BSA Decisions Ngā Whakatau a te Mana Whanonga Kaipāho

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Summary

In an interview on Tonight on 17 February 1997 at 9.40pm, Mr Adrian Orr, the Chief

Economist of the National Bank, was asked to explain the effects of the New Zealand

dollar becoming strong in foreign currency markets.

Mr Terry complained to Television New Zealand Ltd, the broadcaster, that because

the National Bank is foreign owned, the item was biased in favour of all foreign

banking interests operating in New Zealand. He considered the item was unbalanced

because it did not include the views of the Governor of the Reserve Bank.

TVNZ responded that Mr Orr was interviewed because he is a financial expert and not

because of his position at the National Bank. It maintained that he was not pushing

any particular view, but was merely explaining a complex financial situation in lay

terms. To the suggestion that the Governor of the Reserve Bank should have been

interviewed, TVNZ responded that it would not have been appropriate because it

required an expert who was removed from the policy making decisions to assess the

policy. Dissatisfied with TVNZ's decision not to uphold his complaint, Mr Terry

referred it to the Broadcasting Standards Authority under s.8(1)(a) of the Broadcasting

Act 1989.

For the reasons given below, the Authority declines to uphold the complaint.

Decision

The members of the Authority have viewed the item complained about and have read

the correspondence (summarised in the Appendix). As is its practice, the Authority

determines the complaint without a formal hearing.

A news item which highlighted the easing in value of the New Zealand dollar and its

fiscal and policy ramifications was broadcast on Tonight on 17 February 1997 at

9.40pm on TV One. During the item, the Chief Economist of the National Bank, Mr

Adrian Orr, was asked to explain why the New Zealand dollar had been strong in

foreign currency markets, and the effects of a high dollar on wage earners. In his

response he explained that the dollar was strong because New Zealand's relative

productivity performance was improving, but acknowledged that workers in the

export sector would experience depression in their wages.

Mr Terry complained to TVNZ that Mr Orr's comments were biased in favour of the

foreign banking interests operating in New Zealand, and that the item should have been

balanced by including comment from the Governor of the Reserve Bank. He suggested

that since the government operated a policy which allowed artificially high interest

rates, a spokesperson from the government should have been invited to explain the

policy to the poor, underpaid, under privileged New Zealanders struggling under

excessive interest rates.

TVNZ advised that it had considered the complaint under standards G6 and G14 of

the Television Code of Broadcasting Practice. The first standard requires

broadcasters:

G6   To show balance, impartiality and fairness in dealing with political

matters, current affairs and all questions of a controversial nature.

The second reads:

G14  News must be presented accurately, objectively and impartially.

TVNZ noted that it was not uncommon for its news and current affairs department to

seek advice on current issues and trends from people who were experts in their fields.

It advised that Mr Orr was interviewed not because he was the Chief Economist of the

National Bank, but because he was a financial expert who could explain clearly the

implications of the strong dollar.

In TVNZ's view, an interview with the Governor of the Reserve Bank was not

appropriate because what was required was an objective discussion of the policy

implications. It did not consider the item was unfair or unbalanced for having Mr Orr

explain matters concerning the dollar. It believed his appearance assisted in providing

a fair and impartial coverage of the question and that neither standard was breached.

The Authority considers that the comments of Mr Orr were pertinent, because he

explained the reasons for the Kiwi dollar's strength and gave reasons for his prediction

that it would continue to remain strong for some time. In the Authority's view, he

gave an objective account of the monetary situation in New Zealand, and he included

the acknowledgment that for some workers, particularly those in the export sector,

wages would remain depressed because of the high value of the dollar. The Authority

does not agree that Mr Orr's views were partisan or that they were biased towards the

perspective of what Mr Terry described as the foreign interests working in New

Zealand. The purpose of the item was to inform viewers of recent fluctuations to the

Kiwi dollar, and to explain why the dollar was so strong against other currencies, and

what it meant for wage earners. The Authority believes that was satisfactorily

achieved. It does not agree that it was necessary to include the comments of the

Governor of the Reserve Bank. Accordingly, the Authority declines to uphold the

complaint.

For the reasons set forth above, the Authority declines to uphold the complaint.

Signed for and on behalf of the Authority

Judith Potter
Chairperson
22 May 1997

Appendix

Mr Robert Terry's Complaint to Television New Zealand Ltd - 17 February

1997

Mr Terry of Reefton complained to Television New Zealand Ltd about an item

broadcast on Tonight on 17 February 1997. The item, which was concerned with how

the government's fiscal policies were affecting the New Zealand dollar, included an

interview with Mr Adrian Orr, Chief Economist of the National Bank.

Mr Terry complained that Mr Orr's comments were biased in favour of all foreign

banking interests operating in New Zealand. He pointed out that when the presenter

asked him how the workers would benefit, Mr Orr's positive attitude was lost and he

began to flounder. He suggested that under MMP it was unacceptable for Mr Orr to

have exclusive air time on nationwide television to espouse the line for a private bank

operating in New Zealand for a profit.

Mr Terry argued that TVNZ should have shown some balance by including an

interview with Dr Brash, the Governor of the Reserve Bank.

He also mentioned some other possible subjects for interviews.

TVNZ's Response to the Formal Complaint - 7 March 1997

TVNZ advised that the complaint had been considered under standards G6 and G14 of

the Television Code of Broadcasting Practice. It noted that it was not uncommon for

its news and current affairs programmes to seek advice on current trends and issues

from people who were experts in their field.

It pointed out that Mr Orr was not being interviewed because he was Chief Economist

of the National Bank, but because he was a financial expert who could explain clearly

why the New Zealand dollar had become strong in foreign currency markets and why

this was causing difficulty in the community.

TVNZ informed Mr Terry that Dr Brash's comments were not relevant to the

programme and that his views were probably inappropriate when what it was seeking

was an expert opinion from someone who could stand back from the policy-making

decisions and assess their impact dispassionately.

TVNZ did not consider the interview was unbalanced or unfair for having Mr Orr

explain matters concerning the New Zealand dollar. It believed that Mr Orr's

appearance assisted in providing an accurate, objective and impartial coverage of the

question. It did not believe standard G14 was infringed either.

Referring to the other matters raised by Mr Terry, TVNZ advised that they were

disregarded because they had nothing to do with the current complaint.

Mr Terry's Referral to the Broadcasting Standards Authority - 13 March 1997

Dissatisfied with TVNZ's decision not to uphold his complaint, Mr Terry referred it

to the Broadcasting Standards Authority under s.8(1)(a) of the Broadcasting Act 1989.

In a brief letter, Mr Terry repeated that in his view, TVNZ and Dr Brash had a

statutory obligation to enlighten and inform the general public of New Zealand about

the current economic policy. He wrote:

I do not believe it's Adrian Orr's job as Chief Economist of the National Bank

to push his private profit motivated capitalist bank's policy on us poor,

underpaid, under privileged New Zealanders struggling under excessive high

interest rates.

TVNZ's Response to the Authority - 26 March 1997

In a brief response, TVNZ advised that it had no further comments to add.