Electricorp

Press, 8 March 1989, Page 20

Electricorp

Sir, — In Electricorp’s efforts to make huge profits, it has shown little consideration for either the consumer or P.S.A. members. Surely it would have been of greater economic benefit to New Zealanders, if the Computer Centre planned by the N.Z. Electricity Department at Paraparaumu had been completed? But Mr Fernyhough said it was "not appropriate.” Why should the Justice Department’s Computer Centre be appropriate, but not a larger one for Electricorp? I understand that the building near the airport at Paraparaumu stands empty, but what has happened to the millions of dollars worth of electronic equipment ordered from and designed especially by Messrs Brown Bouverie Company (8.8. C. of Baden, Switzerland, for the centre? The P.S.A. claims a 25 per cent staff reduction at Electricorp, there has been a multimillion dollar refurbishing of Rutherford House (quite unnecessarily), the jet-set junketing at Queenstown, and the Prime Minister is probing huge bonuses allegedly paid to executive staff. Now we hear Electricorp is planning to raise an overseas loan of S3B. Who appointed the directors of Electricorp and for what period? — Yours, etc., S. L. DONALDSON. February 1, 1989.

[The Minister for State-Owned Enterprises, Mr Rodger, replies: “A computer centre at Paraparaumu was planned by the former New Zealand Electricity Department. The computer centre was to provide a centralised financial and accounting system. However, the task force which was charged with determining the most efficient and appropriate structure for the new Electricity Corporation recommended that a decentralised approach to both management and support systems should be adopted. It was clear that a centralised financial computer system would not be compatible with this new structure, and the decision was taken not to proceed with the project. Instead, each business unit of the corporation is now responsible for maintaining its own financial and accounting records, and this process is carried out as much as possible at local or regional levels. Negotiations to terminate the contract for equipment and software for the proposed computer centre have been satisfactorily completed. The building at Paraparaumu was not purchased from the Government by the corporation, and the Treasury has managed the process of arranging an alternative use for the building. Directors are appointed by the Minister of Finance and the Minister for State-Owned Enterprises for terms of one, two or three years. Reappointments are for three years.”]