The Fran Wilde Legacy

Return to Pole Essay

 

Return to Welcome  Page

 

 

.

Fran Wilde was Mayor of Wellington from 1992 –1995. Before becoming Mayor, Fran Wilde was a member of the 1984-1990 Labour Government, an Administration that was notable for the following:

  • The unparalleled scale of its transfer of control and ownership of New Zealand assets and critical infrastructure to foreign bankers at firesale rates. (Or as David Lange, the Prime Minister of this time, put it subsequently, “… They (The Americans) allowed us to keep our Nuclear Free Policy in exchange for an unparalleled transfer of capital to them.”
  • The massive scale of its commitment of New Zealand to unsustainable uses of carbon.
  • Its disregard for Civil Defence and Emergency Management.
  • Its poor understanding of democracy.

Fran Wilde’s reign as Mayor of Wellington City was notable for these same features. The Wiki entry does not reflect this.

Stewardship

The sophisticated grids of poles, conduits wires and transformers that constitute Wellington’s prime utility grid was developed and paid for five consecutive generations of citizens. Each generation  scrimped and saved so their children would inherit a freehold grid enabling them access to lighting, heating and modern technology.

Fran Wilde’s Administration squandered that immense legacy by gutting its value and selling it at a fraction of its real worth to the city.

Carbon

She inherited a city with remarkable electrical potential, in the form of both its wiring and its transport structures. An electric trolley bus system served the main arterial routes of the city and the city had great potential to develop smart light rail on scale. Wellington was well placed to thrive in a “carbon constrained” world. Her sale of the city’s wiring grid and the bus system destroyed most of these options. She has also been responsible for destroying much of the city’s potential to exploit the power of shipping in this world, devoting valuable waterfront space to luxury flatting and an oil company. Her work siting the city’s sports stadium at the city rail head was a notable exception to the general insanity of her decisions

Civil Defence and Energy Efficiency

The city straddles a major seismic fault line and the city was renowned for its “gold-plated” wiring system to reduce risks. The city was also well-placed to enjoy the benefits of the nascent electronic revolution. 

See city's electrical potential.

The Administration of Fran Wilde did not understand Civil Defence. It accepted valuations of Capital Power (the city owned company that managed the wiring grid) that placed zero or liability value on both its efficiency and its Civil Defence measures.

This is shown directly as employees dedicated to this work in Capital Power in areas of efficiency and safety were the first to be sacked and the measures destroyed. Systems for promoting effective uses of our electrical potential were at first disenabled and then dismantled. See the footnote (1) below which perhaps best illustrates her ignorance of the value of Civil Defence.

C

Democracy.

Even in New Zealand’s Capital City, home of many of those who promoted and facilitated the transfer of New Zealand’s assets to overseas corporations, there was strong opposition to the sale of any or part of what was the Wellington Municipal Electricity Department. The decision to corporatise it and replace its service imperatives with profit imperatives were forced on the city, as it was on all New Zealand communities, by the fascist Electricity Reform legislation of 1993.

  As Fran Wilde’s agenda to sell it along with other city assets became clear there was widespread anger and opposition to her proposals. There was particularly true of her plans to give away control of Capital Power as many realised this effectively destroyed the community’s intelligence. There was a strong call for a referendum on the issue which Fran Wilde, an elected mayor, reportedly dismissed, saying referenda are not scientific.

  She refused to have a referendum and conducted a “scientific poll”, which despite its bias, still indicated that over 66% of citizens opposed all or part sale of Capital Power and over 90% opposed the total sale. (figures subject to my memory). Faced with clear evidence of a majority of citizens opposing the sale Fran Wilde applied an extraordinary logic. She would “respect that majority” by selling only a minority share of the company.

  The council meeting at which she sold 49% of Capital Power remains shrouded in secrecy. I am reliably informed that the scene was “like a backroom dealings in some B-grade gangster movie” where councillors were placed under “extraordinary pressure” and were reportedly unable to leave the closed chamber until they made a decision that day.

  Such a scenario is possible because my own life as one of Fran’s employees at Capital Power soon after her decision became just like living in one of those B-grade thug movies with my family and home under constant threat of rape, “trashing” and worse if I spoke out about what was occurring in Wellington’s Electricity industry.

  It emerged that the Hon Fran Wilde had not only sold 49% of Capital Power to TransAlta!  

