RNZ posts $11.8m deficit as planned job cuts rise to 58

Summarised by Centrist

RNZ has reported an unexpected $11.8 million deficit, with operating expenses $6.4 million above budget and plans to eliminate the equivalent of 58 full-time roles by March 2027. 

The public broadcaster had forecast a loss of just $470,000.

The figures confirm earlier warnings of financial problems. These include allegations that RNZ failed to deliver promised cost reductions and incorrectly accounted for property transactions.

"They just haven't done what they're supposed to have done," one source said.

Chief executive Paul Thompson acknowledged that internal financial reporting had failed to accurately reflect RNZ's position, preventing corrective action during the financial year.

RNZ reported $2 million in incorrectly budgeted land-sale revenue, $3.2 million in additional staffing costs and a $6.4 million operating budget overrun, including $1.85 million for its Auckland office move and $1.7 million in land remediation costs.

The revelations come despite a substantial increase in public funding in recent years.

In 2023/24, RNZ's annual baseline funding rose by almost $25 million, from $42 million to $66.6 million. Including other government funding, the total reached $71.7 million.

The National-led government maintained the increase in 2024/25 before cutting funding by nearly $5 million annually in the following Budget. A further reduction brought baseline funding down to $64.42 million.

Treasury had previously warned RNZ to improve efficiency and reduce costs, including through workforce reductions.

In August, RNZ announced plans to eliminate 25 to 30 positions. That figure has now risen to 58 full-time-equivalent roles, with further reductions of at least 5% in operating costs planned.

The audit found RNZ breached the Crown Entities Act by arranging an unauthorised $5 million overdraft, since closed. CFO Hilary Parker resigned on October 2, prompting an emergency board meeting. RNZ forecasts another $7.8 million deficit in 2026/27 before returning to balance.

Read more at 1News | The NZ Herald (paywalled)

Image: User:Dabbelju 

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