Govt was advised against Mediaworks deal - report
Officials warned the Government against making a deal with MediaWorks which allowed the struggling company to defer a $43 million payment for its radio licences.
Officials warned the Government against making a deal with MediaWorks which allowed the struggling company to defer a $43 million payment for its radio licences.
Communications Minister Steven Joyce has denied the deal amounted to a taxpayer-funded loan and says MediaWorks, which owns TV3 and a network of radio stations, is up to date with its payments.
TV One reported last night it had documents which showed the Ministry of Economic Development told the Government it did not see a strong case for the deal, while Treasury said it would effectively see the Government acting as a bank and taking on additional risk.
The report said Mr Joyce initially turned MediaWorks down but its former head, Brent Impey, subsequently talked to Prime Minister John Key and the arrangement was eventually approved by the Cabinet.
TV One said its documents showed that when Radio Rhema and the Radio Broadcasters Association approached Mr Joyce they were turned down.
But when MediaWorks lobbied for the deferral, the offer was opened up to all the networks.
Labour MP Trevor Mallard said tonight the deal was clearly set up for MediaWorks.
NZPA
Fri, 08 Apr 2011
Fri, 08 Apr 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Govt was advised against Mediaworks deal - report
13723