charter criteria. The sample size exceeded 600 listeners.

2007-2008 Radio New Zealand Value Indices Research The Radio New Zealand Value Indices Research undertaken by The Nielsen Company is a fully representative nationwide survey among all New Zealanders (both listeners and non-listeners) aged 15+, designed to measure the perceived importance and value of Radio New Zealand services to all New Zealanders. In each telephone survey conducted among the general public, 1,000 people were interviewed. The 2007-2008 surveys were carried out in September 2007 and March 2008. A summary of the audience research results are presented on page 7 of this Annual Report. While live streaming through the website is captured in the normal 40 week surveys, time-shifted listening such as audio-on-demand or podcasting is not.

29 Time-shifted listening represents additional listening, above and beyond the live audience figures reported during the period. Time-shifted listening reaches new audiences for Radio New Zealand, such as New Zealanders living overseas. Since the launch of the current version of the Radio New Zealand website there has been steady growth in website listening – see the table below:

website activity 2 2007-2008 2006-2007

Number of times website was accessed 8,525,601 8,107,783

Live stream access (Radio New Zealand National) 791,406 496,207

Live stream access (Radio New Zealand Concert) 257,058 200,056

Number of audio-on-demand requests 2,058,449 1,452,566

Number of podcast files downloaded 2,247,218 969,240

Impact 4: Recruiting and retaining talented, capable staff.

Outputs Indicators

Initiatives to attract, develop and retain staff of the Staff turnover in line with public sector norms. highest calibre Radio New Zealand will report on turnover.

Development of integrated remuneration framework Remuneration strategy implemented.

Status: Achieved The annual staff turnover within Radio New Zealand to 30 June 2008 was 11.3%. This was a marginal decrease against the staff turnover for the year ended 30 June 2007, which was 11.6%. Whilst the public sector average turnover for the year to 30 June 2008 was not available at the time of publication, it is predicted to be higher than the 14% recorded for the public sector in the previous year. A Baseline Funding Review was completed during the period and the final report by consultants KPMG was accepted by the Steering Group (representing the Ministry for Culture and Heritage, the Crown Company Monitoring Advisory Unit, NZ On Air and Radio New Zealand). The report highlighted in particular that the company’s remuneration was assessed as being significantly behind public sector norms. This was addressed in part by a 6% salary adjustment from 1 July 2008.

2 Live streams and audio-on-demand figures are based on server logs and show the number of times a single item is requested. They may be subject to variability due to known issues with server logs.

30 2 objective: Preserve New Zealand’s History and Make It Accessible.

Impact 1: Acquiring and preserving broadcasting material of historical interest.

Outputs Indicators

Material acquired Target hours: 1,300

Material preserved Target hours: 1,900

Status: Part Achieved This impact was part achieved through the following:

Outputs achievements

Material acquired 2,324 hours

Material preserved 1,828 hours

The archive is resourced to manage just 100 hours of historical material per year. The growing backlog of material acquisitioned has hampered the preservation programme.

Impact 2: Making recordings available to all New Zealanders on request.

Outputs Indicators

Material available, accessible and provided Public access to the archives.

Status: Achieved During the period material was accessed through Sound Archives/Ngä Taonga Körero, by members of the public, students and researchers, libraries and museums, and broadcasters and programme producers. Material was made available and accessed on-site at Auckland and Christchurch; the bulk of the material was distributed via CD for listening.

31 3 objective: continued high public trust and confidence in radio new zealand.

Impact 1: Providing services of the highest quality.

Outputs Indicators

Ongoing qualitative performance and content reviews within An ongoing internal assessment of programming against the relevance programmes and departments and quality requirements of the Radio New Zealand Charter. Listeners’ perception of the “quality” of Radio New Zealand programming derived from responses to annual surveys.

Implementation of editorial policy Listener perceptions of the fairness and balance of information in Radio New Zealand programming derived from responses to annual surveys.

Charter review The next review is expected to be initiated in 2011.

status: Achieved Radio New Zealand continued to adjust programming to meet Charter requirements through a process of internal monitoring and collaboration with senior management and production and programming departments. Results from the 2007-2008 Radio New Zealand Listener Survey conducted by The Nielsen Company among Radio New Zealand listeners aged 15+ show that: • 86% of Radio New Zealand National listeners are satisfied with network programming, 12% are neither satisfied nor dissatisfied and just 2% are dissatisfied; • 79% of Radio New Zealand Concert listeners are satisfied with network programming, 20% are neither satisfied nor dissatisfied and just 1% are dissatisfied; and • 89% of Radio New Zealand listeners agree that Radio New Zealand provides fair and balanced information, 2% disagree and the remainder are either neutral (8%) or don’t know (1%). During mid 2007-2008 Radio New Zealand, consistent with its requirement to regularly review our Charter, prepared a draft submission to the House of Representatives. The proposed Charter has taken on board audience feedback and analysis of listenership from audience research to better reflect New Zealand society. Acceptance of the revised Charter remains unresolved; however, the organisation is committed to the proposed outline and continues to plan towards a resolution during 2008-2009.

Impact 2: Appropriately exercising freedom of thought and expression.

Outputs Indicators

Retention of editorial independence Radio New Zealand and its stakeholders will adhere to the requirements of section 13 of the Radio New Zealand Act 1995. Adherence to Radio New Zealand’s commercial-free status. Public trust and confidence in Radio New Zealand’s independence, derived from responses to annual surveys.

Compliance with legislated standards under the Radio Code of Radio New Zealand will report annually on any formal complaints Broadcasting Practice and the Broadcasting Act 1989 which were upheld.

Adherence to the Radio New Zealand editorial policy manual Radio New Zealand will maintain a robust internal system of compliance with its own internal policies and procedures.

32 Status: Achieved The editorial policies reflect the provisions of the Radio New Zealand Act 1995, which precludes ministerial direction relating to programming and the placement of commercial advertising. There were no breaches of the policy with respect to these matters. Results from the 2007-2008 Radio New Zealand Listener Survey conducted by The Nielsen Company among Radio New Zealand listeners aged 15+ show that 89% of Radio New Zealand listeners agree that Radio New Zealand provides fair and balanced information. Complaints against two programmes were upheld by the Broadcasting Standards Authority during the year. One, a news item that was found to be inaccurate and unfair, related to the previous financial year. The other related to a current affairs interview and the Broadcasting Standards Authority, while rejecting a number of complaints against the programme, found that it lacked balance in one aspect. Radio New Zealand established a comprehensive manual of editorial policies in 2005 and republished it in 2007. It is continually reviewed and updated against industry standards, including online protocols and the use and security of external contacts. This manual is available on the Radio New Zealand website for public access. All Radio New Zealand staff and contracted programme makers are required to comply with the editorial policies and procedures, Charter obligations and Broadcasting Standards.

Impact 3: A known, trusted and coherent Radio New Zealand brand.

Outputs Indicators

Public recognition of the public service broadcasting role performed by Public perceptions of the value of Radio New Zealand’s public service Radio New Zealand broadcasting role as derived from responses to annual surveys.

Branding work to strengthen the alignment between Radio Qualitative research of listeners and non-listeners to determine New Zealand brands and public service broadcasting values brand awareness and brand response.

Status: Achieved Results from the 2007-2008 Radio New Zealand Value Indices Research, conducted nationwide by The Nielsen Company among all New Zealanders aged 15+, show that: • 83% of New Zealanders agree that it is important for New Zealand to have a public service radio broadcaster; 8% disagree, 6% neither agree nor disagree and 3% don’t know; and • 75% of New Zealanders believe that Radio New Zealand provides a valuable service for New Zealanders; 7% disagree, 8% neither agree nor disagree and10% don’t know. Further results from the 2007-2008 Radio New Zealand Value Indices Research show that: • 64% of New Zealanders are aware that Radio New Zealand is New Zealand’s public service radio broadcaster; • 70% of New Zealanders have heard of Radio New Zealand National; • 57% of New Zealanders have heard of Radio New Zealand Concert; and • 27% of New Zealanders haven’t heard of either Radio New Zealand National or Radio New Zealand Concert.

33 Financial Performance 2007/2008

Statement of Corporate Governance...... 35 Statement of Responsibility...... 36 audit report...... 37 Statement Specifying Financial Performance...... 39 Income Statement...... 40 Statement of Changes in Equity...... 40 Balance Sheet...... 41 Cash flow Statement...... 42 Notes to the Financial Statements...... 43 1 Statement of accounting policies...... 43 2 Revenue from Crown...... 47 3 Other revenue...... 47 4 Personnel costs...... 47 5 Other expenditure...... 48 6 Taxation...... 48 7 Cash and cash equivalents...... 49 8 Debtors...... 49 9 Intangible assets...... 49 10 Property, plant and equipment...... 50 11 Creditors and other payables...... 51 12 Employee entitlements...... 52 13 Bank loan...... 52 14 Provisions...... 52 15 Redeemable preference shares...... 52 16 Equity...... 53 17 Reconciliation of net surplus to net cash from operations...... 54 18 Commitments...... 55 19 Contingent liabilities...... 55 20 Contingent assets...... 55 21 Related party transactions, key management personnel and employee remuneration...... 56 22 Board member remuneration...... 57 23 Financial instruments...... 59 24 Events after the balance sheet date...... 60 25 Explanation of significant variances against budget...... 60 26 Adoption of International Financial Reporting Standards for the parent and group...... 61 27 Reconciliation from the transition from nz gaap to nz ifRs...... 62 statement of service performance...... 63

34 Statement of Corporate Governance ROLE OF THE BOARD

Radio New Zealand’s Shareholding Ministers, the Minister Responsible for Radio New Zealand and the Minister of Finance, appoint a governing board of directors. The Radio New Zealand constitution sets the size of the Board at a minimum of two and a maximum of nine directors. There were seven directors appointed as at 30 June 2008. The Board is responsible under the company’s constitution to manage, direct and supervise the company’s business and affairs in accordance with the Radio New Zealand Charter set out in section 7 of The Radio New Zealand Act 1995 (dealing with programming) and the Principles of Operation of the company as provided for in section 8. In practice, day-to-day management of the company is delegated to the Chief Executive Officer/Editor-in-Chief. The Board, on the advice of the Executive, establishes the company’s strategic, business and programming plans, ratifies annual budgets and monitors management’s performance against established goals. The Board also considers and approves new policies and business initiatives, authorises transactions outside prescribed delegated authorities of management and appoints the Chief Executive/Editor-in-Chief. Procedures are in place at Board, corporate and business unit levels to safeguard the company’s assets and its wider commercial interests. A well-established regime of regular reporting is designed to maintain a high standard of internal communication and to ensure the Board remains appropriately informed of all aspects of the company’s business and activities. Board fees are set by the Shareholding Ministers each year.

