KEY POINTS:
The fallout from high salaries paid to Television New Zealand presenters could still hurt the broadcaster financially, an inquiry by a committee of MPs has found.
But Parliament's finance and expenditure committee has not come up with any recommendations on how to deal with the matter, saying it understands TVNZ is addressing the issue.
The decision to carry out the inquiry was made in November 2005 after public unease over the amount being paid to TVNZ staffers, particularly former One News presenter Judy Bailey's $800,000 annual salary.
Other issues looked into included former chief executive Ian Fraser's resignation - after alleging interference by TVNZ's board in the day-to-day running of the company - and an employment dispute involving former presenter Susan Wood's salary.
The committee's report, tabled yesterday, looks at the events surrounding the $800,000-a-year offer to Bailey and notes that Mr Fraser said the incident was the start of a series of events leading to his resignation.
The salary offer was made to Bailey in December 2004 and she accepted.
At the suggestion of the board's chairman, a counter offer of $500,000 a year for three years was made but that was rejected.
Mr Fraser told the committee Prime Minister Helen Clark had broken the news that TVNZ had agreed to pay Bailey $800,000 but chairman Craig Boyce said she had gone to a press conference with the information after a story in the Dominion Post.
The committee also considered a report by consultants Sheffield that said TVNZ's workforce was "overpaid".
The broadcaster intended using various means to bring such people back into the appropriate salary bands, "usually by keeping their annual increments low compared with those of everybody else".
The committee said it understood TVNZ was committed to addressing the issues raised in the report.
"We remain concerned the issues raised regarding TVNZ presenters' salaries may lower the value of the company or affect its profitability; we will not know until TVNZ issues its next annual report," the committee said.
"We do note the company has been trading well and the minister assured us that its performance was financially sound."
- NZPA
