A Broadcasting Standards Authority (BSA) decision, released today, considered that Henry's repeated ridicule of Ms Dikshit's name amounted to a "sustained and deliberate attack against the Chief Minister personally" and the state broadcaster should have deemed it to be something more than just "inappropriate".
TVNZ received formal complaints after Henry's comments on the Breakfast programme during a discussion about the Commonwealth Games being held in India, broadcast on October 1.
Henry said during the item: "Also the dip **** woman, God what's her name [hysterical laughter], Dick ****, is it Dick ****?"
He went on, laughing hysterically, about the proper pronunciation of Ms Dikshit's name, saying "Look there she is there, Sheila Dick **** ... Anyway, that's so appropriate because she's Indian, so she would be dick in ****, wouldn't she, do you know what I mean, walking along the street."
TVNZ responded to complaints saying that Henry's comments referred specifically to the state of the Commonwealth Games Village but acknowledged the attempt to link the vulgar meaning of Ms Dikshit's name with the games village story was "widely perceived as an offensive and insulting slur".
TVNZ also acknowledged that Henry's comments were "inappropriate", and had apologised to the complainants for any offence caused.
It also noted that Henry had resigned from Breakfast, which happened after Henry later got into hot water when he questioned whether Governor-General Sir Anand Satyanand "was even a New Zealander".
TVNZ upheld complaints under the good taste and decency, fairness, and the discrimination and denigration standards but dissatisfied with TVNZ's response, three complainants referred the matter to the BSA.
The BSA, after reviewing TVNZ's response, today said Henry's attitude and behaviour - which consisted of sneering and uncontrollable laughter - made it clear that he was using the words Dick **** in a pejorative sense to mock and belittle the Chief Minister.
"His subsequent comment, which associated the words 'Dick ****' with people of Indian descent was not only derogatory but entirely dissonant with common decency and a clear breach of the discrimination and denigration standard."
The BSA said TVNZ ought to have categorised Henry's comments as something more than inappropriate.
"In our view, the breaches called for a firm and unqualified acceptance that the comments were unacceptable, and for a prompt and unequivocal statement and apology broadcast on Breakfast."
The BSA also said that Henry had resigned off his own bat and was not part of TVNZ's response.
It also found that, due to the serious nature of the breaches and the inadequacy of TVNZ's response, an order of $3000 costs to the Crown was warranted.