On Gattung’s revisionist history of Telecom

Written By: - Date published: 10:57 am, March 5th, 2010 - 15 comments
Categories: business - Tags: , , , ,

Over at Scoop, Gordon Campbell takes Theresa Gattung to task for her revisionist history of Telecom in the Dominion Post this morning.

One hates to kick someone when they’re down but when it is former Telecom CEO Theresa Gattung and she is peddling a book in which she professes herself to be shocked (shocked!) by the size of the remuneration packages currently being paid at Telecom, the urge is irresistible. Gattung, like David Lange before her, seems more than willing to criticize the organization she once headed, as if she bore no residual responsibility whatsoever for its current condition.

On her complaint that the “$7 million salary and incentives package for current CEO Paul Reynolds is intolerable, but her own $3 million package was OK and the $5.4 million payout she received in 2007 was also value for money”,

Once you get to seven figure salary and incentives packages, I would have thought the little number at the front becomes almost irrelevant. Both her and Reynolds’ remuneration packages are and were obscene. I’d have thought it would be quite hard to pocket $35 million remuneration packages every year and still claim that you were being discriminated against on the basis of your gender. Apparently not. Put it this way: did Gattung do a really good job of positioning the company for the more competitive environment in which Telecom now finds itself? Did she manage to negotiate productively with a Labour government that was intent on reform, and on ending Telecom’s capacity to screw consumers and the economy for the greater benefit of Telecom shareholders? Hardly.

On accusations that David Cunliffe was devious and dishonest in his regulation of Telecom:

The reality is that Telecom had wielded its power without compunction for at least 15 years, ever since Richard Prebble turned a state monopoly over to the tender mercies of Telecom’s new owners for peanuts, and without putting any safeguards for consumers (or for business) in place. It was a situation that couldn’t last. The Lange government had created a monster, and National’s Maurice Williamson sat by idly watching this out of control corporate beast pile up the profits at everyone else’s expense, for the entire 1990s.

Yet ultimately, and by her own account, Gattung was finally outfoxed by David Cunliffe and his Boy Scout wiles, for goodness sake.

And good bloody job too. If Labour did anything wrong it was in not going far enough. Telecom’s disgraceful treatment of its engineers followed by the current shambles with XT suggests Labour would have been better off bringing it back into public ownership and running it properly.

On the claim that Mike Williams offered her a spot as a Labour MP:

Gattung’s clanging naivete is best illustrated by her anecdote about then Labour Party President Mike Williams supposedly sounding her out on becoming a Labour MP. Memo to TG: this is a negotiating tactic called messing with your mind. I’d wager that it is her particularly blunt set of personal sensors rather than gender discrimination that explains why a local firm recently thought twice about taking her on in a leadership role.

Like most of the would-be Atlases who dominate New Zealand’s business elite, Gattung is unable to admit her own failures and face up to the fact that a large part of the responsibility for Telecom’s current position comes back to her failures of management.

Remember that next time you hear a business executive preaching “personal responsibility” to the poor.

[John Minto’s recent piece on Telecom as an example of the failure of privatisation is also worth a read.]

15 comments on “On Gattung’s revisionist history of Telecom ”

  1. the sprout 1

    The CEO who surprised everyone with her kamikaze swansong speech openly admitting her company’s successes were built on exploiting the ignorance of its customers.

    • Draco T Bastard 1.1

      Not only ignorance but the simple fact that the customers of a monopoly don’t have any power to influence that monopoly.

  2. Telecom’s shareholders should be blaming her and her team for the fall in their share prices over the last three years, not David Cunliffe. Their chronic underinvestment and anti-competitive attitude made LLU a necessary reality, when, it could really have happened on Telecom’s own terms. I would even go further, and say that Paul Reynolds, whilst grossly overremunerated is reasonably competent, and that the problem with the XT network lies in the culture of management fostered by Gattung and her predecessor, one Roderick Deane.

  3. tc 3

    Nice stuff…..Cunliffe did an excellent job and had no end of heavy hitting telecom lawyers and the usual obstructionist/confusion tactics (as endorsed by TG herself as stock in trade tactics for telcos) being used but eventually he prevailed, all kiwi’s owe him for that.

    Gattung admits it was about profit above all so by default she takes responsibility for failure to invest in the network…..annual reports show depreciation exceeding re-investment…..a very bad sign in a technology dependant business.

