BSA Decisions Ngā Whakatau a te Mana Whanonga Kaipāho

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Summary

The term "peppercorn rentals" was used in the introduction to a story about leasehold

properties in Taranaki on One Network News on 11 March between 6.00–7.00pm.

Mr G P Costello complained to the Broadcasting Standards Authority under s.8(1)(b)

of the Broadcasting Act 1989 that TVNZ had failed to respond to his formal

complaint about an item on One Network News. In his complaint, he maintained that

it was incorrect to use the term "peppercorn rentals" to describe the situation of

farmers in Taranaki, and that a more accurate description was "Glasgow leases". In

addition, he considered the item was unbalanced.

In its response to the Authority, TVNZ apologised for having overlooked Mr

Costello's complaint. It explained that it had been addressed to an operational part of

TVNZ and had not been referred to the correct department. Dealing with the

substance of the complaint, TVNZ emphasised that it was in the business of

communicating with viewers in readily understood language, and that it considered the

term "Glasgow lease" was little-known and rarely used in everyday conversation. In

this case it believed it correctly characterised the dispute as a farmer rebellion against

the prospect of facing rents at market rates.

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). On this occasion, the Authority

determines the complaint without a formal hearing.

An item about the introduction of legislation, under urgency, to compensate Taranaki

farmers on Maori leasehold land who faced having to pay market rates was broadcast

on One Network News on 11 March 1998 between 6.00–7.00pm. The introduction to

the item stated:

Taranaki's Maori leasehold land is under urgent attention in Parliament tonight.

Debate is under way to change the law over compensation for Taranaki

farmers who are facing market rates on the land they currently lease at

peppercorn rentals.

Mr Costello complained to TVNZ that the use of the term "peppercorn rentals" to

describe the leasehold arrangements on farming land in Taranaki was inaccurate and

unbalanced. A more accurate term, he continued, was Glasgow leases. He sought an

immediate correction. When he had not received a response within 20 working days,

he referred the complaint to the Authority under s.8(1)(b) of the Broadcasting Act

1989.

First, TVNZ apologised for its failure to respond to the complaint. It advised that Mr

Costello's faxed complaint was addressed to an operational part of the company, and

had not been forwarded to the appropriate section for action.

TVNZ then turned to the substance of the complaint. It advised that it had assessed

the complaint under standards G1 and G6 of the Television Code of Broadcasting

Practice. Those standards require broadcasters:

G1 To be truthful and accurate on points of fact.

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

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

In TVNZ's view, the term "peppercorn rental" was readily understood by the vast

majority of viewers and conveyed the idea of a nominal rate, one which was

considerably below that which might be expected, given the value of the land.

While TVNZ acknowledged that the term "Glasgow lease" embraced a wider concept,

it suggested that the term was little-known and rarely used in everyday conversation.

Since its business was to communicate with viewers in language which was readily

understood, TVNZ considered it was justified in using the term peppercorn rentals in

the context. It noted that other media, including The Dominion, had also used the

term.

Turning to standard G1, TVNZ said that it recognised that those involved in the

dispute may have felt irritated that media coverage had concentrated on the amount

farmers pay for their leases, instead of looking at the larger context implied by the

term Glasgow lease. However, it did not consider it was inaccurate to describe the

rentals as peppercorn.

As far as standard G6 was concerned, TVNZ did not consider the reference to

peppercorn rentals created any imbalance in the story. It pointed out that it was but

one of a number of stories over the period of current interest, and all parties in the

debate had had their views fairly reflected.

With respect to TVNZ's failure to respond to the complaint, the Authority

acknowledges that TVNZ has a generally impeccable record in its dealings with formal

complaints within the time limits imposed by statute. It accepts that this was an

isolated incident, and assumes that its systems will be adapted to deal with such

complaints in the future.

Turning to the substance of the complaint, the Authority notes that the item was

focused on the concern felt by farmers in Taranaki who, as a result of legislation

passed in late 1997, were going to have to pay market rates for leasehold land which

they were farming. Under urgency, the government introduced an amendment to the

Maori Reserved Land Act which ensured that farmers could be compensated on the

basis of what their leases would have been worth in 2001, had the 1997 Act not been

enacted. The introduction to the item stated that farmers leased the land at

"peppercorn rentals". In the Authority's view, the impression conveyed by that term

was that the existing rentals were at nominal levels, and were well below market rates.

