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 The Mt Albert Aftermath

Personality politics – Jacinda is great! Jacinda is not so great! – have dominated the coverage of the Labour Party’s fortunes this week...

Still, this is a relatively new and welcome problem for the centre-left. Labour has seemed so bereft of crossover talent for so long that it seems almost embarrassed by this latest development. More>>

 

State Sector: Government To Apply Pay Equity Principles

Legal changes are not yet in effect but the State Services Commission, on behalf of the government, and the Council of Trade Unions on behalf of unions, have agreed to apply the principles to current pay equity claims. More>>

ALSO:

Throwing Stoners: English Blames Failed Drug Tests For Unemployment

Bill English’s diversionary tactic of condemning of a generation of Kiwi workers as a bunch of drug-takers cannot hide his government’s failure to create opportunities for decent work, says Labour’s Employment spokesperson Grant Robertson. More>>

ALSO:

Conservation: Central Govt Takes Over 1080 Regulation

“This new approach standardises the rules for using such poisons rather than the current system of different rules in different regions. This change will reduce costs and delays for operators, ensure consistent conditions throughout the country, reduce mistakes from misunderstanding rule differences and allow best practice approaches to be used." More>>

ALSO:

Election Entertainments: ACT Has Prison Plan, Greens Have Water Bill

Green Party launches Member’s Bill to protect our freshwater The Green Party has today launched a member’s bill that will keep water from underground sources, called aquifers, safe from pollution and contamination. More>>

ALSO:

2040 Target And Lower Standards: “Swimmable” Rivers Five Times More Likely To Make You Sick

Forest & Bird has condemned the government’s new water quality standards, warning New Zealanders that they lock in current levels of water pollution and allow for a 5-fold increase in the chance of getting sick from swimming in a river. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news