Television New Zealand has pulled an advertising campaign featuring its premier newsreader, Judy Bailey.
Newspaper advertisements featuring Bailey as a key One News presenter were yesterday cancelled with APN and other media.
Bailey was on holiday last Friday and yesterday and was replaced by Simon Dallow. It is understood she
has arranged to take further leave before the end of the year, and is owed more than six weeks.
Her $800,000 salary is under negotiation.
But last night TVNZ rejected any suggestion that she would not return from holiday to work out her contract.
TVNZ spokeswoman Zara Potts said there had been "no movement" on Bailey's future.
Bailey had been on holiday, which she had requested "ages ago", and would be back reading the news tonight.
Asked whether Bailey had resigned or decided not to renew her contract, Ms Potts said: "That's definitely not right. Unfortunately the rumour mill is going flat-out. But she is just on a scheduled holiday. There's nothing sinister in it."
Ms Potts said contract negotiations were continuing "and we would not comment on that".
Bailey was said to be furious at the sacking of One News executive producer Melanie Jones last month.
Following Jones' departure, the TVNZ newsroom was to be reconstructed. Chief executive Ian Fraser has not ruled out the possibility that Bailey could be yet another casualty.
The Herald on Sunday last week reported that recently commissioned research showed a sharp dip in viewers' approval of Bailey and a positive reaction to Dallow.
TVNZ and the Government came under fire last year when the $800,000 salary for her new one-year contract was revealed.
Bailey had been on $430,000 a year until TVNZ ditched her co-host, Richard Long, and Paul Holmes went to Prime.
It was then that Bailey managed to negotiate the package as the state broadcaster tried to hold on to its remaining star presenter.
