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.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Departure Speech: Governor-General’s State Farewell Luncheon

"...Unfortunately I was unable to get to the Antarctic, the Chatham Islands and the Kermadecs. A dicky heart thwarted our travel to the Antarctic; and even though I volunteered to parachute into the Kermadecs to join the Young Blake expedition, time, commitments and officials frustrated my plans to visit the Kermadecs and Chathams." More>>

ALSO:

New Research: Most Homeless People Working Or Studying

“The cost of housing has been rising without corresponding increases in income, whilst the number of state houses per capita has been in decline. Many low-income people are missing out on housing, whether we recognise them as ‘homeless’ or not. More>>

ALSO:

Post-Traynor: New Offender Info Sharing Plan

“This Bill delivers on that step-change by moving away from name-based records held by individual agencies to a shared, anchor identity based on unalterable information, such as fingerprints and facial recognition. It also gives agencies access to the drivers’ licence photo database and birth, death and marriages information." More>>

  • NZ Law Foundation - New $2M fund for research on information challenges
  • Littoral: New Ship To Deliver Enhanced Naval Capability

    Defence Minister Gerry Brownlee says the Government has approved a Ministry of Defence and New Zealand Defence Force recommendation to request tenders for a new naval ship to support littoral operations. More>>

    July:

    After King's Labour Snub: Māori Party And Kiingitanga To Work Together

    Māori Party Co-leaders Te Ururoa Flavell and Marama Fox met with Kiingitanga representatives in Wellington yesterday to discuss working together on key issues for the betterment of Māori. More>>

    ALSO:

    Waitangi Claim On Rehabilitation: The 'Justus' System For Māori Not Good Enough

    Closing statements at the Waitangi Tribunal case against Corrections called for immediate steps and a comprehensive review to address the high rate of Māori reoffending. More>>

    ALSO:

    Advice: PM Sets Rules For Ministers' Treatment Of Public Servants

    Prime Minister John Key has laid down the law about the way ministers and public servants should interact, saying ministers may not always like the advice they receive, but they must listen to it carefully, respectfully and professionally. More>>

    Gordon Campbell: On The Funding Changes In Special Needs Education, And Uber

    The plan to strip out the educational support for older “special needs” children in order to meet the existing shortfall in funding for special needs in early childhood education is so miserly and relentlessly stupid as to defy belief… More>>

    SPECIAL EDUCATION (& More):

    Online Learning Plans:

    Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
     
    Parliament
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news