Govt offers $50m to help media weather crisis
WELLINGTON: The Government is offering an initial $50 million to help the media weather the economic fallout from Covid19 while it puts together a second round of supports.
‘‘This package is about freeing up cash in the short term to assist the industry get through the immediate crisis and dramatic drop in advertising revenue experienced since the start of Covid Alert Level 4,’’ Broadcasting and Communications Minister Kris Faafoi said in a statement.
The collapse in advertising revenue led NZME to cut more than 200 jobs and magazine publisher Bauer Media close down completely. Stuff staff were asked to take pay cuts and the firm has started seeking contributions from online readers to stay afloat.
The minister underscored that this first phase of support alone would ‘‘not be sufficient to see the sector through a prolonged period of restrictions and reduced advertising’’.
A second support package was being developed and would be submitted for Covid19 budget discussions in May, he said.
Yesterday’s package included $21.1 million to cut transmission fees for six months. Of that, $20.5 million cut all of Kordia TV/FM transmission fees for six months and $600,000 would cut 100% of Radio NZ’s AM transmission fees.
‘‘By cancelling transmission fees, we are freeing up cash the media companies can use to help them in the short term. This is in addition to the wage subsidy and other tax measures,’’ Mr Faafoi said.
The transmission cost funding would be in place for six months and could be reviewed as necessary. The other initiatives were likely to be in place for 12 months, he said.
A further $16.5 million would be used to reduce media organisations’ NZ On Air content contribution fees for the 202021 financial year.
Another $1.3 million would be used to purchase central government news media subscriptions in advance for the 202021 financial year and Crown entities would be encouraged to increase their uptake of news media subscriptions.
The package also included $11.1 million for specific targeted assistance to companies, as and when needed.
Allied Press chief executive Grant McKenzie said he was ‘‘pleased that the minister has recognise the value of media and the impact on media currently’’.
‘‘For Allied Press we will see some benefit from the reduction in transmission costs and are awaiting further information on the targeted assistance fund and how we may be able to apply.’’
The announcement makes no specific reference to the Government bringing forward its advertising spend to improve cash flow, something Mr Faafoi had previously said could be a shortterm fix.
Mr Faafoi said the proposals included in the package were generated by the media industry after a series of workshops.
‘‘We have chosen the proposals that have a relatively quick impact to get support out the door as fast as possible,’’ he said.
‘‘Initiatives in this first stage aim to provide some immediate relief and allow time for work to be done on longerterm strategies to ensure future sustainability in New Zealand’s news media.’’
The media sector is the third sector — after primary health care and aviation — to receive a specific pool of funding over and above the wage subsidy. — BusinessDesk