A VOICE THAT SPEAKS FOR ALL ANNUAL REPORT 2007-2008 NEW ZEALANDERS RADIO NEW ZEALAND 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