    Gattung’s simply a lightweight, chosen by Deane and co because they wanted someone they could direct and is a marketing type when they should’ve appointed a techy/engineering type to ensure they kept up……the telecom board is the problem but no surprises they all blame the gov’t….pathetic. Deane’s such a whinger…..Boyd’s a joke also.

    Note the outgoing sacrificial Lamb (Mount) crowing about a great job on separation which was meant to have been done and dusted yet Joyce keeps giving them extensions…..What The ?

    • I agree.

      Cunliffe should wear Gattung’s criticism as a badge of honour. Gordon Campbell’s comment should be repeated:

      In the early 1990s, Telecom was milking the market advantage it had been handed by Prebble and was delaying its capital investment in new technology. That was one prime reason why New Zealand (and its export effort) have lagged so far behind the rest of the world in broadband take-up which has been merely one example among many of our telecommunications deficit.

      That situation is now belatedly changing, largely thanks to Cunliffe’s reforms.

      It was absolutely vital that Telecom was broken down and he achieved it.

      The nat rollout of superfast broadband, provided of course by Telecom, is a surreptitious attempt to roll back Cunliffe’s reforms. It should be avoided at all costs.

  4. deemac 4

    her interview on RadioNZ this morning was classic arse-covering stuff – you have to admire her chutzpah if nothing else!

  5. Clarke 5

    Gattung can spin the past all she likes, but the most telling blow against her is that she’s proved to be completely unemployable post-Telecom.

    As the HR types say, “past performance predicts future performance.” – and on that basis, who in their right mind would want a repeat performance of Theresa?

  6. tc 6

    Spot on Clarke..,…aside from that shambolic Wool consolidation body (ah the hand of Norgate ….again) TG’s a marketeer who admitted they mudkateered to enhance the bottom line…..stupid stupid stupid…..that’s why there’s so many lawyers at the ‘top’, they never admit anything so nothing sticks to them.

    So stupid loose comments and no tech savvy leaves her with little to offer.

    So unless anyone wants a female markateer culpable for wiping off half a business’s value and recuding it’s market dominance forever she’ll struggle and deserves to….her arrogance is out of place except at her former employer where it’s thriving under the grumpy scot.

  7. While i dont have an ounce of sympathy for Gattung, she is only the puppet with the proverbial hand shoved up its backside. Rodderick Deane and the rest of the board should be held just as culpable as Gautting for the fiasco that is Telecom.

  8. Rex Widerstrom 8

    “Messing with your mind”? Yeah right.

    The President of a party doesn’t risk making a personal offer unless it’s serious… there’s always the possibility that the person being wooed will say no and blab and… err… make you look like a dick. Or if your greedy, ambitious, unsuitable target actually says yes and blabs it… err… makes you look an even bigger dick.

    If they wanted to “mess with her mind” maybe Clark shouldn’t have left her boot prints all over Paul Swain when she over-ruled him on local loop unbundling after a cosy meet with Gattung.

    Perhaps Cunnliffe, as an effective Minister and communicator and thus a threat to the ordained succession, would have been moved aside for Gattung as Comms Minister in her first term… now that would have been fun to watch.

    • Clarke 8.1

      You’re probably right about the “messing with your mind” thing, Rex – based on two incontrovertible bits of evidence:

      – Mike Williams doesn’t really do subtle, so the idea that he would develop and run a disinformation campaign against TG specifically to further the government’s LLU ambitions is stretching credulity a bit far
      – However Mike does have the “loose cannon” reputation …

  9. Ed 9

    Theresa Gattung’s legacy to Telecom as a marketing guru and acolyte of Rod Deane was serial convictions courtesy of the Commerce Commission, a reputation in the market for inferior product, deviousness, incompetence, concern only for shareholders, and underinvestment in people and products. That even National have not given her a job must be extremely embarrassing for her.

  10. Rich 10

    So, she’s a dyed in the wool Tory and demonstrately incompetent.

    And Mike Williams saw her as an ideal Labour candidate. Hmmm.

    Maybe we got off lightly with Phil Goff?

