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The KPMG report

What is the KPMG report?

In 2007 the Ministry for Culture and Heritage commissioned accounting firm KPMG to carry out an independent "baseline funding review" on Radio New Zealand. The review showed Radio NZ was underfunded and understaffed, and as a consequence was having to underpay its employees. From The Dominion Post - An endangered species in a commercial world, 06/03/10:
Its findings included:
  • Radio New Zealand is operating efficiently in the delivery of its outputs under the charter. There are no significant opportunities to redeploy resources more efficiently.
  • Recommends $6.7m additional operating funding in 2008/09, increasing to $8.5m in 2010-11, including covering increased regional representation, pay rises, leave cover and restoring the travel budget.
  • Recommends 40 extra staff by 2010-11
  • Radio New Zealand's Wellington premises are "tightly packed with staff members and equipment" and its position on a significant fault line is "not satisfactory for a designated lifeline utility".
  • Technical equipment is ageing and there is little redundant equipment.
  • Pay rates lag behind the public sector median and there is little external training.
  • Staff numbers are "not unreasonable" compared with ABC's Radio National and Classic FM.
  • RNZ and those surveyed agreed South Island representation did not meet charter obligations. "Increased representation would achieve a significant improvement for relatively low cost."
  • Travel expenditure appears inadequate for a national broadcaster and news organisation.
Read the full article From the NZ Herald, Pay freeze tipped as Radio NZ slashes costs, 31/08/09:
Published in November 2007, the KPMG review said Radio NZ - which broadcasts Radio NZ National and Radio NZ - needed $7 million to $7.6 million to meet commitments in 2008-2009 and was short of 25 employees. The shortfall would grow to $8.6 million to $9.5 million and 40 staff by 2010-2011. The Labour Government last year increased Radio NZ's funding by $2.4 million. But an insider said that money had been taken up by inflation and Radio NZ faced essentially the same problems to sustain services as in 2007. KPMG - which found $4 million of the shortfall was to hire more employees and pay better money - concluded that Radio NZ was running efficiently and there were no provisions to redeploy resources.
Read the full article

Download the KPMG report

Screenshot from the KPMG reportPaul Reynolds recently requested a copy of the report, which he discusses on his blog, PEOPLEPOINTS - KPMG report on Radio New Zealand, November 2007, released under OIA. He has very kindly provided us with a direct download link to the PDF (13.8MB). Thanks, Paul!