Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Govt Encouraged Solid Energy Expansion

26 February 2013

Govt Encouraged Solid Energy’s Expansion But Never Required A Business Case

The National Government encouraged Solid Energy expansion plans but never required it to submit a business case for its ambitious but ultimately futile $2 billion lignite developments, the Green Party said today.

Information released under the Official Information Act confirms that Solid Energy never provided a business case for the proposed multi-billion dollar lignite expansion to Treasury or the shareholding ministers.

“The National Government failed to provide adequate oversight of the ambitious expansion plans of the state’s coal miner,” said Green Party Co-leader Dr Russel Norman.

“The shareholding ministers and Treasury’s Crown Ownership Monitoring Unit are responsible for providing this oversight but they manifestly failed.

“But more than that, John Key was actively encouraging the expansion of Solid Energy’s lignite plans.”

John Key said to an Invercargill audience on 3 June, 2011 that, ‘At the moment companies like Solid Energy are growth companies and we want them to expand in areas like lignite conversion’.

“It is desperate stuff to now blame Solid Energy’s failings on a speech from Trevor Mallard in 2007,” said Dr Norman.

“Like South Canterbury Finance before it, the National Government’s complacency has cost taxpayers hundreds of millions of dollars.

“National is failing at the basics of good economic management and oversight.”

Dr Norman also questioned the Government’s attempt to paint Solid Energy’s demise as a failure of its clean energy investments.

“The majority of Solid Energy’s asset write-downs (or impairments) were dominated by its investments in underground mines, as reported by Solid Energy’s CEO when presenting the 2012 Annual Report,” said Dr Norman.

“The closure of the Huntly and Spring Creek mines as a result of falling coal prices and the high New Zealand dollar have had a disproportionately bigger negative impact on Solid Energy’s bottom line than its investments in clean energy.

“In fact, the National Government’s decision to end the Biodiesel Grant then remove minimum biofuel requirements destroyed the business case for Solid Energy’s prior investment in biodiesel.”

Link to Treasury’s Official Information Act response:

http://www.greens.org.nz/sites/default/files/treasury_oia_on_lignite_oversight_0.jpg

Link to John Key’s reported statements on Solid Energy’s expansion plans:
http://www.stuff.co.nz/national/politics/5094448/PM-backs-mining-souths-lignite



ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Labour's 'Future Of Work': Major Reform Of Careers And Apprenticeships

The next Labour Government will transform careers advice in high schools to ensure every student has a personalised career plan, Leader of the Opposition Andrew Little says. More>>

ALSO:

State Investments Management: Treasury Likes IRD, Not Education Or Corrections

The Inland Revenue Department has scored an 'A' in the first tranche of the Treasury's investor confidence rating for state agencies that manage significant Crown investments and assets, gaining greater autonomy as a result, while the Corrections and Education ministries gained a 'C' rating. More>>

ALSO:

Govt Goal: NZ To Be "Predator Free" By 2050

Prime Minister John Key has today announced the Government has adopted the goal of New Zealand becoming Predator Free by 2050... “That’s why we have adopted this goal. Our ambition is that by 2050 every single part of New Zealand will be completely free of rats, stoats and possums." More>>

ALSO:

Gordon Campbell: On The IOC’s Treatment Of Russian Sport, And Lone Wolf Terrorism

A blanket ban on Russian athletes would also have exposed the IOC to criticism that its treatment of Russia would have been marked contrast to its treatment say, of the track and field team from Kenya – a country about which the IOC has very similar doping concerns. More>>

ALSO:

Sounds Like A Plan: Auckland Council Receives Unitary Plan Recommendations

A key milestone in New Zealand planning history was reached today when the Independent Hearings Panel delivered the reports containing its recommendations on the Proposed Auckland Unitary Plan. More>>

ALSO:

National Park Expansion: Forests And Coast Of Kahurangi Protected

Five parcels of high value land totalling more than 890 hectares have been formally gazetted as part of the National Park. More>>

ALSO:

PPP Go-Ahead: SkyPath Gets Unanimous Support

Auckland’s SkyPath project has been given the go-ahead to be delivered through a public private partnership, after a unanimous decision at today’s Finance and Performance Committee. More>>

ALSO:

Gordon Campbell: On The Reserve Bank, The UN Shortlist, And Trump

Can there really be there any link between the US presidential elections and yesterday’s RBNZ signals on interest rates and the NZ dollar? Well, maybe. And it would be this: the improving US economy is reportedly putting a tailwind behind the US dollar, and rendering the actions of our Reserve Bank virtually irrelevant. More>>

ALSO:

Gordon Campbell: On What John Key Should Be Asking Joe Biden

No doubt, US Vice-President Joe Biden will be updating Prime Minister John Key on the chances of a TPP vote taking place in the ‘ lame duck’ session of Congress that’s held between the November’s election and the inauguration of a new President in January. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news