BOARD CHANGES

During the year Judith Fyfe completed her term as director on 31 October 2007.

SUBSIDIARY

A fully owned subsidiary company, Sound Archives/Ngä Taonga Körero Limited, was incorporated in August 1998. The subsidiary’s directors are the Radio New Zealand Chief Executive (Peter Cavanagh) and a Board member (Judith Fyfe until 31 October 2007 and replaced by Christine Grice from 30 November 2007). The subsidiary receives funding from NZ On Air and purchases services from Radio New Zealand to run the archives.

BOARD COMMITTEES

The Board has formally constituted an Audit Committee to focus on audit and risk management issues. All members of the Board are on this committee. This committee met on four occasions during the year. The Board has also established a Remuneration Committee to advise on remuneration, performance and other employment-related issues for the Chief Executive and senior staff. Four Board members serve on this committee and it met on three occasions during the year.

BOARD MEETINGS

The Board normally meets on 11 scheduled occasions each year and convenes special meetings as required.

Table of attendance for the year ended 30 June 2008 Board meetings Audit Committee Remuneration Committee

Brian Corban QSO – Chairman 9 3 3 Alison Timms – Deputy Chairman 10 3 3 Judith Fyfe (retired 31 October 2007) 4 2 – Judy Finn 9 3 – Alan Dick 9 3 – Steve Murray 10 3 3 Sifa Taumoepeau 9 4 – Christine Grice 9 3 2

35 The accompanying notes and accounting policies form an integral part of the financial statements. MANAGEMENT AND OPERATING STRUCTURE

Radio New Zealand’s organisational structure reflects its core business activities. The structure is reviewed regularly and adjusted where necessary to accommodate new business and to ensure that it remains relevant to a changing trading and operational environment. The Chief Executive is responsible for the management leadership of the company, its organisational structures, developing and recommending initiatives to the Board, implementing Board decisions and policies, achieving objectives, ensuring the company is properly equipped with skilled personnel, and for various interfaces between the company, its stakeholders and the public. The Chief Executive has a dual role as Editor-in- Chief. In that role he is responsible to the Board for Radio New Zealand’s editorial matters. The Board and the Chief Executive/Editor-in-Chief have acknowledged their responsibility by signing the Statement of Responsibility in this report.

AUDITOR

Mr John O’Connell, acting on behalf of the Controller and Auditor-General, is the auditor of Radio New Zealand Limited in accordance with section 32 of the Public Audit Act 2001.

LEGISLATIVE COMPLIANCE

The Board acknowledges its responsibility to ensure the organisation complies with all legislation. The Board has delegated responsibility to the Chief Executive for the development and operation of a programme to systematically identify compliance issues and ensure staff are aware of relevant legislative requirements.

Statement of Responsibility for the year ended 30 June 2008

Pursuant to the Crown Entities Act 2004, the Board and management of Radio New Zealand Limited accept responsibility for: • the preparation of the financial statements and the Statement of Service Performance and for the judgements used therein; and • the establishment and maintenance of a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial statements and non-financial reporting. In the opinion of Radio New Zealand, the financial statements for the year ended 30 June 2008 fairly reflect the financial position and operations of Radio New Zealand Limited. The audit opinion on these financial statements is on pages 37-38.

Christine Grice – Chair Steve Murray – Audit Committee Chairman Peter Cavanagh – Chief Executive and Editor-in-Chief 31 October 2008 31 October 2008 31 October 2008

The accompanying notes and accounting policies form an integral part of the financial statements. 36 Audit Report

TO THE READERS OF RADIO NEW ZEALAND LTD AND GROUP’S FINANCIAL STATEMENTS AND STATEMENT OF SERVICE PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2008

The Auditor-General is the auditor of Radio New Zealand Ltd (the company) and group. The Auditor‑General has appointed me, John O’Connell using the staff and resources of Audit New Zealand, to carry out the audit on his behalf. The audit covers the financial statements and statement of service performance included in the annual report of the company and group for the year ended 30 June 2008.

Unqualified Opinion In our opinion: • The financial statements of the company and group on pages 40 to 62: – comply with generally accepted accounting practice in New Zealand; – give a true and fair view of: – the company and group’s financial position as at 30 June 2008; and – the results of operations and cash flows for the year ended on that date. • The statement of service performance of the company and group on pages 63 to 71: – complies with generally accepted accounting practice in New Zealand; and – gives a true and fair view of, for each class of outputs: – standards of delivery performance achieved, as compared with the forecast standards outlined in the statement of forecast service performance adopted at the start of the financial year; and – actual revenue earned and output expenses incurred, as compared with the forecast revenues and output expenses outlined in the statement of forecast service performance adopted at the start of the financial year. • Based on our examination the company and group kept proper accounting records. The audit was completed 31 October 2008, and is the date at which our opinion is expressed. The basis of our opinion is explained below. In addition, we outline the responsibilities of the Board of Directors and the Auditor, and explain our independence.

Basis of Opinion We carried out the audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the New Zealand Auditing Standards. We planned and performed the audit to obtain all the information and explanations we considered necessary in order to obtain reasonable assurance that the financial statements and statement of service performance did not have material misstatements, whether caused by fraud or error. Material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overall understanding of the financial statements and statement of service performance. If we had found material misstatements that were not corrected, we would have referred to them in our opinion. The audit involved performing procedures to test the information presented in the financial statements and statement of service performance. We assessed the results of those procedures in forming our opinion. Audit procedures generally include: • determining whether significant financial and management controls are working and can be relied on to produce complete and accurate data; • verifying samples of transactions and account balances; • performing analyses to identify anomalies in the reported data; • reviewing significant estimates and judgements made by the Board of Directors; • confirming year-end balances; • determining whether accounting policies are appropriate and consistently applied; and • determining whether all financial statement and statement of service performance disclosures are adequate.

We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and statement of service performance.

We evaluated the overall adequacy of the presentation of information in the financial statements and statement of service performance. We obtained all the information and explanations we required to support our opinion above.

Responsibilities of the Board of Directors and the Auditor The Board of Directors is responsible for preparing the financial statements and statement of service performance in accordance with generally accepted accounting practice in New Zealand. The financial statements must give a true and fair view of the financial position of the company and group as at 30 June 2008 and the results of operations and cash flows for the year ended on that date. The statement of service performance must give a true and fair view of, for each class of outputs, the company and group’s standards of delivery performance achieved and revenue earned and expenses incurred, as compared with the forecast standards, revenue and expenses adopted at the start of the financial year. The Board’s responsibilities arise from the Financial Reporting Act 1993, and the Crown Entities Act 2004. We are responsible for expressing an independent opinion on the financial statements and statement of service performance and reporting that opinion to you. This responsibility arises from section 15 of the Public Audit Act 2001 and the Crown Entities Act 2004.

Independence When carrying out the audit we followed the independence requirements of the Auditor‑General, which incorporate the independence requirements of the New Zealand Institute of Chartered Accountants. Other than the audit, we have no relationship with or interests in the company or any of its subsidiaries.

John O’Connell – Audit New Zealand On behalf of the Auditor-General Wellington, New Zealand

Matters relating to the electronic presentation of the audited financial statements This audit report relates to the financial statements of Radio New Zealand Ltd (the company) and group for the year ended 30 June 2008 included on the company and group’s website. The company and group are responsible for the maintenance and integrity of the company and group’s website. We have not been engaged to report on the integrity of the company and group’s website. We accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. The audit report refers only to the financial statements named above. It does not provide an opinion on any other information which may have been hyperlinked to/from these financial statements. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the audited financial statements and related audit report dated 31 October 2008 to confirm the information included in the audited financial statements presented on this website. Legislation in New Zealand governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

38 Statement Specifying Financial Performance for the year ended 30 June 2008

The Board agreed financial targets with the Crown at the beginning of the year. Budget figures are based on the high-level budget set out in the 2007-2008 Statement of Intent.

Budget Achievement $000 $000

REVENUE 35,326 35,286

EXPENDITURE 35,276 35,257

OPERATING SURPLUS/(DEFICIT) BEFORE TAXATION 50 29

TAXATION EXPENSE/(BENEFIT) 17 5

NET SURPLUS/(DEFICIT) AFTER TAXATION 33 24

EQUITY 25,608 52,485

WORKING CAPITAL RATIO (Current assets as percentage of current liabilities) 100.0% 97.0%

RATIO OF EQUITY TO TOTAL ASSETS (Equity as percentage of total assets) 78.7% 85.0%

Radio New Zealand has substantially met its financial performance targets in hours of Charter delivery within operating budgets. Both operating revenue and expenses are within 5% material variance limits of budget. These two minor variances combine to yield a net surplus after tax of $24,000 compared with a planned surplus of $33,000.

