New Zealand Doubles Down on Local Journalism, Cuts RNZ Funding by $18M

The New Zealand Government has announced a significant new investment in regional journalism as part of Budget 2025, while simultaneously trimming the budget of its national public broadcaster, Radio New Zealand (RNZ). According to Media and Communications Minister Paul Goldsmith, the moves aim to ensure that local communities remain informed and that government-funded media operate with fiscal responsibility.

$6.4 Million for Local Journalism Over Four Years

As part of the budget package, the Government is allocating $6.4 million over four years to strengthen community-focused journalism. This funding will support council, community, and court reporting across the country, and will be distributed through NZ on Air, the state broadcasting funding agency.

The funds are specifically targeted to expand two successful existing initiatives: Open Justice and the Local Democracy Reporting (LDR) programme. Both schemes have been instrumental in enhancing access to civic and public interest journalism at the regional level. Unlike commentary-driven models, these programmes prioritize fact-based, boots-on-the-ground reporting from localities often underserved by traditional media outlets.

“Regional journalism helps keep communities informed and holds decision-makers to account,” Minister Goldsmith emphasized. “This funding expands successful programmes and gets money into regional newsrooms so that more frontline journalists can report on the things that matter to their audiences.”

The expanded support is intended to ensure that even the most remote or rural communities are not left behind in an increasingly centralized media landscape.

RNZ Faces Budget Cut Amid Push for Efficiency

While regional journalism gets a boost, RNZ will face a $18 million cut over four years, equating to approximately $4.6 million per year. The reduction represents about 7% of RNZ’s current annual Crown operating budget of $67 million.

This move follows earlier funding increases in recent years: a $26 million annual boost in 2023 and an additional $7.3 million per year from 2020. According to the Minister, the latest cut is not a reflection of RNZ’s performance but part of a broader push for efficiency across the public sector.

“This savings initiative recognises that government-funded media must deliver the same efficiency and value-for-money as the rest of the public sector,” Goldsmith explained. “I expect RNZ to improve audience reach, trust, and transparency — and I am confident the organisation can do so while operating in a period of tightened fiscal constraint.”

While some industry observers may see the cuts as a potential blow to public broadcasting, the Government believes RNZ can maintain its public service mandate and performance without compromising quality or reach.

Media Reform on the Horizon

The funding announcements come amid a broader review of New Zealand’s media landscape. The Government is currently considering input from a recent consultation on media reform, aimed at modernising legislation and ensuring long-term sustainability for the media sector.

Minister Goldsmith noted that like their global counterparts, New Zealand media companies are grappling with immense structural and financial pressures brought on by digital disruption, declining ad revenues, and changing audience habits.

“We need modern legislation, so the media sector is financially sustainable in the years to come,” he said. “I am considering submissions from the recent consultation on media reform. I will have more information on next steps for media modernisation in the coming months.”

Balancing Fiscal Prudence and Public Information

The dual approach of increasing funding for community journalism while tightening RNZ’s budget reflects the Government’s effort to strike a balance between fiscal responsibility and the public’s right to access accurate and relevant information.

For communities across New Zealand, the bolstered investment in local journalism promises stronger oversight of local authorities, courts, and councils. At the same time, RNZ’s trimmed budget will likely prompt a reassessment of priorities and resource allocation, with a renewed focus on innovation and audience trust.

As media legislation undergoes reform and funding realignments take shape, the Government’s actions will be closely watched for their impact on the country’s evolving media ecosystem.