web analytics
The Standard
Advertising

Asset Sales: Orcon

Written By: - Date published: 6:08 pm, April 15th, 2013 - 8 comments
Categories: business, Privatisation, same old national - Tags:

It was announced today that Government-owned Orcon was sold off last Friday.

A group of NZ investors have bought it off SOE Kordia.

There’s been speculation since last year that it was being readied for sale (I’ve meant to write a post on it a number of times…).  I think we might need an OIA into whether there’s a government agenda and pressure here.

Last October they merged with another Kordia offshoot (Kordia Networks), and shed dozens of jobs, including their call-centre moving to Manila.  In theory this meant it was being pulled tighter to parent Kordia, in reality it was streamlining it for sale.  In February Kordia CEO Scott Bartlett said he’d never get rid of the Orcon brand.

A lot of customers (including me) have noticed the significant drop in service this “streamlining” has entailed.  Their call-centre in Manila has apparently sucked all their resources, leaving other support systems overloaded.  Mistakes seem more frequent and more slow to be resolved.  But no doubt costs are down, which looks good to a new buyer.

So we’ve lost another Government asset with merely an afterthought of a note to mention it.  Kordia will no doubt return a bigger dividend to the government this year – giving a temporary boost to the books – as this government keeps selling golden-egg laying geese and making us all poorer in the long-term.

8 comments on “Asset Sales: Orcon”

  1. Lanthanide 1

    National promised to only sell the power companies, so another lie by Key?

  2. Draco T Bastard 2

    About the only reason why I was still there was because it was state owned. Time to move on I suppose.

  3. infused 3

    lol, Orcons been bleeding money for ages. Orcon bought iserv, another dead duck. They have been trying to integrate the two companies for like 3 years and gave up.

    You’d be brave to buy it.

    “…leaving other support systems overloaded”

    Their ‘support’ services were so old and still running on original hardware of memory serves me right.

    Their entire system is fucked.

    It’s good to see you lot really have no understanding of why these things happen. Must be some big conspiracy….. ooooOoOo….

  4. Tim 4

    Kordia should never have been allowed to evolve into the entity it has for a start. And there’s one piece of infrastructure that should remain in public hands – preferably operated in non-SOE fashion.

    Having just said that – the NActs will try and flik it asfast as they possibly can – but buyer beware.

  5. millsy 5

    This is a shame. Orcon and Kordia could have been moulded into a genuine rival for Telecom and Vodafone/TelstraClear (who managed to pick up NZR’s fibre network for a song).

    • Draco T Bastard 5.1

      Not really as Orcon was limited to using Telecom’s network in most places. They do have a lot of their own network in place in CBDs and spanning the country – it’s part of the added costs of competition.

Important links

Recent Comments

Recent Posts

  • Waihopai – years on, still the same
    On 24 January, I attended the Waihopai Base protest in my electorate.  It was attended by a great range of people who are all concerned about the direction our country is heading in.  Thank you to all of those who… ...
    GreensBy Steffan Browning MP
    17 hours ago
  • Greens call for ring-fencing of state home proceeds
    The Government must ring-fence the proceeds of any state home sales and spend every dollar raised on more Government-built homes in order to address the housing crisis, the Green Party says.Prime Minister John Key has indicated that his first major… ...
    GreensBy Kevin Hague MP
    2 days ago
  • English breaks his $6000 wages promise
    Just one month into the new year Bill English has already rowed back on his election promise of real wage rises for New Zealanders, says Labour’s Finance spokesperson Grant Robertson. “During the election campaign National promised Kiwis that the average… ...
    7 days ago
  • National fails to produce evidence justifying attack on RMA
    The National Government is misusing evidence provided in the Motu report on planning rules to justify gutting the environmental protections secured by the Resource Management Act (RMA), says the Green Party today. The Motu group's research into the impacts of… ...
    GreensBy Julie Anne Genter MP
    7 days ago
  • National fails to produce evidence justifying attack on RMA
    The National Government is misusing evidence provided in the Motu report on planning rules to justify gutting the environmental protections secured by the Resource Management Act (RMA), says the Green Party today. The Motu group's research into the impacts of… ...
    GreensBy Julie Anne Genter MP
    7 days ago
  • RMA changes won’t knock a dollar off the cost of a new home
    The Government’s proposed changes to the RMA won’t increase the number of affordable homes or knock a dollar off the cost of building a new house, Labour Leader Andrew Little says.  “Tinkering with the RMA will not solve National’s housing… ...
    1 week ago
  • Palestine – NZ talks loudly in New York, does little at home
    Even though New Zealand has been gently slumbering over the last few weeks, world affairs have been progressing at its usual break-neck speed. There have been a number of significant steps since we all disbanded from the last parliamentary year.… ...
    GreensBy Kennedy Graham MP
    1 week ago
  • DOC debacle means hundreds may have missed out on fishing licences
    Hundreds of families and recreational fishers may have had their holidays spoiled by missing out on their fishing licences, with Conservation Minister Maggie Barry preferring instead to focus on more high profile portfolio priorities over the summer break, Labour’s Conservation… ...
    1 week ago
  • Effective action needed against pirate fishing boats
    New Zealand’s failure to detain pirate shipping vessels poaching endangered species in our region is simply not good enough, Labour’s Defence spokesperson Phil Goff says. “We send New Zealand naval vessels to the Arabian Gulf to board pirate ships there… ...
    1 week ago
  • Housing affordability crisis gets worse under National
    News that Auckland’s housing is now among the 10 most unaffordable in the world confirms the Government’s housing policy has failed, Labour’s Housing spokesperson Phil Twyford says. “After six years in power, National’s housing policies have not fixed the housing… ...
    1 week ago
  • Rheumatic fever rates continue to soar despite millions spent on prevention...
    The Government’s $65 million spend on rheumatic fever prevention has made little impact on the alarmingly high rate of the disease among young New Zealanders, Labour’s Health spokesperson Annette King says. “Latest figures from ESR show there were 235 notified… ...
    2 weeks ago
  • Speech to the Asia Pacific Parliamentary Forum in Quito, Ecuador
    I was honoured to speak to the Asia Pacific Parliamentary Forum, calling for cooperation and action on climate change. You can read my speech below. Greetings from New Zealand in our first language – kia ora nga mihi nui… ...
    GreensBy Gareth Hughes MP
    2 weeks ago
  • Government wipes off $5 billion in tax debt
    Since coming to office, the National Government has written off $5 billion* in tax debt owed by more than a million, Labour MP Stuart Nash says. "There are two sides to the New Zealand economy under the National government: the… ...
    3 weeks ago

Public service advertisements by The Standard

Current CO2 level in the atmosphere