39 The accompanying notes and accounting policies form an integral part of the financial statements. Income Statement for the year ended 30 June 2008

Group Group Group PARENT PARENT Budget Actual Actual Actual Actual 2008 2008 2007 2008 2007 Note $000 $000 $000 $000 $000

INCOME Revenue from the Crown 2 31,573 31,602 30,457 30,879 29,757 Interest income 25 146 46 146 46 Other income 3 3,728 3,538 3,638 4,498 4,338 Gains 0 0 59 0 59 Total income 35,326 35,286 34,200 35,523 34,200

EXPENDITURE Personnel costs 4 18,360 19,058 18,146 19,058 18,146 Depreciation and amortisation 3,537 2,892 2,800 2,892 2,800 Interest expense 50 2 39 2 39 Other expenditure 5 13,329 13,305 13,139 13,468 13,139 Total expenditure 35,276 35,257 34,124 35,420 34,124

Net operating surplus/(deficit) before taxation 50 29 76 103 76 Taxation expense/(benefit) 6 17 5 0 5 0

Net surplus/(deficit) after taxation 33 24 76 98 76

Statement of Changes in Equity for the year ended 30 June 2008

Group Group Group PARENT PARENT Budget Actual Actual Actual Actual 2008 2008 2007 2008 2007 $000 $000 $000 $000 $000

Balance at 1 July 25,054 23,719 28,401 22,940 27,622 Increase/(decrease) in asset revaluation reserves 0 28,221 0 28,221 0 Increase/(decrease) in share capital 521 521 0 521 0 Reclassification of preference shares 0 0 (4,120) 0 (4,120) NZ IFRS transition 0 0 (638) 0 (638) Net surplus/(deficit) after taxation for the year 33 24 76 98 76

Balance at 30 June 25,608 52,485 23,719 51,780 22,940

The accompanying notes and accounting policies form an integral part of the financial statements. 40 Balance Sheet as at 30 June 2008

Group Group Group PARENT PARENT Budget Actual Actual Actual Actual 2008 2008 2007 2008 2007 Note $000 $000 $000 $000 $000

EQUITY 16 Share capital 16,692 16,692 16,171 16,692 16,171 Preference shares 0 0 0 0 0 Revaluation reserve 2,280 30,501 2,280 29,701 1,480 Other reserves 700 0 0 0 0 Retained earnings 5,936 5,292 5,268 5,387 5,289 Total equity 25,608 52,485 23,719 51,780 22,940

CURRENT LIABILITIES Creditors and other payables 11 1,209 2,125 1,996 1,973 1,915 Employee entitlements 12 976 1,315 1,258 1,315 1,258 Provision for tax 17 1 (4) 1 (4) Revenue received in advance 604 609 562 609 562 Total current liabilities 2,806 4,050 3,812 3,898 3,731

Non-current LIABILITIES Employee entitlements 12 0 69 73 69 73 Revenue received in advance 0 148 224 148 224 Provisions 14 0 822 819 822 819 Preference shares 15 4,120 4,120 4,120 4,120 4,120 Total non-current liabilities 4,120 5,159 5,236 5,159 5,236

Total liabilities and equity 32,534 61,694 32,767 60,837 31,907

CURRENT ASSETS Cash and cash equivalents 7 591 2,864 1,306 2,808 1,247 Debtors 8 773 604 689 604 689 Other receivables and prepayments 1,440 460 491 459 490 Total current assets 2,804 3,928 2,486 3,871 2,426

Non-current ASSETS Intangibles 9 761 616 742 616 742 Property, plant and equipment 10 28,969 57,150 29,539 56,350 28,739 Total non-current assets 29,730 57,766 30,281 56,966 29,481

Total assets 32,534 61,694 32,767 60,837 31,907

For and on behalf of the Board

Christine Grice – Chair Steve Murray – Audit Committee Chairman 31 October 2008 31 October 2008

41 The accompanying notes and accounting policies form an integral part of the financial statements. Cash Flow Statement for the year ended 30 June 2008

Group Group Group PARENT PARENT Budget Actual Actual Actual Actual 2008 2008 2007 2008 2007 Note $000 $000 $000 $000 $000

CASH FLOWS FROM OPERATING ACTIVITIES Cash was provided from: Receipts from customers 5,622 6,544 6,168 6,454 6,116 NZ On Air funding 29,679 29,702 28,557 28,979 27,857 Interest earned 25 146 46 146 46 Income tax refund 0 0 89 0 89 35,326 36,392 34,860 35,579 34,108 Cash was applied to: Payments to employees 18,577 19,004 18,086 19,004 18,086 Payments to suppliers 14,043 14,198 13,585 13,382 12,835 Interest expense 50 2 39 2 39 GST (net) 17 62 30 62 30 32,687 33,266 31,740 32,450 30,990 Net cash inflow/(outflow) from operating activities 17 2,639 3,126 3,120 3,129 3,118

CASH FLOWS FROM INVESTING ACTIVITIES Cash was provided from: Proceeds from sale of fixed assets 0 0 57 0 57 0 0 57 0 57 Cash was applied to: Purchases of intangible assets 0 62 0 62 0 Purchase of property, plant and equipment 3,000 2,027 3,019 2,027 3,019 3,000 2,089 3,019 2,089 3,019 Net cash inflow/(outflow) from investing activities (3,000) (2,089) (2,962) (2,089) (2,962)

CASH FLOWS FROM FINANCING ACTIVITIES Cash was provided from: Increase in capital 521 521 0 521 0 Increase in loan 13 0 2,464 18,388 2,464 18,388 521 2,985 18,388 2,985 18,388 Cash was applied to: Repayment of loan 13 0 2,464 18,388 2,464 18,388 0 2,464 18,388 2,464 18,388 Net cash inflow/(outflow) from financing activities 521 521 0 521 0

Net increase/(decrease) in cash equivalents 160 1,558 158 1,561 156 Add opening bank balance at 1 July 431 1,306 1,148 1,247 1,091 Realised foreign exchange gain (loss) 0 0 0 0 0 Cash and cash equivalents year end 7 591 2,864 1,306 2,808 1,247

Comprising: Cash and call accounts 591 2,864 1,306 2,808 1,247 Demand deposits 0 0 0 0 0 Closing cash and cash equivalents 591 2,864 1,306 2,808 1,247

The GST (net) component of operating activities reflects the net GST paid and received with the Inland Revenue Department. The GST (net) component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes.

The accompanying notes and accounting policies form an integral part of the financial statements. 42 Notes to the Financial Statements for the year ended 30 June 2008

1 Statement of accounting policies for the year ended 30 June 2008 a repORTING ENTITY Radio New Zealand Limited is a Crown entity in terms of the Crown Entities Act 2004. The company is wholly owned on behalf of the Crown by the two Shareholding Ministers, the Minister Responsible for Radio New Zealand and the Minister of Finance. Radio New Zealand Limited is a company registered under the Companies Act 1993. The group consists of Radio New Zealand Limited and its subsidiary, Sound Archives/Ngä Taonga Kõrero Limited (SANTK), which is 100% owned. Sound Archives/Ngä Taonga Kõrero Limited was incorporated in August 1998 and has operated the archive since 1 October 1998. Radio New Zealand has been designated a Public Benefit Entity (PBE) under New Zealand International Financial Reporting Standards (NZ IFRS) and as such the potential conflict between the pursuits of core public service objectives set out in Radio New Zealand’s Charter and more commercial profit-maximisation objectives is minimised. Government and Shareholding Ministers have confirmed and strengthened Radio New Zealand’s role as a public service broadcaster. They have waived the requirement for Radio New Zealand to pay a dividend and approved the Statement of Intent with minimal profit goals while still insisting on sound financial management. b baSIS OF PREPARATION The financial statements have been prepared in accordance with the requirements of the Crown Entities Act 2004, which includes the requirement to comply with New Zealand generally accepted accounting practice (NZ GAAP). The financial statements comply with New Zealand International Financial Reporting Standards (NZ IFRS), and other applicable Financial Reporting Standards, as appropriate for public entities. This is the first year under NZ IFRS. c fuNCTIONAL AND PRESENTATION CURRENCY The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($’000). The functional currency of Radio New Zealand is New Zealand dollars.

I Basis of Consolidation – Purchase Method

The consolidated financial statements include the holding company and its subsidiary. The subsidiary is accounted for using the purchase method. All significant inter-company transactions are eliminated on consolidation.

II Budget Figures

The budget figures are based on the high-level budget approved by the Board in the Statement of Intent set at the beginning of the financial year. These budget figures have been prepared in accordance with generally accepted accounting practice and are consistent with the accounting policies adopted by the Board for the preparation of the financial statements under NZ IFRS.

III Goods and Services Tax (GST)

All items in the financial statements are exclusive of GST, with the exception of receivables and payables, which are stated with GST included. Where GST is irrecoverable as an input tax, then it is recognised as part of the related asset or expense.

43 The accompanying notes and accounting policies form an integral part of the financial statements. Notes to the Financial Statements (continued) for the year ended 30 June 2008

IV Taxation

Income tax Income tax expense comprises both current tax and deferred tax, and is calculated using tax rates that have been enacted or substantively enacted by balance date. Current tax is the amount of income tax payable based on the taxable profit for the current year, plus any adjustments to income tax payable in respect of prior years. Deferred tax is the amount of income tax payable or recoverable in future periods in respect of temporary differences and unused tax losses. Temporary differences are differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the entity expects to recover or settle the carrying amount of its assets and liabilities.

V Accounts Receivable

Accounts receivable are stated at expected fair value after providing for doubtful debts and uncollectable debts.

VI Cash and Cash equivalents

Cash and cash equivalents in the balance sheet comprises cash at bank, in hand and short-term deposits with an original maturity of three months or less that are readily convertible to known amounts of cash.

VII Non-current Assets

Property, plant and equipment are stated at fair value, including library and archival collections. Land and buildings have been provisionally revalued in the financial statements. A formal valuation of land and buildings was conducted during the year ending 30 June 2008. Library and archival collections are revalued to fair value at least every five years. Library collections are revalued by independent valuers. Archival collections are revalued to fair value using discounted expected future revenues as an approximation to fair value. Library collection acquisitions are capitalised and depreciated. The results of revaluing library and archival collections are credited or debited to an asset revaluation reserve. Where a revaluation results in a debit balance in the revaluation reserve, the debit balance will be expensed in the Income Statement. To the extent that a revaluation gain reverses a loss previously charged to the Income Statement, the gain is credited to the Income Statement. Other non-current assets such as prepayments are recorded in Radio New Zealand’s Balance Sheet. These are payments received for services in one period but are recognised in the Income Statement in future periods.

Impairment of assets At each balance sheet date, Radio New Zealand assesses whether there is any objective evidence that any group of non-current assets is impaired. Any impairment losses are recognised in the Income Statement.

VIII Depreciation

Depreciation is provided on a straight-line basis on all property, plant and equipment other than freehold land, at rates that will write off the cost of the assets to their estimated residual values over their useful lives.

The useful lives of major classes of assets have been estimated as follows: Buildings 20 to 40 years Leasehold improvements Term of lease Plant and equipment 5 to 20 years Motor vehicles 5 years Computer hardware equipment 3 to 5 years Furniture, fittings and other 5 to 10 years Library books and music collection 10 to 15 years

The accompanying notes and accounting policies form an integral part of the financial statements. 44 Capital work in progress is not depreciated. The total cost of a project is transferred to the relevant fixed asset account when it is completed and begins its productive life. It is then depreciated over its estimated economic life. The sound archive collection was not depreciated in the current year as it is categorised as a heritage asset and as such is not normally depreciated.

IX Intangible assets

Software, both acquired and developed, is included under intangible assets. Also under this category are capital contribution payments made to suppliers for co-siting rights which relate to future periods set out in the co-siting contracts.

Amortisation The carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its useful life.

The useful lives of major classes of assets have been estimated as follows: Computer software 3 to 5 years Capital contributions Term of contract

X Associates

Radio New Zealand is a party to the formation of Freeview Limited, a joint venture company formed to provide free to air digital broadcasting in New Zealand.