Recent Comments

Recent Posts

  • Anzac Commemorative Address – NZ National Service, Chunuk Bair
    Distinguished guests -   It is an honour to return once again to this site which, as the resting place for so many of our war-dead, has become a sacred place for generations of New Zealanders.   Our presence here and at the other special spaces of Gallipoli is made ...
    BeehiveBy beehive.govt.nz
    7 hours ago
  • Anzac Commemorative Address – Dawn Service, Gallipoli, Türkiye
    Mai ia tawhiti pamamao, te moana nui a Kiwa, kua tae whakaiti mai matou, ki to koutou papa whenua. No koutou te tapuwae, no matou te tapuwae, kua honoa pumautia.   Ko nga toa kua hinga nei, o te Waipounamu, o te Ika a Maui, he okioki tahi me o ...
    BeehiveBy beehive.govt.nz
    13 hours ago
  • PM announces changes to portfolios
    Paul Goldsmith will take on responsibility for the Media and Communications portfolio, while Louise Upston will pick up the Disability Issues portfolio, Prime Minister Christopher Luxon announced today. “Our Government is relentlessly focused on getting New Zealand back on track. As issues change in prominence, I plan to adjust Ministerial ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • New catch limits for unique fishery areas
    Recreational catch limits will be reduced in areas of Fiordland and the Chatham Islands to help keep those fisheries healthy and sustainable, Oceans and Fisheries Minister Shane Jones says. The lower recreational daily catch limits for a range of finfish and shellfish species caught in the Fiordland Marine Area and ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Minister welcomes hydrogen milestone
    Energy Minister Simeon Brown has welcomed an important milestone in New Zealand’s hydrogen future, with the opening of the country’s first network of hydrogen refuelling stations in Wiri. “I want to congratulate the team at Hiringa Energy and its partners K one W one (K1W1), Mitsui & Co New Zealand ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Urgent changes to system through first RMA Amendment Bill
    The coalition Government is delivering on its commitment to improve resource management laws and give greater certainty to consent applicants, with a Bill to amend the Resource Management Act (RMA) expected to be introduced to Parliament next month. RMA Reform Minister Chris Bishop has today outlined the first RMA Amendment ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Overseas decommissioning models considered
    Overseas models for regulating the oil and gas sector, including their decommissioning regimes, are being carefully scrutinised as a potential template for New Zealand’s own sector, Resources Minister Shane Jones says. The Coalition Government is focused on rebuilding investor confidence in New Zealand’s energy sector as it looks to strengthen ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Release of North Island Severe Weather Event Inquiry
    Emergency Management and Recovery Minister Mark Mitchell has today released the Report of the Government Inquiry into the response to the North Island Severe Weather Events. “The report shows that New Zealand’s emergency management system is not fit-for-purpose and there are some significant gaps we need to address,” Mr Mitchell ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Justice Minister to attend Human Rights Council
    Justice Minister Paul Goldsmith is today travelling to Europe where he’ll update the United Nations Human Rights Council on the Government’s work to restore law and order.  “Attending the Universal Periodic Review in Geneva provides us with an opportunity to present New Zealand’s human rights progress, priorities, and challenges, while ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Patterson reopens world’s largest wool scouring facility
    Associate Agriculture Minister, Mark Patterson, formally reopened the world’s largest wool processing facility today in Awatoto, Napier, following a $50 million rebuild and refurbishment project. “The reopening of this facility will significantly lift the economic opportunities available to New Zealand’s wool sector, which already accounts for 20 per cent of ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Speech to the Southland Otago Regional Engineering Collective Summit, 18 April 2024
    Hon Andrew Bayly, Minister for Small Business and Manufacturing  At the Southland Otago Regional Engineering Collective (SOREC) Summit, 18 April, Dunedin    Ngā mihi nui, Ko Andrew Bayly aho, Ko Whanganui aho    Good Afternoon and thank you for inviting me to open your summit today.    I am delighted ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government to introduce revised Three Strikes law
    The Government is delivering on its commitment to bring back the Three Strikes legislation, Associate Justice Minister Nicole McKee announced today. “Our Government is committed to restoring law and order and enforcing appropriate consequences on criminals. We are making it clear that repeat serious violent or sexual offending is not ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New diplomatic appointments
    Foreign Minister Winston Peters has today announced four new diplomatic appointments for New Zealand’s overseas missions.   “Our diplomats have a vital role in maintaining and protecting New Zealand’s interests around the world,” Mr Peters says.    “I am pleased to announce the appointment of these senior diplomats from the ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Humanitarian support for Ethiopia and Somalia
    New Zealand is contributing NZ$7 million to support communities affected by severe food insecurity and other urgent humanitarian needs in Ethiopia and Somalia, Foreign Minister Rt Hon Winston Peters announced today.   “Over 21 million people are in need of humanitarian assistance across Ethiopia, with a further 6.9 million people ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Arts Minister congratulates Mataaho Collective
