At $3m, price is right for Holmes

By ALAN PERROTT

Paul Holmes found a new friend in Prime Television's ambitious chief executive Chris Taylor while enjoying a winter holiday in Fiji.

It was an innocuous beginning to the abrupt end of Holmes' 15-year reign as Television New Zealand's ratings anchor, announced at a press conference in the Hilton Hotel yesterday.

Prime went to great lengths to keep their famous new employee secret. Media were given only two hours' notice of the conference and were not told what it was about. One of the few Prime employees told last week said he had not even been able to tell his wife.

Mr Taylor said he approached the veteran broadcaster about moving to Australian-owned Prime Television, which can be received by 75 per cent of the population.

Holmes said he decided to leave TVNZ late last week. His NewstalkZB breakfast show will not be affected, but he will be unable to take up the new job until his TVNZ contract expires on December 31.

It is understood the Prime offer, which Holmes called "extremely attractive", will see the 54-year-old earn about $1 million for each of the three years of his contract as co-producer and host of a new current affairs show to begin next year.

Mr Taylor said Holmes, as the country's leading broadcaster, had been offered "market rates".In contrast, TVNZ had offered a one-year contract and is understood to have tried to slash his salary, listed as between $730,000 and $740,000 in the network's last annual report.

Holmes told Bill Ralston, TVNZ's head of news, of his resignation yesterday morning.

"I told him what I was doing, he shook my hand and wished me luck," he said. "I go with no bitterness or sour grapes, nothing at all. I go with only affection."

Mr Ralston then sent a confidential email to TVNZ staff about 9.45am: "It is with genuine regret that I announce that Paul Holmes has chosen not to renew his contract with TVNZ news and current affairs from the end of this year. Paul will be leaving TVNZ this evening ... It is important to realise, while Paul 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 new show, Close Up at 7, will be hosted by Susan Wood until the end of the year.

TVNZ had hoped the host would make a farewell appearance last night, but he told reporters that would not happen. "I think it may have happened already," he said.

Holmes' resignation followed reports of ructions between the Holmes team and TVNZ management. Sources within Prime expect further recruits before the end of the year.

When asked whether he expected more TVNZ staff to follow his lead, Holmes would not comment other than to say such issues were "delicate matters".

Philippa Keane, Holmes executive producer, declined to comment on speculation she would be Prime's next recruit.

Holmes compared yesterday to his first interview with sailor Dennis Conner, who walked out on him. "Dennis Conner was rather like today, a big day ... the furore created by the interview took me by storm. None of us had expected a reaction like that. "

He said he was aware of the challenge to rebuild his audience on a station that had yet to push its average ratings above 7 per cent.

"It's going to be tough, but I've done tough before."