XI Redeemable Preference Shares

Redeemable preference shares held by the Government in Radio New Zealand are to be repaid at the option of the holder and are classified as a liability in the balance sheet.

XII Employee Entitlements

Provision is made for the company’s liability for annual and long service leave. Annual leave has been calculated on an actual entitlement basis at average current rates of pay over the past year in accordance with the Holidays Act 2003, whilst the long service leave provision has been calculated on an actuarial basis. A provision for sick leave is not provided for as Radio New Zealand does not carry forward sick leave into future periods. Employee entitlements are classified as short term and long term in the balance sheet.

XIII provisions

Radio New Zealand recognises a provision for future expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a result of a past event, it is probable that expenditures will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation.

XIV Superannuation schemes

Obligations for contributions to Kiwisaver and the National Provident Fund are accounted for as defined contribution superannuation schemes and are recognised as an expense in the income statement as incurred.

XV Leases

Finance leases Radio New Zealand had no finance leases.

Operating leases Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items are classified as operating leases. Payments under these leases are recognised as incurred. Radio New Zealand leases its motor vehicles and the majority of its premises.

45 The accompanying notes and accounting policies form an integral part of the financial statements. Notes to the Financial Statements (continued) for the year ended 30 June 2008

XVI Financial Instruments

Radio New Zealand is party to financial instruments as part of its normal operations. These financial instruments include bank accounts, short-term deposits, debtors, creditors and loans. All financial instruments are recognised in the Balance Sheet and all revenues and expenses in relation to financial instruments are recognised in the Income Statement. All financial instruments are shown at their fair value.

XVII Cash Flow Statement

Cash and cash equivalents means current bank accounts and demand/call deposits. Operating activities are those activities relating to the purchase and supply of goods and services. Investing activities are those activities relating to the acquisition and disposal of non-current assets. Financing activities comprise those activities that change the equity and debt capital structure of the company.

XVIII Foreign Currency Transactions

Foreign currency transactions are converted into New Zealand dollars at the spot rate at the date of the transaction. These transactions are settled immediately; consequently no exchange gain or loss is recognised. Radio New Zealand also enters into foreign exchange contract (FECs) to cover significant overseas purchases. These are defined as financial derivatives under NZ IFRS and the fair value of FECs are determined on the basis of quoted market rates.

XIX Borrowing Costs

Radio New Zealand has a credit facility arrangement with its banker. Costs relating to the drawdown of this facility are recognised in the Income Statement. No costs are attributed to the acquisition, construction or production of property, plant and equipment or other qualifying assets.

XX Revenue (Crown and other revenue)

Radio New Zealand Limited derives revenue from the Government through NZ On Air and from the Ministry for Culture and Heritage for specific purposes as outlined in its Charter and Statement of Intent. Other revenue is derived from broadcasting activities and interest from bank deposits. All revenue is measured at the fair value of the consideration receivable.

XXI Cost Allocation

Radio New Zealand Limited has derived the net cost of service for each significant activity by using the cost allocation system outlined below.

Cost allocation policy a. Direct costs are charged directly to significant activities. Indirect costs are charged to significant activities based on cost drivers and related activity and usage information.

Criteria for direct and indirect costs “Direct costs” are those costs directly attributable to a specific output activity. The percentage of identified direct costs to total costs for the consolidated group is 73.43% (2007: 73.48%). “Indirect costs” are those costs which are not directly attributable to a specific output activity. The percentage of identified indirect costs to total costs for the consolidated group is 26.57% (2007: 26.52%).

Cost drivers for allocation of indirect costs The costs of internal services not directly charged to activities are allocated as overheads using appropriate cost drivers such as actual usage of broadcasting infrastructure services and equipment. Business infrastructure costs are allocated according to the number of staff in each cost centre. Occupancy costs are allocated in proportion to the cost of floor area occupied.

The accompanying notes and accounting policies form an integral part of the financial statements. 46 d cHANGES IN ACCOUNTING POLICIES This is the first year that the prospective financial statements have been prepared in accordance with NZ IFRS. Comparative 2006-2007 opening balances have been adjusted on transition to NZ IFRS.

E SIGNIFICANT ASSUMPTIONS The following significant assumptions underpin the financial statements: • Government will continue to fund Radio New Zealand’s core activities in the future. It is therefore expected that the nature of the operations of Radio New Zealand will not change significantly. • Shareholding Ministers will not require Radio New Zealand to pay a dividend on their shareholding in the company. This was confirmed by the Minister of Broadcasting for the 2007-2008 income year. • There has been no withdrawal of capital by Shareholding Ministers. • The statements have been prepared on a going-concern basis.

2 REVENUE FROM THE CROWN

Radio New Zealand has been provided with funding from the Crown for the specific purposes of Radio New Zealand as set out in its Charter, the Radio New Zealand Act 1995 and the Crown Entities Act 2004. Apart from the restrictions, there are no unfulfilled conditions or conditions attached to government funding (2007: nil).

3 OTHER INCOME

Group Group PARENT PARENT Actual Actual Actual Actual 2008 2007 2008 2007 $000 $000 $000 $000

Parliamentary Services 1,045 935 1,045 935 Rental income from property leases 577 691 577 691 Other 1,916 2,012 2,876 2,712 Total other revenue 3,538 3,638 4,498 4,338

4 PERSONNEL COSTS

Group Group PARENT PARENT Actual Actual Actual Actual 2008 2007 2008 2007 $000 $000 $000 $000

Salaries, wages and allowances 18,148 17,324 18,148 17,324 Superannuation contributions 490 463 490 463 Other 406 364 406 364 Incr/(decr) in employee entitlements 14 (5) 14 (5) Total personnel 19,058 18,146 19,058 18,146

47 The accompanying notes and accounting policies form an integral part of the financial statements. Notes to the Financial Statements (continued) for the year ended 30 June 2008

5 OTHER EXPENDITURE

Group Group PARENT PARENT Actual Actual Actual Actual 2008 2007 2008 2007 $000 $000 $000 $000

Audit fees 66 63 66 63 Audit fees for NZ IFRS transition 10 0 10 0 Operating lease expense 1,599 1,548 1,599 1,548 Travel 553 405 553 405 Transmission 4,060 3,887 4,060 3,887 Programming 3,409 3,111 3,409 3,111 Advertising and publicity 487 674 487 674 Other 3,121 3,451 3,284 3,451 Total other expenses 13,305 13,139 13,468 13,139

6 TAXATION

Relationship between tax and accounting profit

Group Group PARENT PARENT Actual Actual Actual Actual 2008 2007 2008 2007 $000 $000 $000 $000

NET SURPLUS/(DEFICIT) BEFORE TAXATION 29 76 103 76 Tax @ 33% (10) (25) (34) (25) Plus/(less) the tax effect of: Non-deductible expenditure 3 13 3 13 Unrecognised temporary differences 7 12 31 12 Prior year adjustment 5 0 5 0 Tax expense 5 0 5 0

COMPONENTS OF TAX EXPENSE Current tax expenses 0 0 0 0 Adjustments to current tax in prior year 5 0 5 0 5 0 5 0 Additional Disclosures A deferred tax asset has not been recognised in relation to deductible temporary differences of $741,000 (tax effect $244,000). A deferred tax asset has not been recognised in relation to unused tax losses of $1,883,000 (tax effect $621,000).

Imputation Credit account Balance at 1 July 1,290 1,375 1,286 1,371 Income tax paid 0 0 0 0 Income tax refunded 0 (85) 0 (85) Imputation credits-dividends received 1 0 1 0 Balance at 30 June 1,291 1,290 1,287 1,286

The accompanying notes and accounting policies form an integral part of the financial statements. 48 7 CASH and CASH EQUIVALENTS

Group Group PARENT PARENT Actual Actual Actual Actual 2008 2007 2008 2007 $000 $000 $000 $000

Cash and call deposits 2,864 1,306 2,808 1,247

The carrying value of call deposits are at fair value.

8 DEBTORS

Debtors and other receivables 627 692 627 692 Provision for impairment (23) (3) (23) (3) 604 689 604 689

The carrying value of receivables approximate their fair value. As at 30 June 2008 and 2007, all overdue receivables have been assessed for impairment and appropriate provisions applied as follows:

2008 2008 2008 2007 2007 2007 gross impairment net gross impairment NET

Not past due 584 (4) 580 661 (3) 658 Past due 1-30 days 23 (1) 22 26 0 26 Past due 31-60 days 3 (1) 2 1 0 1 Past due 61-90 days 3 (3) 0 2 0 2 Past due > 90 days 14 (14) 0 2 0 2 627 (23) 604 692 (3) 689

The provision for impairment has been calculated based on expected losses for Radio New Zealand’s pool of debtors. Expected losses have been determined based on an analysis and review of specific debtors. Movement in the provision for impairment of receivables is as follows:

Group Group PARENT PARENT Actual Actual Actual Actual 2008 2007 2008 2007 $000 $000 $000 $000 Balance at 1 July 3 4 3 4 Additional provisions made during the year 20 (1) 20 (1) Receivables written off during the year 0 0 0 0 Balance at 30 June 23 3 23 3

9 INTANGIBLE ASSETS

Software 245 254 245 254 Prepayments 371 488 371 488 Balance at 30 June 616 742 616 742

49 The accompanying notes and accounting policies form an integral part of the financial statements. Notes to the Financial Statements (continued) for the year ended 30 June 2008

Movements for each class of intangible asset are as follows:

Co-siting Software Prepayments

Cost Balance at 1 July 2,976 1,078 Additions 62 67 Disposals (68) 0 Balance at June 2,970 1,145

Accumulated amortisation Balance at 1 July 2,654 590 Amortisation expense 71 184 Disposals/impairment losses 0 0 Balance at June 2,725 774

Carrying amounts at June 2008 245 371

There are no restrictions over the the title of Radio New Zealand’s intangible assets pledged as security for liabilities.