    Minister for Arts, Culture and Heritage Paul Goldsmith is congratulating Mataaho Collective for winning the Golden Lion for best participant in the main exhibition at the Venice Biennale. "Congratulations to the Mataaho Collective for winning one of the world's most prestigious art prizes at the Venice Biennale.  “It is good ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Supporting better financial outcomes for Kiwis
    The Government is reforming financial services to improve access to home loans and other lending, and strengthen customer protections, Commerce and Consumer Affairs Minister Andrew Bayly and Housing Minister Chris Bishop announced today. “Our coalition Government is committed to rebuilding the economy and making life simpler by cutting red tape. We are ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Trade relationship with China remains strong
    “China remains a strong commercial opportunity for Kiwi exporters as Chinese businesses and consumers continue to value our high-quality safe produce,” Trade and Agriculture Minister Todd McClay says.   Mr McClay has returned to New Zealand following visits to Beijing, Harbin and Shanghai where he met ministers, governors and mayors and engaged in trade and agricultural events with the New ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • PM’s South East Asia mission does the business
    Prime Minister Christopher Luxon has completed a successful trip to Singapore, Thailand and the Philippines, deepening relationships and capitalising on opportunities. Mr Luxon was accompanied by a business delegation and says the choice of countries represents the priority the New Zealand Government places on South East Asia, and our relationships in ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • $41m to support clean energy in South East Asia
    New Zealand is demonstrating its commitment to reducing global greenhouse emissions, and supporting clean energy transition in South East Asia, through a contribution of NZ$41 million (US$25 million) in climate finance to the Asian Development Bank (ADB)-led Energy Transition Mechanism (ETM). Prime Minister Christopher Luxon and Climate Change Minister Simon Watts announced ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Minister releases Fast-track stakeholder list
    The Government is today releasing a list of organisations who received letters about the Fast-track applications process, says RMA Reform Minister Chris Bishop. “Recently Ministers and agencies have received a series of OIA requests for a list of organisations to whom I wrote with information on applying to have a ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Judicial appointments announced
    Attorney-General Judith Collins today announced the appointment of Wellington Barrister David Jonathan Boldt as a Judge of the High Court, and the Honourable Justice Matthew Palmer as a Judge of the Court of Appeal. Justice Boldt graduated with an LLB from Victoria University of Wellington in 1990, and also holds ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Education Minister heads to major teaching summit in Singapore
    Education Minister Erica Stanford will lead the New Zealand delegation at the 2024 International Summit on the Teaching Profession (ISTP) held in Singapore. The delegation includes representatives from the Post Primary Teachers’ Association (PPTA) Te Wehengarua and the New Zealand Educational Institute (NZEI) Te Riu Roa.  The summit is co-hosted ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Value of stopbank project proven during cyclone
    A stopbank upgrade project in Tairawhiti partly funded by the Government has increased flood resilience for around 7000ha of residential and horticultural land so far, Regional Development Minister Shane Jones says. Mr Jones today attended a dawn service in Gisborne to mark the end of the first stage of the ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Anzac commemorations, Türkiye relationship focus of visit
    Foreign Affairs Minister Winston Peters will represent the Government at Anzac Day commemorations on the Gallipoli Peninsula next week and engage with senior representatives of the Turkish government in Istanbul.    “The Gallipoli campaign is a defining event in our history. It will be a privilege to share the occasion ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Minister to Europe for OECD meeting, Anzac Day
    Science, Innovation and Technology and Defence Minister Judith Collins will next week attend the OECD Science and Technology Ministerial conference in Paris and Anzac Day commemorations in Belgium. “Science, innovation and technology have a major role to play in rebuilding our economy and achieving better health, environmental and social outcomes ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Comprehensive Partnership the goal for NZ and the Philippines
    Prime Minister Christopher Luxon held a bilateral meeting today with the President of the Philippines, Ferdinand Marcos Jr.  The Prime Minister was accompanied by MP Paulo Garcia, the first Filipino to be elected to a legislature outside the Philippines. During today’s meeting, Prime Minister Luxon and President Marcos Jr discussed opportunities to ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government commits $20m to Westport flood protection
    The Government has announced that $20 million in funding will be made available to Westport to fund much needed flood protection around the town. This measure will significantly improve the resilience of the community, says Local Government Minister Simeon Brown. “The Westport community has already been allocated almost $3 million ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Taupō takes pole position
