Although the Broadcasting Authority had favoured the Independent Television bid, the incoming Labour government favoured the NZBC's application and awarded it the licence without any formal hearings beforehand.
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As part of wide ranging reforms in the broadcasting sector, the Labour Government of David Lange established the Broadcasting Commission, which became known as and finally called New Zealand on Air.
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By 1998–1999, the National Party–led coalition was moving to privatise TVNZ and announced that the broadcasting fee would be discontinued.
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