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

Gaza.Scoop: UNRWA School, Ambulances Attacked - Gaza MOH

The Ministry of Health Gaza expresses its horror and outrage at the latest Israeli massacre moments ago at an UNRWA school sheltering displaced persons in Beit Hanoun. Ten people have been killed and there is a large number of wounded. More>>

ALSO:

Gordon Campbell:
On Gaza And Burning The Israeli Flag

One of the selling points in New Zealand’s campaign for a temporary seat on the Security Council is that we have a pluckily independent voice to offer on international conflicts.

This image is not entirely self-delusional. When we did occupy a temporary UN Security Council seat in the 1990s, New Zealand was forthright about the need for the international community to actively respond to the Rwanda genocide. On April 14, 1994, New Zealand, Nigeria and the Czech Republic were the only nations to call for a forceful UN intervention to halt the killings. It was a proud moment in the diplomatic record of the Bolger government.

What then, is the current National government doing with respect to the slaughter in Gaza? More>>

 

Parliament Today:

Minister Told Of FBI Investigation, Says INZ: Coleman Must Quit Or Be Sacked Over Dotcom Case - Harré

Immigration New Zealand has done the right thing in distancing itself from Jonathan Coleman’s claims that ministers were not aware of FBI involvement in Kim Dotcom’s residency application, says the Internet Party. More>>

ALSO:

Valedictory Season: Maori Party Founders Say Goodbye

Two major Maori MPs gave there farewell speeches to Parliament Thursday outlining their history, experiences, triumphs and regrets. More>>

ALSO:

Resignation Not Accepted: Transport Minister Breaches Aviation Security Rules

"Running late for a plane at Christchurch Airport, I without thought breached airport and airline security rules by entering the gate lounge through a door usually used for exit only..." More>>

ALSO:

TAIC Report: Urgent Recommendations After Melling Rail Accident

The Transport Accident Investigation Commission has made four urgent recommendations to KiwiRail following the accident two months ago (27 May) when a Matangi passenger train collided with a stop block at Melling Station, Lower Hutt. More>>

ALSO:

Red Tape: Local Regulations Go Under Microscope

The Government says it is accepting nearly all of the recommendations the Productivity Commission has made on ways to improve local regulations. More>>

ALSO:

Spending Questions: Claudette Hauiti To Step Aside At Election

National Party President Peter Goodfellow confirms that he has received notification from List MP Claudette Hauiti that she plans to step aside at the 20 September election. More>>

ALSO:

EPA: Board Of Inquiry Rejects Basin Flyover By Majority Of 3 To 1

The independent Board of Inquiry delegated to decide on the Basin Bridge Proposal has, by a majority decision (3 to 1), cancelled the Transport Agency’s Notice of Requirement and declined its resource consent applications for the construction, operation and maintenance of a flyover on State Highway 1 in Wellington City... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news