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• W15754950 abstract "On 12 June 2006, the lights went out in New Zealand's largest city and major commercial centre, Auckland. Business was disrupted and many thousands of people inconvenienced. The unscheduled power cut was the latest in a series of electric power problems in New Zealand over the past decade. Attention turned to state-owned enterprise [SOE] Transpower, which was in charge of maintaining and developing New Zealand's national electricity grid. The problem of 12 June was traced to two shackles in poor condition, small but essential parts of the electricity grid infrastructure. Closer examination of New Zealand's electricity sector indicated these shackles were merely the tip of a power supply iceberg. Transpower's Chief Executive, Ralph Craven, was now answerable to the Prime Minister for the issues creating the problems, and a workable solution to fix them. In mid-June 2006, Prime Minister Helen Clark issued a list of questions to Transpower's management, regarding the power outage earlier that month, and she wanted answers. As reported in the New Zealand Herald: By all accounts, Wednesday mornings Beehive (1) meeting of the Cabinet's policy committee was a pretty torrid affair. Officials from the Ministry of Economic Development responsible for energy policy were cross-examined at length by the Prime Minister, who was not well-pleased by Monday's power blackout across Auckland. Her questioning is said to have been direct and exhaustive. In short, officials were put through the wringer. Was the snapping of the cable a design fault? Or did it result from poor maintenance? Should the building of the new (South Auckland) substation be brought forward rather than wait until the construction of the now-delayed high voltage 400kV transmission line originally scheduled by 2010? Were other substations on the national grid vulnerable to similar failures? (Armstrong, 2006, [paragraph] 1). Transpower Chief Executive Ralph Craven needed to produce answers that went well beyond the problem of the two faulty shackles. The power crisis had brought to the fore wider issues of roles, responsibilities, and expectations in relation to the supply of electric power in New Zealand. Transpower was contending with these issues on a daily basis; however, the incident on 12 June publicly highlighted the urgent need for solutions that served the stakeholders in this critical industry. Craven's job was to respond. Background to New Zealand's Public Sector Reforms New Zealand underwent major public sector reform beginning in the 1980s with the intention of increasing the efficiency and effectiveness of the public sector (Mulgan, 1997). The reforms were consistent with an international trend in public sector management intended to align management of public sector organizations with that of private sector organizations (Martin, 2003). The new approach emphasized results and outcomes, together with effective use of public sector resources. As part of these reforms, government departments with a strong trading function were corporatized and/or privatized. The espoused rationale was that such services could be more efficiently provided by commercially-orientated organizations, rather than remaining subject to ministerial control and government interference. Specifically, New Zealand's SOE reforms involved market deregulation, with express profit-making requirements imposed on SOEs, resulting in accountability for both competitive services and commercial results. Other features of the reforms included self-funding obligations, separation of SOE management and the state, the role of government defined as sole shareholder and purchaser of outputs rather than provider of inputs, together with performance-based contracts and rewards for managers (Brash, 1996). Thus, corporatization provided the opportunity and the incentive for these former government departments to become both efficient and profitable, enabling freedom of commercial choice and responsibility for commercial results. …" @default.
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• W15754950 date "2010-01-01" @default.
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• W15754950 title "Who's Afraid of the Dark? Transpower New Zealand Ltd" @default.
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