Kiwis didn't want Telecom privatised, says ex CEO

Former CEO, Theresa Gattung has admitted that New Zealanders would have preferred Telecom to remain in public hands.

“After years of resisting attempts to open up the telecommunications market and fighting every move we made in government to increase competition so the public had a choice, Ms Gattung now confesses that there was nothing in a privatised Telecom for the public anyway,” says Jim Anderton MP for Wigram and Progressive Party leader.

Ms Gattung said on Radio New Zealand’s Nine-to-Noon show this morning that the basic problem for Telecom was ‘a fundamental disconnect’ that Kiwis would have preferred Telecom to be a State Owned Enterprise (SOE) and ‘never have actually been a private company.’

She said that the SOE model of ‘commercial imperative but public good, sits much more comfortably with the Kiwi psyche.’

“It’s a shame she couldn’t have acknowledged that when she was the CEO of Telecom,” says Jim Anderton.

“The public of New Zealand are still getting the raw end of the deal when it comes to Telecom. Today it’s the failure of the XT network. In 1990 it was Roger Douglas and Richard Prebble selling Telecom for a song to US companies who on-sold it a few years later and walked away with $10 billion tax free.

Telecom was sold in 1990 for $4.25 billion to an American consortium of Ameritech and Bell Atlantic. The two American companies subsequently sold Telecom for $14 billion, making an untaxed capital gain of $10 billion.

“Theresa Gattung calls Telecom ‘a train wreck’. Well the wreck started in 1990. Ms. Gattung didn’t help to fix the wreck. She resisted the Labour Progressive government’s attempts to open the market and regulate Telecom’s monopoly. Despite her resistance we still managed to open the market considerably,” says Jim Anderton.

“Theresa Gattung is trying to re-write history and ignore the fact that Telecom should never have been sold off like the family silver, then a privatised Telecom monopoly allowed to dominate the telecommunications market in New Zealand for over a decade,” says Jim Anderton.

ENDS

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