Top brass star in TVNZ political soap

Outgoing TVNZ chief executive Ian Fraser (left) and chairman Craig Boyce at yesterday's hearing. Picture / Mark Mitchell

Before a live audience packed with critics yesterday, part one of the TVNZ drama began.

The reticent stars of the show - the recently resigned chief executive Ian Fraser and board chairman Craig Boyce - shuffled into the select committee room, resigned to the grilling that was about to begin.

Scrapping to get their fair share of time to do that grilling were 12 MPs - with notable performances from Act leader Rodney Hide and National finance spokesman John Key.

Directing the two-hour show, in his first public performance, was select committee chairman Shane Jones.

Mr Boyce tried to set the scene with an upbeat 10-minute description of TVNZ's financial position.

But while this may have been the finance and expenditure select committee and it may have been called a "financial review", the MPs gathered did not want to discuss finances. Unless they related to salaries.

Mr Fraser's resignation, Mr Fraser's "garden leave", Mr Fraser's $100,000 bonus, Susan Wood and Judy Bailey's salaries and board member Dame Ann Hercus' behaviour were what these MPs wanted to know about.

John Key had the lead questioner role and began eliciting information about the terms of Mr Fraser's resignation.

Key: "Mr Fraser is effectively now on garden leave, can you confirm that the compensation involved in that garden leave is around $300,000?"

Craig Boyce: "It is somewhat less than that, but it is not far away. It is not garden leave. It is part of his contract. It is a normal contract that any chief executive would have."

Mr Key then questioned Mr Boyce over Dame Ann Hercus' resignation (and subsequent reinstatement) during the Judy Bailey salary row last year.

It was established that the board never took action over Dame Ann telling Broadcasting Minister Steve Maharey about the doubling of Bailey's salary to $800,000.

Mr Boyce said the TVNZ remuneration committee's decision to give Bailey the salary raise was agreed to because research showed she was the "pre-eminent presenter in New Zealand".

Key: "When you agreed to increase her salary from $405,000 to $800,000, where did you think Judy Bailey would go if you didn't pay her $800,000?"

Boyce: "Um, she didn't say."

The TVNZ players had a temporary respite from the questioning when Labour MPs Paul Swain and Mark Gosche took over and adopted a slower pace, filled with plenty of back-patting.

But then it was Rodney Hide's turn.

Mr Hide demanded to know if Mr Boyce thought it was acceptable for him to write to the committee and tell the MPs it was inappropriate for them to invite Bill Ralston.

Boyce: "I do, or I wouldn't have written it. I believe it would be seen by the nation as entirely inappropriate to have the head of New Zealand's public service broadcaster under the hammer at this committee."

Mr Hide then turned his attention to the most recent TVNZ hiatus to dominate news headlines - Susan Wood's contract.

Hide: "Tell me this, did the board have a view on whether Susan Wood should be paid $450,000 or $350,000?"

Boyce: "We had a view that $450,000 a year was high and if this select committee doesn't want the board of Television New Zealand to make every attempt to reduce our costs as we head into an economic slowdown, then that is fine."

Mr Boyce eventually said in hindsight it had been a mistake to try to lower Wood's salary.

Mr Hide also touched on reports that TVNZ had hired an Auckland-based psychologist to help three senior staff in its Wellington newsroom work through issues of "mistrust".

And Mr Fraser explained that he had resigned because he had lost confidence in the board and would expand on it at next week's committee.

Shane Jones: "Don't feel threatened, this is not the Spanish Inquisition."

Fraser: "No, I have lived under the Spanish Inquisition." 

 
Prime time

Show
* Insider's Guide to TVNZ

Location
* Wood-panelled select committee room, Parliament.

Themes
* Big salaries, big personalities, big problems.