Holmes quit TVNZ over annual contract says Ralston

12.20pm

UPDATE - Broadcaster Paul Holmes quit his week-night show on Television New Zealand (TVNZ) because he wanted more than an annual contract, head of current affairs Bill Ralston said today.

Holmes confirmed today he had signed a three-year contract with Prime starting when his TVNZ contract ended on December 31.

Susan Wood would host the Holmes programme on One from tonight, and the show would be renamed.

TVNZ publicist Zara Potts told NZPA it was hoped Holmes would give a short farewell address on tonight's show.

Holmes' new current affairs programme would go head-to-head with TVNZ in the 7pm weekday slot.

"It is time to move on," he said in a statement released by Prime.

He said Prime chief executive Chris Taylor was energetic, positive and very ambitious for Prime's place in New Zealand's broadcasting landscape.

"There is no doubt in my mind that Prime is committed to taking a major place in New Zealand broadcasting," Holmes said.

"I am going to miss the people at TVNZ very much, people with whom I have had such a long and productive working relationship."

He said he had a very good offer from TVNZ to renew his contract.

"The challenge Prime offers is irresistible.

"The challenge is not only to host the programme, but also to co-produce it and to build a network.

"I am very excited about the Prime Television challenge.

"Yes, it is going to be tough, but I have done tough before," he said.

Ralston announced Holmes' move to staff in an email shortly after 10am today.

"We've been negotiating with his agents for several months now, in relation to his contract," Ralston told National Radio.

"Paul spelt it out in a letter me, saying...an annual contract was not satisfactory, so therefore he's decided to accept an offer of employment with another television channel."

"In any contract negotiations, there is always quibbling over cash," Ralston told National Radio.

Ralston's email to staff said: "It is with genuine regret I announced that Paul Holmes has chosen not to renew his contract with TVNZ news and current affairs at the end of this year.

"The choice is Paul's and Paul's alone and TVNZ wishes him well in his new venture.

"Paul will be leaving this evening," the email said.

Holmes had wanted an extended contract term, Ralston said.

"That was not something I was prepared to do -- this is public money...I did want to retain his services and we made him some very good offers."

Ralston told National Radio that the move would be good for Holmes.

Wood would probably "hold the fort" on the show until the end of the year, he said.

"TVNZ reaffirms its commitment to a 30-minute current affairs show on week nights at 7pm on TV One," Ralston said in the email to staff.

"It is important to realise that while Paul has made a huge contribution to TVNZ over the years, a current affairs show such as this is always greater than the sum of its parts."

The revamped show would have a "largely different format".

"(Holmes) was built so much around one person, I don't think it would be fair to put any one individual in that seat and expect them to get a break from the critics - he or she would always be compared to what had gone before."

TVNZ would have "discussions" with Wood and other possible presenters about filling the gap next year.

There have been long running rumours that TVNZ has been courting people - such as TV3 newsreader John Campbell - to front the 7pm slot.

Ralston admitted he admired John Campbell, but said there were bound to be rumours about who would replace Holmes.

Those rumours also included TV One presenter Eric Young, he said.

Holmes celebrated 15 years fronting his Television One show in April by defending his six-digit salary, saying it was for a skilled and demanding job.

Holmes was reputed to be paid a salary of $700,000-plus, making him the highest paid TVNZ-employee.

He said at the time he was still attracting "a huge audience".

He was confident his contract would be renewed, despite suggestions he would be axed by news and current affairs head Bill Ralston.

There were reportedly tensions between Mr Ralston and Holmes over the direction of news coverage and staffing.

Holmes, 54, who was treated for prostate cancer three years ago, was made a companion of the New Zealand Order of Merit for his services to broadcasting and the community in 2003.

He made the headlines again that year, when on his NewstalkZB talkshow he described United Nations secretary general Kofi Annan as a "cheeky darkie".

He also suggested that newspapers might be more judgmental at certain times of the month because of the high numbers of women journalists now employed in the industry.

The comments led to Mitsubishi axing its sponsorship of the Holmes show.

Holmes publicly apologised several times over the comments.

Holmes would continue his morning radio show at NewstalkZB, station manager Bill Francis said in a statement.

He said Holmes had been offered a very good opportunity by Prime.
Holmes had wanted an extended contract term, Ralston said.

Prime Minister Helen Clark said today she understood Holmes would not be lost to television.

"He goes from a major channel to what's quite a minor one," she said.

"From my point of view, Paul's had some great moments and he's had some appalling moments and I wish him luck in the new job."

Finance Minister and fellow Hawke's Bay resident Michael Cullen said today he was "always disappointed to see a Hawke's Bay citizen taking a less prominent role in the nation's affairs".

- NZPA