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


Solid Energy docs prove inquiry needed

Clayton Cosgrove
SOE Spokesperson

22 March 2013

Solid Energy docs prove inquiry needed

Treasury documents prove that the Government is culpable for the problems Solid Energy faces, as they were warned years ago but did nothing apart from demand higher debt and dividends, says Labour’s SOEs spokesperson Clayton Cosgrove.

“National has tried to hide behind a so-called ‘perfect storm’ but it was one of their own making. From the first meeting ministers had when coming into Government they were warned about the volatility in coal prices. But they didn’t heed those warnings.

“These documents show that ministers repeatedly told Solid Energy to increase debt and pay higher dividends. Solid Energy resisted but in the end had to pay dividends by increasing debt, helping lead to its downfall.

“When UBS, who advised the Government on asset sales, completed a scoping study on Solid Energy in November 2011 it said that, as a coal company, it should have zero debt, like comparable companies in Australia

“Solid Energy didn’t want high debt and the professionals didn’t want high debt. The only people who thought high debt for Solid Energy was a good idea were National ministers. They clearly had no idea what they were doing.

“National MPs and ministers have dismissed our calls for an inquiry. Instead of providing more answers these documents simply raise more questions. It is incredibly arrogant for National to block an inquiry when hundreds of people have lost their jobs and the company is $389 million in the red.

“I am writing to the Auditor General to ask her to investigate Solid Energy. The Government has ducked for cover. We will keep digging until we find the truth behind Solid Energy’s collapse,” says Clayton Cosgrove.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Environment And Conservation: Changes To Our Oceans Pose Serious Concerns

New Zealand’s oceans, coasts, and marine wildlife are under growing pressure, according to the first national report from the Ministry for the Environment and Statistics New Zealand about the marine environment. More>>


Police Authority: Use Of Taser Was Disproportionate And Unjustified

The Independent Police Conduct Authority has found that an officer’s second use of a Taser on a mentally unwell Hokitika man was disproportionate and unjustified. More>>


Gordon Campbell: On Holidays, Hekia Parata And Badlands

Hekia Parata, adieu. Reportedly, she’s been ‘passionate’ about education. She has “bravely’ led the charge on the government’s education reforms. In the past week , many of the postscripts to Hekia Parata’s career as Education Minister have sounded like a schoolteacher desperately trying to find some reason why a D student can be marked up to C minus. More>>


Minister of Finance: Plan Shows $100 Billion Infrastructure Projects

Finance Minister Bill English has today launched the Government’s Ten Year Capital Intentions Plan (CIP) which shows a pipeline of $100.9 billion worth of infrastructure projects over the next decade. More>>


Werewolf: Safe Landings Gordon Campbell on the safety challenge to the Wellington runway extension.

The safety-related legal challenge revolves around the size of the 90 metre long Runway End Safety Area (RESA) being proposed for the runway extension. More>>


Environment Commissioner: We Need To Work Together On Climate Change And Farming

“The debate around agricultural emissions and the ETS has been polarised for too long,” said the Commissioner. “But the ETS is not the only way forward – there are other things that can be done.” More>>


NZ Super Fund: Seeking To Put A Market Price On Climate Change

Oct. 19 (BusinessDesk) - The New Zealand Superannuation Fund says it will devise a set of rules to assess investment winners and losers under climate change, a strategy that could rule out fossil fuels or producers such as current portfolio member Exxon ... More>>


Rejuvenation: Parata Will Not Contest 2017 Election

Education Minister and National List MP Hekia Parata has today announced that she will not be contesting the next election. She advised the Prime Minister of her decision earlier this year. More>>

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news