Bailey's $800,000 sparks veiled threats

The Government has issued a veiled warning to the board of TVNZ over the company's doubling of newsreader Judy Bailey's salary.

Finance Minister Michael Cullen said directors would need to give the Government a convincing explanation for Bailey's pay jump, from just over $400,000 to $800,000.

He said their response might influence "further considerations" by the Government, but did not expand on what they might be.

One extreme option would be to force the resignation of the chairman and directors.

Prime Minister Helen Clark responded strongly to the pay rise, saying if the reports were correct she would consider it evidence of a culture of extravagance.

"If that is the sum it is an enormous amount of money for what I would estimate is about four minutes on air. If salaries of that magnitude are being paid, there had better be some damn good reasons."

TVNZ refused to comment on reports of Bailey's pay rise, saying only that negotiations with her had concluded and she would continue to present One News.

Last night, TV3 led its 6pm news bulletin with the Bailey story and calculated she earned 50c with every breath. On TVNZ's One News, Bailey presented the story about herself without using her name or showing any change of composure.

Dr Cullen said he was told about the pay rise last Tuesday by Broadcasting Minister Steve Maharey.

"He wasn't very happy either," Dr Cullen said.

"When the Prime Minister found out she was even less happy, so it was a cascade upwards of increasing unhappiness."

Bailey's pay rise was approved by a three-person remuneration subcommittee made-up of TVNZ board chairman Craig Boyce and board members Dame Ann Hercus and Philip Melchior.

The only comment from Mr Boyce, and TVNZ chief executive Ian Fraser, was that the company had taken a "commercial decision based on the commercial facts of life in an increasingly aggressive, competitive marketplace".

 

TV3 head of news Mark Jennings said he was staggered. "It is clear we haven't made an approach and it is clear Prime hasn't, so I don't understand the commercial imperative."

 

Jim Tully, head of the school of political science and communications at Canterbury University, said: "She obviously has a very strong sense of her self-worth at the moment to be able to negotiate that kind of a figure."

The salary rise was viewed as ironic by some people after efforts by news chief Bill Ralston to get rid of the star culture at TVNZ.

Paul Holmes, who received flak for his TVNZ salary, said: "In the channel where apparently personality no longer matters you've got to have a major personality reading the news at 6pm and if she threatens to walk you've got to pay her."