10 PROPERTY, plant and equipment

2008 2007 Annual $000 $000 depreciation

COST/ ACCUM NET BOOK COST/ ACCUM NET BOOK ASSET VALUATN DEPN VALUE VALUATN DEPN VALUE 2008 2007

GROUP Land 33,153 0 33,153 5,138 0 5,138 0 0 Buildings 9,898 (1,982) 7,916 9,727 (1,675) 8,052 311 375 Leasehold improvements 6,718 (4,385) 2,333 6,030 (3,696) 2,334 440 448 Plant and equipment 20,019 (13,786) 6,233 19,317 (12,895) 6,422 913 896 Libraries and archival collection 3,277 (775) 2,502 3,125 (591) 2,534 183 172 Computer hardware 7,414 (5,690) 1,724 7,378 (5,565) 1,813 555 546 Furniture, fittings and other 2,598 (1,901) 697 2,437 (1,693) 744 213 240 Lease make-good asset (NZ IFRS) 0 0 0 453 (246) 207 0 0 Capital work in progress: Buildings 104 0 104 2 0 2 0 0 Plant and equipment 2,088 0 2,088 1,955 0 1,955 0 0 Libraries and archival collection 0 0 0 0 0 0 0 0 Computer systems 385 0 385 335 0 335 0 0 Furniture, fittings and other 15 0 15 3 0 3 0 0 Total property, plant and equipment 85,669 (28,519) 57,150 55,900 (26,361) 29,539 2,615 2,677

The accompanying notes and accounting policies form an integral part of the financial statements. 50 property, plant and equipment (continued)

2008 2007 Annual $000 $000 depreciation

COST/ ACCUM NET BOOK COST/ ACCUM NET BOOK ASSET VALUATN DEPN VALUE VALUATN DEPN VALUE 2008 2007 PARENT Land 33,153 0 33,153 5,138 0 5,138 0 0 Buildings 9,898 (1,982) 7,916 9,727 (1,675) 8,052 311 375 Leasehold improvements 6,718 (4,385) 2,333 6,030 (3,696) 2,334 440 448 Plant and equipment 20,019 (13,786) 6,233 19,317 (12,895) 6,422 913 896 Libraries and archival collection 2,477 (775) 1,702 2,325 (591) 1,734 183 172 Computer hardware 7,414 (5,690) 1,724 7,378 (5,565) 1,813 555 546 Furniture, fittings and other 2,598 (1,901) 697 2,437 (1,693) 744 213 240 Lease make-good asset (NZ IFRS) 0 0 0 453 ( 246) 207 0 0 Capital work in progress: Buildings 104 0 104 2 0 2 0 0 Plant and equipment 2,088 0 2,088 1,955 0 1,955 0 0 Libraries and archival collection 0 0 0 0 0 0 0 0 Computer systems 385 0 385 335 0 335 0 0 Furniture, fittings and other 15 0 15 3 0 3 0 0 Total property, plant and equipment 84,869 (28,519) 56,350 55,100 (26,361) 28,739 2,615 2,677

VALUATION Radio New Zealand Limited has significant library and music collections, property, plant and equipment. These values have been reflected in the Balance Sheet at their fair value. The reference library is valued at the original valuation of $400,000 and the music library is valued at $1.4 million. The music library valuation was completed by Rolle Limited (independent valuers) as at 30 June 2003. The company’s 100% owned subsidiary, Sound Archives/Ngä Taonga Körero Limited, has a substantial archival collection of valuable radio recordings, and is valued at $800,000. This valuation was completed by the Directors of Sound Archives/Ngä Taonga Körero Limited as at 30 June 2008. Depreciation has not been charged on the archival assets collection in 2007-2008.

11 CREDITORS and other payables

Group Group PARENT PARENT Actual Actual Actual Actual 2008 2007 2008 2007 $000 $000 $000 $000

Creditors 1,362 1,225 1,210 1,145 Accrued expenses 763 771 763 770 2,125 1,996 1,973 1,915 Creditors and other payables are non-interest bearing and are normally settled on 30-day terms; therefore the carrying value of creditors and other payables approximates their fair value.

51 The accompanying notes and accounting policies form an integral part of the financial statements. Notes to the Financial Statements (continued) for the year ended 30 June 2008

12 EMPLOYEE entitlements

Group Group PARENT PARENT Actual Actual Actual Actual 2008 2007 2008 2007 $000 $000 $000 $000

Annual leave 1,171 1,122 1,171 1,122 Other employee entitlements 144 136 144 136 Long service leave 69 73 69 73 1,384 1,331 1,384 1,331

Made up of:

Current 1,315 1,258 1,315 1,258 Non-current 69 73 69 73 1,384 1,331 1,384 1,331

13 BANK loan

Multi-option credit line 0 0 0 0

Radio New Zealand has a redrawable line of credit of $3,500,000 with Westpac Banking Corporation. The credit advance is a short-term market unsecured advance and the interest rate charged is the Westpac offer rate at the time the advance was made plus a margin of 0.45%. The effective rate at year end was 8.55%. During the year the cumulative drawdowns totalled $2,464,000 and the maximum amount drawn in any one month was $1,609,000. At the end of each month the total balance drawn was repaid in full.

14 PROVISIONS

Non-current provisions are represented by: Lease make-good and other provisions 822 819 822 819

An Employment Court ruling has required Radio New Zealand to place $3,000 in a separate bank account pending the outcome of an employment dispute with a previous employee. In respect to three of its leased premises, Radio New Zealand is required, at the expiry of the lease term, to make good any damage caused from installed fixtures and fittings and to remove any fixtures or fittings installed.

15 REDEEMABLE PREFERENCE SHARES

Preference shares on issue at 30 June 2008 4,120 4,120 4,120 4,120 Redeemable preference shares have the following rights: a) No voting rights except: i) in the event of a liquidation or any proposal of liquidation; and ii) when the company is in default in the payment of any dividend. b) The right to: i) a non-cumulative preferential dividend at a rate equal to the aggregate five-year Benchmark Bond rate plus 1%; ii) all dividends shall be payable by equal half yearly instalments on 31 May and 30 November in each calendar year; iii) the priority to receive such dividends over rights of ordinary shareholders to receive a dividend; and iv) dividends commence from 1 December 1998. c) On redemption, the company shall redeem the preference shares in cash by repaying the capital paid up or credited as paid up. This class of shares have been reclassified from equity in 2007 to non-current liabilities in 2008.

The accompanying notes and accounting policies form an integral part of the financial statements. 52 16 EQUITY

Group Group PARENT PARENT Actual Actual Actual Actual 2008 2007 2008 2007 $000 $000 $000 $000 share capital Ordinary $1 shares Ordinary shares have the following rights: a) normal voting rights; and b) no fixed dividend. Balance at 1 July 16,171 16,171 16,171 16,171 Issue of 521,000 ordinary shares 521 0 521 0 Balance at 30 June 16,692 16,171 16,692 16,171

The company issued 521,000 ordinary shares to the Government during the year. preference shares Balance at 1 July 0 4,120 0 4,120 Move to liabilities 0 (4,120) 0 (4,120) Balance at 30 June 0 0 0 0

REVALUATION RESERVE Balance at 1 July 2,280 2,280 1,480 1,480 Revaluation of land and buildings 28,221 0 28,221 0 Balance at 30 June 30,501 2,280 29,701 1,480

At the end of the year Radio New Zealand commissioned DTZ, independent public valuers, to revalue its owned land and buildings throughout New Zealand to current market value. other reserves Balance at 1 July 0 0 0 0 NZ IFRS adjustments (638) 0 (638) 0 Transfer to retained earnings 638 0 638 0 Balance at 30 June 0 0 0 0

Radio New Zealand is required to recognise lease make-good clauses for three of its leased premises. The balance in other reserves recognises the writedown of the estimate provision of the lease make-good provisions. retained earnings Balance at 1 July 5,268 5,830 5,289 5,851 Operating surplus/(deficit) 24 76 98 76 NZ IFRS transition adjustments 0 (638) 0 (638) Balance at 30 June 5,292 5,268 5,387 5,289

53 The accompanying notes and accounting policies form an integral part of the financial statements. Notes to the Financial Statements (continued) for the year ended 30 June 2008

17 RECONCILIATION OF THE NET SURPLUS/(DEFICIT) FROM OPERATIONS WITH THE NET CASH FLOWS FROM OPERATING ACTIVITIES

Group Group PARENT PARENT Actual Actual Actual Actual 2008 2007 2008 2007 $000 $000 $000 $000

Net Surplus/(Deficit) After Taxation 24 76 98 76

Add/(less) non-cash items: Depreciation and amortised expenses 2,892 2,964 2,892 2,964 Bad debts written off 0 0 0 0 Change in provision for doubtful debts 19 (1) 19 (1) Property, plant and equipment written off 27 0 27 0 Donated assets income (40) (50) (40) (50) Capitalised labour (35) (66) (34) (66) Other (115) 31 (116) 31 Total non-cash items 2,748 2,878 2,748 2,878

Add/(less) items classified as investing activities: Net (gain)/loss on sale of fixed assets 0 (59) 0 (59)

Add/(less) movements in working capital items: Decrease/(increase) in receivables 85 (36) 85 (36) Decrease/(increase) in prepayments 31 2 31 1 Increase/(decrease) in creditors and accruals 129 124 58 123 Increase/(decrease) in current employee entitlements 57 55 57 55 Increase/(decrease) in provision for tax 5 86 5 86 Increase/(decrease) in revenue received in advance 47 (6) 47 (6) Working capital movement – net 354 225 283 223

Net cash flow from operating activities 3,126 3,120 3,129 3,118

The accompanying notes and accounting policies form an integral part of the financial statements. 54 18 COMMITMENTS

Group Group PARENT PARENT Actual Actual Actual Actual 2008 2007 2008 2007 $000 $000 $000 $000

Property, plant and equipment 133 243 133 243

Non-cancellable operating lease commitments: – not later than one year 1,206 1,076 1,206 1,076 – later than one year and less than five years 2,974 861 2,974 861 – later than five years 166 247 166 247 4,346 2,184 4,346 2,184

Radio New Zealand leases properties in Wellington, Christchurch, Dunedin and in a number of regional areas of New Zealand. The main leases expire between 2011 and 2017. There are restrictions on these leases to “make good” the property at the end of the lease. Radio New Zealand has recognised this future liability by creating a provision in its balance sheet. Other non-cancellable operating commitments: – not later than one year 4,064 3,933 4,064 3,933 – later than one year and less than five years 6,706 7,975 6,706 7,975 – later than five years 0 0 0 0 10,770 11,908 10,770 11,908

Total non-cancellable commitments 15,116 14,092 15,116 14,092

19 CONTINGENT LIABILITIES

Group Group PARENT PARENT Actual Actual Actual Actual 2008 2007 2008 2007 $000 $000 $000 $000

Legal proceedings and disputes 660 876 660 876

Radio New Zealand has two contingent liabilities in relation to defamation action from its operations. Another contingent liability is in relation to legal action instigated by a former employee. Management, in conjunction with the Board, is vigorously defending all charges and is confident that Radio New Zealand will not be found liable for any of those charges.

