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


Last day contract extension for Solid CE

Spokesperson for SOEs
27 February 2013 MEDIA STATEMENT
Last day contract extension for Solid CE

Tony Ryall was receiving month-to-month monitoring reports on Solid Energy when former chairman John Palmer on his last day renewed chief executive Don Elder’s contract, says Labour’s SOEs spokesperson Clayton Cosgrove.

“Tony Ryall has been receiving information on Solid Energy ‘month-to-month’ since June last year. Since then the outgoing chair gifted a new contract to chief executive Don Elder on the chairman’s last day, August 31 last year. That presumably would have meant that the taxpayer would have paid out substantially more in severance pay a few months later when the chief executive resigned.

“Tony Ryall knew about this under the no-surprises policy. He would have known about it but he did nothing. Yet again he’s been asleep at the wheel.

“Tony Ryall has overseen a culture of excess. When a company is in dire financial difficulties they shouldn’t be paying out $23 million in bonuses.

“Yet today Tony Ryall ruled out an independent inquiry into the collapse of Solid Energy. New Zealanders need to know what happened to this company, what happened to taxpayers’ money and why the Government are trying to bury it.

“The collapse of Solid Energy wasn’t due to coal prices alone, it was due to serious mismanagement and lack of oversight by this Government. They knew about financial difficulties when they rejected a request for a $1 billion capital injection in 2009.

“They knew more in 2010 when there was a dispute over company valuations. By their own admission they knew even more in 2011 when their own scoping study to sell the company revealed even more financial difficulties.

“Despite all this and the minister receiving month-to-month monitoring reports in 2012 still the Government did nothing.

“National has run Solid Energy into the ground. John Key tried to lay the blame on the last Government but back then Solid Energy was an export award-winning company returning millions of dollars to the taxpayer, now it’s a train wreck.”


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



Relevant Consents Gained: Government Unveils RMA Reform Package

The government has formally hauled down the flag on its attempts to alter the balance of environmental and economic priorities in the Resource Management Act, unveiling a 180-page Resource Legislation Amendment Bill containing reforms that have been largely endorsed by most political parties. More>>


Closing Schools And Such: Interim Redcliffs Decision Announced

“While the school’s board has argued that circumstances that could give rise to potential disruption are extremely unlikely, advice from technical experts has shown these concerns cannot be ruled out." More>>


Jane Kelsey: High Court Can’t Make Groser Provide TPPA Information Faster

‘This week we went back to court to challenge Trade Minister Groser’s stalling tactics over the release of information on the Trans-Pacific Partnership Agreement negotiations, following a High Court order that he reconsider the Official Information Act request I made last January’, said University of Auckland law professor Jane Kelsey, first applicant in the case. More>>

Werewolf 58: No Climate For Change

The last time the global community tried to take collective action on climate change the world’s leaders finally came to agree that every not-too-onerous effort should be made to hold global warming to 2°C above the pre-industrial average. At Paris, all 150 participant countries nations will have put forward their pledges... On the information available, New Zealand's is the second weakest contribution of any nation in the developed world. More>>


Lambton Quay Shutdown: Object Was Made To Look Like Bomb

Police cordoned off part of Lambton Quay Wednesday afternoon, saying that a suspicious package had been found. Buildings were evacuated and buses were detoured. The army’s explosive ordnance disposal unit was brought to the Quay. More>>


Public Sector Still Shrinking: Record Low Number Of 'Backroom Bureaucrats'

Ongoing restraint in the public sector and a focus on better frontline services has seen a further reduction in the number of core Government employees, State Services Minister Paula Bennett says. More>>


Disobeying The Law: Police Censorship Of Crime Research “An Outrage”

The Green Party is calling on Police Minister Michael Woodhouse to ensure Police scrap controversial contracts that place onerous restrictions on academic researchers’ access to Police data, the Green Party says. More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news