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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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

To read Cam’s previous articles click on his name in blue.