TVNZ bonuses show it is out of control says McCully

Bonuses attract more flak for TVNZ. Picture / Martin Sykes

National MP Murray McCully says that Television New Zealand's payment of more than $4 million in bonuses to staff in the last 18 months is proof the state broadcaster is out of control.

In the year ending June 2004 197 staff received bonuses totalling $2.37 million or an average of $12,000 each, Mr McCully said.

Since then another $1.64 million was paid to 185 staff at an average of $8000 each.

Last year TVNZ recorded record advertising revenue creating a net surplus of the Government of $28.2 million, the state broadcaster was given back $11.4 million to meet its charter obligations.

Mr McCully said that TVNZ revealed the information to MPs in answers to written questions to a select committee.

The answers contained in the appendices of the select committee's report also said:

* Last Christmas all staff received a $300 bonus costing $285,000 and this year received a $400 bonus.

* TVNZ had paid out $120,000 to settle five personal grievances, with five more cases pending.

* TVNZ chief executive Ian Fraser and head of news Bill Ralston's meetings with the public in Napier, Dunedin and Hamilton cost an estimated $173,342 including $28,166 in travel and accommodation.

* Restructuring cost TVNZ $1.2 million.

The report follows a grilling of TVNZ's Chairman Craig Boyce and Mr Fraser by MPs.

The report said that the hearing came before news of the $800,000 pay deal for TVNZ newsreader Judy Bailey but they intended to look into the affair in the future.

Mr McCully said the Bailey affair, TVNZ's reluctance to tell Parliament what was happening behind the cameras and the bonuses showed the Crown company was "out of control".

The report notes that some MPs were concerned about the Government's handling of Paul Holmes' departure from TVNZ.

"Some of us believe that the statements made by TVNZ were not in line with good employer standards or obligations, and are concerned to hear that Paul Holmes was not working out his contract as he is, in effect, on full pay until the end of his contract.

TVNZ managers defended their actions saying Holmes and his employer to be were planning a media campaign about him leaving TVNZ.

Holmes' departure was not a "retirement" but a "defection" and his treatment was consistent with standard commercial practice, TVNZ told MPs.

- NZPA