Sack the Chair

NZ Post is in trouble, going backwards faster than the NZ economy under Labour.

New Zealand Post says its expected full year profit will be slashed by more than half due to the effects of the Christchurch earthquake on the business and ongoing weak trading conditions.

Group chief executive Brian Roche said the previously forecast profit of $60.8 million after tax for the year to June 30 would be undershot by between $35m and $45.

The quake had impacted on the state-owned postal services provider’s retail and postal businesses in Canterbury.

In a addition, Kiwibank had increased the amount it was provisioning for bad and doubtful debt to cover losses on mortgages in Christchurch.

The consequences of the earthquake would continue to flow through into the next financial year starting July 1 as the city rebuilt, Mr Roche said.

In particular bad and doubtful debt provisioning “could remain an issue well into 2012 [financial year] as the insurance as the insurance and “other uncertainties become clearer”.

Restructuring moves to reposition the business along with reduced asset values in other businesses would also add to the one off costs in the current year.

I see Dr Michael John Cullen is displaying all the competence of his previous job in running NZ Post and Kiwibank into the ground. I hope there aren’t any Australian companies out there trying to convince Cullen that he should pay 5 times the value of the assets of their company in order to improve the position of NZ Post.

Cullen should never have been given the job and based on his performance he should be sacked. Frankly his financial acumen is woeful, after gifting Toll Holding $800 million more than they deserved and tanking NZ Post, next thing we will hear how he can’t be sacked because he lost his shirt speculating in collapsed finance companies and needs the job.


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  • gazzaw

    It would be fascinating to hear the comments from Silent T & Trev should the PM find it necessary to bail out or guarantee Kiwibank at some stage. The economic environment over the last two years required real leadership and a top financial brain – Cullen has neither quality. Who pulled what strings to get him that job?

  • adolffiinkensein

    Let it fold.

  • titanuranus

    What rocket surgeon thought putting this venal intellectual midget in charge of anything was a good idea?
    Fucking an entire nation wasn`t enough for this useless prick?
    How exactly does having a MA in some obscure part of history qualify this cretin for being anything other than a school teacher?
    No doubt the little cunt will smirk his way to the bank ,of course not Kiwibank , with his fat golden handshake.

    • mediatart

      It was a PhD in fact . The topic was related to ECONOMIC history. You know looking back to show the economists to be deluded fools, the most recent deluded one was Greenspan, who thought Wall St could ‘self regulate’ and derivatives helped ‘spread the risk’

  • peterwn

    IMO the time has come to reduce mail deliveries to three times weekly (and weekly in remoter rural areas). At a time when ‘instant’ communication was very expensive, a comprehensive mail infrastructure was warranted, eg in UK, there was once three mail deliveries a day and pillar boxes were cleared several times a day.

    Possibly some legislative changes may be required especially in courts and law enforcement areas to allow more time to respond when stuff is ‘served’ by post.

    A political problem is there is still significant dependence on NZ Post agency services especially by older people and those who are not internet savvy. The cost of this is effectively subsidised by those who do not use the services since it costs no more to pay a bill at NZ Post (or even less if cash) than to pay by mail, internet banking or Direct debit. It costs a power company about $1.20 if someone pays at the Postshop. The ‘agency’ profit props up Kiwibank since the ‘agency’ business was ‘assigned’ to Kiwibank when it was set up – one reason it shows some profit.

    • adolffiinkensein

      The only reason it showed a profit. And now even that appears to have been wiped out by shonky, profligate, incompetent lending.

      Is anyone surprised?

  • whafe

    “More Asset Sales”

    You cant strip the government mentality out of SOE’s….

  • thor42

    I agree with peterwn. I don’t think it would cause any problems at all if postal deliveries were only done (say) three times a week. I also agree that Michael “rich prick” Cullen is an intellectual midget. He (along with the Clark beast) is the most ARROGANT, smug, smarmy, dislikeable person to ever enter Parliament.
    It would give me (and I suspect, thousands of others) **huge** satisfaction to see this RICH PRICK sacked.

  • excuseme

    What strikes me as strange about this NZ Post Ltd “earnings guidance” is that the Chairman, Michael Cullen, is nowhere to be seen.

    It’s invariably the Chairman’s job to speak to the “market” about a company’s earnings performance, with the Chief Executive providing any necessary back-up on relevant trading details. Here, however, the good Doctor has left the full job in the hands of CEO Brian Roche.

  • royaloaks

    Cullen. Can anybody say how the little greaser got the job. Yet another no hoper in a flash suit without a brain in his head. A real snout in the trough nobody.