That impression was confirmed by the item itself, which emphasised the measures

taken by farmers to ensure that the law was amended, and that they would be

compensated.

In the Authority's view, the term peppercorn rental has a somewhat pejorative

connotation because it can imply more than just the idea that the rates charged were

nominal. Further, the Authority understands that while the Taranaki farmers were

paying below market rates, they paid more than simply a nominal rate. Although it is

an oversimplification to describe their leasing arrangements as "peppercorn rentals",

the Authority concludes that it was used to convey the notion that the amounts paid

for the leases fell short of market rates. The disparity between what the farmers were

presently paying and what they were required to pay was the source of their

discontent, and the reason for the introduction of the amendment to the legislation.

However, to the layperson, it considers it was a term which adequately conveyed the

fact that there was significant disparity between actual and market rentals. It

concludes that in the context of a story about farmers protesting and effecting a change

to the legislation, it did not constitute a breach of the standard. To Mr Costello's

argument that a more apposite term was "Glasgow leases", the Authority responds

that in its view, very few viewers would have an understanding of that term.

With respect to the balance matter, the Authority finds no breach. It takes into

account the fact that the news has to be expressed in terms accessible to most viewers.

In the circumstances, where the item was part of an ongoing story, it does not believe

the use of the term "peppercorn rentals" caused the item to be unbalanced.

The issue of whether to award costs, as requested by Mr Costello, is not relevant, as

the complaint has not been upheld.

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

Signed for and on behalf of the Authority

Lyndsay Loates
Member
28 May 1998

Appendix

G P Costello's Complaint to Television New Zealand Ltd – 12 March 1998

By fax, Mr Costello of Wellington complained to Television New Zealand Ltd about

the introduction to an item on One Network News on 11 March between 6.00–7.00pm.

The item concerned leasehold property in Taranaki. Mr Costello objected to the term

"peppercorn rentals" used by the presenter to describe the leasehold arrangements. In

his view, the leases were "Glasgow leases".

He considered the introduction was unbalanced and legally incorrect. He sought a

correction as soon as possible.

In a second fax, dated 18 March he sought confirmation of receipt of his first fax.

G P Costello's Complaint to the Broadcasting Standards Authority – 12 April

1998

Having received no response from TVNZ within the statutory time period with

respect to either of his earlier faxes, Mr Costello complained to the Broadcasting

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

Mr Costello appended copies of his earlier faxes which he had transmitted to TVNZ's

news editor.

He advised that his complaint would be withdrawn if his request for a correction was

complied with.

TVNZ's Response to the Authority – 22 April 1998

Through the Authority, TVNZ apologised for its failure to respond. It noted that Mr

Costello's original fax had stated that he was making a complaint under the Act, and

should therefore have been treated as a formal complaint. However, it noted, it was

addressed to an operational part of TVNZ and:

...was simply overlooked in the hurly-burly of newsroom activity and was not

drawn to the attention of those of us who normally handle such complaints.

TVNZ hoped that the Authority would accept that such lapses on its part were few

and far between.

TVNZ advised that it had considered Mr Costello's complaint under standards G1

and G6 of the Television Code of Broadcasting Practice. It provided a transcript of

the introduction which reads:

Taranaki's Maori leasehold land is under urgent attention in Parliament tonight.

Debate is underway to change the law over compensation for Taranaki farmers

who are facing market rates on the land they currently lease at peppercorn

rentals.

In TVNZ's view, the term "peppercorn rentals" was readily understood by the vast

majority of viewers, and it conveyed the idea of a nominal rate, below that which

might be expected given the actual value of the land. It submitted that the term

provided a contrast with the phrase "market rates" which preceded it.

While it acknowledged that the term "Glasgow lease" embraced a broader concept, it

suggested the term was little-known and rarely used in every day conversation.

