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

 

Gordon Campbell: On The Govt’s Token Plans For Cyber-Security

Basically, the world is divided into two types of people: those who think the Panama Papers illustrate the bad shit that some people do, and those who think the Panama Papers illustrate what needs to be done to make sure no-one else discovers the shit – good or bad – that they’re doing. More>>

ALSO:

Gordon Campbell: On Pharmac’s Grudging Concession To Reality

Is this any way to run a health system… whereby terminally ill patients are forced into public demonstrations before the government (and its funding agency Pharmac) will grudgingly provide the money for life-saving treatments freely available and publically funded in Australia for the best part of a year? More>>

ALSO:

Labour: Healthy Homes Bill Passes First Reading

Some of New Zealand’s most vulnerable children and families are on their way towards safer living conditions with the passing of the first reading of the Healthy Homes Guarantee Bill in Parliament last night, Leader of the Opposition Andrew Little says. More>>

ALSO:

Werewolf Satire: Home, And A Way

The one thing even more popular than an Auckland house is offering advice on how to afford an Auckland house. So, on the grounds it can’t be worse than some of the stuff that’s out there, here’s my three cents* worth. [*Up 50% since 2013!] More>>

ALSO:

Werewolf: The Defence Pretence

Last year, the world began spending more money on weapons again, for the first time since 2011... New Zealand belongs to a region – Asia and Oceania – where military spending rose sharply in 2015, by 5.4 per cent. More>>

ALSO:

Gordon Campbell: On Not Crying Foul, Argentina

So a couple of guys found to be criminally liable of environmental pollution in Argentina lodge an application with the Overseas Investment Office… in order to buy some prime New Zealand rural land. Seems that their factory back home had carelessly and/or intentionally discharged toxic waste into the Lujan river. Bummer... More>>

ALSO:

Urban & Rural: $303m To Merge And Modernise New Zealand’s Fire Services

Internal Affairs Minister Peter Dunne today announced funding of $303 million over five years to combine urban and rural fire services into one organisation from mid-2017. More>>

ALSO:

High Trust Regime: What Did The PM Tell His Lawyer About Foreign Trusts?

The Government stopped the IRD from reviewing New Zealand foreign trusts shortly after the Prime Minister’s lawyer wrote to the Revenue Minister claiming John Key had promised him the regime would not be changed. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news