20 CONTINGENT ASSETS

There are no contingent assets (2007: Radio New Zealand reported a CPI adjustment from a third party for its services. During the year an amount of $100,000 was received for full and final payment).

55 The accompanying notes and accounting policies form an integral part of the financial statements. Notes to the Financial Statements (continued) for the year ended 30 June 2008

21 RELATED PARTY TRANSACTIONS, KEY MANAGEMENT PERSONNEL and employee remuneration

Funding Radio New Zealand Limited received funding of $29.70 million (2007: $28.55 million) from NZ On Air for the year ended 30 June 2008. The contract between the two parties for broadcasting services prescribes the services which must be provided in relation to transmission coverage and hours, types of programmes to be broadcast, and also places restrictions on advertising. Included in the above amount is $723,000 funding received by the subsidiary company of Radio New Zealand Limited, Sound Archives/ Ngä Taonga Kõrero Limited, under separate contract for sound archiving services for the year ended 30 June 2008 (2007: $700,000). Radio New Zealand International, a division of Radio New Zealand Limited, received funding of $1.90 million (2007: $1.90 million) from the Ministry for Culture and Heritage for the year ended 30 June 2008. Transactions with other State Owned Enterprises and Government departments are carried out on an arm’s length basis.

Inter-group transactions An agreement for supply of services between Radio New Zealand Limited and Sound Archives/Ngä Taonga Körero Limited outlines the management fee paid by Sound Archives/Ngä Taonga Körero Limited for personnel and other resources to service the Archives. An amount of $887,000 has been transacted, for the period 1 July 2007 to 30 June 2008 (2007: $751,000).

Key management and Directors Brian Corban, the Chairman of Radio New Zealand Limited’s Board, is also Chairman of Genesis Power Limited, which is a minor power supplier for Radio New Zealand Limited. In the current period $1,092 (2007: $83,686) was paid to Genesis Power Limited. These transactions are on normal commercial terms. There are no other material transactions between directors and senior management and Radio New Zealand Limited in any capacity other than that for which they are employed. There are no other related party transactions. The Chief Executive, Peter Cavanagh, is a director of Sound Archives/Ngä Taonga Körero Limited, a 100% owned subsidiary company of Radio New Zealand Limited. The Deputy Chief Executive, Ken Law, is a director of Freeview Limited. Radio New Zealand has 5% of the shares in the company. All material transactions are on an arm’s length basis with the interest of each party being completely independent.

Key management personnel compensation

Group Group PARENT PARENT Actual Actual Actual Actual 2008 2007 2008 2007 $000 $000 $000 $000

Salaries and employee benefits 1,641 1,550 1,641 1,550 Post-employment benefits 0 0 0 0 Other long-term benefits 0 0 0 0 Termination benefits 0 0 0 0 Key management personnel includes the Chief Executive, nine members of the senior management group and two other senior managers.

The accompanying notes and accounting policies form an integral part of the financial statements. 56 Employee remuneration Details of remuneration ranges for employees whose remuneration is over $100,000 for the year ended 30 June 2008 are:

Number of employees Remuneration ranges for employees 2008 2007

$100,000 – 109,999 7 4 $110,000 – 119,999 5 3 $120,000 – 129,999 1 3 $130,000 – 139,999 1 0 $140,000 – 149,999 1 1 $150,000 – 159,999 1 1 $160,000 – 169,999 1 0 $280,000 – 289,999 0 1 $340,000 – 349,999 1 0 Total number of employees in these ranges 18 13

The Chief Executive’s remuneration is within the $340,000 – $349,999 range.

Superannuation schemes Obligations for contributions to KiwiSaver and the National Provident Fund are accounted for as defined contribution superannuation schemes and are recognised as an expense in the income statement as incurred.

22 BOARD MEMBER REMUNERATION

Directors’ Remuneration The following persons held office as director during the year and received the following remuneration as directors of Radio New Zealand Limited. No fees were paid to the directors of Sound Archives/Ngä Taonga Körero Limited:

2008 2007 $ $

Brian Corban QSO – Chairman 44,583 45,000 Alison Timms – Deputy Chair 30,833 33,750 Judith Fyfe (retired 31 October 2007) 7,667 23,000 Judy Finn 23,000 23,000 Alan Dick 23,000 23,000 Steve Murray 29,584 30,000 Sifa Taumoepeau 23,000 23,000 Christine Grice 26,750 13,417 208,417 214,167

57 The accompanying notes and accounting policies form an integral part of the financial statements. Notes to the Financial Statements (continued) for the year ended 30 June 2008

Directors’ Interests

BRIAN CORBAN QSO Chairman and Shareholder Corban Consultants Ltd, Lindsay Corban Associates Ltd, Ngatarawa Wines Ltd, Corban Mulcaster Vineyard Ltd Consultant Corban Revell Lawyers Chairman Melanesian Mission Trust Board, Genesis Power Ltd, Corbans Viticulture Ltd, West Auckland Trust Services Ltd, Butts Bainbridge & Weir Ltd Accountants, Corban Estate Arts Centre, Languages International Ltd, Frontier Global Ltd, Frontier Mapping NZ Ltd, Cardiff No 1 Ltd, Cardiff No 2 Ltd, Genesis Power Investments Ltd, Kupe Holdings Ltd Director G.P. No 1 Ltd, G.P. No 2 Ltd, G.P. No 4 Ltd, G.P. No 5 Ltd, Kinleith Co-Generation Ltd Trustee Royal New Zealand Navy Museum, West Auckland Hospice Foundation Trust, Waitakere Enterprise Board Patron The Genesis Oncology Trust, Falls Hotel Preservation Trust, Henderson Heritage Trust, Waitakere City Brass Band Advisory Council Member New Zealand Advisory Council, Church of Melanesia Member New Zealand Parliamentary Audit Assurance Committee

ALISON TIMMS Chair Insurance and Savings Ombudsman Commission Consultant Independent Consultant Director Wellington Waterfront Ltd Member New Zealand Parole Board (to May 2008) Trustee Mercer Individual Retirement Plan, Welcab Board

JUDY FINN Director and Shareholder Neudorf Vineyards Ltd Trustee Suter Gallery Trust Director Pinot Noir 2010

STEVE MURRAY Managing Director EDS (to April 2008) Director Ngapuhi asset Holding Company Limited Trustee EEO Trust Member Defence Industry Council of New Zealand

JUDITH FYFE (retired 31 October 2007) Principal Fyfe and Doherty Co-Director City Associates Director Sound Archives/Ngä Taonga Körero Ltd (to October 2007) Member Arts Board of Creative New Zealand, Copyright Tribunal Trustee New Zealand Branch of Cambodia Trust, Alexander Turnbull Library Endowment Trust

ALAN DICK Consultant Business and Commercial Property Chairman Hawke's Bay Lotteries Grants Allocation Committee Councillor Hawke's Bay Regional Council Director ALIZ Investments Ltd Trustee Napier Cadet Academy Charitable Trust, Hawke's Bay Addiction Centre Trust

SIFA TAUMOEPEAU Manager Government Affairs SKYCITY Entertainment Group Ltd Member Heart of Auckland City Board, Gaming Machine Association of New Zealand

The accompanying notes and accounting policies form an integral part of the financial statements. 58 CHRISTINE GRICE Principal Harkness Henry Chairperson/Director Perry Group Ltd (to March 2008) Acting CEO Law Society Chairperson/Director Mental Health Research Programmes Ltd (Te Pou) Chairperson New Zealand Law Society Continuing Legal Education Board Judge Cook Islands Court of Appeal Director Kiwano Horned Melons (NZ) Ltd, Harkness Henry Trust Management Ltd, McLaughlins Road Properties Ltd, Manchester Place Properties Ltd, Tigusi Properties Ltd, Tigusi Trust Ltd Member Council of Legal Education Trustee Riverside Trust

Directors’ Indemnity and Insurance Radio New Zealand Limited has effected Directors and Officers liability and Professional Indemnity insurance cover against liabilities to other parties that may arise from their position as directors. The insurance does not cover liabilities arising from criminal actions.

23 FINANCIAL INSTRUMENTS

Nature of activities and management policies in respect to financial instruments: a currency Risk Currency risk is risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Radio New Zealand Limited in 2007-2008 had exposure to foreign exchange risk, which arose from transactions denominated in foreign currencies arising from capital asset purchases. In accordance with Radio New Zealand policy, foreign exchange contracts were purchased to manage the risk. As at balance date there were no foreign exchange contracts outstanding. b credit Risk Credit risk is the risk that a third party will default on its obligations to Radio New Zealand Limited, causing Radio New Zealand Limited to incur a loss. In the normal course of its business Radio New Zealand Limited incurs credit risk from trade debtors and transactions with financial institutions. Radio New Zealand Limited has a credit policy, which is used to manage exposure to credit risk. Radio New Zealand Limited does not require any collateral or security to support financial instruments, as it only deposits with banks with high credit ratings. Concentrations of credit risk with respect to accounts receivable are high due to the reliance on NZ On Air for 84% of Radio New Zealand Limited’s revenue. However, NZ On Air is a high-quality credit entity being the government purchaser of national broadcasting services. c iNterest Rate Risk Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. The company has some interest rate risk on its borrowings with the bank, which at balance was at call rates. Surplus funds are invested on call or short-term deposit. d fair Values The carrying value of cash and liquid deposits, investments, accounts receivable, other receivables, dividends payable, bank borrowings, accounts payable and other creditors is equivalent to their fair value. None of the company’s financial assets or liabilities are considered to have a fair value which differs from their carrying value. The company is not involved in any off balance sheet activities.

59 The accompanying notes and accounting policies form an integral part of the financial statements. Notes to the Financial Statements (continued) for the year ended 30 June 2008

24 EVENTS after the balance sheet date

The Chief Executive, Peter Cavanagh, has had his term of employment extended by the Radio New Zealand Board of Governors for a further five years, until December 2013.

25 EXPLANATION OF SIGNIFICANT VARIANCES AGAINST BUDGET

Significant variances from Radio New Zealand’s budget figures in the Statement of Intent (SOI) are as follows:

Income Statement

Interest Higher cash balances on call deposit in conjunction with higher average interest rates have resulted in interest income $121,000 above budget.

Other income $190,000 less than budget is primarily due to Radio New Zealand not renewing its news sales to other third parties and a drop in third party premises rentals in the Auckland owned building.

Personnel Salary and other wage increases of 3.52% were provided in 2007-2008.