TVNZ added:

We are in the business of communicating with viewers in a language that is

readily understood, and in this case we believe One Network News correctly

characterised the dispute as a farmer rebellion against the prospect of facing

market rates as opposed to the existing peppercorn rentals.

TVNZ noted that it was not alone in using the term "peppercorn rental" in relation to

the Maori land lease story. It referred the Authority to The Dominion which, on the

same day as the television item was screened, used the term in two stories.

Referring to standard G1, TVNZ acknowledged that those involved in the dispute

may have had a sense of irritation that media coverage had concentrated on the amount

farmers paid for their leases, rather than looking at the larger picture implied by

"Glasgow leases". However, it submitted, it was not inaccurate to describe the rentals

as "peppercorn".

TVNZ did not consider that the reference to "peppercorn rentals" resulted in the

story being unbalanced. It pointed out that this was but one of a number of stories on

One Network News in the period of current interest, and it considered that all sides of

the debate had been fairly reflected.

Mr Costello's Final Comment – received 4 May 1998

Mr Costello elaborated on his complaint. First, he pointed out, the item was

broadcast nationwide, and no correction or clarification had followed.

Mr Costello advised that immediately after the broadcast he had telephoned TVNZ's

office in Wellington and made a verbal complaint about the wording of the

introduction to the item. He argued that the lessees were not paying peppercorn

rentals, but paid 5 or 6% of the unimproved value of the land. After making the verbal

complaint, Mr Costello transmitted a fax to the Auckland newsroom, and when no

reply was received, he sent another. After 20 working days had elapsed and he had

received no response from TVNZ, he made a formal complaint to the Authority under

s.8(1)(b).

According to Mr Costello, TVNZ's facsimile logging procedures were incompetent.

He repeated his complaint that the broadcaster had not abided by the requirement to

be truthful and accurate on points of fact, and to show balance, impartiality and

fairness.

Mr Costello noted that the item concerned a Bill being introduced into Parliament

which was ostensibly designed to make the valuation process more neutral to sitting

tenants. He wrote:

The farmers are already paying market rates on their leases under the Maori

Reserved Land Act 1955. The Market had rated the lessees interest at about

80% of the capital value of their property. The tenants pay 5% of the

unimproved value of the land. The Crown has decided in its wisdom (and

ability to pay) to alter the market. This has happened before (ie transition

from West Coast Settlement Reserves Act 1892 to Maori Reserved Lands Act

1955) and others.

In Mr Costello's view, it was irrelevant whether the majority of people

comprehended the term peppercorn rental to mean a nominal rate, as the tenants were

not paying a nominal rate or a rate which was considerably lower than that which

might be expected given the actual value of the land. He added that, to the best of his

knowledge, there were no farming lands leased under peppercorn rentals.

He continued:

If the sitting tenants were paying a peppercorn rental they would have a

lessor's interest of 100%. As they have had a nominal lessees interest of 80%

(now down to perhaps 50%) an understanding of economics would assist one

in reaching the conclusion that the sitting tenants pay an economic

consideration to the lessor on the 20% that has been historically assessed by

numerous quasi-legal and legal bodies.

Mr Costello maintained that the term Glasgow lease was very well known in many

Wellington and Auckland suburbs. He said that the Glasgow lease was not a concept,

but was a leasing framework which had been very popular in New Zealand.

To TVNZ's point that it was in the business of communicating with viewers in a

language which was readily understandable, Mr Costello responded that nevertheless

it was wrong to give the impression that the farmers were paying but a nominal sum

for the land.

Mr Costello noted that TVNZ had referred the Authority to an article in The

Dominion where the term "peppercorn" was used. He advised that having spoken to

the reporter he understood the term was inserted by a sub editor and that a directive

was issued from the editor not to use the term in that context again.

Mr Costello explained that he was not involved with any of the leases in Taranaki, but

would appreciate accuracy in reporting. In his view the term peppercorn rentals did

not apply to the situation under the Maori Reserved Land Act 1955 and the

subsequent amendment to the Act in 1997. Mr Costello concluded by seeking a

correction as soon as possible, and sought reasonable costs and disbursements for his

complaint.