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MPs blast TVNZ "extravagance"

Dec 14, 2004 6:31 PM

A row has erupted between the government and the board of TVNZ over pay, with the Prime Minister accusing the network of a culture of extravagance.

Reports that newsreader Judy Bailey has been retained on an alleged $800,000 a year contract led to some terse words in parliament on Tuesday.

With a ratings war looming and prominent faces jumping ship or changing jobs, TVNZ has spent big money retaining staff - the latest allegedly to retain New Zealand's highest rating newsreader.

Neither TVNZ nor the ministers concerned would confirm if the reported contract figure is accurate but the speculation has so angered Finance Minister Michael Cullen that he is refusing to express confidence in the board.

Cullen has asked the board of TVNZ to explain its decision. But he says the government cannot change Bailey's contract or her salary.

TVNZ said it would not comment about Bailey's terms and conditions because these are confidential. However chairman Craig Boyce and chief executive Ian Fraser said TVNZ has taken a commercial decision based on the commercial facts of life in an increasingly aggressive and competitive marketplace.

They said they were both "delighted that someone who is regarded by TVNZ and the New Zealand public as an enormously popular and credible figure has renewed her commitment to the nation's premiere news bulletin".

The Prime Minister says the government appoints directors as the public stewards in charge of TVNZ.

"If salaries of that magnitude are being paid...there had better be some damn good reasons," says Helen Clark. "A salary at that level for the amount of time on air each day I would consider evidence of a culture of extravagance."

Broadcasting Minister Steve Maharey says the government remains strongly opposed to such salaries being paid within public service organisations. But he says salaries are a matter for the board and the management of TVNZ to determine.

National is calling the pay hike excessive and extraordinary and New Zealand First has labelled Bailey's pay packet "obscene". Act has questioned why the government continues to fund the state broadcaster to the tune of $30 million so that it can "stomp on its private competitors".

But Act MP Deborah Coddington tried to put Labour Party president Mike Williams in the same boat.

"Why pick on Miss Bailey, what about Mike Williams - a government appointee to some eight Crown Entities or State Enterprises who I am told earns $542,000 while he's working fulltime for the Labour Party," questioned Coddington. "Does she think there is public revulsion over this."

Clark replied that the government appoints people from across the political spectrum to boards.

There has been no response to the government's call for an explanation but the board is due to meet on Thursday.

Source: Interactive