Depreciation The SOI budget provided significant increase in depreciation based on $3m capital expenditure during the year but only $2m of capital expenditure was incurred. Late timing of actual expenditure also contributed to this under-budget situation.

Interest expense The bank loan facility was not required to support operational and capital expenditure in 2007-2008. Apart from strict cash management the Government also provided $521,000 additional capital which assisted positive cash balances.

Balance Sheet Preference shares of $4.12m were included as equity capital in 2007 and were reclassified to non-current liabilities in 2008. Revaluation reserve increased by $28m as Radio New Zealand owned land and buildings were revalued at the end of the financial year. Other reserves with a debit balance consist of NZ IFRS movements primarily due to the inclusion of three lease make-good provisions included in the balance sheet and a write back of a previous library revaluation to deemed cost. Employee entitlements have increased with the additional five days’ annual leave granted to individuals from 1 April 2007. This, in conjunction with less average annual leave being taken during the year, has resulted in an increase in the provision. Cash and cash equivalents balances are higher than budget at year end with creditors and other payables also higher. Property, plant and equipment is higher than budget due to a $28m revaluation increase of land and buildings.

Statement of Changes in Equity Changes are due to the revaluation of land and buildings offset by the reclassification of preference shares from equity to liabilities. Other reserves have a debit balance from the lease make-good provision adjusted back to take into account the written down value from the start of the lease contracts.

cash flow statement Higher receipts from customers and interest income have allowed higher activity in payments to suppliers and employees. Less capital expenditure of $911,000 compared with budget is the result of a deferral of a number of capital investments.

The accompanying notes and accounting policies form an integral part of the financial statements. 60 26 ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS FOR THE PARENT AND GROUP

Radio New Zealand Limited adopted the New Zealand International Financial Reporting Standards (NZ IFRS) on 1 July 2007. The incorporation of initial transitional adjustments and the restatement of balances which may impact on the income statement, balance sheet and cashflow statement, has occurred in the adoption year ending 30 June 2008. Radio New Zealand is classified as a Public Benefit Entity (PBE) and as such will be reporting under NZ IFRS accounting policies as a PBE. The full quantitative and qualitative impact on the financial statements are summarised as follows:

Impact of NZ IFRS on Radio New Zealand Disclosure • disclosure of information within the primary financial statements rather than the notes; • additional details on non-current assets and their movements; and • calculation and the analysis of deferred tax balances.

Employee benefits NZ IAS 19 requires an entity to: • recognise a liability when an employee has provided service in exchange for employee benefits to be paid in the future. Long service leave has previously been recognised by Radio New Zealand on an actuarial basis as opposed to recognising a liability on entitlement. No further effect on the income statement has occurred.

Provisions NZ IFRS requires make-good clauses in property leases to be recognised in the balance sheet as a future liability.

Financial ratios relating to equity NZ IFRS requires Redeemable Preference Shares to be classified as debt rather than equity in the determination of debt. This will affect any financial ratio with a debt or equity component in it.

Non-current assets Computer software has been reclassified as an intangible asset. Therefore property, plant and equipment has reduced and intangible assets increased by the balance of computer software as at balance date.

Asset revaluation reserve restatement The previous revaluation of the reference library asset of $38,000 and net book value of $27,000 has been reversed during the adoption year. The effect of this has been reflected in Other Reserves as a debit in Equity in the balance sheet.

61 The accompanying notes and accounting policies form an integral part of the financial statements. Notes to the Financial Statements (continued) for the year ended 30 June 2008

27 ReconcilIation from the transition from NZ GAAP to NZ IFRS

Radio New Zealand’s transition date is 1 July 2007 and the opening NZ IFRS balance sheet has been prepared as at that date. The adoption date is 1 July 2008.

1 july 2006 30 june 2007 effect on effect on previous transition previous transition nz gaap NZ IFRS nz ifrs nz gaap NZ IFRS NZ IFRS Note $000 $000 $000 $000 $000 $000

EQUITY Share capital – ordinary shares 16,171 0 16,171 16,171 0 16,171 – preference shares a 4,120 0 4,120 4,120 (4,120) 0 Revaluation reserve 2,280 0 2,280 2,280 0 2,280 Retained earnings b 5,830 0 5,830 5,906 (638) 5,268 Total equity 28,401 0 28,401 28,477 (4,758) 23,719

CURRENT LIABILITIES Creditors and other payables 1,872 0 1,872 1,996 0 1,996 Employee entitlements 1,203 0 1,203 1,258 0 1,258 Provision for tax (90) 0 (90) (4) 0 (4) Revenue received in advance 568 0 568 562 0 562 Total current liabilities 3,553 0 3,553 3,812 0 3,812

NON-CURRENT LIABILITIES Employee entitlements 68 0 68 73 0 73 Revenue received in advance 301 0 301 224 0 224 Provisions c 0 0 0 0 819 819 Preference shares a 0 0 0 0 4,120 4,120 Total non-current liabilities 369 0 369 297 4,939 5,236 Total liabilities and equity 32,323 0 32,323 32,586 181 32,767

CURRENT ASSETS Cash and cash equvalents 1,148 0 1,148 1,306 0 1,306 Debtors 653 0 653 689 0 689 Other receivables and prepayments 493 0 493 491 0 491 Deferred tax asset 0 0 0 0 0 0 Total current assets 2,294 0 2,294 2,486 0 2,486

NON-CURRENT ASSETS Intangibles 663 0 663 488 254 742 Property, plant and equipment d 29,366 0 29,366 29,612 (73) 29,539 Total non-current assets 30,029 0 30,029 30,100 181 30,281 Total assets 32,323 0 32,323 32,586 181 32,767 a) Preference shares have been reclassified as a liability due to the conditions for repayment to the Crown. b) Radio New Zealand is required to recognise the present value of expected future lease make-good payments at the expiry of three property leases in Wellington, Christchurch and Dunedin. The estimated accumulated depreciation is a debit to equity. A previous revaluation of the Radio New Zealand library was reversed to reflect the original deemed value of the asset. c) Radio New Zealand is required to recognise the present value of expected future lease make-good payments at the expiry of three property leases in Wellington, Christchurch and Dunedin. d) Recognition of an asset due to the provision of the lease make-good estimate and the write back of a library asset to deemed cost.

The accompanying notes and accounting policies form an integral part of the financial statements. 62 Statement of Service Performance for the year ended 30 June 2008

This statement reports on the performance of Radio New Zealand Limited in relation to the key performance indicators set out in its Statement of Intent for the year ended 30 June 2008.

Radio Radio sound Radio New Zealand New Zealand archives/NgÄ New Zealand national CONCERT Taonga KÖrero International TOTAL 2008 2008 2008 2008 2008 $000 $000 $000 $000 $000

RECONCILIATION OF OUTPUT FINANCIAL STATEMENTS TO GROUP NET SURPLUS/(DEFICIT) BEFORE TAX

INCOME NZ On Air funding 24,189 4,668 722 123 29,702 Ministry for Culture and Heritage funding – – – 1,900 1,900 Other 3,080 361 91 152 3,684 Total income 27,269 5,029 813 2,175 35,286

EXPENDITURE NZ On Air operations 27,349 4,866 887 – 33,102 Ministry for Culture and Heritage operations – – – 2,155 2,155 Total expenditure 27,349 4,866 887 2,155 35,257

Net surplus/(deficit) (80) 163 (74) 20 29

63 Statement of Service Performance (continued) for the year ended 30 June 2008

Output Class – Radio New Zealand National

1. Role Radio New Zealand National is a nationwide network providing news, current affairs, feature documentaries and entertainment programmes, including music programmes featuring both New Zealand and international artists. Many of the quality programmes featured on Radio New Zealand National are not available on commercial radio because they are not considered commercially viable. The following are examples of the non-commercial public service broadcasting programmes to be found on Radio New Zealand National: • Morning Report – authoritative and comprehensive coverage of local and world events; • Midday Report – delivering comprehensive news bulletin, business news, rural news, sports news, long range weather forecasts and Worldwatch; • Afternoons with Jim Mora – an audience participation show to stimulate, enlighten and entertain the listener. Includes The Panel promoting critical thought on a wide range of topics; • Nine to Noon – provides in-depth debate on topical national and international news, with feature interview profiles to stimulate new ideas; • Checkpoint – a hard-hitting daily news-focused programme; • Nights with Bryan Crump – dedicated to encouraging fresh ideas and music along with the best radio documentaries and features from here and overseas; • This Way Up – a programme exploring consumer-related stories and issues. Entertaining and informative, it includes global and local correspondents, mini features, product tests, studio discussions and a themed feature each week. Digital Life is also part of the show; • The Arts on Sunday – the show celebrates the diversity of creativity, both here and overseas, with views, reviews, previews, interviews, a regular comedy slot and the play of the week; • Saturday Morning with Kim Hill – a magazine programme with interviews, food, books and music; and • Sunday Morning with Chris Laidlaw – a thought-provoking range of interviews, documentaries and music, including Mediawatch and Insight.

2. Listenership Measured by: Radio listening surveys. Result:

2007-2008 All 2007 All New ZealanD New ZealanD radio SURVEY radio SURVEY Type of rating DEscription (note 1) (note 2)

Cume Number of different people who listen for at least an 8 minute period 501,000 487,000 from Monday to Sunday, 12 midnight to 12 midnight. Percentage of available audience The Radio New Zealand National percentage of the number of 15+ 17.5% 16.7% listeners who listen to any radio station from Monday to Sunday, 12 midnight to 12 midnight.

Note 1: The 2007-2008 survey covered 40 weeks of surveying and had a sample size of n=4,121. Note 2: The timing of the survey period meant that 2007 was regarded as a transitional year with interim results obtained from just 20 weeks of surveying (instead of 40 weeks) and a sample size n= 2,058.

