RNZ’s budget crisis threatens its core purpose. But there’s an obvious solution

Detailed summary

RNZ’s 2025-26 annual report, released on November 9, revealed an $11.8 million deficit – well in excess of the projected $470,000 loss in its earlier statement of performance…

RNZ is looking at cutting 58 jobs after posting an $11.8 million deficit. Photo / Getty Images

“News and information you can trust,” says the voiceover before each RNZ news bulletin. Unfortunately, it seems the same couldn’t be said for the state broadcaster’s internal accounting.

RNZ’s 2025-26 annual report, released on November 9, revealed an $11.8 million deficit – well in excess of the projected $470,000 loss in its earlier statement of performance expectations.

The accounting discrepancy (now subject to an independent review) is a huge embarrassment for the RNZ board and executive team. The consequences for RNZ’s ability to fulfil its public service remit are potentially dire.

Management and board were apparently unaware of the problem until the sudden resignation of the chief financial officer in early October.

A subsequent external audit of the accounts found multiple accounting errors relating to land sales, the Auckland office relocation, operational expenses, and personnel and redundancy costs.

A $5m loan facility was also found to have been set up without ministerial approval, in breach of the Crown Entities Act.

These anomalies raise serious questions about the integrity of RNZ’s financial governance, including the role of the board and its audit and risk committee. But the backdrop to the budget blowout is, if anything, of even greater concern.

As RNZ’s statement acknowledged, the errors were not picked up in time to take corrective action during the financial year, meaning “RNZ did not reduce its cost base as it needed to in response to a 7% reduction in baseline funding”.

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