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

 


Govt incompetence allows Solid Energy to ruin itself

22 March 2013

Govt incompetence allows Solid Energy to ruin itself

The Key Government’s hands off approach to managing the economy allowed the formerly profitable Solid Energy to run itself into the ground, Green Party Co-leader Dr Russel Norman said today.

The Government has received briefings over the last few years highlighting huge concerns from Treasury regarding Solid Energy. The Treasury released this material, comprising advice to Ministers, relating to the monitoring of Solid Energy on its website today.

“As early as 2009, officials warned Ministers with increasing intensity that Solid Energy was over-valued, had too much debt, and was over-optimistic about its future,” said Dr Norman.

“That should have sparked immediate action from National but all they did was demand larger dividends, which encouraged Solid Energy to take on more debt.

“In 2011 Solid Energy considered it was worth $3.3 Billion dollars while Treasury pointed out that independent analysis suggested it was worth half that.

“To any competent administration Treasury raising concerns regarding the value of Solid Energy to the tune of over a billion dollars should have led to action.

“Despite concerns raised by Treasury over Solid Energy’s top heavy management structure, the Spring Creek Mine and Solid Energy’s debt structure, this Government failed to act.

“The reason behind the Government’s inaction is because the Key Government itself is a major part of the problem.

“While failing in its duty of oversight the Key Government was more than happy to push Solid Energy to take on ruinous debt and kept the inflated value of Solid Energy in its books for the asset sales,” said Dr Norman.

“About the only thing the shareholding Ministers in this incompetent Government did manage to do was sign off the huge bonuses demanded by the directors of Solid Energy in order to prepare itself for privatisation.”

Link to Solid Energy documents: http://www.treasury.govt.nz/publications/informationreleases/solidenergy

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Pacific Spying: Mass Surveillance Of NZers Confirmed By Former GCSB Director - Contradicting PM John Key

Scoop Editor Alastair Thompson Reports: Yesterday morning former GCSB Director Sir Bruce Ferguson confirmed mass surveillance of New Zealnders in the Pacific is taking place as revealed in the latest Snowden leaks investigated by Nicky Hager. In 2013 John Key told press gallery reporters that in the event mass surveillance was found have been conducted by the GCSB, he and the director of the GCSB - his childhood friend Ian Fletcher - would resign. As the controversy deepens a year and half later Fletcher has already resigned. But will Key? More>>

Gordon Campbell: Legal Fudging Of The GCSB Revelations

As many have noted, the Hager/Snowden revelations of the spying by our security agencies on our Pacific neighbours and allies is a virtual re-run of the pre-election debate. It is a situation where the government (a) stonewalls, (b) baldly asserts that mass surveillance is not occurring despite the Snowden evidence that it is, and (c) claims that the GCSB actions were lawful. Yet as Greens Co-Leader Russel Norman says, this can be true only if the legislation passed last year by the Key government has made the mass surveillance of New Zealanders – and the related handing over of their private data to the NSA – lawful. More>>

Latest:

 

PARLIAMENT TODAY:

Women's Day, March 8: It’s Time For Men To Step Up For Gender Equality

UN Women is launching the HeForShe campaign in New Zealand at the International Women's Day Parliamentary Breakfast, and is calling on New Zealand men — including politicians and community and sports leaders — to show their commitment to gender equality by signing up to this global campaign. More>>

ALSO:

Teina Pora Wins Appeal: Gordon Campbell On The Privy Council Decision

The quashing of the convictions of Teina Pora for the rape and murder of Susan Burdett in 1992 has shone a spotlight once again on a major gap in the New Zealand justice system... More>>

ALSO:

Urgent Bill Planned: MP Pay Rises To Match Public Service

Prime Minister John Key today announced an overhaul of the Remuneration Authority Act, tying MP salaries to those of the wider public sector, which will be passed under urgency. More>>

ALSO:

PM's Press Conference: MP Pay Rises, Solid Energy, Iraq

Prime Minister John Key answered questions in his Post-Cabinet press conference about the Iraq deployment, Solid Energy and National’s decision to overhaul the Remuneration Authority Act. More>>

ALSO:

Worksafe: MSD Charged Over Work And Income Ashburton Shooting

WorkSafe NZ has laid one charge against the Ministry of Social Development (MSD) in relation to the shooting at the MSD Ashburton office on 1 September 2014 in which two Work and Income staff were killed and another was injured. More>>

ALSO:

Iraq: Ex-Hostage Says Government Not Putting NZers, Iraqis First

Harmeet Singh Sooden is travelling to Iraq in the coming weeks to work with Christian Peacemaker Teams (CPT) on a short-term assignment. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news