Bailey's pay justified, TVNZ tells Beehive

Judy Bailey leaves One News at the end of the year. Picture / Dean Purcell

TVNZ's decision to double Judy Bailey's salary to $800,000 has been justified by her bosses even though her contract is not being renewed.

Details of her salary were leaked to the Government by former Labour Cabinet Minister and then board member Dame Anne Hercus.

TVNZ chairman Craig Boyce today told a Parliamentary committee the decision to offer Bailey more money was made by news boss Bill Ralston and not outgoing chief executive Ian Fraser.

He said: "Judy was seen a being the pre-eminent presenter in New Zealand and that, amongst other things, persuaded us that we needed to retain her and that was the commercial decision that was made."

The decision was taken even though she did not say where she would quit if her contract was not renewed.

Bailey's pay was doubled last year, but she is now set to leave One News at the end of the month.

Parliament's finance and expenditure committee is holding an inquiry into a number of recent issues at TVNZ, which last month posted a reduced dividend to the Government of $10.5 million - down from $37.6 million last year.

TVNZ has been shaken by a series of events including the resignation of chief executive Ian Fraser, declining news ratings and an employment dispute with Close-Up presenter Susan Wood, which it lost.

Opposition MPs had been calling for a parliamentary inquiry into the broadcaster, but shareholding ministers Steve Maharey and Michael Cullen said it was not necessary - a view that Prime Minister Helen Clark supported.

When the review was announced, National Party finance spokesman and committee member John Key said National would be asking questions about alleged political interference, Ian Fraser and head of news and current affairs Bill Ralston's contracts, the Susan Wood and Judy Bailey affairs and TVNZ's financial position.

- NEWSTALK ZB, HERALD STAFF