New Zealand government ditches NZFC and NZ On Air merger plans

The New Zealand government has shelved proposed plans to merge the screen industry’s two biggest funding bodies, the New Zealand Film Commission (NZFC) and NZ On Air, following months of consultation.

Paul Goldsmith

While no formal ministerial announcement has yet been made, media speculation in recent weeks that the merger plans were no longer a viable option were affirmed via minister for media and  communications, and minister for culture and heritage, Paul Goldsmith’s office.

“We’re still considering options and will make announcements in due course. However, we’re no longer considering merging the New Zealand Film Commission and NZ on Air,” stated Goldsmith’s press secretary.

The minister’s spokesperson added: “There’s a strong case for some sort of merger eventually, however, I’m conscious of the distraction, time and energy consumed by structural change and so we will not be pressing ahead immediately. Additionally, there is a lot of legislation before the house and the government is focusing on other priorities for the rest of the parliamentary term.”

The decision has been met with a mix of surprise but inevitability that progress has been stalled due to the current instability and contraction being felt by the NZ screen sector.

The notion of merging the two powerful agencies has been long mooted but was formally put on the agenda by the government earlier in the year, as part of the discussion document, Media Reform: Modernising regulation and content funding arrangements for New Zealand. In the consultation document, the NZ government asked for insight on five proposals regarding a media industry overhaul and regulatory reboot.

In February, Goldsmith said the review was not about cutting funding for NZ on Air or the NZFC, but that the consideration of a merger may present multiple benefits. Goldsmith has argued that the two screen areas are becoming less distinct, with a merger offering the opportunity of bolstered resources and the possibility more funds.

In its submission to the review screen producer representative, Spada stated that its broad membership has disparate views on a proposed merger but stated “there is a sense that a merger is an inevitability, however, the timing and the potential for disruption is of significant concern to producers.”

NZ On Air’s response to the government review had tentatively supported a proposed merger with the NZFC on the proviso that fundamental issues regarding media reform and fiscal viability are addressed and that the proposed new single agency adopts a “broader media content mandate.”

In its 14-page submission to the New Zealand government’s long-anticipated media review, the proposed merger of the Crown-backed agencies was the key focus of NZ On Air’s recommendations.

The agency, led by CEO Cameron Harland since 2020, stated that all media reform initiatives should be driven by two key priorities; the first is the focused retention of content that serves all New Zealand audiences, and secondly, ensuring the financial sustainability and success of the sectors that are supported.

NZ On Air stated that if a new consolidated entity were established, “in lieu of any clear alternatives,” it should include the retention of all functions of both entities. “Rather than viewing structural change primarily as a response to problems, we argued that there is an opportunity to create a world-leading approach to creative industry development.”