TVNZ pays rival over news fiasco

By NAOMI LARKIN

TVNZ's secret payout - possibly up to half a million dollars - to rival TV3 over its unlawful enticement of John Hawkesby would bring to nearly $7 million the cost of the state broadcaster's ill-fated dalliance with the former newsreader.

TVNZ spokesman Liam Jeory yesterday confirmed a settlement but refused to reveal the amount.

"There are no outstanding differences between the two companies. Terms and conditions of that legal agreement are confidential."

TV3 lodged High Court action this year seeking $3.2 million after accusing TVNZ of inducing Hawkesby to breach his contract and switch channels.

Mr Jeory refused to confirm speculation that the figure was between $300,000 and $500,000 - but he did not deny it, either.

"I am not able to confirm anything of the sort. What I am saying is that there has been a settlement, as opposed to going to court. We would not have made it [the settlement] if we weren't comfortable with it."

TVNZ chairman Ross Armstrong also declined to divulge the figure.

TV3 took legal action when Hawkesby quit the channel in February last year over plans to team him with Carol Hirschfeld. It turned out later that the day he quit TV3 he had a commitment to work for TVNZ.

The move - teaming Hawkesby with Judy Bailey - proved disastrous for TVNZ as ratings fell and Hawkesby was dropped.

The sacking resulted in an arbitrator ordering TVNZ to pay Hawkesby $5.2 million for loss of earnings. The final payout, including GST and interest, totalled $6.5 million.

Brent Impey, chief executive of the TV3 owner CanWest New Zealand, said the station was pleased with the outcome and regarded the Hawkesby saga as over. He confirmed that the money had been paid.

National Party deputy leader Wyatt Creech said the payout would not be popular with taxpayers and comments by Prime Minister Helen Clark last February had made the situation worse.

She said TVNZ's "enticement" of Hawkesby was "the real scandal" of the affair. National said at the time that the comments would make it harder for TVNZ to fight TV3's claim.

Helen Clark said yesterday that TV3 appeared to have a prima facie case and a settlement was "probably best in the circumstances."