CAFCA records:

"The City Council handed TransAlta effectual control of Capital Power with only a 49% shareholding through a secret management agreement that gave TransAlta “the right to appoint the managing director or chief executive, [and] a right of veto on Capital Power’s business plan, valuation, line charge, and statement of corporate intent.”[1] “the right to appoint the managing director or chief executive, [and] a right of veto on Capital Power’s business plan, valuation, line charge, and statement of corporate intent.”

 Though it paid $20 million more than the nearest bidder, at a nominal $120 million, “capital restructuring” paid $32 million back to TransAlta and $33 million to the WCC on the date of settlement

  I was present when Fran personally assured all Capital Power staff at a special meeting she held with us at what is now the Kingsgate Hotel that we would benefit from her decision and would now have great new opportunities.

History records most of us experienced that opportunity as a loss of our careers and incomes, with our skills wasted. I can report that TransAlta used the powerful rights she bequeathed on them to immediately assume full effective control of the company. It became very easy to predict which activities and which staff would thrive and which would be destroyed. In brief: it became very high risk to be honest and to retain service and energy efficiency ideals that empower the city’s citizens.

Wellington city’s intelligence now became the property of the TransAlta corporation. For immediate sale and purchase purposes the intelligence was given a value a fraction of its real worth while most staff were designated “liabilities while on the books” (quote Arthur Andersen and Co, Capital Power managers).

This severe undervaluing of the company can be illustrated:  

Other city’s were strongly “advised” to sell their utility grids too about 1995 but resisted pressures and did not accept the advice. Christchurch (from memory approx 120,000 consumers) had its intelligence division of South Power valued about the same time as the Wellington valuation (approx 56,000 consumers). It was valued at $NZ13 million. Christchurch City Council sold its intelligence division sold for over $NZ170 million just three years later when additional Fascist legislation of 1998 forced it to divest it.  

  In summary,  which ever way you look at it this pole gives sad testimony to the legacy of Fran Wilde. The city has lost much of its intelligence potential. The immediate sale of Capital Power was at nuts and bolts valuation i.e. profoundly undervalued. In such deals it is difficult to know exact prices but it appears to be about for a bit over $NZ200 million. As the comparative Christchurch example shows the immediate value of Capital Power may have been more like $NZ2 billion while the lost potential, as manifest in the city’s rising debt, will be in the order of billions of dollars a year as oil and Gas prices rise.

Footnote (1)

Fran Wilde’s ignorance of risk management is perhaps best illustrated by her destruction of the Wellington community involvement in Civil Defence.  When Fran Wilde came to power as Mayor my community’s civil defence group had 41 active members for 740 households. First Aid, Reconnaissance, Communication and Social teams were all manned and trained in the years preceding her reign. A large citywide exercise was planned and practiced for over the years preceding her election as Mayor.

Two days before it she and her CEO, Angela Griffin, canned the exercise, stating the money had not been allocated correctly to pay the wages of the (two?) city officials involved. She was also reported to have said Civil Defence from now on was a matter for professionals (i.e. corporations, not communities).

I attended a meeting of over 30 leaders of the city’s Civil Defence groups soon after her decision and all reported the same result: Fran had decimated community involvement in Civil Defence. In my area about ten of us continued despite her abuse of the community involvement and a citywide communications exercise was held to test a new radio system. Just as the exercise was reaching a critical point in the evening Fran Wilde stopped it prematurely. We were later told she and Angela Griffin had decided they wanted to go home to bed and figured they could save 2 hours overtime on the couple of city officials involved.

Community based Civil Defence collapsed across the city. Recently, 15 years on, a meeting was held to try and resurrect interest in our area. Four people attended. This is symptomatic of the powerlessness of Wellington citizens with regards to much of the city’s infrastructure now. With no control over the city’s intelligence potential they are essentially dumb players.

Footnote (2)) Fran Wilde’s Administration also transferred control of city’s bus system to the Scotland-based property speculator company Stagecoach for$NZ5.75 million.

 Footnote (3) Fran Wilde was rewarded with a directorship of Brierley Investments (now BIL International) and Victoria University awarded her an Honorary Doctor of Law degree in 2004.

Footnote (4) It is reputed Fran Wilde strongly endorsed Mark Blumsky as her successor.

Foornote (5) This year the Labour-led Government rewarded Fran with a position on the board  of Transit, New Zealand's transport authority.

Return to Pole Essay

Return to Welcome Page




.
.