Act Party leader David Seymour is investigating making TVNZ pay dividends

He's asked Treasury to look into the returns the station is offering tax-payers, after 1News' competitor Newshub revealed it was broke.

Warner Bros Discovery has proposed shuttering Newshub from July, axing one of the country's biggest commercial news operators.

Seymour says it's possible requesting dividends could improve returns - and competition.

He says it's a possibility having one major competitor that has an easy run with taxpayer capital is distorting the marketplace.