TVNZ's real problem
The government.
TVNZ is not a fully funded state broadcaster like BBC domestic broadcasting because as a small nation, we probably cannot afford it. Therefore its channels carry adverts, and is exposed to the what Nats are usually proud to say "real business world" out there and needs to compete its way out.
Under the current economic situation, we see countless number of privately owned businesses experiencing significantly reduced profit, or even go into deficit. If you are an investor to a large corporation, you wouldn't expect your dividend to be as high as last year, or you may just get ready to sacrifise your dividend for a year to keep your investment safe.
So Why John Key, aka "the man with real economic sense" is expecting a unrealistic dividend from TVNZ:
From the Crown's point of view we have $200 million invested in TVNZ, that's the equity in TVNZ, if we don't receive a return on that equity and we don't receive a dividend, that's less money the Crown has to pay for hospital beds, less money it has to pay its doctors and less money it has to pay its teachers.
Nice words, sounds sympathetic, but does it really mean anything? Last year TVNZ paid out $10 million to the government, don't tell me that our health and education system would fail for a shortfall of $10 million dollars.
As TVNZ is going to cut 90 employees, more pressure will be added to the dole queue. So what National government did is, forcing TVNZ to reduce costs by reduce amount of local made programmes (that's what state owned media is for, in my opinion) and axes kiwi jobs to meet government dividend demand so Mr Key can have more money to pay for hospital beds.
I hope those people who will lost their job could find a job soon otherwise the whole thing is just pointless - a large chunk of the few million dollars dividend will be used to pay the added dole queue anyway, when those people really should be working and contributing at least some value back to our society. Now you call that real business sense?
By the way, I remember this government was claiming itself dedicated to keep kiwi jobs.
It's very hard to believe there's no hidden agenda behind this movement.
