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

 


Solid Energy admits debt levels led to near-collapse

Solid Energy admits debt levels, not coal, led to near-collapse

Solid Energy has admitted that if it had a debt level appropriate for a major mining company when coal prices fell in 2012 it is ‘most unlikely’ the SOE would be in the perilous state it is now, says Labour’s SOEs spokesperson Clayton Cosgrove.

“Bill English and Tony Ryall have spent months claiming that it was the coal price alone that led to Solid Energy’s near collapse, not their complete mismanagement.

“Today Solid Energy said at select committee that was wrong.

“I asked the company ‘if Solid Energy had a level of debt similar to overseas mining companies when the coal price collapsed in 2012 would Solid Energy be in the same state it is right now?’ The acting chair Pip Dunphy said that would be ‘most unlikely’.

“The truth is National was mining Solid Energy for dividends for years, pushing the SOE’s debt gearing to above 40 per cent by 2012, when the best practice for international mining companies is zero to ten per cent.

“Tony Ryall and Bill English completely mismanaged Solid Energy. Despite numerous warnings of the serious challenges facing the SOE they did nothing but demand Solid Energy run up more debt to pay higher dividends.

“Solid Energy went from an export award-winning company to a basket case under National’s watch. The blame lies at the Government’s door,” says Clayton Cosgrove.

Ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On Andrew Little’s Debut, Mockingjay, And Drunk Texting

John Key’s credibility has taken a hammering this week – at least among the 50% of the electorate who have always had doubts about him on that score.

The other substantial story of the week has been about Andrew Little’s debut as Labour leader, which has received top marks, especially among the 25% of the electorate still voting Labour. According to some reports, the Labour caucus has been ‘in seventh heaven’ about Little’s success this week in taking it to the government in the House. More>>

ALSO:

 
 

Parliament Today:

Gordon Campbell: On Government Arrogance

Right now, National is ramming anti-terrorism measures through Parliament. This legislation will grant the SIS the power to carry out 48 hour bouts of surveillance on anyone without a warrant, and will bestow on government the power to unilaterally revoke anyone’s passports and thus deny them the freedom to travel. More>>

ALSO:

Glenn Inquiry: Report Offers Solutions To Family Violence

The People’s Blueprint unveiled today by Sir Owen Glenn’s independent inquiry into child abuse and domestic violence outlines a new, more cohesive and effective system for reducing New Zealand’s alarmingly high family violence rates. More>>

ALSO:

Environment Commissioner: Changing Climate And Rising Seas - Understanding The Science

A rising sea will be with us for a long time to come – one way or another we will have to adapt. But how high and how fast the water rises will be influenced by the speed at which the world – including New Zealand – reduces greenhouse gas emissions over the coming decades. More>>

ALSO:

Key Texts With Whale Oil Released: PM Can’t Be Trusted Over Dirty Politics Defence - Greens

John Key’s answers to questions about dirty politics can’t be trusted, after he was forced to admit that he had misled journalists and Parliament about contact with attack blogger Cameron Slater, said the Green Party today.. More>>

ALSO:

Temporary Release Crackdown Continues: Corrections Review Of Phillip Smith Case

“The review by Corrections’ Chief Custodial Officer reveals that the plan for Smith’s series of temporary releases was overly ambitious and misinformed. He’s a highly manipulative and deceptive person who although technically eligible, should not have been considered for temporary release." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news