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.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


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>>

Prisons Grow: Government Approves Plans For Increased Prison Capacity

Despite significant progress in reducing crime the number of prisoners has increased faster than projected. This is because the proportion of offenders charged with serious crimes has risen, meaning more people are being remanded in custody and serving more of their sentences in prison. More>>


Gordon Campbell: On Plastic Bag Activism, And Street Harassment

Amusing to see the Act Party experiencing another outbreak of young fogey-ism. What has aroused the ire of Act Leader David Seymour this time is the introduction of a Greens private members bill to the ballot process, calling for a 15 cents levy on plastic bags to reduce pollution. More>>


Unclear Weapons: US Navy Ship Cleared To Visit NZ For Navy's 75th

United States Navy ship, the USS Sampson, has been given clearance to visit New Zealand next month by Prime Minister John Key... “The process for considering the visit by the USS Sampson is the same as that used for all ships attending the International Naval Review." More>>


P Policy: $15m Allocated To Tackling Drug Abuse

Almost $15 million dollars seized from criminals will be invested in anti-drug initiatives, with more funding for Police and Customs and a greater focus on treatment for drug abusers, Prime Minister John Key says. More>>


More Or Less Democratic Countries: Fiji Prime Minister To Visit NZ

“This will be Prime Minister Bainimarama’s first official visit to New Zealand as Fiji’s Prime Minister,” Mr Key says. “New Zealand and Fiji have strong ties in a range of areas, and the Prime Minister’s visit presents a further opportunity to discuss issues of mutual interest.” More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news