    The Government is proud to support the first ever Repco Supercars Championship event in Taupō as up to 70,000 motorsport fans attend the Taupō International Motorsport Park this weekend, says Economic Development Minister Melissa Lee. “Anticipation for the ITM Taupō Super400 is huge, with tickets and accommodation selling out weeks ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Cost of living support for low-income homeowners
    Local Government Minister Simeon Brown has announced an increase to the Rates Rebate Scheme, putting money back into the pockets of low-income homeowners.  “The coalition Government is committed to bringing down the cost of living for New Zealanders. That includes targeted support for those Kiwis who are doing things tough, such ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government backing mussel spat project
    The Coalition Government is investing in a project to boost survival rates of New Zealand mussels and grow the industry, Oceans and Fisheries Minister Shane Jones has announced. “This project seeks to increase the resilience of our mussels and significantly boost the sector’s productivity,” Mr Jones says. “The project - ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government focused on getting people into work
    Benefit figures released today underscore the importance of the Government’s plan to rebuild the economy and have 50,000 fewer people on Jobseeker Support, Social Development and Employment Minister Louise Upston says. “Benefit numbers are still significantly higher than when National was last in government, when there was about 70,000 fewer ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Clean energy key driver to reducing emissions
    The Government’s commitment to doubling New Zealand’s renewable energy capacity is backed by new data showing that clean energy has helped the country reach its lowest annual gross emissions since 1999, Climate Change Minister Simon Watts says. New Zealand’s latest Greenhouse Gas Inventory (1990-2022) published today, shows gross emissions fell ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Earthquake-prone buildings review brought forward
    The Government is bringing the earthquake-prone building review forward, with work to start immediately, and extending the deadline for remediations by four years, Building and Construction Minister Chris Penk says. “Our Government is focused on rebuilding the economy. A key part of our plan is to cut red tape that ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Thailand and NZ to agree to Strategic Partnership
    Prime Minister Christopher Luxon and his Thai counterpart, Prime Minister Srettha Thavisin, have today agreed that New Zealand and the Kingdom of Thailand will upgrade the bilateral relationship to a Strategic Partnership by 2026. “New Zealand and Thailand have a lot to offer each other. We have a strong mutual desire to build ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government consults on extending coastal permits for ports
    RMA Reform Minister Chris Bishop and Transport Minister Simeon Brown have today announced the Coalition Government’s intention to extend port coastal permits for a further 20 years, providing port operators with certainty to continue their operations. “The introduction of the Resource Management Act in 1991 required ports to obtain coastal ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Inflation coming down, but more work to do
    Today’s announcement that inflation is down to 4 per cent is encouraging news for Kiwis, but there is more work to be done - underlining the importance of the Government’s plan to get the economy back on track, acting Finance Minister Chris Bishop says. “Inflation is now at 4 per ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • School attendance restored as a priority in health advice
    Refreshed health guidance released today will help parents and schools make informed decisions about whether their child needs to be in school, addressing one of the key issues affecting school attendance, says Associate Education Minister David Seymour. In recent years, consistently across all school terms, short-term illness or medical reasons ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Unnecessary bureaucracy cut in oceans sector
    Oceans and Fisheries Minister Shane Jones is streamlining high-level oceans management while maintaining a focus on supporting the sector’s role in the export-led recovery of the economy. “I am working to realise the untapped potential of our fishing and aquaculture sector. To achieve that we need to be smarter with ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Patterson promoting NZ’s wool sector at International Congress
    Associate Agriculture Minister Mark Patterson is speaking at the International Wool Textile Organisation Congress in Adelaide, promoting New Zealand wool, and outlining the coalition Government’s support for the revitalisation the sector.    "New Zealand’s wool exports reached $400 million in the year to 30 June 2023, and the coalition Government ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Removing red tape to help early learners thrive
    The Government is making legislative changes to make it easier for new early learning services to be established, and for existing services to operate, Associate Education Minister David Seymour says. The changes involve repealing the network approval provisions that apply when someone wants to establish a new early learning service, ...
    BeehiveBy beehive.govt.nz
    1 week ago

Page generated in The Standard by Wordpress at 2024-04-25T15:53:24+00:00