Clayton
COSGROVE
SOE Spokesperson
3 April 2013 MEDIA STATEMENT
Govt mismanagement huge stress for workers

The Government’s financial mismanagement of the Tiwai Point deal is causing huge stress for South Islanders by putting over 3000 jobs at risk, says Labour’s SOEs spokesperson Clayton Cosgrove.

“Right across the lower South Island families are extremely concerned about their future. And they’re right to be – thousands of jobs could be lost.

“The blame lies squarely with the Government’s financial mismanagement. Everyone saw this coming apart from the Government. Despite numerous warnings John Key ploughed ahead with selling Mighty River and walked straight into the trap set by Rio Tinto.

“Now we risk a serious blow to the economy and the Government is all at sea. National owes it to concerned Southlanders to be honest and upfront about what’s on the table.

“Chances are he won’t be. John Key even claims the huge uncertainty and possible closure of Tiwai Point won’t have a big impact on Mighty River’s share price. That’s being very economical with the truth. Investment analysts say Tiwai’s closure would wipe 12 – 15 per cent off the company’s value.

“That’s a loss of half a billion dollars which will be a blow to the share price, no matter what John Key says. Investors will demand a discount for uncertainty.

“The Government’s insistence on ploughing ahead with the Mighty River sale is what’s got us into this mess. Rio Tinto saw an opportunity for leverage and took it. The sale must be stopped to provide breathing space and help secure a future for Southland.

“This is a process run by amateurs. And the Government is repeating history. They were warned two years before Solid Energy started falling apart yet they did nothing. Again the Government ignored the warnings and is repeating its mistakes,” says Clayton Cosgrove.

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