3. Quality Measured by: Surveying listeners’ perception of the “quality” of Radio New Zealand National’s programming. Result:

2007-2008 RADIO 2007 RADIO New ZealanD New ZealanD listener SURVEY listener SURVEY

Improved 26% 25% Remained constant 70% 68% Deteriorated 4% 7% Percentage improved and constant 96% 93%

4. Broadcast Standards Measured by: Formal complaints upheld Result:

Actual Complaints Actual Complaints Measurement BasIs 2008 2007

Number of complaints upheld 3 1

5. Programme Hours by Charter Function Measured by: Statistics of programme hours by specific Charter function. Result:

actual actual % actual actual % hours hours hours hours CHARTER FUNCTION 1 2008 2008 2007 2007

A Intellectual, scientific and cultural development. Informed debate and 8,197 93% 7,769 89% critical thought. B Information, special interest and entertainment. Reflect cultural 8,153 93% 8,310 95% diversity including Mäori language and culture. C Varied interests within the community. Information, educational, special 1,976 23% 1,619 18% interest and entertainment. D Musical, dramatic and performing arts. New Zealand and international 2,092 24% 1,891 22% composers, performers and artists. E Nationwide service, highest quality. Sense of citizenship and national 8,784 100% 8,760 100% identity. F Comprehensive, independent, impartial, balanced news and current 3,668 42% 2,723 31% affairs. Regional perspective. G Comprehensive, independent, impartial, balanced international news and current affairs. 1,190 14% 1,186 14%

1 Particular programmes produced and broadcast have been assessed in terms of the contribution that the programme makes to Radio New Zealand’s statutory Charter functions. Most programmes contribute to more than one Charter function.

65 Statement of Service Performance (continued) for the year ended 30 June 2008

6. Transmission Coverage Measured by: The percentage of the total New Zealand population able to receive the network signal. Result:

Actual % Target % Actual % Coverage of Coverage of Coverage of Population Population Population Transmission Type 2008 2008 2007

AM (amplitude modulation) 96% 96% 96% FM (frequency modulation) 90% 90% 90% Total terrestrial coverage 97% 97% 97% Satellite digital service 100% 100% 100%

The target has been achieved.

7. Transmission Outage Measured by: The average time lost over Radio New Zealand National’s AM and FM transmitters, other than for programmed maintenance. Result

Actual % Actual % of time lost Target of time lost 2008 2008 2007

Unplanned programme time lost per transmitter 0.06% Less than 0.10% 0.05%

The target has been achieved.

8. Statement of Output Financial Performance

actual 2008 Target 2008 Actual 2007 $000 $000 $000

INCOME NZ On Air funding 24,189 24,178 23,118 Other 3,080 3,368 3,115 Total income 27,269 27,546 26,233

EXPENDITURE NZ On Air operations 27,349 27,512 26,470 Total expenditure 27,349 27,512 26,470

Net surplus/[deficit) (80) 34 (237) The target has been achieved. All variances from target are less than 1% and not considered material.

Output Class – Radio New Zealand CONCERT

1. Role Radio New Zealand Concert brings fine music in stereo to 100% of New Zealanders, through a network of FM transmitters and digital satellite. Musical, dramatic and performing arts comprise 96% of Radio New Zealand Concert’s broadcasts, with a repertoire featuring mainly classical music but also including jazz and special interest music. The remaining 4% of broadcasts comprises Mäori language and culture, news and weather.

2. Listenership Measured by: Radio listening surveys. Result:

2007-2008 All 2007 All New ZealanD New ZealanD radio SURVEY radio SURVEY Type of rating DEscription (note 1) (note 2)

Cume Number of different people who listen for at least an 8 minute period 201,000 207,000 from Monday to Sunday, 12 midnight to 12 midnight. Percentage of available audience The Radio New Zealand Concert percentage of the number of 15+ 7.0% 7.1% listeners who listen to any radio station from Monday to Sunday, 12 midnight to 12 midnight.

3. Quality Measured by: Surveying listeners’ perception of the “quality” of Radio New Zealand Concert’s programming. Result:

2007-2008 RADIO 2007 RADIO New ZealanD New ZealanD listener SURVEY listener SURVEY

Improved 18% 9% Remained constant 78% 85% Deteriorated 4% 6% Percentage improved and constant 96% 94%

4. Broadcast Standards Measured by: Formal complaints upheld Result:

Actual Complaints Actual Complaints Measurement BasIs 2008 2007

Number of complaints upheld 0 0

67 Statement of Service Performance (continued) for the year ended 30 June 2008

5. Programme Hours by Charter Function Measured by: Statistics of programme hours by specific Charter function. Result:

actual actual % actual actual % hours hours hours hours CHARTER FUNCTION 1 2008 2008 2007 2007

A Intellectual, scientific and cultural development. Informed debate and – – – – critical thought. B Information, special interest and entertainment. Reflect cultural 82 1% 66 1% diversity including Mäori language and culture.2 C Varied interests within the community. Information, educational, special 8,874 100% 8,760 100% interest and entertainment. D Musical, dramatic and performing arts. New Zealand and international 8,496 97% 8,406 96% composers, performers and artists. E Nationwide service, highest quality. Sense of citizenship and national – – – – identity. F Comprehensive, independent, impartial, balanced news and current 191 2% 178 2% affairs. Regional perspective.2 G Comprehensive, independent, impartial, balanced international news and current affairs.2 97 1% 84 1%

6. Transmission Coverage Measured by: The percentage of the total New Zealand population able to receive the network signal. Result:

Actual % Target % Actual % Coverage of Coverage of Coverage of Population Population Population Transmission Type 2008 2008 2007

FM (frequency modulation) 92% 92% 92% Satellite digital service 100% 100% 100%

The target has been achieved.

1 Particular programmes produced and broadcast by Radio New Zealand Concert have been assessed in terms of the contribution that they make to Radio New Zealand’s statutory Charter functions. Most programmes contribute to more than one Charter function. 2 While Radio New Zealand Concert’s programmes may broadly meet the intentions of Charter functions B, F and G, its primary role is to provide services intended by functions C and D.

7. Transmission Outage Measured by: The average time lost over Radio New Zealand Concert’s FM transmitters, other than for programmed maintenance. Result

Actual % Actual % of time lost Target of time lost 2008 2008 2007

Unplanned programme time lost per transmitter 0.02% Less than 0.10% 0.05%

The target has been achieved.

8. Statement of Output Financial Performance

actual 2008 Target 2008 Actual 2007 $000 $000 $000

INCOME NZ On Air funding 4,668 4,668 4,668 Other 361 178 437 Total income 5,029 4,846 5,105

EXPENDITURE NZ On Air operations 4,866 4,835 4,784 Total expenditure 4,866 4,835 4,784

Net surplus/(deficit) 163 11 321 The target has been achieved.

69 Statement of Service Performance (continued) for the year ended 30 June 2008

Output Class – Radio New Zealand Sound Archives/Ngä Taonga Körero Limited

1. Role Radio New Zealand Sound Archives/Ngä Taonga Körero Limited collects recordings of broadcast radio programmes, and related sound recordings, from across the spectrum of all New Zealand stations and networks, and stores them for posterity. This resource is available to all New Zealanders on a cost recovery basis.

2. Material Acquired and Preserved Measured by: The combined hours for the two archives of recordings acquired and preserved. Result:

aCTUAL HOURS TARGET aCTUAL HOURS ACHIEVED HOURS ACHIEVED TYPE 2008 2008 2007

Material acquired 2,324 1,300 1,988 Material preserved 1,828 1,900 1,917

The target was part achieved. Of the 2,324 hours of material received by Sound Archives/Ngä Taonga Körero, 1,017 hours were of historical programmes, material of the highest heritage value. The archive is resourced to manage just 100 hours of historical material per year. The growing backlog of material acquisitioned has hampered the preservation programme.

3. Making Recordings Available to all New Zealanders on Request Measured by: Public access to recordings. Result:

During the period material was accessed through Sound Archives/Ngä Taonga Körero Limited, by members of the public, students and researchers, libraries and museums, and broadcasters and programme producers. Material was made available and accessed on-site at Auckland and Christchurch; the bulk of the material was distributed via CD for listening.

4. Statement of Output Financial Performance

actual 2008 Target 2008 Actual 2007 $000 $000 $000

INCOME NZ On Air funding 722 695 700 Other 91 65 51 Total income 813 760 751

EXPENDITURE NZ On Air operations 887 760 751 Total expenditure 887 760 751

Net surplus/(deficit) (74) 0 0 Target not achieved. Variance between target and actual funding was due to increased additional income from sundry sales and to cover increased staffing salaries. Variance between actual expenditure and target expenditure was due to additional costs for special projects and the funding to support an additional cataloguing position.

Output Class – Radio New Zealand International

1. Role Radio New Zealand will provide an international radio service to the Pacific through Radio New Zealand International. This service will: • broadcast innovative, comprehensive and independent news and programming of interest to the Pacific region; • provide a reliable account of Pacific and New Zealand affairs for relay and use by broadcasters and listeners within the Pacific and beyond; • broadcast programming which encourages an awareness and understanding of New Zealand policies on regional issues of concern, foreign relations, development assistance, immigration, human rights, economic developments, the environment and trade opportunities; and • provide a reliable source of information in the event of natural disasters or a breakdown of local communication services (additional costs of this service by the Ministry of Foreign Affairs and Trade are not included in the cost below).

2. Listenership Measured by: The rebroadcast of Radio New Zealand International in the Pacific region by Pacific radio stations. Result: The target has been achieved. Eighteen Pacific radio stations relayed Radio New Zealand International daily during the period.

3. Transmission Coverage Measured by: Geographic location and grade of transmission at each site. Transmission grades are measured by the average hours of good quality reception available per day and Primary, 18 hours; Secondary, 12 hours: and General, 6 hours. Result: The target has been achieved. Primary coverage: French Polynesia, Cook Islands, Tokelau, American Samoa, Samoa, Niue, Tonga, Wallis and Futuna, Fiji, Tuvalu, New Caledonia, Vanuatu, and Solomon Islands. Secondary coverage: Papua New Guinea, Nauru, Kiribati, Federated States of Micronesia, Marshall Islands, and Palau. General coverage: Asia/Pacific and Pacific rim. Additional coverage in Asia was achieved through Radio Australia’s rebroadcast of selected Radio New Zealand International material on their satellite services across Asia and also through relays by the BBC World Service.

4. Transmission Outage Measured by: The average time lost over Radio New Zealand International’s transmitters, other than for programmed maintenance. Result:

Actual % Actual % of time lost Target of time lost 2008 2008 2007

Unplanned programme time lost per transmitter 0.06% Less than 0.10% 0.04%

The target has been achieved.

4. Statement of Output Financial Performance

actual 2008 Target 2008 Actual 2007 $000 $000 $000

INCOME Ministry for Culture and Heritage funding 1,900 1,899 1,900 Other 275 275 211 Total income 2,175 2,174 2,111

EXPENDITURE Ministry for Culture and Heritage operations 2,155 2,169 2,119 Total expenditure 2,155 2,169 2,119

Net surplus/(deficit) 20 5 (8) The target has been achieved.

71 Directory for the year ended 30 june 2008

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